The industrial real estate market in the Greater Montreal Area saw improvements in the second quarter of 2015. New industrial construction starts nearly doubled compared to the beginning of the year, signaling continued market recovery. While unemployment rose, full-time employment increased with gains in manufacturing and transportation jobs. Absorption of industrial space rose over 1 million square feet, indicating more space was leased during the quarter. The availability rate increased slightly due to new space added to the market.
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Lots of great information in our Q2 industrial report. Construction continues to ramp up and some large leases will provide a boost to absorption later this year
There was a slowing of Industrial leasing activity for the summer, but as Amazon proposes to expand their footprint, they have introduced a new type of warehouse to the region.
office space toronto, toronto office space, office search toronto, office space in toronto, office rentals toronto, commercial office space, commercial real estate toronto, office rent toronto, toronto offices for lease
Lots of great information in our Q2 industrial report. Construction continues to ramp up and some large leases will provide a boost to absorption later this year
There was a slowing of Industrial leasing activity for the summer, but as Amazon proposes to expand their footprint, they have introduced a new type of warehouse to the region.
Industrial developers and investors are in touch with the pulse of the industrial marketplace and are taking aggressive steps to meet the potential increase in demand for modern, Class A space.
JLL Detroit Industrial Insight & Statistics - Q2 2016Aaron Moore
The automotive industry is not going anywhere. Although it is in the midst of a disruption, the advancements are a win-win for all. The Big Three are generally experiencing steady growth trends in line with improving consumer sentiment and economic gains.
The report provides key market indicators, trends and forecasting for the #Kitchener, #Waterloo and #Cambridge industrial markets, including vacancy rates, absorption, lease rates, sale prices and recent market transactions. Colliers International #Office #CRE
JLL West Michigan Industrial Insight & Statistics - Q1 2020Harrison West
While West Michigan market has seen historically low vacancy figures and impressive rent growth the past few years, we should expect things to slow in Q2 as the effects of the COVID-19 pandemic begin to take hold. Market fundamentals remain stable; however, given the current uncertainty, we expect leasing and sales activity to slow considerably in the near term as occupiers evaluate their current and future space needs.
Outlook
While not as robust as 2018, the market is expected to
maintain its momentum over the course of 2019. Although
market conditions are increasingly becoming landlord
favourable, the market remains quite competitive. Large
occupiers seeking space in the Central area are now looking
to new developments to satisfy their needs as there are very
few large contiguous blocks of available space left in the
market. In the Financial Core, only six options for tenants
seeking 50,000+ sf of space remain. Despite the
disappearance of large available space options and the
significant downward pressure on vacancy rates, landlords
have only marginally increased rent expectations at
approximately 2% annually. A slight year-over-year increase in
average net asking rates is anticipated as a result of Class
AAA deliveries; however, the range of rates is not expected to
change
Colliers St. Louis 1Q20 Industrial Market SnapshotColliersSTL
Healthy Start but Impact of COVID-19 Remains to be Seen
The St. Louis industrial market started 2020 strong with positive absorption, a healthy construction pipeline and a historically low vacancy rate. However, it is unclear what impact COVID-19 shutdown will have on the industrial sector. Nevertheless, the supply chain, especially for consumer goods, is working hard to keep up with demand. Until the stay-at-home orders have ceased and governments and companies figure out how to best operate in this environment, commercial real estate experts are working with occupiers and building owners to ensure that they can continue to operate when possible and be able to bounce back when able.
The CBD had a strong quarter of activity. Absorption was positive driving vacancy down to 11.9 percent, the third consecutive quarter since 2008 to reach that low.
Similar to Industrial Insight Report - GMA (Q2 2015) (20)
1. Economy
Most noteworthy this quarter were the Greater Montréal Area’s
(GMA) new industrial construction starts which almost doubled from
the beginning of the year and represent the highest increase in
almost two years. This is encouraging for industrial investors and a
long awaited sign of market recovery.
Regardless of an increased unemployment rate of 8.7 percent across
the GMA, full-time employment has made considerable improvements
with some 22,500 new full-time jobs. Notable gains were seen in the
manufacturing sector (gain of 5,400 jobs) and the transportation-
warehousing industry (gain of 15,200 jobs). On the flip side,
employment losses occurred mostly on the administration and
services side.
