Newmark Knight Frank Devencore

Newmark Knight Frank Devencore

February 10, 2010 07:00 ET

Newmark Knight Frank Devencore: Office and Industrial Real Estate Markets Begin to Stabilize in Suburban Montreal as Recessionary Pressures Ease

MONTREAL, QUEBEC--(Marketwire - Feb. 10, 2010) - In its Suburban Montreal Market Study published today, Newmark Knight Frank Devencore reported that the office and industrial real estate markets in the Greater Montreal area began to stabilize towards the end of 2009 as the effects of the global economic crisis gradually eased. While overall vacancy rates in both the office and industrial markets rose during the year, the increase was not nearly as dramatic as that experienced in many other major cities in the country. Indeed, the market study reveals that asking rental rates remained relatively steady, though there were slight declines in some industrial real estate sectors. Additionally, while it was generally the case that both tenant and developer activity was modest, it did not come to a standstill.

"There is a sense amongst landlords, developers and many of our clients that the economy is regaining a firmer footing, and a cautious optimism may begin to take hold through 2010," said Jean Laurin, President and CEO of NKF Devencore. "This is good news, as growth was slowed considerably through 2009. In the office market, virtually all significant development projects were put on hold and we saw tenants either retrenching or simply postponing expansion plans."

Leasing activity in the suburban Montreal's industrial sector was also relatively modest through the latter months of 2008 and much of 2009. There was generally more tenant interest in spaces of less than 30,000 square feet, and the boost in overall vacancy rates were largely driven by the increased availability of larger industrial spaces-those exceeding 75,000 square feet-which were vacated by a handful of businesses that downsized significantly.

"Given that vacancy rates have risen and asking rental rates have remained stable or, in some instances, even fallen slightly, this is an excellent time for tenants to take a close look at their real estate portfolios and re-examine their real estate strategies," Mr. Laurin said. "While landlords and building owners are not conducting fire sales, there is a desire to secure larger tenants with strong covenants and a willingness to exercise some negotiating flexibility in order to do so. For tenants seeking to expand or relocate, there are more opportunities today than there were a year ago-and probably more than there will be in a year's time when the economic recovery begins to generate renewed growth. There are excellent deals to be made, but time-and timing-is of the essence."

About Newmark Knight Frank Devencore

Devencore is the Canadian partner of Newmark Knight Frank, one of the largest independent real estate service firms in the world. Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution.

Headquartered in New York, Newmark Knight Frank and London-based partner Knight Frank operate from over 200 offices in established and emerging property markets on six continents. Last year, transactions were valued at more than $32 billion with annual revenues of over $811 million. With a combined staff of more than 6,300, this major force in real estate is meeting the local and global needs of owners, tenants, investors and developers worldwide.

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Contact Information

  • Newmark Knight Frank Devencore
    Devencore Ltd.
    Sylvie Bachand
    Director, Marketing and Communications
    514-392-1330, ext. 225