Great News for Montreal’s Office and Industrial Space Sectors according to the National Dashboard Report by Colliers.
Montreal is booming with new construction projects, such as the Humaniti tower at 1030 Rue de Bleury, or like the Maison de Radio-Canada, and this makes for a lot of vacant office space in the business sectors of Downtown Montreal.
Class-A properties continue to do well However, this is also creating a demand for Class-A property investment which will make the Owners and Investors compete to gain and keep their present tenants. Quality Class-A office buildings are selling at cap rates in the 5-5.75% range. Reports are that SNC Lavalin completed a 20-year- sale-leaseback of its Blvd. René Lévesque Ouest headquarter. The Collier report says that investor appetite for office buildings in Montreal’s downtown core continues to remain very strong. Indeed, good news for Montreal.
Downward vacancy rate And more Good News for Montreal. This report goes on to say the industrial sector has a vacancy rate that remains in a downward trend, as it finishes the third quarter at 4%, all the while the availability rate was only 6.6%. According to the reports there continues to be a large demand for modern industrial building locations, in Montreal and this high demand is producing short supply, which creates upward pressure on price points, especially as REITs (Real Estate Investment Trusts) and institutional investors competitively bid.
The National Dashboard Report specified that the procurers said they anticipate top industrial locations to yield between 6.5% and 7%. Another interesting fact is that Montreal has seen some outstanding growth in it’s Artificial Intelligence (AI) sector – and by extension, optimism for the Montreal, as it’s a globally-renowned AI development hub.
Montreal being Canada’s second-largest city has also become home to the world’s largest community of deep-learning researchers, estimated to be close to 250, who are associated with Université de Montréal and McGill University. Commercial Real Estate in Montreal
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