Waterloo Region’s office sector can be summed up as a tale of two markets. The high vacancy Kitchener Downtown market with many struggling buildings, and the Uptown Waterloo and Suburban markets where vacancy is dropping as tenants move to upgrade their space, and surroundings.
- The Toronto-Waterloo corridor, which is home to over 300,000 tech workers saw capital investment in tech companies cut in half between 2021 and 2022. Employment at technology companies came under pressure as recession signals started to flash late in the year.
- The average office building sales price was down dramatically to $207 per square foot, which is over 40% lower year over year.
- One notable office transaction was Colliers’ sale of Allen Square, a mostly vacant 110,000 square foot building in Waterloo. This was sold to a local developer who will be converting it into a residential site.