Ottawa’s office real estate market cooled during the first three months of the year, as more office space became vacant across the capital.
CBRE Canada says Ottawa’s total office vacancy rate increased to 12.7 per cent in the first quarter of 2025, up from 12.4 per cent in the final three months of 2024.
“The first quarter of 2025 was a challenging one of the Ottawa office market,” the report says.
The report shows the downtown vacancy rate is 15.7 per cent, while the suburban office vacancy rate is 10.2 per cent.
“Office market conditions experienced minor softening as vacancy increased from 12.4 per cent to 12.7 per cent at the start of 2025,” CBRE Canada said. “Despite the potentially challenging political landscape, the market remained in a stable position with asking rents in a holding pattern, while a gradual mix of new listings and shadow vacancies became active.”
New vacancies included a 10,000 sq. ft. of direct vacancy on the 11th floor of the World Exchange Plaza and a new sublisting by Bennett Jones on the 19th floor, according to the report.
CBRE Canada says Kanata’s office vacancy rate increased to 13.4 per cent due to a “combination of direct and sublease listings as well as an unabsorbed shadow vacancy that emerged onto the market.”
The report shows 72,000 sq. ft. of new office space is under construction in the suburbs of Ottawa.
Ottawa’s office vacancy rate is below several other Canadian cities.
CBRE Canada says the office vacancy rate is 19.7 per cent in Toronto, 19.8 per cent in Montreal, 19.5 per cent in Edmonton and 26.1 per cent in Calgary.
