Institutional investors returning to Ottawa real estate, largest downtown office deal in three years
A CBRE executive says a surge of investment activity in the first eight months of 2026 signals growing confidence in the Ottawa market as larger institutional buyers prepare to re-enter.
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Institutional investors are beginning to return to Ottawa's real estate market after sitting on the sidelines for years, according to Nico Zentil, executive vice-president of capital markets at CBRE's Ottawa office.
The National Capital Region saw a surge of investment activity in the first eight months of 2026, with two major office deals signalling renewed confidence. In February, Regional Group acquired the 18-storey tower at 150 Slater Street from Manulife Investment Management for $143.5 million — the largest downtown office transaction in three years. In May, Montreal-based Brasswater bought Carling Executive Centre from Crown Realty Partners for $53 million. Both properties sold to private buyers.
Zentil, who helped broker the Slater Street transaction, said the window of opportunity for smaller investors may be narrowing. "I'm not surprised that in 2026 we saw a number of these types of deals done because there was an opportunity to get some attractive pricing metrics that will no longer be there in the future," Zentil said.
Foreign and private Canadian investors accounted for most activity in the first half of 2026, but Zentil expects the return of larger institutional buyers such as pension funds. "We've got some geopolitical tension and uncertainty out there, but I think (institutional) investors have been sidelined for a while," he said. "It seems like we've operated in an environment where we're just constantly having to navigate through issues. I think a lot of investors have said, 'Look, this isn't going to be a one-solve kind of result here. We're just going to have to figure out how to operate within the context of the current environment, and we're sick of sitting on the sidelines.'"
Zentil said signs of renewed confidence in Canada as an investment destination are emerging. "I don't know if that's three months, six months or nine months, but signs are emerging in a palpable way that Canada is a good place to invest capital … Ottawa is starting to return back to favour, which is nice," he said.
