Waterloo Region Office Figures Q2 2025

–       The core’s Class RC segment saw the sharpest increase with vacancy rising 650 basis points (bps) to 33.0%. While Suburban Class A was the only segment to record a decline of 110 bps to 17.5%.

–       Since Q3 2024, region-wide Class A net asking rents have been gradually declining, hitting a low of $18.85 per sq. ft. this quarter—the lowest level observed since Q2 2021. This downward trend is encouraging, particularly given the sustained high demand for quality space.

–       Sublease activity is most pronounced in the suburban markets, where the vacancy rate for sublet space has declined by 420 bps to 17.1%—its lowest level since Q1 2021. Guelph’s suburban market stands out, having recorded the most significant drop: a 1,360 bps decrease, bringing the sublet vacancy rate to 0.0% this quarter for the first time since Q1 2023.

–       The majority of the core has remained stable this quarter despite a slight increase in vacancy. But as more companies push for employees to return to office 4-5 days per week, there is potential for an ease in vacancy.