Montreal office market report
Q4 2025
An increase in market activity anticipated for 2026
The Montreal market posted a fifth consecutive quarter of positive absorption, closing the year with cumulative growth of 512,000 sf. The first time since 2019 that the year ended with positive cumulative absorption. Downtown, which represents 55% of total inventory, captured 43% of absorption.
On a proportional basis, growth was strong in the Laval (174,000 sf) and West Island (147,000 sf) submarkets. The proportion of total available space available for sublet decreased from 17.0% (3.39 msf) in Q4 2024 to 11.1% (2.26 msf) in Q4 2025 and if the market continues trending in the same direction, the percentage of sublet square footage could fall below 10%, a level last recorded in 2019.
Those factors explain why market sentiment is increasingly positive as we enter 2026, for both the leasing and investment markets. The latest Canadian cap rate and investment trends survey also signals a return of capital to the office investment market.
Absorption in the year 2025
The Montreal market closed the year with cumulative growth of 512,000 sf
Decrease in the sf available for sublet
The proportion of total available space available for sublet decreased from 17.0% (3.39 msf) in
Q4 2024 to 11.1% (2.26 msf) in Q4 2025.
Proportion of AY professionals expecting an increase in activity
74% of Avison Young professionals indicated in a recent survey that they expect leasing activity to exceed 2025 levels.
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