Increasing Activity in Montreal Industrial Market
A degree of uncertainty in the world's financial markets continues to slow economic growth and undermine business and consumer confidence. The economic outlook for the Greater Montreal Area (GMA) is somewhat mixed. Job growth is relatively flat, and last year, the Conference Board of Canada forecast economic growth of 1.7% for the city. For 2013, BMO Capital markets estimates real GDP growth for Quebec at 1.4%, compared to 1.8% in the country as a whole, RBC projects real GDP of 1.6%, and in its recent budget the new provincial government estimated GDP at 1.5%.
- Overall vacancy rate falls to 5.0%
- More longer-term leases being signed
- Buildings with 24-foot and higher clear heights in demand; market more sluggish for older inventory
- Construction costs on the rise
Newmark Knight Frank Devencore tracks an inventory of just under 350 million square feet in the Montreal area, which is distributed among approximately 6,950 buildings. The industrial market in Montreal is the second-largest in Canada, behind only Toronto.
NKF Devencore, Industrial Market Study, Montreal - Winter 2013