Category: Blog

Summer in Montreal has a rhythm. Offices thin out, the South Shore traffic eases, and half your contact list sets an out-of-office reply. It’s the season everyone waits for — and it’s also the season when commercial and industrial deals quietly lose momentum.

A lease negotiation doesn’t care that it’s July. A promise to purchase still has firm deadlines. A tenant weighing a warehouse in Saint-Laurent still needs answers this week, not in three. When the agent handling that file disappears for two weeks with no plan, the deal doesn’t wait politely — it goes cold.

The good news: a well-planned absence changes everything. Here’s what strong commercial real estate professionals in the Quebec market do before they step away, and what you should expect from any agent you trust with your business.

— Why Momentum Matters More in Commercial Real Estate

Residential deals can sometimes pause for a week without much harm. Commercial and industrial deals are different. They run on interlocking deadlines, financing conditions, and third parties who all move on their own schedule.

Think about a typical industrial transaction. There’s a due-diligence window with a hard end date. There’s a lender working on Bank of Canada terms who needs documents by a certain day. There’s a certificate of location to review, an environmental condition to satisfy, maybe a zoning confirmation from the municipality. Each of these has a clock running.

If your agent is unreachable when a lender asks a question or a counter-offer lands, you don’t just lose a few days. You risk missing a condition deadline, weakening your negotiating position, or watching a motivated seller move on to the next buyer. In a market where the right industrial space is hard to find, momentum is leverage. Losing it is expensive.

— What a Well-Prepared Agent Sets Up Before Leaving

A professional absence isn’t about never taking time off. It’s about making the time off invisible to your deal. Four things make that possible.

First, communications are scheduled ahead. Marketing campaigns, new listing pushes, and social posts are queued before departure, so your property keeps getting exposure even while the agent is on a beach.

Second, coverage is arranged. A trusted colleague is briefed on your file and empowered to handle showings, follow-ups, and the presentation of promises to purchase. Not a stranger reading a file cold — someone genuinely up to speed.

Third, the out-of-office reply is specific. It states the exact dates of the absence and names a real person to contact for anything urgent. "I’m away, I’ll reply when I’m back" is not a plan. A clear backup contact is.

Fourth, the voicemail matches. A short, clear message confirms the dates and redirects urgent calls to the right person, so a time-sensitive offer never sits unheard in a mailbox.

None of this is complicated. It’s simply the difference between an agent who treats your transaction as their responsibility and one who treats their vacation as your problem.

— What You Should Ask Before Your Agent’s Vacation

If you have an active deal and your agent mentions upcoming time off, a few direct questions protect you.

Ask who is covering your file and whether you can speak with them briefly beforehand. Ask how they want to be reached if something genuinely urgent comes up. Ask what deadlines fall during their absence and how each one will be handled. And ask whether any scheduled steps — a showing, an offer presentation, a financing follow-up — need to be moved earlier to stay safely ahead of the break.

A confident professional will welcome these questions, because they’ve already thought through the answers. Hesitation or a vague "we’ll figure it out" is a signal worth paying attention to.

— The Same Standard Works in Both Directions

This isn’t only about your agent. If you’re a business owner or investor heading out for the summer while a deal is live, the same discipline protects you. Let your agent know your travel dates and how to reach you for a true decision point. Decide in advance who on your side can sign, approve, or weigh in if you’re unreachable. Confirm which deadlines land during your trip.

The strongest transactions are the ones where both sides plan their absences with the same care. When everyone knows who’s covering what, a summer vacation becomes what it should be — a break, not a bottleneck.

Vacation season and a moving commercial deal are not in conflict. They only clash when no one plans for the overlap. A scheduled campaign, a briefed colleague, a specific out-of-office note, and a clear voicemail are small measures that keep your lease, purchase, or listing on track — and let everyone actually enjoy their time off.

If you have a commercial or industrial deal in the Montreal area and want to make sure it keeps moving all summer long, let’s talk before you — or I — head out. A short conversation now protects your momentum later. Reach out and let’s map out the plan together.

Pendant des années, le discours sur les espaces de bureau à Montréal était sombre — tours vides, télétravail, entreprises qui rendaient leurs espaces. Si vous avez reporté une décision à cause de ce récit, ça vaut la peine d’y jeter un nouveau regard.

Pour la première fois en plus de six ans, le marché des bureaux à Montréal enchaîne quatre trimestres de croissance. Le terrain bouge, et si vous louez un espace de bureau dans le Grand Montréal — ou envisagez un déménagement — la direction compte plus que vous ne le pensez.

