Waterloo Region Office Figures Q1 2026

‒    Vacancy rates of downtown office space remains high at 30.5%, second only to London nationwide, but gradually continues it’s decline from it’s multi-year high of 31.3%, seen in Q3 of last year.

‒    Overall suburban vacancy rates rose 30 basis points (bps) quarter-over-quarter to 12.1%. In contrast, the Innovation District market tightened significantly, with Class C vacancy more than halving.

‒    Overall net asking rents remain stable, ticking up slightly to $16.49 per sq. ft. Downtown Class C net asking rent jumped 10% this quarter to $15.61 per sq. ft.

‒    Although Class A office space experienced relatively muted demand this quarter, the remainder of 2026 could pave the way for continued recovery, driven by a lack of upcoming new construction and a broader return-to-office trend.