Ottawa Office Figures Q1 2026

‒    Ottawa’s office vacancy rate saw a quarter-over-quarter increase of 100 basis points (bps) to 14.3%. This equates to 413,000 sq. ft. of negative net absorption. This was largely driven by previously government-occupied spaces coming to market such as 114,000 sq. ft from the former “Revlon Building” at 1550 Carling Avenue and 112,000 sq. ft. at 59 Camelot Drive.

‒    In regard to the federal government, the further reduction of their workforce has continued to apply a pronounced pressure on Ottawa’s labor market. Additionally, the federal government has issued a return-to-office mandate, with public servants going back at least four days a week. Concerns from real estate community and federal unions have emerged regarding the mismatch between the long-term plan to downsize the federal government’s office portfolio and their new in-office policy.

‒    Ottawa’s transit system has faced increased pressures with bus cancellations, train disruptions, and delays to the Line 1 extension, resulting in many experts and workers concerned about the upcoming office mandate. Progress has been steady with new bus acquisitions and transit priority projects underway. Other projects with progress include the ByWard Market revitalization plan and the Alto High-Speed Rail project.