MONTRÉAL

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Last Updated:January 2020

Key Market Statistics

Downtown Montréal - All Office Classes

Major Developments

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Announcements:

  • A record 1.7 million square feet of office space was absorbed in Downtown Montreal in 2019
  • Demand for B-class office space ramps up
  • Existing owners are investing in their assets to keep up with trends and demands in the industry
  • Groupe Petra and Groupe MACH have partnered to purchase the 1100 René-Lévesque West office tower
  • Allied Properties REIT announced the acquisition of the office tower located at 747 Square-Victoria (also known as the World Trade Centre Montreal)

Major Transactions:

  • Hatch renewed 94,565 SF at 5 Place Ville Marie
  • Financière Banque Nationale renewed 93,000 SF at 1010 de la Gauchetière West
  • WeWork announced 64,500 SF at 385 Viger West and another 40,000 SF at 455 Saint-Jacques Street West
  • Desjardins took on 59,000 SF at 1050 Beaver Hall
  • Cogeco Communications Inc. relocated 60,500 SF at 1 Place Ville Marie


Availability Rate (Class A and B) - Downtown Montréal

Source: Altus Insite (Q4 2019)

Average Gross Rents (Class A and B)- Downtown Montréal

Source: Altus Insite (Q4 2019)

Market Statistic (all office classes)

Source: Devencore Research (Q4 2019)

Market Commentary:
“The Montreal market has been driven by a phenomenal economy. We have not seen this level of activity in the past 25 years. The city is being transformed on all fronts and in all sectors. The effect of such activity will be felt more seriously in the next few years as we slowly run out of space which is not good news for tenants.

As space gets absorbed, rents will go up, leasing conditions will be less attractive, and building values will go up. The appetite for real estate by institutions and funds will continue and competition will get fierce. Already we notice that there is a lack of sites for office developments; land costs are rising and so are construction costs. There is a new reality settling in and it will not be business as usual for the next 2-3 years, so brace yourself.”

Jean Laurin

President and CEO

Contact

Richard Breton
Vice-President and General Manager
rbreton@devencore.com


514.392.9702


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