In a recent report on Real Estate Market Research, New Mark Frank Devencore suggests that office spaces in downtown Montreal will be more available in the coming year as the construction of new office buildings will be completed. Some larger businesses in the area have already begun to move to these new development projects which will create more space in the office market.
According to Jean Laurin, president and CEO of Newmark Knight Frank Devencore stated that for the past 20 years, this is the highest number of office and condo construction that Montreal has seen. After great economic struggles the city is recovering and drawing the attention of both international and local business tenants in a wide range of business areas.
By the end of 2016, the availability rate for office spaces in downtown Montreal was at 11.9% a drop of 1.0% year-over-year. But in the past three years, there have been over a million square feet of new Class A office in the market and by the end of this year, 838,000 square feet is expected to be made available.
Nevertheless, bigger firms in need of larger office spaces such as 100,000 square feet are still restricted as there is a limited amount of such spaces available. But for firms requiring small spaces, they have a wide range to choose from.
However firms with specific building requirements will also benefit from this opportunity. Furthermore, landlords will also become very strict when putting their available spaces on the markets and tenants with formal binding agreements have higher chances of negotiating.
With the availability of new office spaces, some firms are considering increasing on their productivity rather than reducing space. But this will imply more funds and also create a sound environment to implement the new ideas and also enhance on efficiency.