Montreal Industrial Figures Q1 2025

New in 2025:

Increased demand in the Greater Montreal Area (GMA) has spurred developments in tertiary markets such as Beauharnois, Châteauguay, and Salaberry-de-Valleyfield. To accurately capture this evolution, CBRE Research has revamped its methodology to include these areas to have a more precise representation of the entire industrial market. See page 7 for more information. 

–       The availability rate in the Greater Montreal Area (GMA) has climbed 180 basis points (bps) year-over-year to 5.6%, despite only a 20 bps increase since Q4 2024.

–       The gap is widening by clear height categories. Below 26’ is tenant-leaning while above 26’ maintains strong demand.

–       The quarterly asking rent decline is reaching maturity. Q1 2025 dropped 0.6% while a year ago, this figure had a 5.2% decrease.

–       New supply totaled 909,000 sq. ft., and only Châteauguay saw new product delivered vacant.

–       Sublets have gone down 6.9% quarter-over-quarter with Saint-Laurent seeing a 10.9% reduction in their sublet footprint.

–       Amazon Canada’s departure from Quebec will potentially bring 2.3 million sq. ft. to the market, most likely through a mix of sublet and direct options, potentially hampering positive net absorption momentum.