Montreal Industrial Market Report

Trade risks continue to weigh on space demand. Montreal’s industrial market entered 2026 on a soft footing. Following a modest rebound in net absorption at the end of 2025, leasing activity slowed again in the first quarter, resulting in negative absorption and pushing vacancy up to 5.7 per cent. This increase came despite limited new supply, with approximately half the vacated space concentrated in Lachine, where the inventory is more heavily weighted toward older, larger-bay properties. Ongoing trade uncertainty surrounding the midyear USMCA joint review is expected to keep occupiers cautious in the near term, with many adopting a wait-and-see approach — particularly for larger-format requirements. As a result, even as completions are projected to decline for a second consecutive year, vacancy is likely to drift higher, reaching around 6.0 per cent by year-end.