For the first time since the onset of the COVID-19 pandemic in Q1 2020, Ottawa's office market saw increased leasing activity this quarter, which resulted in positive absorption and decreased vacancy and availability rates for the Downtown and Suburban markets.
- Overall availability decreased by 61 basis points to 11.4% in Q3 2021.
- The most significant decline in availability was in the Kanata Class A market, where availability fell by 573 bps to 8.7% because of 93,722 square feet of positive absorption.
- Overall net asking rates decreased by 1.2%, down to $16.93 per square foot this quarter, due to more available space in Class B and C buildings.
- Class A asking rates are stable, due to landlords preferring to negotiate instead on terms.
- As COVID-19 case counts increased towards the end of Q3 2021, many companies have pushed their return-to-office plans to Q1 2022.