Ottawa’s industrial market continues to see strong demand, while supply levels remain dangerously low, threatening to pull interest away from the Greater Ottawa Area.
- The overall vacancy rate increased by 29 basis points (bps) to 1.1% in Q2 2022, due to several large blocks of space coming onto the market in the Kanata / Deep West and with the completion of a new industrial building in East Ottawa.
- The overall availability rate rose by 8 bps this quarter to 1.3%.
- Average net asking rental rates continue to reach historically high levels. This quarter’s average net asking rents increased by $0.80 per square foot to a new record high $13.27 per square foot, representing an increase of 6.4% from Q1 2022 and a growth rate of 13.3% year-over-year (YoY).
- There are currently eight buildings under construction which will add 585,596 square feet to the market by Q4 2022.
- Competitive offers for the purchase of industrial buildings persist despite rising interest rates.
