During the second quarter of 2011, the industrial real estate market in Montreal experienced significant gains, which is important, as the sector had been one of the hardest hit during the recent recession.
A report from CB Richard Ellis revealed that Montreal's market represented more than half of the country's positive net absorption of industrial space during the year's second quarter. In all, 6 million square feet was sold through commercial mortgages or leased – 3.7 million of which were in Montreal.
"We dug ourselves out of a hole," said Brett Miller, executive vice president and regional managing director for CBRE in Eastern Canada. "We were surprised by the strength of the absorption. It surpassed our expectations."
Before the recent success, Montreal had lead the country in vacancies. Now, the rate has fallen to 8.9 percent, down from 10.8 percent in the first quarter of 2011. Nationally, the rate is at 8.6 percent, down from 10.1 percent during the same quarter last year.
However, the region's availability rate sits at 10 percent, which is consistent with last year's same quarter total. The rate is still slightly behind the national pace, which is at 7 percent, down from 7.3 percent during the last quarter.
Strong demand for warehousing and distribution space were major factors for the push in Montreal, according to Miller. Nationwide, job growth has spurred the sector's success, the National Office and Industrial Trends Second Quarter 2011 Summary Report relays.