Montreal Office Figures Q3 2024

–       Across the market flight-to-quality remains status quo, although vacancy rose significantly in most submarkets on the island. We attribute some of this spike in vacancy to shadow vacancy, space that hasn’t been considered vacant for multiple quarters while remaining unoccupied.

–       Class AAA buildings rest at a 7.7% vacancy rate, showcasing that tenant demand remains geared towards trophy assets offering quality and experience.

–       The dichotomy between Classes A & B vacancy remains high with a 760 basis points (bps) spread. Last year, this spread was 630 bps. The widening of the gap can be attributed to the increase of Class B vacancy in Downtown South

–       This quarter was well within expectations when keeping in mind that the previous quarter was the result of individual successes rather than a market-wide phenomenon. As such, one could easily qualify this quarter as ‘’cruise control’’ since the market went back to average results for post-covid Greater Montreal Area (GMA).