Montreal industrial market report
Q1 2025
Stabilization troubled by uncertainty
The vacancy rate of the Greater Montréal area (GMA) industrial market is showing signs of stabilization this quarter, with an increase of 10 basis points (bps) to 5.2% compared to the average rise of 60 bps each quarter in 2024. Absorption is also improving. Despite a negative absorption of 64,000 sf, the market is far from the quarterly average of negative 1.8 million square feet (msf) in 2024. In spite of lower interest rates, new industrial project starts are on hold. The number of square feet under development fell to 1.5 msf this quarter, in stark contrast to 2023 and 2024, when levels were 7 msf and 5 msf respectively.
+10 bps
Vacancy rate stabilizes in the GMA
The vacancy rate is showing signs of stabilization, with an increase of 10 basis points (bps) this quarter compared to an average of 60 bps each quarter of 2024.
1.5 msf
Currently under construction
The number of square feet under development fell to 1.5 million square feet (msf) this quarter, in stark contrast to 2023 and 2024, when levels were 7 msf and 5 msf respectively.
$15.00 psf
Average asking rents softening
The average net asking rent fell slightly to $15.00 per square foot (psf) but appears to be stabilizing. Tenants have greater negotiating power, being able to reach agreements at rents lower than asking rents.
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.