Occupancy Costs

Average net asking rents rose from $7.37 per square foot ($/sf) in the second quarter of 2020 to $8.72/sf in the second quarter of 2021, for an annual increase of over 18% for asking rents. Over the same period, additional rents fell slightly from $3.70/sf to $3.63/sf, bringing gross rents to an average of $12.36/sf at the end of June 2021, which represents the highest average ever recorded in the region.

Midtown North currently boasts the highest average gross rent in Greater Montréal with $14.38/sf, for an average asking rent of $11.03/sf coupled with an average additional rent of $3.35/sf.

The Lachine submarket records the most affordable rents in Greater Montréal with an average of $7.13/sf, although this is largely the result of outdated inventory.

Judging by the high level of activity and increased demand in the industrial sector in Montréal, there is a good chance that the upward trend in rental rates will continue in the coming months. High construction costs and the scarcity of land are also likely to impact rents.