Ottawa’s office market recovery lost momentum in Q2 2022 due to 117,973 square feet of negative net absorption.
- The overall vacancy rate increased by 31 basis points (bps) to 9.7%, while total availabilities increased by 30 bps to 11.5% in Q2 2022.
- Overall available sublet space decreased by 72,027 square feet in Q2 2022 and now makes up 11% of all available space compared to 14% one year ago. However, sublet space in Kanata is on the rise again as many tech companies have shifted to a hybrid work model, and many employees will not return to their offices.
- This quarter, net asking rates decreased by 1.5% to $16.64 per square foot, due to more available space in Class B and C buildings.
- The flight-to-quality trend continues as tenants right-size their office premises and, in many cases, are taking the opportunity to move to transit-accessible and amenity-rich office space to entice employees back to the office.