Amazon space returning to market exacerbates rising large bay vacancy

The Greater Montreal Area (GMA) experienced record-breaking negative absorption in Q3 2025, largely due to multiple former Amazon buildings becoming vacant. While inventory increased by over 10.0 million square feet (msf) over the past four quarters, no new product hit the market in Q3, granting a temporary reprieve from additional speculative buildings impacting vacancy. In Q3 2025, vacancy rose 220 basis points (bps) year over year, reaching 6.6%. The Beauharnois-Salaberry and Laval submarkets experienced the largest increases in vacancy, while the Montreal Mid-Town North submarket recorded a 30-bps decline. Although vacancy has risen for three consecutive years, consistent leasing activity for industrial product continues, largely driven by logistics, distribution and third-party logistics (3PL) companies. Intramodal Warehouses’ 411,511-square-foot (sf) renewal was the standout deal of the quarter, with at least five other deals over 100,000 sf signed in Q3 2025.

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