Figures

Ottawa Office Figures Q2 2026

Large block spaces drive vacancy upward as federal office mandate commences

July 8, 2026 5 Minute Read

Ottawa’s office market vacancy rate rose by 70 basis points (bps), rising from 14.3% to 15.0%. This equates to 120,000 sq. ft. of negative net absorption, marking Ottawa’s fourth consecutive quarter of increasing office vacancy. Net asking rents in both Central and Suburban offices have remained resilient and have not seen any considerable drop from Q1 2026 despite the increasing vacancy. This can be attributed to owners having confidence that they can receive fair market value for their space in the upcoming quarters.
In regard to the federal government, executives have started to work in-office five days per week as of May 2026 with the remainder of employees slated to return for a minimum of four days per week starting in July. Despite some concerns regarding the quantity of space available, the federal government has continued to vacate space across the city.
The office-to-residential pipeline has seen some shifts as the former Telesat headquarters at 1601 Telesat Court has been relisted on the market. The 215,000 sq. ft. building was acquired by Devcore Group in April 2024. It was originally set to be converted into a residential building and was subsequently removed from the market. It has since been reconsidered and has been recently listed for lease.