Ottawa Brief - Industrial Development Outlook - March 2023

Ottawa’s aging industrial inventory is poised for transformation.

The industrial real estate market in Ottawa has long been characterized by its aging, small-bay inventory. With an average building age of 39 years, it is no surprise that much of the stock is out of date and lacking the amenities often sought out by modern industrial tenants. Despite this, there has been significant demand for industrial space in the region, driven by the 400 series highways providing easy access to Montreal, Toronto, and the United States, as well as the lack of availability in nearby competitive markets.

With high demand, the market has been playing catch-up to meet the needs of tenants, and developers have responded. Currently, nearly 160,000 sq. ft. is under construction across four projects in Ottawa, with 4.3 million sq. ft. more across 15 projects planned for the future.