Given the federal government’s compressed real estate demand, and in light of the new Omicron variant, return-to-office has been slower than anticipated. Rising vacancy rates can be attributed by 1000 Innovation Dr and Open Text returning approximately 100,000 SF and 20,000 SF respectively, while large pockets of sublet space entering the market, contributed to significant negative absorption reported in Q4. Despite ample amounts of space coming to market within the NCR, Ottawa office availability still remains below the national average of 12.2%.
The new Omicron variant has had little impact on the Ottawa industrial market as the sector continues to post another robust quarter with vacancy rates dropping due to logistics companies and distribution centres taking advantage of Ottawa’s strategic geographic location between Montreal and Toronto, as well as its proximity to the US border. As it remains steadfastly a landlord’s market, industrial tenants looking to enter the market should anticipate having to compete with several interested parties due to high demand and limited supply.