MONTRÉAL - In its Real Estate Market Study published today, Newmark Knight Frank Devencore reported that vacancy rates in the Greater Montreal Area's (GMA) industrial real estate market is currently at approximately 6%. The industrial market strengthened throughout 2014, with a significant amount of space being absorbed. Much of the leasing activity was generated by the warehousing and transportation sectors, which should continue to show strength in 2015 as the U.S. economy grows and exchange rates favour export trade.
"As has been the case for the past few years, demand remains strongest for spaces in the 25,000-50,000 square-foot range, but supply is limited for properties with clear heights above 24 feet and modern amenities. However, there is a substantial selection of industrial facilities in the 100,000 square-foot range," said Jean Laurin, President and CEO of Newmark Knight Frank Devencore.
In the GMA's individual industrial submarkets, vacancy rates vary considerably. For example, in the West Island district, Montreal's largest industrial real estate market, the total vacancy rate is 6.6% and a total of approximately 9.4 million square feet of industrial space is available for lease or sublet. In Laval, the overall vacancy rate is currently 9.2%, down slightly from a year ago, and there are a half dozen buildings available for lease with footprints exceeding 100,000 square feet and clear heights of 24 feet or greater. And on the South Shore--which is seeing heightened activity now that Autoroute 30 has been completed and the region a hub for warehousing and distribution businesses--vacancy rates are at 8.4% and a number of new buildings are under construction.
"Build-to-suit projects predominate the market at the moment, and there is not a great deal of new speculative development underway," Mr. Laurin added. "As a result, industrial space users that require larger floor plates or the most up-to-date amenities and features may be best served by the build-to-suit market. Leasing opportunities and costs vary considerably from region to region, so tenants and their advisors should undertake a careful examination of their present and future needs in order to obtain the best deals."
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 London-based partner Knight Frank and independently-owned offices, NGKF's 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real estate. NGKF's full-service platform comprises BGC's real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC's common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.
For further information, contact:
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
Devencore Ltd., Real Estate Agency