Rental rates trend downward as sublease availability becomes more prominent

Entering the first quarter of 2024, the industrial real estate sector in the Greater Montreal Area (GMA) faces a challenging landscape. Fluctuating demand coupled with the previously low interest rates, which spiked from 2020 to 2023, has had a pronounced impact on speculative building and the need for warehouse space; however, the market has seen a downturn in recent months. Average asking rental rates decreased to $15.29 per square foot, marking the fourth consecutive quarter of declining rates, as demand for new space slows down and landlords try to match the slowing market activity.

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