Montreal Office Market Report

Diversification limits trade exposure. Montreal is Canada’s second- largest economy. GDP is driven by financial and professional services, manufacturing, and retail and distribution. Given this diversified backdrop and strong labour force potential stemming from a robust university network, office space demand could benefit from lower interest rates. Over the past year ended March, negative net absorption levels have been narrowing. Diversification also protects against fluid trade risks. While manufacturing, along with a large aluminum industry, offers some exposure to tariffs imposed by the United States, the sectors tend not to occupy a large share of office space. Preliminary estimates show positive net absorption in the early stages of the second quarter, suggesting office momentum could hold in the face of trade headwinds. Slowing global economies are risks to monitor, yet economic diversification and healthy long-term labour force drivers could support a more favourable office outlook.