Strong deal velocity results in early gains for 2016.

1. MARKETVIEW
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
(300)
(200)
(100)
0
100
200
300
400
500
600
Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
Vacancy Rate (%)Net Absorption & New Supply (000s sq. ft.)
Net Absorption New Supply Vacancy
Strong deal velocity results in
early gains for 2016
Ottawa Office, Q1 2016
SUBMARKET HIGHLIGHTS
CENTRAL BUSINESS DISTRICT (CBD)
Ottawa’s Central Business District saw a significant
level of leasing activity in Q1 2016, with more than
122,000 sq. ft. of space traded overall. New deal
activity was offset by an almost proportionate
amount of newly available space, resulting in 9,349
sq. ft. of positive net absorption and a 6 basis point
(bp) decrease in the all-class vacancy rate to 8.8%.
The Class A market saw a steady level of deal flow,
but a handful of new vacancies pulled net absorption
down to -15,828 sq. ft. As a result, the Class A vacancy
rate increased by 15 bps quarter-over-quarter to 6.1%,
which is 80 bps above the trailing five-year average
and 234 bps above the trailing 10-year average rate.
Q1 2016 CBRE Research © 2016, CBRE Limited | 1
*Arrows indicate change from previous quarter.
Figure 1: Ottawa Office Market Fundamentals
Net Absorption
95,274 SF
Under Construction
555,885 SF
• The Ottawa office market saw a significant amount of
leasing activity in Q1 2016 with more than 413,000
sq. ft. of space traded in the quarter, city-wide.
• Strong deal velocity resulted in 95,274 sq. ft. of
positive net absorption, distributed proportionately
across the city.
• The market wide vacancy rate decreased by 24 basis
points (bps) quarter-over-quarter to 10.4%, but
remains nearly 200 bps above the trailing five-year
average rate of 8.4%.
• Controlex Corporation has begun construction of a 9-
storey, 161,460 sq. ft. office building located at 405
Terminal Avenue.
• There is now more than 440,000 sq. ft. of competitive
office product under construction city-wide, and
nearly another 115,000 sq. ft. of owner-occupied
office projects underway.
Lease Rate (CBD Class A)
$23.52 PSF
Vacancy Rate
10.4%
Source: CBRE Research, Q1 2016.

2. MARKETVIEW
DEEP WEST
The Deep West saw a steady level of new deal flow in
Q1 2016, with little more than 88,000 sq. ft. of space
traded in the quarter, almost exclusively in Kanata.
New leasing activity was offset by a number of
sizeable pockets of space that came available in the
quarter, which resulted in 2,174 sq. ft. of negative net
absorption. Most notably, DNA Genotek’s former
space at 2 Beaverbrook Drive, totaling 23,544 sq. ft.;
12,865 sq. ft. of space at 1 Hines Road, vacated by
TUC Managed IT Solutions; and 11,400 sq. ft. of
sublease space offered by Golder Associates at 1931
Robertson Road. The all-class vacancy rate closed the
quarter relatively flat at 12.1%, but remains 122 bps
below the trailing five-year average rate of 13.3%.
In Kanata, the all-class vacancy rate decreased by 31
bps quarter-over-quarter to 13.1%, which is more
than 250 bps below the trailing five-year average rate
of 15.6%. Two notable lease transactions in the
quarter were: firstly, Equiis Technologies’ (formerly
known as Article 12 Technologies) subleased 10
Brewer Hunt Way, totaling 17,287 sq. ft.; and
secondly, Alion Science and Technology Corporation,
leased 10,549 sq. ft. of space at 555 Legget Drive
(Tower A).
Q1 2016 CBRE Research © 2016, CBRE Limited | 2
OTTAWA OFFICE
Both Class B and C markets saw moderate levels of
leasing activity and relatively small gains in net
absorption. The Class B market registered 4,858 sq.
ft. of positive net absorption which resulted in a 10
bp decrease in vacancy to 10.7%. Similarly, the Class
C market registered 20,319 sq. ft. of positive net
absorption, due in part to the Harris/Decima deal at
123 Slater Street in the previous quarter. At 25.1%,
Class C vacancy remains 555 bps above the trailing
five-year average and nearly double the 10-year
average.
Notable vacancies in the CBD include: two full-floors
vacated by the National Capital Commission at 40
Elgin Street, totaling 24,624 sq. ft.; a full-floor vacated
by Brookfield Renewable Energy Partners at 180 Kent
Street, totaling 20,793 sq. ft.; and, another full-floor
vacated by Public Services and Procurement Canada
at 410 Laurier Avenue.
CENTRAL, EXCLUDING THE CBD
Outside of the CBD, Ottawa’s fringe-core saw some
new deal activity in Q1 2016, registering its first
positive result in a year and a half, this time closing
the quarter with 12,564 sq. ft. of positive net
absorption. As a result, the all-class vacancy rate
decreased by 48 bps quarter-over-quarter to 13.8%.
(60)
(40)
(20)
0
20
40
60
CBD Central (excl. CBD) Deep West West South East
Class A total: (39,202) Class B total: 104,726 Class C total: 29,750
Figure 2: Net Absorption by Building Class and Submarket (000s sq. ft.)
Source: CBRE Research, Q1 2016.

