Q3 2025 Quarterly Report | Cushman & Wakefield Waterloo Region

The commercial real estate market in Waterloo Region is starting to pick up again. Activity is increasing across suburban Kitchener and Waterloo, and more tenants are touring available spaces. Businesses are exploring their options, and we’re seeing fresh momentum in several key areas of the market.

In this video discussion, Benjamin Bach and David Anderson share their first-hand perspectives on what’s driving demand, how tenant behaviour is shifting, and where the market is headed next. They cover everything from the rebound in leasing activity to the growing focus on efficiency, sustainability, and flexibility.

Watch the video below to hear their conversation in full.

Highlights from the discussion:

• • Suburban Strength: Tenants are gravitating toward high-quality suburban properties as downtown vacancies remain tight and pricing between Class A and Class B spaces continues to narrow.

• • Leasing Over Sales: Leasing activity is dominating the market as well-capitalized groups move decisively while others take advantage of flexible lease options.

• • Tenant Advantage: Softer conditions have created opportunities for shorter lease terms, higher improvement allowances, and more favourable negotiations.

• • Stability Ahead: After several years of sharp swings, the market has reached a period of moderation and steady growth, with industrial absorption improving and vacancies trending downward.

• • Sustainability in Focus: ESG-driven, low-carbon, and net-zero facilities are in increasing demand as occupiers plan for long-term operational efficiency.

• • Tech Sector Realignment: Local tech and hardware firms continue to shape demand — many requiring in-person collaboration and flexible, ground-floor space suited to R&D and prototyping.

As Benjamin and David note, confidence is returning to the market, and both landlords and occupiers are finding new ways to position themselves for the next cycle of growth.

Watch the full video to gain deeper insights from our experts and see how these trends could impact your next move.