Ce billet décortique ce qui se passe vraiment dans le marché des bureaux au 2e trimestre 2026, et ce que ça signifie pour votre prochain bail ou achat.

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Le taux d’inoccupation baisse au centre-ville

L’inoccupation des bureaux au centre-ville de Montréal a encore reculé au 2e trimestre 2026 — l’une des plus fortes améliorations parmi les grands marchés canadiens. Les entreprises choisissent des immeubles de qualité bien situés, et cette demande renouvelée fait baisser l’inoccupation de façon constante.

Ce n’est pas un soubresaut d’un seul trimestre. C’est une reprise large qui s’étend sur plusieurs trimestres dans les centres-villes du pays, et Montréal est près de la tête du peloton.

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Les espaces sont absorbés, pas abandonnés

Montréal est l’un des trois seuls marchés au pays à absorber plus de 300 000 pi² de bureaux le trimestre dernier. En clair : les locataires retirent de l’espace du marché, ils n’en remettent pas.

C’est l’inverse du discours « tout le monde réduit » des dernières années — et un signe clair que la confiance revient sur le marché.

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Le surplus de sous-location se résorbe

Vous vous souvenez du flot d’espaces en sous-location bon marché pendant la pandémie ? Il disparaît. À l’échelle nationale, la sous-location recule depuis douze trimestres consécutifs, et Montréal a mené le pays pour cette baisse le trimestre dernier.

Si votre plan était d’attendre une aubaine en sous-location, sachez-le : cette option flexible et abordable se raréfie rapidement.

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On ne construit presque plus rien

Voici l’histoire discrète derrière les manchettes. La construction de bureaux au pays est à son plus bas en vingt ans. Depuis 2021, on convertit ou démolit les vieux immeubles plus vite qu’on en bâtit de nouveaux.

Moins d’offre neuve et une inoccupation en baisse pointent dans une seule direction : les beaux espaces disponibles aujourd’hui deviennent plus rares. Ce qui semble abondant maintenant pourrait ne plus l’être dans un an ou deux.

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Ce que ça signifie pour vous

Si vous êtes locataire ou propriétaire-occupant, le rapport de force qui a défini les dernières années s’estompe lentement. Il n’a pas disparu — un locataire bien préparé peut encore négocier fermement — mais la tendance penche vers le propriétaire.

Bouger plus tôt, sur le bon espace, mérite réflexion. Quelques points à travailler avant de signer :

• Votre espace actuel est-il de la bonne taille pour la façon dont votre équipe travaille aujourd’hui ?
• Quel est le vrai coût d’attendre encore un an si les options de qualité continuent de fondre ?
• Négociez-vous l’entente complète — loyer, durée, améliorations et options — ou seulement le taux affiché ?

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Conclusion

Le marché des bureaux de Montréal est au début de sa reprise, ce qui laisse de réelles occasions à ceux qui lisent bien la tendance. Les locataires et propriétaires qui s’en sortent gagnants ne seront pas ceux qui attendent que le marché touche le fond — ce seront ceux qui bougent sur le bon espace pendant qu’ils ont encore le rapport de force.

Si vous cherchez un espace de bureau ou commercial dans le Grand Montréal, parlons-en avant que vous signiez. Une courte conversation sur votre espace et vos objectifs pourrait vous faire économiser — et vous placer devant un marché qui se retourne tranquillement.

If you run a business that needs warehouse, distribution, or light manufacturing space in the Greater Montreal area, the second quarter of 2026 handed you something unusual: a market that’s tightening and softening at the same time.

Space is getting harder to find, but rents are still falling. That combination doesn’t last forever — and understanding it now could save you money and stress on your next lease or purchase.

This post breaks down what the latest numbers show for the Montreal industrial market, and what they mean for the decision in front of you.

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Space Is Tightening — For the First Time in Years

For nearly three years, industrial availability across Canada kept climbing. In Q2 2026, that finally reversed: the national availability rate ticked down for the first time since 2022.

Montreal was part of that shift, posting a small decline in availability over the quarter. And demand here is real — the region absorbed 786,000 sq. ft. of industrial space last quarter, the second-highest total of any market in the country.

The takeaway: the days of endless options are ending. Good space is starting to move.

