Here is what

is happening

in the office

market

OFFICE MARKET REPORT

GREATER MONTRÉAL

4th QUARTER 2021

$40.77

average gross rent per square foot Downtown Montréal

16.5%

total availability rate all asset classes Greater Montréal

2.4%

sublet availability all asset classes Greater Montréal

-1.68

million square feet annual absorption Downtown Montréal

After two long years of pandemic marked by disruptions and postponed decisions, a sense of predictability has gradually set in and tenants’ intentions regarding the return to the office are coming into focus. The remote work imposed by the provincial government after the holidays has only deferred the implementation of return-to-office plans that had been developed or in design. Regardless of the workplace strategies elaborated, there is a sense that these will materialize in the near future. Employers are determined to rally the troops and bring collaboration, corporate culture, and joie de vivre back to the workplace.

The recovery in activity that seems to be taking shape for 2022 is not yet reflected in the most recent market statistics. Indeed, key statistics for the fourth quarter of 2021 paint a mixed picture of office market conditions. If we have started to see an uptick in leasing activity over the past months in certain nodes, low demand for office space overall is a concern.

As tenants implement their strategies to optimize their workplace for post-Covid, we will be in a better position to appreciate the medium-term impact on office space demand.