Ottawa's commercial real estate market is showing fresh signs of life, with institutional investors returning after a slower stretch, according to Nico Zentil, executive vice-president of capital markets at CBRE's Ottawa office.
"Really big deals" getting done
Zentil said the market has seen a run of significant transactions this year that point to renewed institutional confidence in the capital. "We've been able to get some really big deals done this year, which is great," he said.
Multi-family leads the way
Ottawa's multi-family sector led all investment activity, with $386.6 million in transactions, an increase of 86 per cent from a year ago. That growth was driven in part by two notable apartment sales: Lankin Investments' $72-million acquisition of the 23-storey, 258-unit Riversides apartment complex on Lycée Place, and Minto's sale of more than 800 residential units in the Parkwood Hills neighbourhood to Woodland Capital and Forum, a deal that closed just last week.
Office market volumes up more than 800 per cent
The office sector saw an even sharper jump, with transaction volumes up more than 800 per cent compared to the previous year. Two deals stood out. Ottawa-based Regional Group bought the 18-storey tower at 150 Slater St. from Manulife Investment Management for $143.5 million in February. And in May, Montreal-based Brasswater purchased the Carling Executive Centre from Crown Realty Partners for $53 million.
What it means for Ottawa
For a city whose office and multi-family markets had been considered relatively quiet by institutional standards, this level of activity marks a notable shift. Big out-of-town buyers like Brasswater and Lankin Investments putting capital into Ottawa properties, alongside a major local player like Regional Group, suggests confidence in the city's fundamentals is improving, even as questions remain about the broader tech sector here.
Earlier this month
The renewed investor interest comes even as Ottawa has faced some headwinds on the economic development side. Ottawa slipped to 14th place in CBRE's own annual ranking of North American tech talent markets last month, raising questions about how the capital compares to faster-growing hubs. ottown's earlier report looked at that slide in more detail. Real estate investment and tech talent rankings measure different things, but both are watched closely as indicators of how outside money views Ottawa's long-term prospects.
For now, Zentil's comments and the string of large deals across both the multi-family and office markets suggest that, at least on the investment side, institutional players are willing to bet on Ottawa again.
Sources: Ottawa Business Journal
