The Canadian office market continues to evolve, influenced by changing economic conditions, tenant demands, and supply dynamics. Cushman & Wakefield’s Q4 2024 Canada Office Market Update highlights important trends shaping the national landscape. Here’s a glimpse at some of the key insights:

Highlights from the Q4 2024 Report

  1. Vacancy Rates: Overall office vacancy rates climbed slightly, with certain property classes and locations facing more challenges than others. This points to an ongoing shift in how and where tenants are choosing to lease space.
  2. Rental Trends: Average asking net rental rates dipped slightly, with variation depending on location and property class. Despite this, gross rents remained steady, driven by slight increases in additional costs.
  3. Leasing Activity: Leasing rebounded strongly in Q4 2024, bringing the annual total higher than 2023. Class A spaces saw higher demand, but other classes were not far behind, reflecting diverse tenant preferences.
  4. New Supply: A notable amount of new office supply was delivered in 2024, primarily in Vancouver and Toronto, with more on the horizon in 2025, including major properties like 141 Bay Street in Toronto.

What Does This Mean for Waterloo Region?

While this report highlights national trends, the office market in Waterloo Region has its own unique characteristics. Understanding how these national dynamics influence local opportunities requires a nuanced approach.

  • For Tenants: Shifts in vacancy and rental rates may present opportunities to secure competitive leases, but navigating these trends effectively requires expert insight.
  • For Landlords: With changing tenant preferences and the introduction of new supply in major markets, staying ahead in a competitive environment is essential.

Let’s Talk About Your Office Strategy

The insights in this report only scratch the surface of what’s happening in the market. For a deeper understanding of how these trends impact your business, connect with the Cushman & Wakefield Waterloo Region team. Whether you’re looking to lease, invest, or reposition your property, our local expertise combined with global resources ensures you’re making informed decisions in a rapidly changing market.

Reach out today to learn more about how we can help you achieve your real estate goals.