Montreal industrial market report
Q4 2025
Rents and vacancy rates stabilize despite uncertainty
The vacancy rate in the Greater Montreal Area, which has been rising steadily since hitting a low of 1.4% in 2021, stabilized at 7.2% in Q4 2025. Rental rates have also stabilized, around $14.50 psf, leaving landlords enough flexibility to offer leasing incentives in a more competitive environment. As the market has been learning to navigate uncertainty for the past year, major developments surrounding tariff policies are being closely watched in 2026.
7.2%
The vacancy rate is stabilizing
The vacancy rate in the Greater Montreal Area, which has been rising steadily since hitting a low of 1.4% in 2021, stabilized at 7.2% in Q4 2025.
-1 msf
Cumulative negative absorption in 2025
While cumulative absorption for 2025 remains negative (-1 msf) for the Greater Montreal Area, it has made significant gains outside the island, particularly in Laval (+647,000 sf), Lanaudière (+556,000 sf), and Montérégie (+365,000 sf).
+2.5 msf
Industrial projects under construction
Projects totaling 2.5 msf are under construction and for delivery in 2026.
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