Montreal Office Figures Q1 2024

‒    The Greater Montreal Area (GMA) experienced minor softening to start the year as vacancy increased 20 basis points (bps) to 18.1%. Despite this, the downtown office segment saw positive momentum for first time in six quarters as vacancy eased to 17.7%.

‒    Tenant preferences are focused on high-quality offerings among new and existing occupiers in the GMA looking for upgraded space. This trend will continue over the course of 2024 with the best buildings from an amenity and location perspective remaining in highest demand.

‒    These flight-to-quality moves have created a bifurcated market in which Class B space continues to lag and account for the majority of vacancy including sublease options. Most are offering short-term lengths with just over 50% of all current sublets set to expire by the end of 2027.

‒    No new supply was delivered this quarter with several office developments across the GMA currently in the finishing stages. It is anticipated that all of the 2.0 million sq. ft. under construction will be delivered this year, depleting the pipeline.