Buoyed by leasing activity in the city’s eastern submarkets, Ottawa’s industrial vacancy rate fell 20 basis points in the first quarter to reach 5.5 per cent, according to a local real estate firm.
Cushman & Wakefield Ottawa says vacancy rates in the eastern industrial submarket fell 60 basis points to a 12-month low of 3.3 per cent. Leasing activity was steady at 102,000 square feet, which includes SABIC Innovative Plastics taking close to 10,000 square feet at 1230 Old Innes Rd., the brokerage firm reported.
The quarter also the completion of a 64,000-square-foot build-to-suit facility for the federal government at 3020 Hawthorne Rd.
It’s a different story in the western submarkets, where the vacancy rate reached nine per cent, primarily due to softness in Kanata.
Looking ahead, Cushman & Wakefield forecasts that the industrial vacancy will climb over the next two quarters as approximately 266,000 square feet of space, mostly in the eastern submarkets, becomes available.