Montreal Office Figures Q1 2025

–       There has been a recent spike in Class AA vacancy rates, bringing the vacancy in line with Class A. Most space is found in older inventory, meanwhile vacancies in Class AA buildings built or renovated after 2000 have a tighter vacancy rate of 10.3%. This is a 560 basis points (bps) spread compared to equivalent in Class A.

–       Sublease space rose 6.2% quarter-over-quarter and has reached a new ceiling of
2.6 million sq. ft.

–       Five out of six submarkets downtown experienced negative net absorption. Only two out of five were negative in suburban.

–       The impact of U.S. tariffs on office leasing remains unclear without further information, but the uncertainty has prolonged leasing decisions for some cross-border occupiers.