Regional Group's Bold Bet on Ottawa's Downtown Office Future

OTTAWA, ON – February 27, 2026 – In a move that sends a decisive signal of confidence through Ottawa’s commercial real estate market, local powerhouse Regional Group has acquired 150 Slater Street, a landmark downtown office tower and the global headquarters of Export Development Canada (EDC). The acquisition, finalized today, represents a bold, counter-cyclical investment at a time when many national and institutional investors are approaching the office sector with caution.

This purchase of one of Ottawa's premier Class A properties marks a significant expansion for the 65-year-old firm, solidifying its presence in the city's core and challenging the narrative of a downtown in decline. While the broader office market grapples with the lingering effects of hybrid work and rising vacancy rates, Regional Group is making a calculated bet on the enduring value of high-quality, well-located assets.

A Contrarian Bet on Quality

The acquisition of 150 Slater is a clear execution of a “flight to quality” strategy. The 19-storey, 500,000-square-foot tower, built in 2010 to a LEED GOLD standard, is the epitome of a premium office asset. With its distinctive marbled podium, abundant natural light, and modern amenities including a private gym and rooftop lounge, the building is designed to attract and retain high-caliber tenants. At the time of sale, the property is 100% occupied by office and ground-floor retail tenants.

This move comes against a backdrop of a softening Ottawa office market. Recent market reports from late 2025 show overall vacancy rates in the city hovering between 12% and 14%, with the downtown core experiencing negative net absorption as both public and private sector tenants right-size their footprints. However, these top-line numbers mask a crucial divergence in the market: Class A buildings with modern amenities and prime locations continue to outperform their older, less-desirable counterparts. Regional Group is banking on this trend.

“We believe the bottom of the office cycle has passed, and this property is a standout addition to our portfolio, taking advantage of the fact that typical investors have been sidelined,” says Sachin Anand, VP of Acquisitions at Regional Group. His sentiment is echoed by the company's leadership, who see opportunity where others see risk.

“We firmly believe in the resilience of the sector, and we are strategically investing in Class A office buildings with strong long-term potential,” added Sender Gordon, President and CEO of Regional Group. The acquisition suggests a belief that demand for top-tier spaces will not only persist but grow as companies use high-end offices to entice employees back and project a premium brand image.

The Trophy Asset and Its Anchor

Central to the deal's value is the building's history and its primary occupant. 150 Slater was purpose-built to house Export Development Canada, a federal Crown corporation. EDC’s tenancy, which occupies approximately 98% of the building, provides a formidable layer of income security. The federal agency's lease is set to expire in 2031 and includes two five-year renewal options, offering long-term stability.

Furthermore, the existing lease rates are reportedly below the current market rate for comparable Class A space, presenting what industry insiders call an “attractive upside on renewal” for the new owner. This combination of a stable, high-quality tenant and future revenue potential makes the property a rare and coveted asset.

The building’s previous owner, Manulife Investment Management, acquired the tower in 2011 after its development by Broccolini and Canderel. The decision by the institutional giant to put the property on the market in 2024 was seen by some as indicative of a cooling sentiment towards Ottawa's office market from large national players. This created an opening for a locally-focused firm like Regional Group to acquire a trophy asset that might otherwise have been out of reach.

A Local Firm's Strategic Expansion

While the acquisition of 150 Slater is a landmark transaction, it is not an isolated event. It is the culmination of a deliberate, multi-year strategy by Regional Group to deepen its holdings in the Class A office sector. This is the firm's third major Class A acquisition in the last four years, following the purchase of the three-building Qualicum Centre campus in November 2022 and the Churchill Office Park in April 2024.

This latest purchase, however, marks a significant step up in scale and profile, moving the firm from high-quality suburban assets squarely into the downtown core's top tier. It demonstrates an ability to execute major transactions typically dominated by large Real Estate Investment Trusts (REITs) and institutional funds. As a locally owned and operated firm with deep roots in the capital, Regional Group leverages its intimate market knowledge to identify and act on opportunities that larger, more bureaucratic investors might miss.

“We've always approached our acquisitions with an eye to what makes sense today and for the long term,” says Gordon. “This property offers excellent future potential with high-quality existing tenants, and we're thrilled to add it to our portfolio.”

This long-term vision is a hallmark of the company, which has navigated numerous real estate cycles since its founding as Regional Realty in 1958. Today, the vertically integrated firm oversees a portfolio of over 4 million square feet and a $5 billion development pipeline spanning commercial and residential sectors, giving it a uniquely comprehensive perspective on the city's growth.

Investing in Ottawa's Urban Future

Beyond the financial metrics of the deal, Regional Group is framing the acquisition as a tangible commitment to the vitality of Ottawa's downtown. As the city, like many others, re-imagines its urban core in the post-pandemic era, such significant private investment is a critical component of its evolution. The building’s direct access to the LRT and its central location at Slater and O'Connor place it at the heart of the city's transportation and business infrastructure.

By taking ownership of a key downtown landmark, the local firm is planting a flag for the future of the central business district, signaling that it is a place for continued investment and growth. This action provides a powerful counterpoint to narratives focused on government downsizing and empty office buildings.

“This isn't just about a real estate transaction,” Gordon adds. “It reflects our continued commitment to Ottawa's economic community, to shaping a vibrant city, and to Enriching Communities for years to come.”

As Regional Group officially takes over management of the building this month, its focus will be on maintaining the high standards of the property while integrating it into its expanding portfolio. For the Ottawa market, the transaction will be watched closely as a bellwether for the future of Class A office real estate and the resilience of the city's urban heart.