Newmark Knight Frank Devencore Reports on Downtown Montreal Office Market
Increased development activity improving tenant leverage
MONTREAL, QUEBEC -- (Marketwired) -- 05/22/14 -- In its Real Estate
Market Study published today, Newmark Knight Frank Devencore reported
that vacancy rates in downtown Montreal's Class "A" and "B" office
buildings have risen slightly over the past six months from 6.0% to
6.8%, which represents a negative space absorption of just over
400,000 square feet. Currently, 3.2 million square feet of Class "A"
and Class "B" office space is available for lease or sublet.
"While vacancy rates in the corporate sector are creeping up in
downtown Montreal, real estate activity continues to take place at a
pace we haven't seen for many years," said Jean Laurin, President and
CEO of Newmark Knight Frank Devencore. "There are a number of new
projects currently being developed, and other projects that are
either about to begin construction or are in the pre-leasing stage.
In addition, a number of areas are being redeveloped. In Griffintown,
for example, there is a good deal of rejuvenation taking place in
both the commercial and residential sectors. Other parts of the city
with condo, retail and commercial projects include the area
surrounding the Bell Centre; the Mile End, Jean Talon and Avenue du
Parc neighbourhoods; and the Quartier des Spectacles development. As
the revitalization projects proceed, these neighbourhoods will become
more attractive to landlords and developers, as they offer prime real
estate in close proximity to the downtown core."
Mr. Laurin also noted that the investment and construction activity
will significantly change the face of the downtown business district
as well as the bordering areas over the next few years. "The new
developments being built and planned, as well as the rejuvenation
projects that are transforming what were once industrial zones into
neighbourhoods that artfully combine condo, office and retail
developments, are providing tenants with more leasing opportunities,
and more negotiating leverage, than they have enjoyed in a number of
years," he said.
In Canada's major cities, the combined Class "A" and Class "B"
vacancy rate edged up from 4.5% to 5.9% in 2013. However,
construction activity remains strong across the country and new
towers are being built in virtually every city. The appetite for this
premium space also remains strong. In most instances, space in the
new towers, most of which are LEED-certified, is being fairly rapidly
About Newmark Knight Frank Devencore
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 12,000 professionals
operate from more than 320 offices in established and emerging
property markets on five continents.
With roots dating back to 1929, NGKF's strong foundation makes it one
of the most trusted names in commercial real estate. NGKF's
full-service platform comprises BGC's real estate services segment,
offering commercial real estate tenants, landlords, investors and
developers a wide range of services including leasing; capital
markets services, including investment sales, debt placement,
appraisal, and valuation services; commercial mortgage brokerage
services; as well as corporate advisory services, consulting, project
and development management, and property and corporate facilities
management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global
brokerage company primarily servicing the wholesale financial and
real estate markets. For further information, visit www.ngkf.com.
Director, Marketing and Communications
514-392-1330, ext. 225
Newmark Knight Frank Devencore
Devencore Ltd., Real Estate Agency
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