Occupancy Costs

Occupancy costs have faltered in the Greater Montréal Area between the end of 2020 and the end of March 2021, falling to $28.08 per square foot (psf) after increasing to $28.92 psf three months earlier, while they sat at $28.52 psf a year before. The average asking net rent gradually increased over the last quarters, reaching $16.92 psf at the end of March, while additional rents decreased to stabilise at around $11.16 psf.

Average gross rents in class A buildings of Greater Montréal showed little fluctuation, reaching $33.67 psf while they stood at $33.64 psf at the end of 2020 and at $33.31 psf a year before. A slight decrease was observed in class B buildings of Greater Montréal, where average gross rents reached $27.30 psf down from $27.52 psf at the end of 2020 and at $27.64 psf a year before.

If this trend continues in the coming quarters, it could be an effect of the notable increase in availability within that asset class.

In Downtown Montréal, asking net rents (all categories combined) have increased from $18.65 psf to $19.93 psf during the last quarter, while additional rents decreased from $15.57 psf to $14.40 psf , causing an increase of the average gross rent from $34.22 psf to $34.33 psf . At the same time last year, the average gross rent for downtown was at $34.37 psf, which confirms that occupancy costs have not fluctuated significantly in the sector.