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Market Report

Montreal Retail Market Report

2025 Investment Forecast

Vacancy Rate Edges Lower as Demand
Stays Resilient Amid Supply Constraints

Market strength to hold in new year. Consumer spending in Montreal exceeded the national average in 2024. Retail sales from January to September rose by 1.2 per cent year over year — the highest growth rate among major metros. The market has also held a lower jobless rate compared with other key eastern metros like Toronto and Southwestern Ontario. These demand-side advantages are expected to carry over into 2025. Although population growth is projected to slow due to Quebec’s tighter immigration policies, falling borrowing costs are poised to bolster consumer confidence and support leasing activity. Furthermore, Montreal’s large student population and vibrant tourism industry will support the city’s consumer base, benefitting overall demand. On the supply side, subdued construction activity will help sustain solid fundamentals. Retail development remains largely restricted to mixed-use projects. Aside from the completion of the Royalmount project, no other large-scale shopping malls are currently proposed or under construction. This limited supply growth will help keep vacancy low, creating favourable conditions for continued rent growth.
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