Montreal office market report
Q1 2024
First positive signs for the office market since March 2020
The availability rate in the first quarter of 2024, at 18.5%, marks the first decline since March 2020. While it is too early to confirm that the 90-basis point (bp) decline seen this quarter is the start of a recovery, it is nevertheless a very positive sign.
9.0%
Availability
At only 9.0%, the availability rate for Trophy, or AAA, office towers, all located Downtown, is standing below the 10% threshold for the second consecutive quarter. This segment currently has just under 600,000 sf available for lease and 120,000 sf of sublet.
-130 bp
Decline in the availability rate for class A properties
The availability rate for class A properties has fallen by 130 basis-point since the peak (20%) observed in Q3 2023. There has been significant reinvestment in these properties to meet unfilled demand for higher quality space.
1 million
Amount of square feet potentially taken off the market
In downtown Montréal, conversion projects that are currently being assessed could remove nearly one million square feet of excess office inventory. In the absence of new supply, these conversions, referred to as adaptive reuse, could reduce the downtown vacancy rate by 1.0% to 1.5%, according to various scenarios.
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