Ottawa - Q1 2015 - Cresa

Tenant's Guide
Ottawa - 1st Quarter 2015
Ottawa's first quarter saw a higher than normal amount of leasing activity with
several large firms electing to make a change in their office premises.
Tenant's Perspective
Greater Ottawa's vacancy rate increased almost a full percentage point since last
quarter and now stands at 9.1%; the highest level in a decade. Based on a ten
year average of 6.3%, local tenants are experiencing a large amount of choice at
very competitive rents.
Ottawa's first quarter saw a
significant amount of leasing activity.
Though several large transactions were concluded in Kanata, many of these
tenants left vacant space behind which offset most of what was absorbed.
Greater Ottawa Vacancy Hits Ten
Year High.
Kanata's vacancy now stands at 11.4% which may appear fairly balanced. But with
most of the empty space contained in just a few properties, the reality is that
Kanata's market is tighter than it seems.
Kanata continues to heat up and is
moving to a landlord's market.
Rental and Vacancy Rates
$ per SF
Vacancy Rate
Margin from Q4
Market Trends
Net Rental Rate
15.28
Greater Ottawa - Overall
17.87
Greater Ottawa - Class A
13.64
Greater Ottawa - Class B
18.78
Downtown Core - Overall
24.79
Downtown Core - Class A
16.55
Downtown Core - Class B
13.26
Suburban West - Overall
14.72
Suburban West - Class A
12.09
Suburban West - Class B
9.1% 0.1%
8.2% 9% 8.3% 0.2%
Ten Year High in Ottawa's vacancy.
0.5%
Big Moves Announced as several large
firms prepare to relocate.
0.8%
6.3% 0.4%
8% 1.0%
10.1% 0.1%
7.9% 0.3%
15.5% 0.4%
Recent Transactions
Tenant
Size
Submarket
Type
Sector
Gowlings LLP
132,000
160 Elgin Street
Renewal
Legal
PWGSC
135,000
219 Laurier Ave. West
New Lease
Government
N-Able Technologies
49,000
450 March Road
Renewal &
Expansion
Technology
Mxi Technologies
45,000
175 Terence Matthews
Cres.
New Lease
Aviation
Shopify
32,777
150 Elgin Street
Expansion
Technology
Rogers
12,949
350 Albert Street
New Lease
Media
Kanata Market Heats Up even in the
face of flat vacancy.
The Tenant’s Advantage
Ottawa, ON – Q1 2015
Ottawa Office Vacancy
Total
Number
of Existing
Buildings
Total
Existing
Office Area
(sq. ft.)
Total
Occupied
Area (sq. ft.)
Vacant
&
Leased
Area
Direct
Available
Vacant
Area
Sublet
Vacant
Area
Total
Vacant
Area
Total
Vacant
Rate (%)
451
44,777,420
40,675,875
139,796
3,655,456
306,293
4,101,545
9.2
Downtown Ottawa
124
18,395,960
16,871,787
73,496
1,327,085
123,592
1,524,173
8.3
Gatineau
32
4,480,711
4,265,081
0
170,130
45,500
215,630
4.8
Suburban-East
79
5,769,319
4,993,339
0
760,918
15,062
775,980
13.5
Suburban-West
216
16,131,430
14,545,688
66,300
1,397,323
122,139
1,585,762
9.8
Class A
187
25,412,948
23,288,930
94,796
1,817,371
211,851
2,124,018
8.4
Class B
208
16,860,658
15,343,904
45,000
1,384,210
87,544
1,516,754
9.0
Class C
56
2,503,814
2,043,041
0
453,875
6,898
460,773
18.4
Sub-Market
Greater Ottawa
All Office Classes
Source: Altus Insite
Availability
The chart to the right shows
the number of lease options
over 50,000 sq. ft. over the
past ten years.
Available for Lease Options
Downtown Ottawa
All Office Classes
The yellow line indicates the
Availability Rate over the
same period. Office availability is the sum of vacant
and advertised space, over
the denominator of the total
office inventory.
Prepared By Cresa Ottawa
130 Slater Street, Suite 310
Ottawa, ON K1P 6E2, Canada
613.688.7200 | www.cresa.com