Commercial
Office, retail, mixed-use, multi-family — cap rate analysis, NOI, lease structuring
OACIQ broker H2731. Not a listing portal — an advisor with deep knowledge of the Quebec commercial market.
Let's TalkMontreal's commercial market is in a repositioning cycle — creating opportunities for investors who know how to read the data.
Downtown office vacancy sits near 18% — the highest in 30 years — which inverts the leverage dynamic between landlords and tenants. Institutional funds are converting portions of their office stock to residential, which will reduce supply over time. Industrial assets, by contrast, carry vacancy below 3%, with upward pressure on rents in Saint-Laurent and Anjou.
Model your own investment scenarios at tools.jeremysoares.com or browse the built-in calculators.
Office Space
From Class A towers in the CBD to flexible suites in creative districts like Mile End. Analysis starts with floor plate efficiency, mechanical systems, and lease conditions. Class A buildings command $28–$42 per square foot gross; Class B offers functional alternatives at $18–$27. CBD vacancy remains elevated post-pandemic — which creates real negotiating leverage for well-advised tenants.
Class A rents: $28–$42/sf — CBD vacancy: ~18% — Typical terms: 5–10 years
Retail Space
Street-level, mall, neighbourhood shopping centre. Tenant quality determines asset value as much as location. Leases anchored by national grocery or pharmacy operators compress cap rates. Spaces on Sainte-Catherine Street, Saint-Denis, and Saint-Laurent Boulevard carry strong foot traffic but require rigorous zoning and permitted-use analysis before acquisition or leasing.
Main street rents: $35–$65/sf — Cap rates: 5%–6.5% — Lease terms: 5–7 years
Mixed-Use
Ground-floor commercial with residential above — a model that generates two distinct income streams with different risk profiles. Griffintown and the Plateau-Mont-Royal concentrate the most liquid mixed-use assets. The analytical complexity (two different legal regimes, two lease structures) justifies specialised advisory. NOI must be modelled separately for each component before valuation.
Mixed yield: 4.8%–6.2% — Ideal commercial ratio: 15%–30% of total GLA
Multi-Family
Plex buildings (duplex, triplex, quadruplex) and small apartment buildings are the preferred entry into income-generating real estate in Montreal. Quebec's residential tenancy law and the TAL (housing tribunal) strictly govern rent increases — making analysis of existing leases and long-term upside potential absolutely critical. Post-2005 buildings or short-term rental setups carry different income structures.
Plex cap rates: 3.5%–4.75% — MTL residential vacancy: ~2.3% — Price/unit: $120K–$250K
Cap Rate
Cap rate is the fundamental yield metric in commercial real estate: NOI ÷ Purchase Price. A higher cap rate signals higher return — but often higher risk (aging building, weaker tenant, secondary location). Institutional Class A assets trade at compressed caps because risk is embedded in the purchase price. Comparative analysis (current cap rate vs. projected exit cap rate) is foundational in any commercial acquisition model.
Cap rate calculator →Net Operating Income (NOI)
NOI is the valuation engine of any commercial asset. Effective gross income minus operating expenses (taxes, insurance, maintenance, management) before debt service. Optimising NOI runs through three levers: rent increases at renewal, vacancy reduction, and expense compression. A 10% NOI increase on a 5% cap rate asset generates a 20% increase in asset value.
NOI modelling →Lease Structures
Commercial leases in Quebec carry none of the tenant protections of residential tenancy law. Net, gross, and triple-net structures transfer different responsibilities to the tenant. Indexation clauses (CPI, fixed base rent or indexed), renewal options, rights of first refusal, and early termination provisions determine asset value as much as the headline rent. An experienced broker analyses the lease as much as the building.
Learn more about our services →Downtown (CBD)
Grade AMontreal's financial and institutional core. Class A office towers, corporate HQs, hotels and large-format retail. High pedestrian density and transit connectivity.
Best for: Class A office, large-format retail, hospitality
Old Montreal
Grade AHistoric quarter with strong heritage value. Ideal for creative firms, premium advisory practices, luxury retail, and fine dining. Warehouse conversions create unique floor plates.
Best for: Creative offices, luxury commercial, boutique hospitality
Griffintown
Grade A/BMontreal's most active urban transformation zone. New residential towers, mixed-use buildings, studios and service retail. Young affluent demographics. Very strong rental demand.
