Montreal industrial market report

Q1 2024

Rebalancing the landlord and tenant relationship

We’ve reached a turning point in the demand for industrial space in the GMA. The increasing vacancy, which rose from 2.6% to 3.4% year-over-year have initiated a re-balancing shift in the industrial market and calls into question the observed rent increases over the past three years.
-1.35 msf


For the first time in a decade, the market recorded a negative quarterly absorption. The year-on-year increase in vacancy, from 2.6% to 3.4%, marks the start of a rebalancing movement in the industrial market. This calls into question the substantial rent increases of the last three years.

80 to 100 bps

80 to 100 bps additional for 100,000 sf and over

The vacancy rate for spaces of 100,000 sf or more is on average 80 to 100 basis points higher than for smaller spaces in the Greater Montreal area, due to the gradual decline in online sales and logistics.

$20-30 psf

Leasehold improvements

To remain competitive, some landlords are offering between $20 and $30 psf in leasehold improvements. Landlords still have the upper hand in negotiations, but the slowdown in demand no longer justifies the level of rent increases seen since 2022.

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