Industrial Real Estate Market Holds Steady
Despite the economic uncertainty that has been generating almost daily swings in the world's financial markets, there has been a substantial amount of activity in the Montreal business community through most of 2011. In downtown Montreal's office real estate sector, for example, vacancy rates have slowly been falling back towards pre-recession levels, and there are new office developments about to proceed to the construction stage for the first time since 2004.
- Overall vacancy rates under 6.0%
- Tenants cautious; seeking shorter-term leases
- 20,000+ square-foot industrial spaces still plentiful
The Montreal area is the second-largest industrial real estate market in Canada. Newmark Knight Frank Devencore tracks an inventory of just over 350 million square feet, which is distributed among approximately 7,000 buildings. In mid-Q4 of 2011, the overall availability rate in these buildings was in the 5.5% range.
Industrial Market Study, Montreal, Winter 2011-2012