Montreal continues to play a vital role in North America’s industrial real estate landscape, offering unique advantages like proximity to international markets, robust logistics capabilities, and a skilled labor force. Below, we explore Montreal’s key features and market dynamics while showcasing how solutions like VidTech can help property stakeholders maximize visibility.
Demographics and Workforce
Montreal boasts a population of over 5 million within a 50-mile radius, expected to grow by 5.9% in the next five years. Expanding this radius to 250 miles covers over 10 million residents, with a projected growth rate of 5.2% by 2028. The local warehouse workforce, numbering more than 129,360, is forecasted to grow by an impressive 11.4% by 2034.
- Wages: The average hourly wage for non-supervisory warehouse workers is C$19.00 (USD $14.11), tied with Toronto for the second-lowest rate among major markets—a competitive advantage for occupiers.
Economic Incentives
Over the past five years, metro Montreal has seen more than 50 economic incentive deals, with an average investment of $97,400 per new job. While provincial and local incentives depend on specific project needs, the city’s track record of fostering industrial growth makes it an attractive destination for businesses.
Logistics and Connectivity
Montreal’s logistical infrastructure is one of its strongest assets:
- Port of Montreal: A year-round gateway to the Atlantic Ocean, processing over 18 million metric tons of cargo annually. This port provides the shortest maritime route between North America and Europe and is supported by dedicated rail connections to Canadian National and Canadian Pacific railways.
- St. Lawrence Seaway: This vital waterway connects Montreal to the Great Lakes, offering seamless access to inland markets through a network of locks, canals, and transportation links.
These logistics strengths position Montreal as a critical player in global and North American supply chains.
Supply, Demand, and Market Trends
Montreal’s industrial big-box market encompasses 80.1 million square feet, making it the second-largest in Canada. Despite being land-constrained, it maintains a low vacancy rate of 3.9%, the fifth-lowest in the region.
- Leasing Activity: A subdued 2023 saw lease transaction volumes drop, resulting in net absorption of just 370,656 square feet. However, rising rents—up 16.8% to CAD $16.52 per square foot annually—indicate robust demand for quality space.
- Construction Outlook: With only 2.3 million square feet under development, vacancy rates are likely to remain tight, putting upward pressure on rents in the coming quarters.
Elevating Market Presence with VidTech
In a competitive market like Montreal, showcasing properties effectively is critical. VidTech enhances property marketing through cutting-edge tools such as high-resolution drone and satellite footage, detailed data overlays, and customizable visualizations. These features allow landlords and developers to communicate the unique value propositions of their assets to potential tenants and investors.
Conclusion
Montreal’s blend of skilled labor, low vacancy rates, and exceptional logistics infrastructure ensures its continued relevance in the industrial sector. By integrating innovative marketing solutions like VidTech, stakeholders can capitalize on these strengths to drive engagement and achieve better outcomes in this high-demand market.
Visit VidTech to learn how you can elevate your property marketing strategies.
