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Market Report

Montreal Industrial Market Report

3Q 2024

High-Quality Spaces Retain Popularity
Despite Ongoing Market Rebalance

Vacancy rising as market shows more balance. Montreal’s industrial vacancy rate is rising rapidly. Preliminary third-quarter data shows an increase to 5.0 per cent – a 240-basis-point jump since the end of 2023. Demand for space continues to trail new construction, leaving 6.6 million square feet unoccupied over the past 12 months. While the ongoing vacancy increase is generally viewed as market rebalancing, certain submarkets – such as Vaudreuil Dorion and South Shore – are facing more concerning vacancy levels at 21.1 per cent and 8.5 per cent, respectively. Elevated interest rates have softened demand for large-bay properties, as major tenants are taking longer to make leasing decisions amid ongoing economic uncertainty. This trend is expected to persist through 2024, with the metrowide average vacancy rate projected to near the 6.0 per cent range by year-end.

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