Waterloo Region Office Figures Q1 2025

–       The majority of leased space in Q1 2025 was turn-key, reflecting a growing trend among tenants who prioritize high-quality, ready-to-use options. This shift caters to the increasing demand for convenience and premium standards.

–       The office market has shown a modest improvement with approximately 39,000 sq. ft. of positive net absorption this quarter, which was most notable in the suburban node as it recorded positive net absorption for the first time since Q2 2024.

–       The most significant development in the core market concerns Class B spaces, where the vacancy rate has decreased by 110 basis points (bps) to 37.5%. Additionally, the availability rate has declined by 200 bps, supported by a positive net absorption of 27,000 sq. ft. among Class B space alone.

–       While the remainder of the region remains relatively stable, the Cambridge suburban market has seen a significant increase of 220 bps in the Class B vacancy rate, raising it to 8.1%.