Ottawa’s office vacancy rate decreased over the summer for the first time in a year, as the federal government’s office mandate helped boost market confidence, according to a new report. The CBRE Research’s Canada Office Figures third-quarter report shows Ottawa’s office vacancy rate dropped to 14.9 per cent in the July-September period. The downtown office vacancy rate dropped to 15.3 per cent, with “65,471 sq. ft. of positive absorption downtown,” CBRE said. “Market fundamentals continued to improve as Ottawa recorded its first quarter of positive net absorption since Q2 2025,” CBRE said. “Increased clarity surrounding the federal government’s office portfolio and workplace strategy has helped bolster market confidence, supporting a more optimistic outlook for leasing activity in the short to medium term.” The report says Ottawa’s office market recorded 28,000 sq. ft. of positive net absorption over the summer. The decrease in Ottawa’s vacancy rate comes as the federal government now requires all federal public servants to be in the office a minimum of four days a week. Over the summer, Public Services and Procurement Canada (PSPC) issued an expression of interest to identify potential office space across the City of Ottawa. “Select federal departments have reported insufficient space to accommodate current occupancy levels as part of the latest return-to-office mandate,” CBRE said. “Accordingly, PSPC issued an Expression of Interest in July to identify potential office vacancies capable of meeting future accommodation needs. While no commitments have been announced, these ongoing discussions have generated optimism among landlords regarding potential leasing demand.”