A strengthening US economy along with a soft Canadian dollar
continued to enhance provincial foreign trade. Provincial exports will
remain a key driver of growth in 2015 with positive implications for
Québec manufacturers. The manufacturing and transportation
industries will continue to further benefit from decreased gasoline
prices.
Quarter in review (Leasing Market)
The leasing fundamentals of GMA’s industrial market has continued
to improve since January 2015. Close to 500,000 square feet of new
industrial space were completed in the second quarter and 2.1 million
square feet are currently under construction; an indication of
continued market recovery and developers’ market optimism.
Overall net absorption rose by over 1 million square feet to end the
quarter at 405,323 square feet; meaning that more industrial space
were leased in the second quarter. The availability rate has increased
by 175 basis points since January to 7.5 percent across the GMA; a
result of new space added to the market which provides more options
to tenants looking for space.
Industrial Insight Report
Greater Montréal Area | Second Quarter 2015
12-month
forecast
Key Market Indicators
12 Month
Forecast
Supply
Total inventory (s.f.) –
Light industrial
316,046,643
Total availability (%) 7.53%
Under construction (s.f.) 2,150,437
Demand
Total net absorption (s.f.) 405,323
YTD net absorption (s.f.) -208,046
Pricing
Average net rental rate $5.80 p.s.f.
12-month percent change +3.20%
Source: Desjardins Economics, RBC Economics, Institut de la Statistique du Québec
Industrial Overview
2. JLL | Greater Montréal Area | Local Industrial Insight Report | Q2 2015
Industrial Overview Cont’d
2
Quarter in review (Leasing Market)
Off-island markets outperformed this quarter. Laval, South-Shore and
North-Shore all recorded strong leasing demand in the second quarter.
A total of 166 buildings were fully or partially leased during the second
quarter. Spaces leased include 11281 Albert-Hudon in the East End
(170,087 square feet), 2100 52nd avenue in Lachine (53,245 square
feet) and 2190 Francis-Hughes in Laval (51,698 square feet). A few of
the largest industrial buildings that became available during the quarter
include 2450 Marie-Curie (166,730 square feet), 867 Hodge (229,355
square feet) and 2500 Marie-Curie (158,958 square feet); all three
properties are located in Saint-Laurent.
Sublet spaces on the market decreased during the quarter. Most
spaces available for sublease were located in Saint-Laurent and range
from 5,000 to 15,000 square feet. There were 107,194 square feet
(across eight buildings) of new sublease space added to the market in
Q2 2015.
There are currently 23,783,236 square feet available for lease in the
GMA of which 54.0 percent are multi-tenant buildings, 43.0 percent are
single-tenant and 3.0 percent are industrial condos. Rental rates rose
slightly across the GMA to an average of $5.80 per square foot net and
$9.10 per square foot gross. Due to their mostly newer inventory,
North-Shore and Laval are currently the most expensive submarkets.
Average asking rents for space above 50,000 square feet did not
increase over the last quarters; there continues to be a large supply of
larger spaces and landlords continue to be competitive to attract and
retain these size tenants. Smaller spaces continue to be abundant on
the market, typically with higher rental rates on a per square foot basis
than larger spaces; thus increasing the average rental rate for the
GMA.
Redevelopment of industrial buildings continued to spread in Q2; more
specifically, refurbishment from industrial to office use. The latest large
buildings to be redeveloped were 1236 Mill street in Sud-Ouest
(264,658 square feet) and 9292 Meilleur in Ahuntsic-Cartierville
(109,740 square feet) both converted into offices. Montréal’s Midtown
submarkets have been the primary target for this type of projects, which
can be very lucrative for landlords.
Approximately 18 percent of industrial buildings which were built prior
to 1960, the majority of which are on the island of Montréal, may not be
suitable for the current demand of higher ceilings and modern office
layouts which is creating a mini-exodus towards markets such as Laval,
South-Shore and North-Shore. Moreover, over 66 percent of Montréal’s
industrial inventory has a clear height below 18 feet and only 11
percent have a clear height of 24 feet or higher. On the Island, higher
ceiling buildings are primarily found in the West-Island and in Saint-
Laurent, leading to the higher asking rates in those submarkets.