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Rents Are Still Soft — But That’s Changing

Here’s the part that works in your favour today. Montreal recorded the steepest year-over-year rent decline of any major Canadian industrial market in Q2 2026, part of a stretch of falling rents that’s lasted more than two years.

That’s good news if you’re signing now. But it comes with a clock attached: CBRE’s economists are forecasting national industrial rents to start rising again by the fourth quarter of 2026. The soft-rent environment you can negotiate in today isn’t expected to last.

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Almost No New Supply Is Coming

New industrial construction has slowed sharply. National deliveries in Q2 2026 hit their lowest level since 2017, and 2026 is shaping up to be one of the lightest years for new supply since 2018.

Less new construction means the space available today isn’t being replaced quickly. Combine that with tightening availability and firming rents, and the direction becomes clear: today’s tenant-friendly conditions are the exception, not the new normal.

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Don’t Wait on a Rate Cut That May Not Come

Many buyers are holding off, hoping cheaper financing is around the corner. It’s worth remembering how commercial financing actually gets priced here in Canada.

The Bank of Canada’s policy rate matters, but fixed commercial financing tracks the 5-year Government of Canada bond yield — and that number has been drifting up, not down. If you’re waiting for a rate cut to make your move, you may be waiting for something that doesn’t arrive, while rents and competition for space climb around you.

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What This Means for You

If you’re a tenant or an owner-user weighing industrial space in Greater Montreal, you’re looking at a genuine window — soft rents and available space, before supply tightens and rents turn back up.

A few things worth thinking through:

• Lock in term while rents are soft. A longer lease signed now can hold today’s lower rate through the expected turnaround.
• Negotiate the whole deal, not just the rate. Rent, term, improvements, and options all move your real cost — and a soft market is when landlords are most flexible.
• Don’t assume you can wait. With absorption strong and little new supply coming, the best-fit space may not be there in a year.

The Greater Montreal industrial market is at an unusual crossroads: availability is tightening while rents are still soft — a combination that history says won’t last long. The businesses that come out ahead won’t be the ones who wait for a perfect bottom that may already be behind us. They’ll be the ones who read the trend and move while they still hold the leverage.

Si vous dirigez une entreprise qui a besoin d’un entrepôt, de distribution ou de fabrication légère dans le Grand Montréal, le deuxième trimestre 2026 vous offre quelque chose d’inhabituel : un marché qui se resserre et s’assouplit en même temps.

Les espaces se font plus rares, mais les loyers baissent encore. Cette combinaison ne dure pas éternellement — et bien la comprendre maintenant pourrait vous faire économiser argent et stress sur votre prochain bail ou achat.

Ce billet décortique ce que révèlent les derniers chiffres du marché industriel montréalais, et ce qu’ils signifient pour la décision devant vous.

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Les espaces se resserrent — pour la première fois en plusieurs années

Pendant près de trois ans, la disponibilité industrielle au Canada n’a cessé de grimper. Au T2 2026, la tendance s’est enfin inversée : le taux de disponibilité national a reculé pour la première fois depuis 2022.

Montréal a participé à ce virage, avec une légère baisse de disponibilité sur le trimestre. Et la demande ici est bien réelle — la région a absorbé 786 000 pi² d’espace industriel le trimestre dernier, le deuxième plus haut total de tous les marchés au pays.

À retenir : l’époque des options illimitées tire à sa fin. Les bons espaces commencent à bouger.

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Les loyers restent bas — mais ça change

Voici ce qui joue en votre faveur aujourd’hui. Montréal a enregistré la plus forte baisse de loyer sur un an parmi les grands marchés industriels canadiens au T2 2026, après une période de baisse qui dure depuis plus de deux ans.

C’est une bonne nouvelle si vous signez maintenant. Mais un compte à rebours est enclenché : les économistes de CBRE prévoient une remontée des loyers industriels au pays dès le quatrième trimestre 2026. Le contexte de loyers bas dans lequel vous pouvez négocier aujourd’hui ne devrait pas durer.

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Presque aucune nouvelle offre à venir

La construction industrielle neuve a fortement ralenti. Les livraisons nationales au T2 2026 ont atteint leur plus bas niveau depuis 2017, et 2026 s’annonce comme l’une des années les plus faibles pour la nouvelle offre depuis 2018.

Moins de construction signifie que l’espace disponible aujourd’hui n’est pas remplacé rapidement. Ajoutez à cela une disponibilité qui se resserre et des loyers qui se raffermissent, et la direction devient claire : les conditions favorables aux locataires d’aujourd’hui sont l’exception, pas la nouvelle norme.

