Regina office market report

Three Key Trends:

Declining vacancy rates

Total vacant inventory of 637K square feet is slightly lower than previous years due to positive absorption. In Q1 2026, the Downtown vacancy rate declined by 180 basis points compared with 2024, reaching 13.7%, down from 15.5%.

Leasing activity in the Downtown core remains concentrated among government and professional tenants, with demand supported by the healthcare, financial services, and retail sectors.

Total office inventory across the market stands at 4,659,001 square feet. Class A properties represent 36.8% of total inventory, followed by Class B at 33.2% and Class C at 30.0%. From a geographic perspective, the Downtown core accounts for 88.8% of total inventory, with the suburban market comprising the remaining 11.2%.

Average lease rates tightening

Against a backdrop of moderate tightening in market conditions, rental rates have shown limited but steady upward movement across asset classes.

Average net asking rents for Class A space stand at $24.18 psf, with a range between $22 and $34 psf. Class B rates have edged up to an average of $16.60 psf (ranging from $15 to $21 psf), while

Class C space continues to trade between $12.50 and $14.00 psf.

The modest upward pressure on rents reflects improving fundamentals in select submarkets, supported by declining vacancy. At the same time, tenant preferences remain firmly cost-driven, with demand favouring affordable space offering accessible parking. This trend is particularly evident in suburban nodes, where leasing activity remains resilient despite rental levels that, in some cases, exceed those observed in certain established Downtown assets.

Momentum to continue in 2026

Regina’s population growth has recently accelerated to approximately 2.5%–3.0% annually, above its long-term trend of roughly 1.5%–2.0%, reflecting sustained in-migration and supporting demand across housing but also commercial real estate sectors.

New construction continued for several multi-family residential units (as the federal housing fund extends through 2026 and ends in 2027). This is leading to an anticipated population growth as cost of living in Regina is more affordable than other places in Canada and contributing to the steady growth in retail, restaurant, office space and mixed-use buildings.

If the anticipated growth continues, limited inventory will tighten the demand for available office space, and the rates will fluctuate to meet tenant requirements.