Vacancy rate jumps as region orders more workers back to the office

The Region of Waterloo is the latest among a growing trend of organizations requiring employees to spend more time in the office.

Starting on Dec. 1, 2025, all management and non-union management staff will have to come into work three days a week. The rules since the pandemic have only required two days of in-office work.

A statement to 570 NewsRadio said 60 per cent of regional employees are in the office five days a week already. The municipality went on to say, “We continue to assess work arrangements based on the needs of the organization, our community, and evolving workplace trends.”

The latest report from CBRE shows that while the return to the office trend has dropped the vacancy rate in other communities, like Toronto, where the rate dropped 150 basis points to 17 per cent last quarter, the rate in Waterloo Region jumped to 31.3 per cent.

Todd Cooney, Senior VP, Broker, CBRE, told 570 NewsRadio he’s fairly certain the decline is a one-off.

“What we’re hoping for is, the rise you’re seeing right now is just a blip in a quarter. What we’re hoping for is future recovery and absorption over the next couple of quarters as people make decisions.”

Cooney went on to say it’s only a matter of time before Waterloo Region catches up with other communities.

“You’ve seen it through the banks, the financial institutions. You’ve seen it through the government, and it will trickle down into every vertical in the office market. So, we are anticipating this being the high-end, and we’re expecting proper absorption moving forward.”

While much has been made about the benefits of remote or hybrid work, there are benefits to being in the office as well. Cooney said both the company and the greater community can reap the rewards from more people being in the office spaces.

“I think what you want is bums in chairs. At the end of the day it’s a driving factor for the culture of each individual company, but more importantly in the community. If you have higher vacancy, what that means is retail suffering downtown. You’re seeing the demand for office space suffer a little bit and it’s almost like a catalyst. When we have people in the office, it seems like we are more of a buzzing community and you can almost feel the energy.”