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N’attendez pas une baisse de taux qui pourrait ne pas venir

Beaucoup d’acheteurs patientent en espérant un financement moins cher. Il vaut la peine de rappeler comment le financement commercial est réellement établi ici, au Canada.

Le taux directeur de la Banque du Canada compte, mais le financement commercial à taux fixe suit le rendement des obligations du Canada 5 ans — et ce chiffre monte, il ne descend pas. Si vous attendez une baisse de taux pour bouger, vous attendez peut-être quelque chose qui n’arrivera pas, pendant que les loyers et la concurrence pour l’espace augmentent autour de vous.

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Ce que ça signifie pour vous

Si vous êtes locataire ou propriétaire-occupant et que vous évaluez un espace industriel dans le Grand Montréal, vous avez devant vous une véritable fenêtre — loyers bas et espace disponible, avant que l’offre se resserre et que les loyers repartent à la hausse.

Quelques points à considérer :

• Fixez la durée pendant que les loyers sont bas. Un bail plus long signé maintenant peut verrouiller le taux réduit d’aujourd’hui pendant le retournement attendu.
• Négociez l’entente complète, pas juste le taux. Loyer, durée, améliorations et options influencent tous votre coût réel — et un marché mou, c’est quand les propriétaires sont le plus flexibles.
• Ne présumez pas que vous pouvez attendre. Avec une absorption forte et peu de nouvelle offre, le bon espace pourrait ne plus être là dans un an.

Le marché industriel du Grand Montréal est à un carrefour inhabituel : la disponibilité se resserre alors que les loyers sont encore bas — une combinaison qui, selon l’histoire, ne durera pas longtemps. Les entreprises qui s’en sortent gagnantes ne seront pas celles qui attendent un creux parfait déjà peut-être derrière nous. Ce seront celles qui lisent la tendance et bougent pendant qu’elles ont encore le rapport de force.

Si vous cherchez un espace industriel dans le Grand Montréal, parlons-en avant que vous signiez ou achetiez. Une courte conversation sur vos opérations et vos objectifs pourrait vous faire économiser — et vous placer devant un marché qui se retourne tranquillement.

You found the right space. The location works, the size fits, and the rent is in your budget. So you sign the lease, start the build-out, and then watch tens of thousands of dollars leave your account to turn a bare shell into a working space.

Here’s the part many tenants in Greater Montreal never hear: a large chunk of that cost was negotiable. It’s called a tenant improvement allowance, and how well you negotiate it can be the difference between a business that grows smoothly and one that stalls right when it should be taking off.

This post breaks down what a tenant improvement allowance is, what’s typical for commercial and industrial space in the Montreal area, and how to use it to protect the thing your business needs most in its early years — cash flow.

What Is a Tenant Improvement Allowance?

A tenant improvement allowance (often shortened to TI or TIA) is money the landlord agrees to contribute toward customizing a space for your business. It’s usually quoted as a dollar amount per square foot.

That allowance can cover a wide range of work:

Interior walls and partitions Flooring and ceilings Lighting and electrical HVAC adjustments Plumbing for washrooms or kitchens Paint and basic finishes

The idea is simple. An empty space rarely matches what a tenant actually needs. Rather than make you pay for every change out of pocket, the landlord puts money toward the build-out — because a finished, occupied space is worth more to them too.

The key thing to understand: the allowance is not a fixed number printed on the lease. It’s a starting point for a negotiation.

What’s Typical for Commercial and Industrial Space in Greater Montreal

Allowances vary widely depending on the type of space, its condition, and how long you’re signing for.

For industrial space in the Greater Montreal area, allowances commonly land in the range of $15 to $25 per square foot. Industrial spaces — warehouses, light manufacturing, distribution — generally need less build-out than office or retail, so the per-foot allowance tends to be lower.

A few factors push that number up or down:

Office and retail build-outs run higher, because they need more finishes. In many markets these can reach $30 to $90 per square foot or more. Second-generation space (a space already built out by a previous tenant) needs less work, so it usually comes with a smaller allowance. A bare shell — sometimes called a cold shell — needs the most work and can justify a larger allowance. Longer lease terms unlock bigger allowances. A landlord will invest more in your space if you’re committing to five or ten years.

Treat these as starting reference points, not guarantees. The right number for your deal depends on your specific space, your lease length, and how motivated the landlord is to fill the unit.

