Industrial Real Estate Activity
There were some surprises on the economic front in Canada in 2014, most notably the sharp decline in world oil prices. Even so, the national real GDP growth in 2014 is expected to be in the 2.5% range, driven in part by the strong economic rebound in the U.S. and by gains in the manufacturing and export sectors. The Bank of Canada expects economic growth of 2.1% in 2015, close to the consensus among private sector analysts of 2.0%.
- Overall vacancy rate at approximately 6.0%
- Lower Canadian dollar and recovering U.S. economy generating growth in manufacturing, warehousing and distribution sectors
- Demand remains strong for industrial facilities with clear heights above 24 feet and modern amenities
Montreal's industrial real estate market is the second largest in the country, behind Toronto's. Newmark Knight Frank Devencore tracks an inventory of just under 350 million square feet in the Greater Montreal area (GMA). This industrial space is distributed among approximately 7,000 buildings.
NKF Devencore Montreal Industrial Market Study - Summer 2015