Montreal Office Investment Forecast
Tech Presence Buoys Demand;
Long-Term Outlook Bright, Despite Pandemic Setback
Tenants favoring quality over centralized locations. Montreal will report noteworthy positive absorption in 2022, following a period where almost 1.2 million square feet was relinquished in 2021. A plethora of firms, including Facebook, Samsung and Google, established artificial intelligence labs here over the past few years, which is drawing in additional companies and boosting office demand. Aiding the allure of Montreal, the area is saturated with a talented labour pool, powered by the numerous academic institutions located in the metro. This has helped Montreal become a hub for life sciences and health technology firms. Both of these two sectors will continue expanding operations in the area, often requiring premium space at top-end facilities. These preferences are creating a bifurcated leasing trend, with many firms now more willing to vacate lower-tier CBD space for newer, Class A floorplans in less central submarkets like Midtown and West Island. Metrowide, an aggressive construction pace will prevent vacancy from tightening in the short term, but a slowdown of tenant loss signals the start of a recovery for Montreal.