Best for: Mixed-use, flex space, food and beverage, fitness
Mile End
Grade BTech and culture stronghold. Commercial rents more accessible than downtown with a dense, loyal customer base. Creative atmosphere that draws independent brands and studios.
Best for: Tech offices, independent retail, studios
Saint-Laurent
Grade BMajor industrial and manufacturing corridor. Exceptional highway access (A-40, A-15, A-520). Well-established industrial parks. Strong logistics and distribution demand.
Best for: Industrial, logistics, manufacturing, warehousing
Anjou
Grade B/CIndustrial sector on the eastern island with excellent highway links (A-25, A-40). Industrial rents lower than Saint-Laurent. Anjou industrial park well-served.
Best for: Light industrial, distribution, storage
Asset Analysis
Full due diligence before any acquisition: review of existing leases, NOI modelling, cash flow projections, comparative cap rate analysis, identification of hidden risks (deferred capex, unfavourable clauses, zoning).
Commercial Leasing
Representation of landlords and tenants in commercial lease negotiation. Sector-specific rental market analysis, term structuring, letter of intent drafting. Established relationships with institutional and private Montreal landlords.
Acquisition and Sale
Identification of acquisition targets based on your yield criteria, offer process, coordination of legal and financial due diligence, negotiation of closing conditions. Access to off-market properties via the Soares Agency network.
Portfolio Strategy
Assessment of your current portfolio, identification of assets to hold, recycle, or divest, tax and structural repositioning. Coordination with your legal and accounting advisors. 5–10 year modelling available via tools.jeremysoares.com.
What are typical cap rates for commercial real estate in Montreal?
Cap rates vary by asset class and location. Class A downtown office: 4.5%–5.5%. Street retail (Griffintown, Mile End): 5%–6.5%. Multi-family: 3.5%–4.75%. Industrial (Saint-Laurent, Anjou): 5%–6.5%. These ranges shift based on remaining lease term, tenant covenant strength, and building condition.
What is the difference between Centris and a commercial real estate broker?
Centris is a listing portal — it displays properties listed by member brokers. A broker like Jeremy Soares goes beyond the portal: he analyses NOI, structures leases, identifies off-market properties, and negotiates terms in your favour. Centris gives you raw data; an advisor gives you strategic advantage.
Why not just use LoopNet to find commercial real estate in Montreal?
LoopNet is US-centric. Its coverage of the Quebec market is fragmented and often outdated. Montreal's commercial market operates primarily in French and follows Quebec Civil Code rules — substantially different from common law contracts. A local OACIQ broker with direct landlord relationships accesses opportunities that LoopNet will never list.
Which Montreal neighbourhoods are best for commercial real estate?
It depends on your strategy. Downtown (CBD) for Class A office and corporate HQs. Old Montreal for creative firms and luxury. Griffintown for mixed-use and flex space. Mile End for tech and culture. Saint-Laurent for industrial and logistics. Anjou for industrial assets with strong highway access.
How does a commercial lease work in Quebec?
Three main structures: net lease (tenant pays taxes, maintenance, and insurance), gross lease (landlord absorbs those costs), and triple net (NNN) where all operating expenses are transferred to the tenant. Indexation clauses, renewal options, and termination rights must be reviewed by an experienced broker before signing.
What is NOI and why does it matter?
NOI (Net Operating Income) is the property's gross income minus operating expenses, before debt service. It is the fundamental metric in commercial real estate: asset value is calculated by dividing NOI by the cap rate. A 10% NOI increase on a 5% cap rate asset generates a 20% increase in asset value.
What is the difference between Class A, B, and C buildings?
Class A designates newer buildings (post-2005), with modern systems, investment-grade tenants, and premium common areas. Class B covers functional but older buildings offering better value. Class C includes value-add assets: initial yields are higher but vacancy and capex risk are proportional.
Centris and LoopNet show you properties. An OACIQ broker analyses profitability, structures the lease, and negotiates terms. The difference is measurable.
Jeremy Soares is a licensed real estate broker in Quebec, OACIQ permit number H2731. All commercial real estate transactions in Quebec are governed by the Civil Code of Quebec and the Real Estate Brokerage Act (OACIQ). Market data cited is indicative and subject to change. For active listings, see Centris.ca and Realtor.ca.