Figures

Waterloo Region Office Figures Q3 2026

Office market demand remains uneven

October 13, 2026 5 Minute Read

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  • Waterloo Region’s office vacancy rate increased to 17.6% in Q3, up 80 basis points (bps) from last quarter but remaining 30 bps below this same time last year. The region continues to experience an uneven recovery across asset classes and geography.
  • Downtown vacancy held at 30.0%, displaying a widening quality divide. Tenants continued to prioritize higher-quality space, pushing Core Class A vacancy down 240 bps to 18.0%, while weaker demand for older buildings lifted Class B/C vacancy to 36.5%.
  • Waterloo Region recorded 164,000 sq. ft. of negative net absorption this quarter, with the majority of the decline occurring in the suburban market. Downtown recorded 900 sq. ft. of positive net absorption, highlighting the varied leasing conditions across the region.
  • Waterloo Region ranks 10th for tech talent; its 41,900-person workforce grew 37.4% from 2022 to 2025.