Market Report
Montreal Industrial Market Report
2026 Investment Forecast
Trade Policy Development Casts
hadow Over Near-Term Outlook
Cautious recovery amid tariff risks. As a major manufacturing hub for machinery, pharmaceuticals and metal products, Montréal was among the hardest-hit industrial markets last year, weighed down by higher U.S. tariffs and persistent trade-related uncertainty. The vacancy rate surpassed 6.0 per cent by the fourth quarter, reflecting negative absorption that characterized much of the year. Looking ahead in 2026, trade policy developments are set to remain a key driver of the metro’s near-term industrial outlook. Tenants and investors will pay close attention to the upcoming USMCA joint review. The outcome will carry significant implications for cross-border supply chains and investment sentiment. At the same time, accommodative monetary policy is expected to spur leasing momentum. Even so, this tailwind will likely be tempered by the overhang of policy uncertainty, keeping the recovery measured. As a result, vacancy could edge higher early in the year before reversing course later on. Over the long term, the expansion of the Port of Montreal’s Contrecoeur Terminal could stimulate space demand, as it will boost container capacity by 60 per cent once completed.
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