Montreal Office Figures Q2 2024

–       While absorption reached a four-year high this quarter, it is mainly consolidated in 600 De La Gauchetière Street West and the National Bank buildings that have been delivered. Without those deliveries, absorption in the Greater Montreal Area (GMA) would be in line with Q1, as deal flow remains slow. As a result, the absorption spike is best represented as individual success stories instead of a “red hot” Downtown market.

–       Midtown and Suburban submarkets pushed the overall GMA vacancy rate to 18.8%. Downtown outperforms the market average as vacancy reached 17.4%, a 60 basis points (bps) decrease from end-of-year 2023.

–       Class AAA rests at a 7.2% vacancy rate, showcasing that tenant demand remains geared towards trophy assets who offer quality and experience.

–       The dichotomy between classes widens as Class B has a 750 bps spread to Class A. Last year, this spread was 450 bps.