Montréal’s industrial sector continues to be one of the most competitive and resilient asset classes in Canada.

Over the past five years, vacancy rates have tightened, rental rates have climbed, and investor interest has moved from cautious to aggressive.

In 2025, the industrial market remains a core focus for institutional and private capital but the players who succeed here share one common trait: they move with intelligence, not speculation.

Here’s what we’re seeing in the field.

1. Vacancy Rates Remain at Historic Lows

Montréal’s industrial vacancy has been sitting near record lows consistently around or under 2%.

The combination of land constraints, zoning complexity, and strong demand from logistics, e-commerce, and light manufacturing has created a supply shortage that will not be resolved in the short term.

For investors, this means:

• Pricing power for landlords remains strong
• Renewal terms are trending longer
• Well-located product attracts multiple bids, even in softer macro conditions

2. Rental Growth Continues, Driven by Demand

Even as other CRE asset classes face rate pressure, industrial rents in Montréal are still moving upward particularly in:

• Laval
• South Shore logistics corridors
• West Island distribution hubs

Tenants are prioritizing strategic access to highways, ports, and airports. This is driving competition for well-located mid-bay and large-bay facilities, often resulting in above-asking rents on renewals.

3. Institutional Capital is Staying and Expanding

While some investor segments have slowed acquisitions nationally, institutional capital is still deploying into Montréal industrial for three reasons:

• Strong yield relative to other core Canadian markets
• Stable, diversified tenant base
• Long-term fundamentals that remain positive despite interest rate volatility

Our team has seen large-scale portfolio transactions close quietly in the last 12 months, often without public marketing.

4. Limited development – protecting existing owners

Land availability, municipal approval timelines, and rising construction costs have made speculative development difficult.

This limits future supply and supports rental growth for existing assets.

Investors who hold now and improve functionality through targeted capex are positioned to benefit from continued market tightness.

The Montréal industrial market offers both stability and upside for disciplined investors.

Whether through core acquisitions, value-add repositioning, or portfolio consolidation, the opportunity is there but it will go to those who understand the nuances of this market.

If you’re looking to expand or enter Montréal’s industrial sector in 2025, we can help you access exclusive opportunities before they reach the open market.