Tenant's Guide

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Ottawa - FIrst Quarter 2017

Tenant's Perspective

  • With Phase 1 of the LRT slated for completion in 2018, this could lead to a rise in opportunities in the fringe core/suburban markets.
  • Downtown vacancy and lower rental rates, particularly in B & C buildings are driving factors for company's looking into downtown space.
  • A rise in modern office layouts have allowed tenants to consolidate into smaller offices as well as collaborative spaces.
As has been the case for much of the past 2 years, office vacancy rates in the Greater Ottawa Area continue to rise. Notable deals in the core include Klipfolio moving into 18,000 square feet of space in the World Exchange Plaza as well as the Federal Government taking over 90,000 square feet at 50 O'Connor. Shopify continues to expand its presence downtown by committing to a further 300,000+ square feet at 234 Laurier. In Kanata, the market continues to be busy, as many international firms have doubled down on the benefits of being in Ottawa. Auto industry titan Ford's announcement of a 338 million-dollar R&D initiative will see as many as 400 employees move from Blackberry QNX to Ford. This initiative will focus on mobility and keeping vehicles connected via wireless communication.

Rental and Vacancy Rates

$ per SF     Vacancy Rate   Margin from Q4
Basic Rental Rate  
$17.24  
  Greater Ottawa - Overall
4.6% 
  0.7%
$21.63  
  Greater Ottawa = Class A
7.4% 
  0.7%
$16.84  
  Greater Ottawa - Class B
5.2% 
  0.2%
 
 
$19.95  
  Downtown Core - Overall
5.8% 
  0.4%
$25.20  
  Downtown Core - Class A
6% 
  0.2%
$19.06  
  Downtown Core - Class B
5.3% 
  0.2%
 
 
$14.96  
  Gatineau - Overall
2% 
  0.3%
$24.70  
  Gatineau - Class A
13.2% 
  0.0%
$14.21  
  Gatineau - Class B
2.2% 
  0.4%
 
 
$16.36  
  Suburban East - Overall
6.4% 
  1.0%
$16.27  
  Suburban East - Class A
18.3% 
  3.2%
$16.62  
  Suburban East - Class B
9.6% 
  1.4%
 
 
$15.19  
  Suburban West - Overall
5% 
  1.4%
$18.05  
  Suburban West - Class A
8.5% 
  1.4%
$15.51  
  Suburban West - Class B
8.5% 
  1.8%

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