Q1 2021 was met with increasing vacancy and availability throughout the Greater Montreal Area. Following a brief period of record low COVID-19 cases, experts predict leasing activity will progressively return to normal by Q4 2021.
- Overall vacancy is up 110 bps following a consecutive quarter of negative absorption. Total availability reached a record high of 12% in Montreal’s core markets, highlighting reduced physical occupancy in Downtown properties which is likely to continue throughout 2021.
- Downtown net rents declined by as much as 2.5% QoQ, while market averages increased particularly in Laval, South Shore, and the West Island.
- Sublease activity reported a 115% growth YoY after more than 1.76 million SF of sublease space came to market.
- Developers remain optimistic about the future of office space by adopting development trends to accommodate new users looking to operate in suburban markets.