Market Report
Montreal Office Investment Forecast
2026 Investment Forecast
Office Market Stabilization
Beginning to Take Shape
Flight to quality anchors path to recovery. Montreal’s office market is showing clearer signs of stabilization heading into 2026, following an uneven 2025 marked by selective leasing and widening performance gaps across property tiers. Class AAA space continues to outperform, with vacancy largely trending down over the past two years as tenants consolidate into best-in-class buildings. This flight to quality is now beginning to slowly spill into high-end Class A and well-located Class B assets, helping to steady vacancy across the broader market. New supply remains limited — virtually unchanged since the 1.3-million-square-foot National Bank headquarters delivered in 2023 — providing a critical backstop against further softening. Government downsizing and trade-related uncertainty have tempered demand in select submarkets more exposed to tariff risks. However, the metro is positioned for modest improvement through 2026, thanks to limited deliveries, selective conversions that removed obsolete stock from inventory, and tightening conditions in top-tier properties. Overall, Montreal is poised to shift from cyclical correction towards a gradual recovery.
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