The Greater Montreal office market has recorded positive absorption for the first time in six years, according to a new report from Avison Young.

The market has absorbed 116,360 square feet of space year-to-date, marking a notable turnaround driven by a gradual recovery in leasing and increased employer demand for in-office attendance.

The improvement in leasing coincided with renewed investment activity. KingSett Capital’s acquisition of 1200 McGill College Avenue for about $101 million, signalled a return of institutional buyers, said Avison Young. Local private investors also remain active.

Avison Young expects availability to tighten further, with new supply limited and major employers revising remote work policies. Several financial institutions are requiring employees to return to the office four days a week starting in September, suggesting a shift in workplace trends that may accelerate office demand.

In downtown Montreal, class A availability declined from 19.6% to 17.6% year-over-year. In the Quartier International, availability remains especially tight at 11.1%, well below the city average.

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