SW Ontario Office Market Report

Prominent industries influence market. Kitchener-Waterloo is one of North America’s top tech hubs. It houses Google and BlackBerry, while holding a dense and growing startup ecosystem. Complimented by a robust university network, the city’s tech labour force is growing. As the sector is interest rate-sensitive, easing conditions may be a driving factor behind the pickup in net absorption over the past two quarters. Meanwhile, Hamilton has quickly emerged as a leading life sciences hub. Not only is McMaster driving healthy labour gains within the sector, but recent investments also underscore long-term potential. With millions of square feet of life sciences space available, health-related demand could drive office performance over the long term. It is important to note, however, Southwestern Ontario’s exposure to automotive manufacturing. While more linked to industrial, trade pressures on the sector could have spillover effects. A slowing economy does also pose some risks for office investors.