office space for lease in the downtown montreal area
Update 2006 and office space for lease forcast for 2007
Cental business district (Montreal financial core)
Class ‘A’ office buildings
The vacancy rate of office space fell to 10.3%.
The average asking net lease rates fell to $13.82 psf.
Additional rents increased from $12.51 psf to $12.58 psf.
Class B office space buildings, the vacancy rate went down to 13.6%
Stong Absorbtion
There was strong absorption also in the West
Island, Downtown South, and Old Montreal
markets,Central Core, Downtown
East, Midtown, and Laval. The worst
performers in
absorption were
Downtown West, Atwater-Westmount, East
End, and the South Shore.
Vacancy rates and leasing rates fell
Overall, vacancy rates fell to 12.6% by the end of 2005
prime Class ‘A’ office space, saw sublet space
increase.
New Projects
New office space construction projects are Antrev
Management’s Esplanade Loft Complex
(125,000 SF of office space for lease at 6750 Avenue de l’Esplanade).
The largest office space project planned for the
near future, Hines’ 385,000 SF, 27-story
office space tower at 900 de Maisonneuve West.
Completed
projects are: renovations at 685 Cathcart
Street (70,000 SF of office space for lease) and
the Gordon Brown
Building (400 de
Maisonneuve Boulevard
West, 330,000 SF of loft style office space for lease).
Outlook for 2006:
As vacancy rates
drop to around 12.0% tenants
will find it increasingly difficult to find new
space. High absorption and low vacancy
numbers will begin to indicate that new office
towers could be built in mid- to late-2007.
With the future strength of demand for office space,
and as landlords find that fewer incentives
are needed to secure tenants, they will begin
the push for increases in asking rents. Rents
will begin to go up. By the end of 2006, and early
into 2007, net effective rents
and vacancy rates should reach peak levels.
For more information about office space for lease in the downtown montreal area visit this page
or just call 514.839.0608