Construction

In the second quarter of 2021, the industrial inventory under construction in Greater Montréal totaled 2,833,154 sf. Of this total area, 1,395,269 sf was available for lease at the end of the second quarter, for a total availability rate of 49.2%.

Five of the nine projects underway in the second quarter are located on the Island of Montréal while one is in Laval, and the other three are located in Montérégie, namely in Beauharnois (new IKEA distribution center of 1.2 million sf) and in Vaudreuil-Dorion (3501 F.-X. Tessier for 390,000 sf, and 401 Marie-Curie Street for 132,000 sf).

With the current lack of industrial supply, everything would point to a construction rush to meet the growing need, but several factors seem to slow the launch of new development projects. Lack of land, restrictive zoning and environmental concerns are still relevant, but this year in particular, it's the much higher construction costs that pose the biggest obstacle for developers. They are also facing a certain reluctance on the part of certain municipalities to welcome distribution companies.