Ottawa’s industrial market continues to experience strong demand and limited supply inside and outside of the greenbelt and in the Greater Ottawa Valley.
As demand for industrial space continues to outpace supply, the overall vacancy rate decreased for the sixth consecutive quarter, dropping 14 basis points (bps) to 0.8% in Q1 2022.
- The overall availability rate declined 40 bps this quarter and 112 bps year-over-year (YoY), down to a record low of 1.2%.
- This quarter there was 63,624 square feet of positive net absorption.
- This quarter’s average net asking rents increased by $0.21 to $12.48 per square foot, representing an increase of 1.7% from Q4 2021 and a growth rate of 10.4% YoY.
- There are currently six industrial buildings under construction, totaling 369,743 square feet. However, tenants’ current supply constraints when looking to relocate or expand their presence in Ottawa will not ease anytime soon, as more than 68% of the space is already committed to tenants.
