Market Report
Montreal Office Market Report
2025 Investment Forecast
Sector Moving Past Most Challenging
Phase With Promising Signs of Recovery
Vacancy rate to stabilize as demand gains momentum. Office sector fundamentals in Montreal deteriorated at a rapid pace last year. Over 1.2 million square feet became unoccupied as demand fell, driving the vacancy rate to record highs. Yet, in the final quarter of the year, a modest decline in sublease space helped stabilize availability across all submarkets outside of the downtown core. This promising shift may become more pronounced in 2025, potentially paving the way for a broad-based recovery heading into 2026. While hybrid work arrangements remain a persistent challenge for office utilization, anticipated job growth in a lower interest rate environment this year could provide a backstop. Businesses will likely continue favouring quality spaces as a means to encourage a return to the office, thereby strengthening demand for Class A buildings. The National Bank’s relocation to its new head office on Saint-Jacques Street evinces this trend, as does the Canadian National Railway’s upcoming move in 2028. Rising demand from the emerging life sciences sector provides future growth opportunities as well. This sector has increasingly integrated with artificial intelligence in recent years, fuelling innovation and creating a need for specialized office spaces.
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