Montreal office market report

Q2 2023

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The transformation of the office market continues

The uncertainty surrounding the long-term effects of the pandemic on the organisation of office work is beginning to dissipate. Out of all the hybrid models that have emerged from this reorganisation, two to three days a week in the office is establishing itself as the new norm. However, there are still many questions as to the ideal surface area per employee under this paradigm. 



The availability rate is gradually approaching an unprecedented peak of 20%. However, availability in top-quality buildings remains tight. Despite this, we expect availability to continue to rise slightly and for market conditions to remain favourable for tenants for another two years.



Sublet supply represents 14.7% of all available space, up from 13.4% in the first quarter (the lowest since the pandemic), but down from 16.0% in Q2 2022. 

$39.30 psf

Average asking rents

Average net asking rents were stable this quarter. However, this stability conceals a drop in net effective rents for landlords. It should also be noted that additional rent has risen sharply due to property tax increases,  and that this alone accounts for almost 45% of gross rent on average.

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