Q4 2024 Montreal Industrial Market Report

Availabilities for industrial space continue to rise this quarter to a high of approximately 5.3% percent across the Greater Montreal Area (GMA). Average asking Net Rents have decreased slightly this quarter to approximately $15.14 PSF, with signs of further decreases going into Q2 2025. With just under 900K square feet of new supply delivered this year across the GMA, coupled with less demand, there are more options for tenants to choose from. This is offering certain tenants a flight to better quality buildings with +25’ Clear , consequently putting some downward pressure on the rent for less desirable clear heights. Net absorption this quarter was approximately -2M SF as demand is not quite keeping up with new supply. There are currently approximately 2M SF of sublet space available
and approximately 1.5M SF of industrial space under construction across the GMA at the end of Q4 2024. Tenant conditions are more favorable this quarter however major economic factors causing uncertainty such as the introduction of US tariffs, may lead to a leasing slowdown and increased vacancies in early 2025.

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