Ottawa's retail split widens: suburbs booming, downtown fighting for tenants
A new CBRE report shows suburban vacancy rates near zero while downtown rents have tumbled and landlords are dropping inducements as office workers gradually return.
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Ottawa's retail leasing market has split into two worlds. Suburban landlords are turning away tenants while downtown property owners scramble to fill empty storefronts, according to a new CBRE Canada retail rent survey covering the first half of 2026.
The improvement masks a stark divide. Downtown and the ByWard Market continue to post high vacancies compared with peer cities like Toronto, where office workers are flooding back and driving restaurant and services demand. Meanwhile, suburbs like Riverside South and Barrhaven are seeing near-zero vacancies fueled by population growth and demand for groceries, pharmacies, and service providers.
"Despite increased tenant inquiries downtown and in ByWard Market, deal activity remains in a holding pattern, with many retailers waiting to see if the federal government's return-to-office strategy is successful," the CBRE report notes. Large retail blocks ranging from 10,000 to 30,000 square feet are particularly sought-after in the suburbs, with completed transactions dominated by medical, entertainment, and service providers.
ByWard Market net asking rents have fallen to $25–$45 per square foot, down from $30–$50 six months earlier. Rates in other downtown neighbourhoods inside the Greenbelt — the Glebe and Westboro — remain steady at $40–$55 per square foot.
Jamie Boyce, CBRE's senior Ottawa vice-president, told Ottawa Business Journal that office attendance in Ottawa still trails Toronto, leaving downtown merchants dependent on that foot traffic in pain. But he sees shifts: "We're starting to see more vibrancy downtown. We're definitely starting to see more retail interest and a handful of new stores that are opening, but it's trailing the activity that other markets have seen."
Property owners who were offering free rent and fit-up subsidies at the start of 2026 are now finding they can attract tenants without those inducements — a sign that demand, while still uneven, is tightening.
The facts
What are the current asking rents in ByWard Market?
ByWard Market net asking rents are $25–$45 per square foot, down from $30–$50 six months earlier.
Which Ottawa suburban areas are seeing near-zero retail vacancies?
Riverside South and Barrhaven are experiencing near-zero vacancies, driven by population growth and demand for groceries, pharmacies, and service providers.
What types of retail tenants are most active in Ottawa's suburbs?
Medical, entertainment, and service providers dominate completed transactions in suburban areas, particularly for large retail blocks ranging from 10,000 to 30,000 square feet.