Greater Montréal Area Property Clock
Peaking
market
Falling
market
Rising
market
Bottoming
market
Lachine
East End
Landlordleverage
Tenantleverage
Midtown South
Saint-Laurent
Midtown North & South Shore
West Island
Laval &
Vaudreuil
North Shore
Distribution of Availabilities for Lease by Submarket
12.22%
5.01%
17.91%
20.55%8.98%
17.60%
6.91%
2.94%
6.99%
West Island
4,737,361 s.f.
Lachine
2,069,869 s.f.
East End
4,128,747 s.f.
Midtown South
1,154,755 s.f.
St-Laurent
4,057,715 s.f.
Laval
1,592,042 s.f.
North Shore
1,355,527 s.f.
South Shore
1,610,373 s.f.
Midtown North
2,817,139 s.f.
3. JLL | Greater Montréal Area | Local Industrial Insight Report | Q2 2015
Industrial Overview Cont’d
3
Average Lease Rental Rates by Submarket
$7.52 $6.58
$5.69 $6.05 $5.31
$6.20
$5.51 $5.11 $5.04
$3.24
$3.64
$3.79 $3.21
$3.69 $2.63
$3.21
$3.16
$2.69
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
Net Asking Rent Additional Rent
$10.76 $10.22
$9.48 $9.26 $9.00 $8.83 $8.72
$8.27
$7.73
Market statistics
Submarket
Total
inventory
(s.f.)
Number of
buildings
Under
construction
(s.f.)
Total
availability
Quarterly
absorption
(s.f.)
Average net
asking rent
($ p.s.f.)
QoQ %
change in net
rent
YoY %
change in net
rent
Midtown North 50,869,927 1,139 0 5.54% -514,032 $7.52 +0.27% +16.41%
Midtown South 23,981,083 608 0 4.82% 215,862 $6.05 -5.32% +15.90%
East End 69,522,610 2,175 0 5.94% 160,518 $5.04 -0.79% -1.18%
West Island 44,709,317 656 512,000 10.60% -212,633 $5.69 +4.21% +7.77%
Lachine 22,012,450 294 0 9.40% 7,916 $5.11 +0.99% -0.99%
Saint-Laurent 63,139,927 1,019 287,637 6.43% -149,416 $5.31 -2.75% -1.67%
Laval 17,661,943 363 0 9.01% 135,729 $6.58 +2.81% +3.30%
Vaudreuil 810,890 13 294,000 30.03% - $6.75 +3.85% -1.75%
South-Shore 16,522,778 304 893,800 9.75% 371,329 $5.51 -1.08% -9.38%
North Shore 6,815,718 170 163,000 20.31% 401,749 $6.20 +0.55% +1.13%
Greater Montréal Area 316,046,643 6,741 2,150,437 7.53% 405,323 $5.80 +0.35% +3.20%
Source: certain numbers come from Altus Insite
Historical Greater Montréal Area Total Net Absorption and Total Availability
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-2,500,000
-2,000,000
-1,500,000
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
s.f. GMA Net Absorption GMA Total Availability
New developments/Under construction
There are currently seven industrial buildings under
construction in the GMA for a total of 2,150,437 square feet.
The average delivery time of those new projects are
estimated to be by the end of the year. Montoni recently
announced a new 60,000 square feet development for Abipa
in Boisbriand, the project will be completed at the end of the
summer 2015. Triovest is continuing it’s work on a 150,000
square feet building on FX Tessier in Vaudreuil; the project
will be delivered in December 2015. Broccollini has 144,000
square feet under development on FX Tessier until the end of
2016. Divco will soon be starting a 65,000 square feet
development project at 2985 Douglas B. Floreani. Quintcap
also has 63,000 square feet under development of which half
is already rented out; another project next door should begin
this summer. Broccollini’s building on Aviation street in Dorval
is now fully leased to Cardinal Health and construction will
begin this spring. Almost 70 percent of all current
developments are off the island of Montréal due to the
scarcity of industrial land availability.
Outlook
Landlords will need to continue to reinvent themselves to stay
competitive with the current available market supply.
Moreover, the rise of data center requirements should be able
to breath new life into lower ceiling buildings, as data centers
do not require high ceilings. Finally, we will be slowly moving
from a tenant favorable market to a more balanced market on
the leasing side and should remain in a buyer’s market on the
sale side.
