Montreal’s newer office buildings have posted more than 600,000 square feet of positive absorption this year, says Avison Young.

This growth, seen in buildings constructed since 2010, signals an active leasing environment, even as overall absorption rates remain negative across Montreal’s older office properties, the commercial real services firm reported.

Avison Young stressed that not all areas are performing equally. In downtown Montreal, the International Quarter (Quartier International) stands out with the lowest availability rate at 9.5%, a notable difference from the downtown average of 19.2%.

Demand is particularly strong for high-end office spaces. Trophy and class A buildings are seeing a widening gap in both availability and rental rates, with availability at 10.0% for trophy buildings during the first nine months of 2024 compared to 18.6% for class A spaces. Net asking rents also reflected this divide, with trophy spaces averaging $33.71 per square foot, well above the $22.62-psf average for class A properties.

The positive momentum in Montreal’s newer office stock suggests a strong market preference for modern, high-quality spaces as the city’s office landscape continues to evolve, said Avison Young.