Why This Matters More Than Most Tenants Realize

Here’s a real example of what’s at stake.

A business owner in the Montreal area signed a lease on a space that was, on paper, a good deal. The rent was fair and the location was right. But his agent never negotiated the tenant improvement allowance.

The result: every dollar of the build-out came straight out of his operating budget — at the exact moment he was trying to grow. That money should have gone toward hiring, inventory, and marketing. Instead it went into the building. His cash flow was squeezed for two years, and the business stagnated during a critical phase.

This is the part that gets overlooked. A tenant improvement allowance isn’t just about saving on construction. It’s about protecting your free cash flow when your business is most fragile.

On a 10,000 square foot industrial space, an allowance of $20 per square foot is $200,000 the landlord contributes instead of you. That’s money that stays in your business, working for you, during the years it matters most. How to Negotiate a Stronger Allowance

You don’t need to be a commercial real estate expert to negotiate well — you need to know which levers to pull and have someone in your corner who does this every day.

A few practical moves:

Ask first, always. Many tenants never bring it up. The allowance often improves simply because you raised it. Trade term for dollars. Landlords will frequently offer a larger allowance in exchange for a longer lease commitment. Weigh rent against allowance. A slightly higher monthly rent you barely notice can fund a much larger up-front allowance — a trade that often favors your cash flow. Clarify what the allowance covers. Some landlords limit it to "building standard" finishes. Know what’s included before you sign. Confirm who owns the improvements. In most cases the work stays with the building at lease-end, which is another reason the landlord should help pay for it. Get the payment terms in writing. Know whether the landlord pays contractors directly or reimburses you, and on what schedule.

Questions to Ask Before You Sign

Bring these to the table before you commit to any commercial lease:

What tenant improvement allowance are you offering, and what does it cover? Would a longer term increase the allowance? Is the space delivered as a shell, or with existing improvements I can reuse? Will you pay contractors directly, or reimburse me? What happens to the improvements when the lease ends?

The answers will tell you a lot — both about the deal and about how flexible the landlord is willing to be.

A commercial lease is one of the largest commitments a business makes, and the tenant improvement allowance is one of its most overlooked levers. Negotiated well, it keeps significant cash inside your business during the years you need it most. Negotiated poorly — or not at all — it quietly drains the budget you should be using to grow.

The tenants who come out ahead aren’t the ones who simply find the lowest rent. They’re the ones who structure the whole deal to protect their cash flow.

If you’re looking at commercial or industrial space in the Greater Montreal area, let’s talk before you sign. A short conversation about your space and your goals could save you tens of thousands of dollars — and a lot of stress during a critical phase of your business.

If you’re an investor or business owner eyeing industrial space in Quebec, you’ve probably told yourself the same thing many others have: wait for the Bank of Canada to cut rates, then buy and save on financing.

It sounds smart. But in 2026, that plan has a problem. The rate cut you’re waiting for may not be coming — and the rate that actually drives your financing cost is moving the wrong way.

Let’s break down where Quebec’s industrial market really stands, what’s happening with rates, and why the buyers winning right now are the ones who stopped waiting. The Rate You’re Watching vs. the Rate That Matters Here’s the confusion that’s keeping good deals on the sidelines.

Most people watch the Bank of Canada’s policy rate. It’s been held at 2.25%, and the country’s major banks expect it to stay roughly there through 2026. So if your plan depends on a series of cuts, you may be waiting a long time.

But the policy rate isn’t what prices most fixed commercial mortgages. That job belongs to the Government of Canada 5-year bond yield. And that yield has been drifting up — from around 2.80% earlier in the year toward as high as 3.70% by year-end, pushed by energy prices and global uncertainty.

In plain terms: the cost of fixed financing is more likely to rise than fall in the near term. Waiting isn’t free. It may simply mean locking in a higher rate later. Quebec Industrial Is Still One of the Strongest Sectors While the rate noise plays out, the fundamentals in Quebec industrial remain genuinely healthy — and that’s what should drive a buying decision.

Vacancy across the core logistics corridors — Montréal, Laval, Longueuil and the South Shore — is sitting around 3 to 4%. New construction has added supply, but that’s still well below long-term historical averages. Tight vacancy means landlords keep pricing power.

Rents reflect it. Asking rents for modern industrial space are running 40 to 70% above pre-pandemic levels, depending on location and building specs. For an owner, that’s durable income. For a buyer, it’s a signal that this isn’t a soft market waiting to be rescued by a rate cut.

