Notable this quarter is the continued growth of the “Live, Work, Play” trend, which contributed to a rise in overall Downtown leasing as employers fight for local talent. This also had a strong impact on Fringe Core leasing, as firms flood the market in order to attract a younger employee-base. This trend is clearly demonstrated in the availability rates of the submarkets for this quarter, where Downtown Class B fell from 11.60% to 4.60%, and the Fringe Core Class C fell from 20.1% to 10.1%.
Strong activity was felt throughout the entire Ottawa market this quarter, with Government leasing activity in an otherwise quiet East market. Notable this quarter is the strong overall activity in Classes A and B in the West End, and Kanata.
The office market continues to tighten with the past quarter largely a leasing landlords’ market, with limited large and contiguous alternatives available downtown and in the West End.
Net Absorption in Ottawa this quarter rose to 682,714 square feet, an overall increase of 124.67%.