However, there is a clear silver lining for some segments of the market
The Montreal office market has particularly felt the impact of a tightening financial environment over the past year, a trend that has hampered investment activity across all asset classes, according to Avison Young.
As of the first half of 2023, the sustained “unprecedented upheaval of the workplace and the role of office space caused by the pandemic has led many companies to reduce their office areas by 10% to 20%, or even more,” Avison Young said in its latest Montreal market report covering Q2.
“Not surprisingly, the availability rate is gradually approaching a peak of 20%, which has never been seen.”
At the same time, there is a clear silver lining for some segments of the market.
Montreal's annual residential sales grew in September, yet remained below historical seasonal averages, per the Quebec Professional Association of Real Estate Brokers.
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 10, 2023
Read more: https://t.co/L4tOALGN0u#mortgageindustry #housingmarket #montrealhousing #homesales
“The good news is for the occupants, who benefit from more options at very favourable conditions,” Avison Young said.
Montreal’s average gross asking rent per square foot stood at $39.30 as of Q2, including $17.53 psf average additional rent.
“Two to three days a week in the office is establishing itself as the new norm,” Avison Young said. “We expect availability to continue to rise slightly and for market conditions to remain favourable for tenants for another two years.”
