Waterloo Region’s vacancy rate dipped to 6.3% in Q2 2020 and was the only office market in Canada to mark a decrease in vacancy this quarter.
Sublet space has started to trend upward, however still only represents 5.8% of all vacant space, the third lowest in Canada. The majority of this space is located in suburban submarkets as downtown sublet space remains scarce.
Given its cost-effectiveness and quality post-secondary institutions, there remains a steady stream of technology users who are actively looking for office space in the Waterloo Region. Both net-new and expanding existing tenants will help support the market’s growing office sector
Midwestern Ontario is expected to see 293,000 sq. ft. of new supply delivered to the market by the end of 2020. 345 King St W in Kitchener’s Innovation District is currently the largest building under construction and is 40.0% pre-leased.
As government restrictions are lifted, technology and data will play an important role as occupiers bring employees back to their workplaces. In the Waterloo Region, buildings including evolv1 and David Johnston Research + Technology Park have sensors that monitor movement and behaviour patterns. These will allow tenants to modify their floorplans to better facilitate movement flows through their spaces.