Montréal - In its Real Estate Market Research study published today, Newmark Knight Frank Devencore reported that availability rates in downtown Montreal's Class A and B office buildings rose to 12.0% at the end of the second quarter of 2016. The increased availability rates are largely attributable to the nearly 1.5 million square feet of new office space that have been delivered to the downtown market over the past few years.
"Montreal is currently going through an extraordinary phase in its evolution," said Jean Laurin, President and CEO of Newmark Knight Frank Devencore. "There are more new office and condo projects under development in the downtown area now than at any time in the past 15 years, and the city's infrastructure, from the new Champlain Bridge to the Turcot Interchange, is undergoing a long-needed renovation. In short, we are in the midst of an unprecedented transformation, one that will have a major impact on the downtown core and the office real estate market for years to come."
According to the Newmark Knight Frank Devencore report, with new developments and repurposed older properties being delivered to the office market, supply is currently outpacing demand. In addition, Mr. Laurin noted that many tenants are now taking a close look at revamping their occupancy strategies to align them with changing workplace standards.
"Tenants are looking for creative ways to shrink their office space requirements and, at the same time, address the needs of their employees. Indeed, as is the case across all of North America, decision makers are increasingly focused on how to make their workplaces more attractive and efficient as well as more reflective of their corporate culture and objectives," Mr. Laurin said.
Despite these high availability rates, tenants seeking larger blocks of contiguous space have fewer options, as most of the opportunities that currently exist are in the sub-50,000-square-foot category. Repurposed industrial buildings that have been converted into brick and beam offices are also in high demand from tenants seeking loft-style spaces.
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As part of Newmark Grubb Knight Frank, one of the world's leading commercial real estate advisory firms, Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage, exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution. To learn more about our capabilities, please visit www.devencorenkf.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF's 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
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