4. JLL | Greater Montréal Area | Local Industrial Insight Report | Q2 2015 4
Industrial Sales Overview
Industrial sales declined in the second quarter of 2015 with 2.4
million square feet sold, a decrease of 13.0 percent from the previous
quarter, across the GMA for a total of $189,692,151. The average
transaction price for non-investment deals was of $61.45 per square
foot.
The most notable transaction of the quarter was the sale of 11281
Albert-Hudon, Sobeys Québec headquarter, a 551,759 square foot
property located in the East End of Montréal. The transaction was a
sale/leaseback and closed at $29.15 million or $52.83 per square
foot.
Throughout the quarter, there were approximately 13.23 million
square feet of industrial space available for sale in the GMA , of
which 9 million square feet were on the island of Montréal. Saint-
Laurent and the East End accounted for almost 38 percent of the
market’s availability with 4.98 million square feet available for sale.
The amount of industrial space available for sale increased across
the GMA and consequently, average asking sale prices dropped
slightly to an average of $68.17 per square foot. Due to their newer
inventory, Vaudreuil and Laval once again had the highest average
asking sale prices. On the other hand, Lachine, Midtown South and
Montérégie recorded the lowest average asking sale prices at
$49.09, $50.35 and $43.81 per square foot, respectively. We
continue to be in a buyer-favorable market across the GMA;
however, smaller stand-alone properties in the 10,000-30,000 square
feet range that are available for sale are becoming harder to find and
thus, sell at a premium. We believe that such properties will continue
to increase in value, representing great opportunities for vendors of
those industrial buildings.
Average Asking Sale Prices by Clear Height (GMA)
<18 feet 19-22 feet 23-27 feet >28 feet
$61.69 p.s.f. $66.54 p.s.f. $71.68 p.s.f. $75.42 p.s.f.
Current Space Available for Sale in the Greater Montréal Area
Submarket Available space (s.f.)
Proportion of the
Market
Midtown North 1,141,355 8.63%
Midtown South 421,046 3.18%
East End 2,408,450 18.21%
West Island 1,879,315 14.21%
Lachine 622,903 4.71%
Saint-Laurent 2,572,077 19.45%
Laval 1,620,251 12.25%
North-Shore 1,511,704 11.43%
South Shore 905,604 6.85%
Vaudreuil-Dorion 143,560 1.09%
Greater Montréal Area 13,226,265 100%
Average Asking Sale Prices by Submarket
Submarket Average Asking Price ($/s.f.)
Vaudreuil-Dorion $87.00
Laval $85.95
Midtown North $79.43
Saint-Laurent $74.91
West-Island $71.68
South Shore $68.50
North Shore $67.91
East End $58.95
Midtown South $50.35
Lachine $49.09
Montérégie $43.81
Sales Transactions (Square feet traded and average $/s.f.)
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
0
1
2
3
4
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
($/s.f.)
Millionsofsquarefeet
Square feet sold Average transaction value
5. JLL | Greater Montréal Area | Local Industrial Insight Report | Q2 2015
(400) (300) (200) (100) 0 100 200 300 400
Thousands of s.f.
5
Quarterly Market News
Greater Montréal Area
• Real estate developer Gimmelin intends to build a new three
million square feet industrial park for medium and heavy
industries in Eastern Laval at the junction of Highways 25 and
440. The project will have the capacity to accomodate a dozen
large firms with buildings of up to 530,000 square feet. No firm
dates have yet been released.
• Green Cross Biotherapeutics kicked off the construction of its
biopharmaceutical facility located in Saint-Laurent’s Technoparc
campus. The $315 million project is one of the largest
biopharmaceutical projects in Canada and will be built on a land
of 700,000 square feet with a building size of 225,000 square
feet. This project was the result of the Canada-Korea Free Trade
Agreement.
• Lisi Aerospace Canada unveiled plans to install a new production
line to manufacture titaniu assembly parts at its facility located at
2000 Place Transcanadienne in Dorval. The project involves an
investment of more than $12 million.
• Alta Group succesfully rezoned 8.5 million square feet of land to
an industrial use in Coteau-du-Lac adding to the existing supply
of industrial land in the region.
• Womensweat retailer Boutique Jacob is relaunching its
operations with five Quebec stores along with a focus on online
operations to adapt to the current retail environment.
