There was more office space available for lease in Ottawa over the winter, mainly due to large blocks of federal government offices being vacated in the capital, according to a new report. The Q1 2026 Canadian Office Figures report from CBRE shows Ottawa’s office vacancy rate increased to 14.3 per cent in the first three months of the year. “Mostly due to large blocks of federal government offices being vacated,” CBRE said. “Though there are hopes that the recent federal return-to-office mandate will translate into burgeoning office demand in mid-to-late 2026.” According to the CBRE, previously government occupied spaces coming on the market include 114,000 sq. ft. of office space at the former “Revlon Building” at 1550 Carling Avenue and 112,000 sq. ft. at 59 Camelot Drive. The CBRE said Business Development Canada also vacated the 73,000 sq. ft. building at 700 Silver Seven Road. Despite the increase in office vacancies in Ottawa, the CBRE said the federal government’s return-to-office mandate has “provided some renewed optimism” that the “increased in-office presence will translate to burgeoning office demand in mid-late 2026.” The Treasury Board of Canada Secretariat also issued a new directive on in-office work in February. As of May 4, executives will be required to work onsite five days per week. All other federal employees in the core public service will need to be in the office for a minimum of four days per week, as of July 6.