This strength is exactly why sitting out is risky. You’re not waiting on a weak asset class to recover. You’re waiting on a strong one to get more competitive. The Reset Is Done — and That’s Good News for Buyers For two years, Quebec’s commercial market was stuck. Buyers and sellers couldn’t agree on price, deals stalled, and refinancing stress hung over everything.

That phase is largely over. Cap rates for stabilized industrial assets widened 75 to 125 basis points from their peak — mostly a reflection of higher financing costs — and have now stabilized. In Q1 2026, yields even compressed slightly. After the repricing, the market has far more visibility on pricing, yields and risk than it did a year ago.

For a buyer, clarity is opportunity. You can underwrite a deal today with real confidence about where pricing sits, instead of guessing in a market that’s still falling. The buyers who waited through the uncertainty are now competing to enter a market that has already found its footing. Who’s Actually Buying Right Now You can see the strategy in who’s transacting.

Owner-users are a growing share of demand, especially for buildings under 100,000 square feet. For a business, owning the building locks in occupancy cost, builds equity, and removes the risk of being priced out of a tight rental market later.

Investors, meanwhile, are favoring infill and last-mile locations — assets close to dense population centres with clear rental growth ahead. These are the properties that benefit most from low vacancy and rising rents.

What both groups share is a mindset: they’re underwriting the asset and the financing as it exists today, not betting their timeline on a rate cut that may never arrive. How to Move Smart in This Market If a deal makes sense on today’s numbers, here’s how to act with confidence:

Get your financing pre-arranged so you know your real cost of capital now, not a hoped-for one. Consider floating-rate or shorter-term debt if you expect to refinance, but model it against where bond yields are actually heading. Underwrite to in-place rents and realistic growth — Quebec’s rent strength is real, but pay for the asset, not the hype. Move on motivated sellers. Owners facing a refinance or repositioning are where the best entry points sit. Conclusion The Bank of Canada is on hold, the bond yields that drive fixed financing are drifting up, and Quebec’s industrial market is healthy, repriced and clear on pricing. Put those together and the conclusion is hard to ignore: waiting for a rate cut isn’t a strategy in 2026 — it’s a gamble on something most economists don’t expect.

The investors and business owners winning right now aren’t waiting. They’re reading the real numbers and moving on quality assets while the window is open.

If you’re weighing a purchase or lease in the Quebec industrial market, let’s run the numbers on your specific situation together. Reach out anytime — no pressure, just a clear-eyed look at what makes sense for you.

Not long ago, finding available industrial space in Saint-Laurent or Laval meant moving fast, competing hard, and paying whatever the market demanded. Vacancy rates across Greater Montreal had bottomed out at just 1.4% in 2021 — effectively no room to move. That market is gone. Today, industrial vacancy in the Montreal area sits above 7%, with Saint-Laurent and Laval among the most affected submarkets. Asking rents have softened. Older properties are sitting on the market longer. And for the first time in years, buyers and investors have leverage. If you’ve been waiting for the right moment to secure industrial space in two of Montreal’s most strategically connected corridors, this is the environment you’ve been waiting for — but it may not last as long as you think.

How the Montreal Industrial Market Got Here To understand the opportunity in front of us, it helps to know how quickly things changed. During the pandemic years, demand for industrial and logistics space surged across North America. E-commerce growth, supply chain restructuring, and a scramble for local warehousing pushed vacancy rates to historic lows. In Greater Montreal, that number bottomed at 1.4% in 2021 — a level that gave landlords almost total control of the market. Rents climbed. Competition for available units was fierce. For business owners who needed space, options were limited and timelines were tight. Then the market shifted. New supply entered as developers responded to strong demand. Absorption slowed as businesses, facing rising costs and economic uncertainty, became more cautious about expanding footprints. The result has been a steady climb in availability — seven consecutive quarters of negative net absorption in the Greater Montreal Area, with the industrial vacancy rate now sitting above 7%. Rental rates, which peaked during the tight market, have settled into a range of $13 to $14 per square foot — and have held there for nearly a year, signalling that the market is searching for a floor rather than continuing to fall.

