Companies continue to divert their demand for office spaces from Downtown Kitchener to the Waterloo market, even though higher-class spaces are in the city’s core. Brick and Beam spaces have also lost some of their charm in the eyes of certain tenants. This aesthetic that was once cutting edge is becoming more of a barrier to entry for potential occupiers.
- A key trend prevalent in Waterloo Region’s office market is that the inventory available does not match the demand for what is being sought after. Tenants are looking for smaller pockets of space, which is much harder to find compared to larger of pockets of space that will not fit the needs of many.
- With no new construction or supply for the quarter the Waterloo Region Office market is at a standstill in terms of investment activity, although with the overall vacancy rate dropping to 11.3% for the quarter, leasing activity continues to flow.