Vacancy, rents and supply across Ottawa’s industrial, office, retail and multifamily markets, and what they mean for owners, buyers and tenants.
Ottawa Commercial Real Estate Market Report: Mid-2026
Mid-2026 summary
Four markets, four different stories
Ottawa's commercial markets are moving in different directions. Retail space in neighbourhood plazas is almost full and rents are rising. Industrial remains steady with a large wave of new supply under construction in Barrhaven. Office vacancy keeps edging up, giving tenants leverage. Rental housing has loosened as record construction meets slower population growth.
For owners, that means pricing and leasing strategies should be set market by market, not on a city-wide headline. For buyers and tenants, it means the best opportunities depend on which market you are in, and when.
This report draws on the most recent published research. We update it as new data is released, and track individual projects in our Development Tracker.
4.5%
retail vacancy, H1 2026
5.2%
industrial vacancy, Q2 2026
13.7%
office vacancy, Q2 2026
3%
rental vacancy, 2025
Industrial
Industrial: steady rents, new supply on the way
Ottawa industrial vacancy was 5.2% in Q2 2026, with an average asking net rent of $16.75 per square foot, described as stable, plus $6.19 in additional rent. West Ottawa averaged $17.15 net, East Ottawa $16.54 and South Ottawa $16.50.
About 3.2 million square feet is under construction, nearly all in Barrhaven. The Hunt Club corridor reported no vacancy, while Stittsville rose after new buildings were delivered. Net absorption was negative for the quarter but positive for the year to date.
Source: Cushman & Wakefield, Ottawa Industrial MarketBeat, Q2 2026.
What it means
- Owners: established locations still lease well; price new vacancies on current comparables
- Tenants: more choice is coming in Barrhaven; negotiate escalations and renewal rights
- Buyers: owner-users can lock in occupancy costs while rents are stable
- Investors: underwrite lease-up time on newer suburban buildings
Office
Office: a tenant's market
Office vacancy reached 13.7% in Q2 2026, continuing its upward trend. The Downtown Core was 12.9% and suburban markets 13.1%. Average asking net rent was $17.64 per square foot plus $18.97 in additional rent; downtown averaged $19.64 net and the suburbs $15.53.
Leasing was concentrated in Class A buildings, as tenants trade up to better space. Some older downtown buildings are being repositioned for other uses, while one suburban building planned for conversion returned to the office market.
Source: Cushman & Wakefield, Ottawa Office MarketBeat, Q2 2026.
What it means
- Tenants: strong leverage on free rent, improvements and flexibility
- Landlords: move-in-ready suites and realistic pricing lease first
- Buyers: owner-users can find good value in office condos and small buildings
- Investors: underwrite re-leasing costs and alternative uses carefully
Retail
Retail: neighbourhood plazas nearly full
Retail vacancy fell to 4.5% in H1 2026, and average asking gross rent rose to $44.73 per square foot. Neighbourhood and community centres were just 1.4% vacant, and neighbourhood malls saw the strongest rent growth.
Orléans (0.1%) and Kanata/Stittsville (0.5%) had almost no vacancy. Gloucester had the most availability, at 11.1%. Downtown rents were stable, supported by strong leasing at CF Rideau Centre, and the former Hudson's Bay flagship on Rideau Street sold in June 2026.
Source: Cushman & Wakefield, Ottawa Retail MarketBeat, H1 2026.
What it means
- Landlords: firm rents are supported in suburban plazas
- Tenants: start early and be ready to act on good units
- Investors: daily-needs plazas remain in demand
- Owners of larger formats: repositioning and mixed use are on the table
Multifamily
Multifamily: more supply, more modest rent growth
Ottawa's rental vacancy rate rose to 3% in 2025, according to CMHC, as record rental construction delivered new units. Near-term rent growth is expected to be more modest, with flat population growth expected through 2027 and federal job reductions weighing on demand.
Over the long term, Ottawa's stable institutional economy continues to support rental demand. For buyers, the focus shifts from rent growth to buying well: actual income, realistic vacancy and the building's condition.
Sources: CMHC, December 2025; Marcus & Millichap, Ottawa 3Q 2026.
What it means
- Sellers: present income clearly with a pro forma; buyers are underwriting carefully
- Buyers: more negotiating room on buildings that need work
- Investors: CMHC MLI Select financing can change the math on 5+ units
- Builders: new rentals face more competition at lease-up
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Market Report FAQs
How often is this report updated?
We update it as new quarterly research is published, and track individual projects monthly in the Development Tracker.
What is the vacancy rate for industrial space in Ottawa?
Cushman & Wakefield reported 5.2% overall industrial vacancy in Q2 2026, with an average asking net rent of $16.75 per square foot.
What is the office vacancy rate in Ottawa?
Cushman & Wakefield reported 13.7% overall office vacancy in Q2 2026, with the Downtown Core at 12.9%.
What is the retail vacancy rate in Ottawa?
Cushman & Wakefield reported 4.5% overall retail vacancy in H1 2026, with neighbourhood and community centres at 1.4%.
Can you tell me what my property is worth in this market?
We help owners evaluate value using best practices and current market evidence, and often recommend an independent appraisal. We do not promise a sale price.
Mitch Gauzas, REALTOR®
