Ottawa is Running Out of Space!
Ottawa’s business economy continues to move forward full speed on all cylinders. Practically all parts of the City are seeing significant office space absorption with decreasing vacancy. In fact, concerns are now being expressed that our upcoming lack of office space will hinder the City’s future economic growth. Ottawa’s overall office vacancy rate is down to almost 7% in 2019…an 8-year low. Kanata’s vacancy rate, itself, is 6.7% – its lowest rate in over 10 years.
Any company needing 40,000 square feet or more of office space has only a few options to choose from, and they may need to consider leasing in a different part of the City from where they currently reside.
In order to have more options to choose from, as well as to create the necessary leverage with a tenant’s existing landlord, tenants are beginning their lease renewal/relocation projects earlier and considering new buildings not yet built. Since it takes 2 years +/- to build a building, this means that tenants are starting to look at their office needs 3 years before their lease expiration date. At Proveras, we agree with this timeframe and approach. Office tenants can still secure attractive lease deals but they must be proactive and creative. Beginning early is one of the best ways to help ensure the best outcome.