• Ikea Canada announced the opening of a pick-up store in
Québec City. Stefan Sjostrand, managing director, said “The
pick-up format is part of a global Ikea test pilot for secondary
markets where it currently has no stores…”.
Quarterly Leasing Activity by Submarket (s.f.)
Submarket Conditions – Market History and Forecast
Submarket 2012 2013 2014 2015 2016
Midtown North
Midtown South
East End
Saint-Laurent
West island
Lachine
Vaudreuil
Laval
North-Shore
South-Shore
Balanced
conditions
Tenant-favorable
conditions
Landlord/Owner-
favorable conditions
Positive AbsorptionNegative Absorption
North Shore
Greater Montréal Area
South Shore
Midtown South
East End
Laval
Lachine
Saint-Laurent
West-Island
Midtown North
6. JLL | Greater Montréal Area | Local Industrial Insight Report | Q2 2015
Greater Montréal Area • Q2 2015 Highlights
1 4505 HIckmore, Saint-Laurent
Tenant: Mega Brands
Lease renewal: 817,000 s.f.
2 165 Hymus, Pointe-Claire
Tenant: Leviton
Lease renewal: 131,465 s.f.
3 4141 Highway Laval
Tenant: Staples Canada Inc.
Lease renewal: 130,219 s.f.
4 510-560 Orly, Dorval
Rosedale Transport Ltd.
Lease renewal: 83,014 s.f.
5 12225 Industriel, Rivière-des-Prairies
Tenant: Transport Viens
New lease: 48,000 s.f.
6 11281 Albert-Hudon, Montreal North
551,759 s.f.
Buyer: Quintcap & Divco
Seller: Sobeys Québec Inc.
Sale price: $27,100,000 ($52.83 p.s.f.)
7 8000 Henri-Bourassa, Saint-Laurent
297,170 s.f.
Buyer: Groupe Mach
Seller: LaSalle CIG
Sale price: $17,350,000 ($58.38 p.s.f.)
8 2177-2185 23nd avenue, Lachine
200,033 s.f.
Buyer: Cominar
Seller: Igri Industrial Fund
Sale price: $7,215,100 ($36.07 p.s.f.)
9 2125 23rd avenue, Lachine
204,610 s.f.
Buyer: Cominar
Seller: Igri Industrial Fund
Sale price: $7,969,500 ($38.95 p.s.f.)
10 3655 Losch, Saint-Hubert
99,646 s.f.
Buyer: Darmieux Inc.
Seller: Groupe Royal
Sale price: $3,350,000 ($33.62 p.s.f.)
11 3075 Thimens, Saint-Laurent
Direct: 1,642,615 s.f.
Asking rent: No official asking price
12 1144 Magenta, Farnham
(Also available for sale)
Direct: 618,928 s.f.
Asking rent: $4.50 p.s.f net
13 2200 Trans-Canada, Pointe-Claire
Direct: 413,335 s.f.
Asking rent: $5.00 p.s.f. net
14 2105 23rd avenue, Lachine
Direct: 318,960 s.f.
Asking rent: $4.25 p.s.f. net
15 6755 Grandes-Prairies, Montréal
Direct: 283,438 s.f.
Asking rent: $4.25 p.s.f. net
16 800 Industriel, St-Jean
(Also available for lease)
352,000 s.f.
Asking price: $11,500,000
($31.25 p.s.f.)
17 150 Collins, Farnham
272,000 s.f.
Asking price: $4,080,000
($15,00 p.s.f.)
18 117 Hymus, Pointe-Claire
(Also available for lease)
241,929 s.f.
Asking price: $18,500,000
($76.47 p.s.f.)
19 22000 Trans-Canada, Baie-d’Urfé
(Also available for lease)
225,196 s.f.
Asking price: To be determined
20 7800 Trans-Canada, Pointe-Claire
224,130 s.f.
Asking price: $11,500,000
($51.31 p.s.f.)
6
Lease Transactions Sale Transactions Large Blocks Available for Lease Large Blocks Available for Sale
4
2 7
8
138
13
14
17
18
16
10
6
9
13
15
40
40
40
40
13
20
25
15
25
20
117
20
20
15
10
440
25
20
20
10
19
125
134
122
138
520
335
20
15
40
25
138
40
4019
3
6
12
5
1
7
10
15
20
11
7. JLL | Greater Montréal Area | Local Industrial Insight Report | Q2 2015
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