3. MARKETVIEW
Q1 2016 CBRE Research © 2016, CBRE Limited | 3
OTTAWA OFFICE
Figure 3: Notable Lease Transactions
Size (SF) Tenant Industry Address Submarket
42,500 Assent Compliance Information Technology 525 Coventry Road East
28,000 Desjardins Group Financial Services 1730 St. Laurent Boulevard East
17,287* Equiis Technologies Inc. Telecommunications 10 Brewer Hunt Way Kanata
13,000 Avaleris Inc. Information Technology 45 O’Connor Street CBD
10,549 Alion Science and Technology Defence & Space 555 Legget Drive – Tower A Kanata
5,500 Kivuto Solutions Inc. Information Technology 126 York Street Lowertown
*Sublease
Source: CBRE Research, Q1 2016.
Figure 4: Notable Sale Transactions
Size (SF) Price ($) Address Buyer Submarket
40,000 12,888,000 770 Broadview Avenue Mohawk Medical Properties REIT West
30,000 5,420,000 2283 St. Laurent Boulevard Takol Real Estate South
Source: RealTrack, CBRE Research, Q1 2016.
EAST
Ottawa’s East-end saw a significant amount of leasing
activity in Q1 2016, with nearly 78,000 sq. ft. of new
deal activity in the quarter. The East-end recorded
22,081 sq. ft. of positive net absorption and a 55 bp
decrease in the all-class vacancy rate quarter-over-
quarter to 15.6%. Notable lease transactions behind
the absorption numbers were: Assent Compliance
having signed a phased-in occupancy deal at 525
Coventry Road totaling 42,500 sq. ft.; and Desjardins
Group having leased a total of 28,000 sq. ft. at 1730
St. Laurent boulevard.
Despite the recent and mainly supply-driven spike in
vacancy, Controlex Corporation has begun
construction of a 9-storey, 161,460 sq. ft. office
building located at 405 Terminal Avenue. Given its
proximity to Tremblay Station on Ottawa’s new
Confederation Line, the building is well-positioned
to generate interest from large user groups.
WEST
Ottawa’s West-end saw a moderate level of leasing
activity in Q1 2016, with nearly 60,000 sq. ft. of space
traded in the quarter. Relatively little space came
back on the market, resulting in 32,108 sq. ft. of
positive net absorption. The all-class vacancy rate
declined by 46 bps quarter-over-quarter to 9.1%, but
remains more than 190 bps higher than the trailing
five-year average rate of 7.2%.
SOUTH
Ottawa’s South-end saw a moderate level of leasing
activity in Q1 2016, with relatively few new
availabilities that came to market. The South-end
closed the quarter with 21,985 sq. ft. of positive net
absorption which resulted in a 68 bp decrease in the
all-class vacancy rate quarter-over-quarter. At 6.7%,
the all-class vacancy rate is 200 bps below the trailing
five-year average and remains the lowest all-class
vacancy rate across the city.

