Montreal Office Figures Q4 2025

‒    Leasing ending 2025 with strong moment as Q4 had the highest net absorption with 476,000 sq. ft.

‒    While Class AAA vacancy decreased to 6.0%, positive absorption stemmed from Class A (235,000 sq. ft.) and B (122,000 sq. ft.). in Q4. This is an early indication of a new demand cycle.

‒    Sublet space declined 400,000 sq. ft. quarter-over-quarter. This is the largest reduction since Q4 2002.

‒    The office sales market has continued to improve year-over-year, as preliminary dollar volumes indicate 2025 totalled to 6.5% higher than 2024.

‒    The scarcity of Class AAA space has strengthened landlord leverage in properties below a 5.0% vacancy rate. This has caused net rental rate to increase as high as $41 per sq. ft. with minimal incentives offered.