Ottawa’s industrial market remains one of the tighter segments of commercial real estate.
Certain agencies reported that Ottawa’s industrial availability rate fell to 4.1% in Q2 2026, while others measured vacancy at just 2.5%. Both reports pointed to the same underlying issue: there simply isn’t enough functional industrial space available, especially for users looking for smaller bays, outdoor storage, trailer parking, higher clear heights or well-located space that does not require major retrofit work.
That shortage is showing up in rents. CBRE reported average net asking rents rising to approximately $16.71 per square foot, while Colliers reported approximately $16.87 per square foot in Q2.
For tenants, this means the old strategy of finding a space, waiting a few weeks and then trying to negotiate aggressively on rent can be risky. In many submarkets, the bigger challenge is simply finding a property that works operationally.
The key is to compare total occupancy cost, not just the advertised net rent.
A listing at $15.00 per square foot net does not mean the tenant’s cost is $15.00. Property taxes, building insurance and common-area operating expenses are normally added as additional rent in a triple-net lease. Utilities, interior maintenance and other tenant-specific costs may then sit on top of that again.
For example, a 10,000-square-foot property at $15.00 net with $7.00 per square foot in additional rent represents approximately $220,000 per year, or more than $18,000 per month before HST and utilities.
That makes lease structure increasingly important.
A slightly higher base rent in a better building can sometimes be cheaper than a lower-rent property that requires substantial fit-up, inefficient utilities or significant maintenance. Conversely, tenants with strong financials and a credible business plan may still be able to negotiate value through tenant-improvement allowances, free-rent periods, fixturing time or stepped rental rates, even where the landlord is unwilling to move significantly on headline rent.
There is another important factor: new supply is unlikely to provide immediate relief. CBRE’s Q3 national industrial report noted that Ottawa has a comparatively large construction pipeline, but that it is effectively all pre-leased, meaning very little of that new inventory is expected to arrive as readily available space for tenants.
For landlords and owners, that creates opportunity—but not permission to overprice poor space.
Tenants are increasingly selective about functionality. Ceiling height, loading, parking, outdoor storage, electrical capacity and layout can matter more than a small difference in rent. Well-positioned industrial properties can attract strong interest, while compromised space can still sit.
The takeaway is simple:
Tenants need to start their search earlier, and landlords need to understand exactly where their property fits within the market.
If you are considering a lease, renewal, purchase or disposition of industrial property, the most valuable first step is usually a realistic comparison of the alternatives—not just the asking rate.
Thinking about industrial space? I’m happy to prepare a side-by-side occupancy-cost comparison, review current availability, or provide an opinion of value for owners considering a sale or lease.
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