The Montreal office market continues to exhibit a surge in the availability of sublease space as tenants face greater uncertainty from the effects of the pandemic along with increased government restrictions this quarter. Alternative to subleasing, the immediate response from tenants with upcoming lease expiries has been short-term lease renewals and downsizing, which is prompting an increase in direct vacancy rates. Those tenants in a position to commit to leases are facing a highly tenant favorable market with Landlord’s offering high inducement packages in the form of free rent and tenant improvement allowances, as well as lower rental rates in order to attract new tenants or to retain an existing tenant.
