Ottawa Industrial Figures Q1 2026

‒    Ottawa’s industrial market began 2026 with a moderate decrease in availability rate by 50 basis points (bps) from 4.9% to 4.4%. This equates to 182,000 sq. ft. of positive net absorption. Change was largely driven by Group Touchette leasing 108,000 sq. ft. of space at 101 Innes Park Way and the City of Ottawa leasing 27,000 sq. ft. of space at 201 Innes Park Way. Net asking rents have continued to further compress, going from $16.67 per sq. ft. in Q4 2025 to $16.35 per sq. ft.

‒    The current administration’s Defence Industrial Strategy could result in an uptick in demand for mid bay and large bay space, particularly in the tech hubs of Kanata and the Deep West given the recent announcement of over $900 million toward innovation by the NRC. Recent related activity includes Dominion Dynamics pre-leasing 25,000 sq. ft. at 103 Schneider Road.

‒    The upcoming CUSMA renewal and Middle Eastern conflict pose potential upside and downside risks to the industrial sector. Nevertheless, short term demand has continued to hold as large industrial tenants remain curious about further space acquisition. The small bay market remains tight due to a lack of viable product for tenants in the market.