The Greater Montreal Area’s office availability rate is approaching 20%, says a new report from Avison Young.
The availability rate reached 18.4% in the second quarter but is relatively stable, having risen a modest 20 basis points from the first quarter, said the full-service commercial real estate company.
“This [rate] is low compared to the increases observed in 2021 and 2022,” said Avison Young in the report headed by Marie-France Benoit, the company’s national director of insight and innovation. “Furthermore, class A buildings show a slight decrease in availability this quarter.”
A total of 20.2 million square feet of office space was available across the region, compared to 2.2 msf in the the first quarter of 2023. Absorption was negative-514,000 sf year-over-year.
Avison Young said space reductions associated with lease renewals signed before the COVID-19 pandemic have not ended. But more tenants are willing to sign long-term leases.
Sublease space rose 130 basis points to 14.7% quarter-over-quarter.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.