Montreal’s current industrial real estate availability of 3.2% is currently at less than half of what it was just two years ago, according to fresh data from commercial real estate services and investment firms CBRE.
And this is likely to be just the beginning: Near-zero industrial availability in Toronto and Vancouver will push tech, manufacturing, and online retail companies to go for other major metropolitan areas such as Montreal, CBRE Quebec managing director Avi Krispine predicted.
The direct result of this influx is accelerated growth in Montreal’s commercial rent levels and purchase values, with much of the demand coming from technology, manufacturing, transportation, and logistics firms.
“There is great momentum from the economy in Quebec. Businesses are expanding and more multinationals are coming to Montreal,” Krispine told the Montreal Gazette.
“In the next few months it will be extremely interesting to see the rates for lease and sale. How high are they going to go?”
A report by Devencore last month indicated that the robust growth of Montreal’s tech and manufacturing sectors is largely impelled by the city’s four top-rated universities and developed tech scene.
These attributes magnetize attract highly intelligent and skilled people, along with wealthy international investors. Among those drawn in by Montreal’s vibrant residential and commercial property markets are parents of the students taking up higher education in the city.
“Canada is a safe place to park dollars and investments (given its good investment returns, low security issues and solid banking system),” Devencore CEO Jean Laurin explained at the time, as quoted by RENX. “We’re welcoming to outside investors or people that want to move to the country.”
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