MONTRÉAL - In its Industrial Real Estate Market Report published today, Newmark Knight Frank Devencore reported that vacancy rates rose in Montreal's industrial real estate sector during the first half of 2013 to approximately 5.9%. Montreal's industrial real estate market is the second largest in the country, behind only Toronto.
"As has been the case for the past few years, there is a relative oversupply of industrial space in older buildings and in buildings with clear heights of less than 24 feet," said Jean Laurin, President and CEO of Newmark Knight Frank Devencore. "Spaces of greater than 100,000 square feet are also relatively abundant at the present time. The demand that does exist is strongest for spaces in the 25,000-square-foot to 50,000-square-foot range, and supply is limited for spaces with clear heights above 24 feet and more modern amenities. Given the limited inventory of contemporary space that is available for tenants with particular occupancy requirements, many tenants are opting to renew their leases, and for longer terms."
Among the more significant transactions that have taken place in recent months is the Cominar REIT purchase of 18 industrial properties primarily located on the South Shore of Montreal comprising 1.7 million square feet, Lockheed Martin's purchase of approximately 300,000 square feet in St-Laurent, and Metro's Inc.'s pending move into a new 240,000 square foot distribution centre in Laval that consolidates a number of facilities throughout the Montreal region.
While development activity was up in 2012, rising land and construction costs may delay the commencement of new industrial projects through much of 2013.
"With vacancy rates rising slightly over the past six months, the remainder of 2013 should hold out interesting opportunities for industrial tenants," Mr. Laurin said. "However, it should be emphasized that different opportunities exist in different areas of the GMA, so tenants and their real estate advisors should assess their particular needs strategically and examine the full range of available options in a market that continues to evolve."
About Newmark Knight Frank Devencore
As part of Newmark Grubb Knight Frank, one of the world's leading commercial real estate advisory firms, Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage, exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution. To learn more about our capabilities, please visit www.devencorenkf.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, Newmark Grubb Knight Frank employs more than 11,000 professionals, operating from more than 340 offices in established and emerging property markets on five continents.
With roots dating back to 1929, Newmark Grubb Knight Frank's strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, Newmark Grubb Knight Frank serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.newmarkkf.com.
Newmark Grubb Knight Frank is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.
For more information, contact:
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
Devencore Ltd., Real Estate Agency