Industrial availability
6.6%
Down 20 bps quarter-over-quarter
CBRE · Q2 2026
Pinnacle Commercial · Market Intelligence
Waterloo Region commercial real estate market — Q2 2026.
A citation-ready snapshot of industrial and office conditions in Kitchener, Waterloo and Cambridge. Figures below are attributed to their original research publishers; Pinnacle adds local owner and occupier interpretation rather than inventing a proprietary market average.
Published September 9, 2026 · Quarter ended June 30, 2026
Industrial net absorption
+463,000 sf
1.6M sf year-to-date
CBRE · Q2 2026
Industrial under construction
~1.0M sf
Development pipeline
CBRE · Q2 2026
Industrial asking sale price
$261.97/sf
Market average asking price
CBRE · Q2 2026
Office vacancy
16.8%
Down from 17.6% in Q1
CBRE · Q2 2026
Office net absorption
+107,000 sf
Positive occupancy change
CBRE · Q2 2026
INDUSTRIAL
Positive absorption and a tighter availability reading.
CBRE reported 463,000 square feet of positive net absorption in Q2 and industrial availability of 6.6%, down 20 basis points. It also reported approximately 1.0 million square feet under construction and an average asking sale price of $261.97 per square foot.
Cushman & Wakefield independently reported positive Q2 industrial absorption, although its reported total differs because research firms can use different market boundaries, inventory sets and methodologies. That difference is a reason to cite the publisher and methodology rather than blend figures into a false single number.
OFFICE
Vacancy improved, but quality and location still matter.
CBRE reported Waterloo Region office vacancy at 16.8% in Q2, down from 17.6% in Q1, with 107,000 square feet of positive net absorption. Its commentary says leasing gains were concentrated particularly in Class A and B assets while older inventory continued to face challenges.
For landlords, that makes building quality, tenant improvements, parking, access and effective occupancy cost more useful decision variables than the regional vacancy headline by itself.
388,200
Kitchener–Cambridge–Waterloo employment · Q2 2026
Ontario's Q2 2026 employment report lists Kitchener–Cambridge–Waterloo total employment at 388.2 thousand, compared with 396.8 thousand in Q2 2025. Commercial property demand is not determined by employment alone, but labour-market direction is relevant context for office, industrial and consumer-facing space.
What was Waterloo Region industrial availability in Q2 2026?
CBRE reported Waterloo Region industrial availability at 6.6% in Q2 2026, down 20 basis points during the quarter. Availability is not the same measure as vacancy, so the two should not be used interchangeably.
How much industrial space was absorbed in Waterloo Region in Q2 2026?
CBRE reported 463,000 square feet of positive industrial net absorption in Q2 2026, bringing its reported year-to-date total to 1.6 million square feet.
What was Waterloo Region office vacancy in Q2 2026?
CBRE reported overall Waterloo Region office vacancy of 16.8% in Q2 2026, down from 17.6% in the prior quarter.
Is there one cap rate for commercial property in Waterloo Region?
No. A defensible cap-rate assumption depends on property type, location, lease term, tenant covenant, building condition, income durability, capital requirements and current transaction evidence. A market-wide headline rate should not be treated as a valuation for a specific property.
Geography: Waterloo Region / Kitchener–Waterloo–Cambridge as defined by each cited publisher. Period: Q2 2026 unless stated otherwise. Rule: figures are kept attached to their original publisher; figures from different brokerages are not averaged together.
Primary market sources: CBRE Waterloo Region Industrial Figures Q2 2026; CBRE Waterloo Region Office Figures Q2 2026; Cushman & Wakefield Waterloo MarketBeat Q2 2026. Economic source: Ontario Employment Report, April–June 2026.
CBRE office research →CBRE industrial research →Cushman & Wakefield MarketBeat →Ontario employment report →
This page is market information, not an appraisal, investment recommendation or representation that a specific property will transact at a stated rent, price or cap rate.