Montreal industrial market report
Q1 2024
Rebalancing the landlord and tenant relationship
We’ve reached a turning point in the demand for industrial space in the GMA. The increasing vacancy, which rose from 2.6% to 3.4% year-over-year have initiated a re-balancing shift in the industrial market and calls into question the observed rent increases over the past three years.
-1.35 msf
Absorption
For the first time in a decade, the market recorded a negative quarterly absorption. The year-on-year increase in vacancy, from 2.6% to 3.4%, marks the start of a rebalancing movement in the industrial market. This calls into question the substantial rent increases of the last three years.
80 to 100 bps
80 to 100 bps additional for 100,000 sf and over
The vacancy rate for spaces of 100,000 sf or more is on average 80 to 100 basis points higher than for smaller spaces in the Greater Montreal area, due to the gradual decline in online sales and logistics.
$20-30 psf
Leasehold improvements
To remain competitive, some landlords are offering between $20 and $30 psf in leasehold improvements. Landlords still have the upper hand in negotiations, but the slowdown in demand no longer justifies the level of rent increases seen since 2022.
Your source for the latest Montreal industrial real estate reports
Stay on top of current trends affecting the industrial real estate sector in Montreal. Gain an overall better understanding of Montreal's industrial real estate market conditions, so you can better formulate strategies to overcome any obstacle and know how to best invest in industrial real estate in Montreal.
Here, you’ll always find the latest industrial real estate market news so you can stay ahead. Come back often to see expert insights on the current and future of Montreal's industrial real estate market.