New Developments Will Significantly Boost Class A Office Inventory
MONTREAL, July 17, 2018 (GLOBE NEWSWIRE) -- In its Real Estate Market Research study published today, Devencore announced that availability rates for all office classes in downtown Montreal have been stable over the past year. During the current quarter they stand at 12.2%. (The availability rate tracks current vacancies, available sublease space and space that will soon be returning to the market.) The study also notes that the average gross rent for all office classes is currently $34.46/sf, up from $32.79/sf a year ago.
“Over 470,000 square feet of office space was delivered to the market in the first quarter of the year with the completion of the Maison Manuvie at 900 Boulevard de Maisonneuve West. In addition, the 275,000-square-foot Sommer Building at 416 de Maisonneuve Boulevard West was delivered in 2017. So while the availability rate has been stable over the past 12 months, over 700,000 square feet of space has been absorbed,” said Jean Laurin, President and CEO of Devencore.
“Nevertheless, because availability rates are relatively high, this is a very good time for tenants to be negotiating a new lease or a renewal, as space options in most office categories are very good,” Mr. Laurin added. “However, brick-and-beam offices, which are highly sought after by the creative class of tenant, are in short supply, as are larger blocks of contiguous space.”
The Devencore study also notes that there is an unprecedented number of major office development and redevelopment projects, as well as condo projects, currently underway, representing a level of activity that hasn’t been seen in Montreal for decades. The city’s massive infrastructure overhaul is also still in progress.
“Montreal enjoyed a banner year in 2017, when real GDP increased by 3.5%, well above the national average, and dozens of new enterprises were drawn to the city, bringing over $2 billion to the local economy,” Mr. Laurin said. “We’re hoping for similarly positive outcomes in 2018. The economy continues to perform well, and the various developments and infrastructure projects currently under construction will further energize the downtown core. In short, the outlook for business in Montreal has seldom been stronger than it is now.”
To read the complete market study, please go to: http://devencore.com/market_information_detail.php?id=49
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Founded in 1972, with national coverage, Devencore is the largest privately-owned corporate real estate brokerage and advisory firm in Canada. We offer comprehensive services that are specifically designed to ensure that all real estate decisions are supported by effective real estate strategies and professional execution.
Devencore has offices in Toronto, Montréal and Vancouver, as well as affiliated offices in Calgary, Edmonton, Moncton, Halifax, Québec City and Victoria.
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