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Well-Positioned but Under-Supplied
Market Sustains Low Vacancy Rates
Structural supply shortage reinforces fundamentals. Ottawa’s industrial sector softened last year, with the vacancy rate trending up to just above 3.0 per cent amid heightened trade risks. That said, no major projects were delivered during the year, which minimized supply-side pressures and helped to uphold healthy market fundamentals. While the One Canadian Economy Act could serve as a catalyst to boost investor and developer sentiment, Ottawa’s low land availability, strict zoning bylaws and strong pre-leasing strategies are likely to continue constraining construction activity over the coming years. Nevertheless, the volume of space arriving this year will rise substantially, led by Amazon’s new 3.1 million-square-foot Nepean fulfillment centre. This project highlights confidence in the metro’s long-term logistics positioning, benefiting from its strategic location between Toronto, Montreal and the U.S. border, as well as from well-established highways and infrastructure links. Lower interest rates, coupled with greater clarity on trade policies, are expected to reinforce this demand tailwind, paving the way for a vacancy rate decline in 2026.