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Positive absorption as market continues to stabilize
The Greater Montreal Area (GMA) has experienced a second quarter of positive absorption over the last three years, as the market continues to show signs of recovery. Amazon’s departure from Quebec exacerbated the trend of rising vacancy, as theirfacilities accounted for 0.7% of the GMA’s inventory at the time of their announcement. This masked how market fundamentals were beginning to recover outside of this one-time market shock. Vacancy has risen 180 basis points (bps) from last year but the rate of increase shows signs of slowing. The back-to-back decision paralysis stemming from COVID and tariff shocks has worn off as disruption becomes the new normal and businesses can no longer postpone their next cycle of leasing activity.