Montreal Office Market Report

Flight-to-quality remains primary leasing trend. Montreal experienced an uptick in leasing activity in the first half of 2022, with Class A and high-tier Class B assets seeing the highest demand. Throughout the health crisis, downtown Montreal faced significant headwinds. However, over the past few quarters, the government, along with property owners, have taken steps to re-establish the downtown core, with increased amenities and a diverse array of new activities. Although net absorption is still negative, it appears the market is close to reaching an inflection point, as the magnitude of negative absorption is beginning to subside. Finance and real estate remain important drivers for local office demand, with tech and media companies becoming increasingly prominent as Montreal is beginning to establish itself as a leader in language translation artificial intelligence. This is causing an increase in demand for high-quality, centrally-located assets, resulting in strong investment activity as owners still have confidence that Montreal will become a leading tech market.