Office and industrial vacancy on the rise in Waterloo Region
Posted Jul 7, 2025 10:40:10 AM.
Last Updated Jul 7, 2025 03:14:51 PM.
The rate of vacant office spaces and industrial buildings is on the rise in Waterloo Region.
According to a recently released report from Commercial Real Estate Services (CBRE) Canada, 30 per cent of downtown office space in Waterloo Region was vacant at the end of the last quarter. Only London, Ont. (31.4 per cent) and Calgary (30.7 per cent) have higher rates of vacancy across the cities included in the report.
The report adds that there are currently no new construction projects underway to create additional office space.
The rise in vacancy has also steadily pushed a lowering of rental prices, which have been in steady decline since the start of 2024.
In London, vacant office space is being converted into residential housing units. 31,000 square feet of space has been converted into 41 residential units that can house up to 80 people.
Available industrial space is also on the rise in Waterloo Region. Last quarter, 6.5 per cent of the region’s industrial buildings were sitting empty, partly due to a significant rise in Cambridge vacancies.
“You don’t need a canary in a coal mine – you just need to watch the news to understand why the industrial market is slowing,” Paul Morassutti, chairman of CBRE Canada, said in a press release. “That said, the industrial market continues to right-size after the pandemic-induced logistics rush, and tariffs or no tariffs, speculative construction is going to be one of the biggest contributors to rising availability through 2026.”
Industrial vacancy in Waterloo Region has hit more-than decade-old highs.