4. MARKETVIEW
Q1 2016 CBRE Research © 2016, CBRE Limited | 4
OTTAWA OFFICE
Figure 5: Market Statistics Q1 2016
Submarket Inventory
(SF)
Vacancy
Rate (%)
Direct
Space
(SF)
Sublet
Space
(SF)
Net
Absorption
(SF)
New
Supply
(SF)
Under
Construction
(SF)
Avg. Asking
Lease Rate
($/SF/annum)
CBD 16,085,877 8.8 1,318,574 103,344 9,349 0 0 18.60
Class A 10,082,583 6.1 524,442 94,861 (15,828) 0 0 23.52
Class B 4,893,055 10.7 519,383 5,014 4,858 0 0 16.80
Class C 1,110,239 25.1 274,749 3,469 20,319 0 0 12.60
Central (excl. CBD) 2,600,341 13.8 337,114 21,444 12,564 0 0 16.42
Class A 489,572 25.5 112,557 12,495 (12,495) 0 0 19.86
Class B 1,233,965 12.6 149,483 6,449 8,071 0 0 14.53
Class C 876,804 8.8 75,074 2,500 16,988 0 0 15.03
South 3,244,042 6.7 166,912 50,925 21,985 0 66,176 12.01
Class A 1,229,616 8.0 56,904 41,000 29,291 0 66,176 13.75
Class B 1,795,502 5.6 90,677 9,925 (4,260) 0 0 11.47
Class C 218,924 8.8 19,331 0 (3,046) 0 0 9.43
East 4,714,517 15.6 713,189 22,081 21,442 0 161,460 18.25
Class A 2,476,417 22.4 531,535 22,081 (15,057) 0 161,460 19.95
Class B 1,861,414 9.0 168,175 0 35,749 0 0 13.36
Class C 376,686 3.6 13,479 0 750 0 0 12.02
West 6,924,565 9.1 591,261 38,866 32,108 0 0 15.17
Class A 4,618,667 6.7 303,706 7,581 8,528 0 0 16.76
Class B 1,865,877 14.2 233,108 31,285 27,829 0 0 13.71
Class C 440,021 12.4 54,447 0 (4,249) 0 0 12.51
Deep West* 6,927,403 12.1 771,853 65,712 (2,174) 0 328,249 12.45
Class A 4,916,268 10.2 474,996 28,066 (33,641) 0 328,249 12.88
Class B 1,875,584 17.6 291,690 37,646 32,479 0 0 11.75
Class C 135,551 3.8 5,167 0 (1,012) 0 0 12.00
Overall Total 40,496,745 10.4 3,898,903 302,372 95,274 0 555,885 16.33
*Kanata accounts for 80.0% of total inventory in the Deep West.
Source: CBRE Research, Q1 2016.

5. MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,
we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness.
This information is presented exclusively for use by CBRE Limited clients and professionals and all rights to the material are reserved and cannot be reproduced without
prior written permission of CBRE Limited.
CONTACTS
Shawn Hamilton
VP, Managing Director
+1 613 782 3092
shawn.hamilton@cbre.com
CBRE OFFICES
CBRE Limited
333 Preston Street, 7th Floor
Ottawa, ON K1S 5N4
Daniel Niedra
Research Analyst
+1 613 691 2113
daniel.niedra@cbre.com
To learn more about CBRE Research,
or to access additional research reports,
please visit the Global Research Gateway at
www.cbre.com/researchgateway.
OTTAWA OFFICE