What’s Happening in Saint-Laurent Right Now Saint-Laurent has long been one of Montreal’s most important industrial addresses. The borough sits at the crossroads of Autoroutes 13, 15, and 40 and is minutes from Montréal-Trudeau International Airport — a combination that makes it a natural home for logistics, light manufacturing, and aerospace-related industries. Companies like CAE and Bombardier have deep roots here, and the cluster of suppliers and service providers around them has built a dense, well-connected industrial ecosystem. In the current cycle, Saint-Laurent is seeing new supply enter the market, with approximately 175,000 square feet across two new buildings expected for delivery in 2026. Combined with softer overall demand, this is contributing to higher availability in the submarket. For buyers, that means more choice — including properties that have been on the market long enough that sellers are genuinely motivated to negotiate. A significant portion of available inventory in Saint-Laurent is older industrial stock. These are buildings that were developed decades ago and haven’t been updated to modern specifications. They tend to carry lower ceiling heights, older electrical systems, and layouts that don’t match the requirements of today’s logistics operations out of the box. But they also come at a meaningful discount — and for buyers willing to put capital into a renovation, they represent a genuine value-add opportunity in a submarket with very strong long-term fundamentals.

What’s Happening in Laval Right Now Laval tells a slightly different story — and in many ways, an even more compelling one for buyers. The island of Laval sits directly north of Montreal, connected by Autoroutes 15, 440, and 25. It has grown significantly as an industrial market over the past decade, attracting businesses that want strong highway access without the congestion and cost of doing business on the island of Montreal. Industrial parks in Laval continue to draw tenants from across the region. In 2025, Laval recorded positive net absorption of approximately 647,000 square feet — meaning more space was leased or purchased than was vacated. That’s a strong signal that underlying demand is real. At the same time, vacancy in Laval has climbed by around 360 basis points year over year, one of the largest increases in the Greater Montreal Area. New supply is part of the equation: around 500,000 square feet across two new buildings are under construction in Laval for 2026 delivery. The result is a submarket where demand exists but supply has temporarily outpaced it — which is exactly the environment where buyers find the best pricing. Sellers who need to move older properties are competing against new product. That’s leverage for you.

The Case for Buying Older Industrial Stock The phrase "older stock" can sound like a warning. In this market, it’s better understood as an opportunity. Older industrial buildings in Saint-Laurent and Laval were built for a different era of manufacturing and warehousing. They typically feature lower clear heights (often under 22 feet), limited dock doors, and mechanical and electrical systems that need updating. Modern logistics tenants and owner-operators tend to pass on them in favour of newer, purpose-built space. That selectivity creates pricing gaps — and pricing gaps create opportunity. For a business owner who needs industrial space and has been leasing for years, purchasing an older building and renovating it to fit your specific operations can make strong financial sense. You stop building equity for a landlord and start building it for yourself. The renovation cost is a one-time capital event; the long-term savings and asset appreciation work in your favour over time. For an investor, the value-add model is straightforward: acquire at a discount that reflects the building’s current condition, renovate to modern or near-modern specs, and either lease to a quality tenant or sell into a tighter future market. The risk is real — renovations cost money and take time — but the discount pricing available today is pricing that reflects those risks fairly.

Is 2026 the Right Time to Move? The honest answer is: probably yes, but the window is finite. The current conditions — elevated vacancy, softened rents, motivated sellers, older stock priced to reflect its condition — are the product of a specific moment in the cycle. Multiple research firms and market analysts are pointing to 2027 as the year when Montreal’s industrial market is expected to tighten again. New supply currently under construction will be absorbed. Demand from logistics, manufacturing, and distribution users continues to grow. And as the broader economy stabilizes, businesses that have been delaying space decisions will start to act. When that happens, the leverage buyers have today will compress. Pricing will firm up. The negotiating room on older stock will shrink. That doesn’t mean rushing into a bad deal. It means that if you have been thinking about acquiring industrial space in Saint-Laurent or Laval — to operate from or to hold as an investment — the current environment is one of the most favourable buying conditions this region has seen in several years. Acting thoughtfully in 2026 puts you ahead of the next cycle.

The Saint-Laurent and Laval industrial markets are in transition. Vacancy has risen, rents have softened, and a real inventory of motivated sellers has emerged — including older buildings that need work but are priced to reflect it. For buyers and investors who understand the fundamentals of these corridors, that’s not a problem. It’s a setup. The market is expected to tighten again in 2027. The buyers who benefit most from that shift will be the ones who move in 2026. If you’d like to talk through what’s available, what it realistically costs to renovate, or whether ownership makes sense for your situation, I’m happy to have that conversation.