Ottawa’s office market continues to adapt to the new realities of the hybrid work environment, especially with the emergence of the Omicron variant delaying return-to-office plans.
- The overall vacancy rate increased by 42 basis points (bps) to 9.7%, while the overall availability rate increased by 87 bps to 12.3% in Q4 2021.
- Overall available sublet space decreased by 11,078 square feet in Q4 2021 and now makes up only 14% of all available space compared to 15% one year ago.
- Overall net asking rates decreased by 1.7%, down to $16.67 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.
- Downtown office tenants continue to right-size their office premises and, in some cases, are taking the opportunity to move from Class B to Class A buildings.
- As more companies shift to a hybrid work model, allowing employees to split their workweek between the office and home, the demand for suburban offices is rising.