•After a dip in vacancy last quarter, Midwestern Ontario’s vacancy rate levels out to 9.6% for Q3 as available space in both Waterloo and Wellington Region increases slightly. Class A space see the most vacancy fluctuation over the past few quarters but sees an increase of 270 basis points (bps) this quarter.

 

•Despite the slight increase in vacancy, net rental rates remain steady at $13.76 per sq. ft. The cities of Waterloo and Guelph have the highest net rental rates, sitting well above the average at $15.20 and $14.51 respectively. The Regions largest office market, the city of Kitchener’s rate sees a slight decrease from last quarter, falling to $13.04.

 

•So far in 2019, Midwestern Ontario has seen no new office supply being delivered to the market. Under construction remains true at 216,000 sq. ft. which consists of two buildings that are both well underway, expected to be completed by the end of the year.

 

•Kitchener’s Innovation District can expect some upcoming supply in the next year as the Glovebox Development is set to begin construction by next quarter. The new industrial-conversion office project will provide 150,000 sq. ft. of new innovative space for the many tech tenants looking to enter the competitive core market.