Greater Montréal Industrial Market Supply, Demand & Trends
Greater Montréal Industrial Market Supply, demand & trends
October 12th, 2017
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. What’s behind the demand?
2011 2012 2013 2014 2015 2016 Q1 2017 Québec Exports WTI Crude $ CAD - USD
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 2 Availability for Sale vs. Vacancy Where has all the Product Gone?
16,000,000 7.00%
14,000,000 6.50% 12,000,000 6.00% 10,000,000
8,000,000 5.50%
6,000,000 5.00% 4,000,000 4.50% 2,000,000
0 4.00% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Availability for Sale GMA (SF) Vacancy
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 3 Port of Montreal Significant Capital Investment Setting the Stage for Future Growth
TEUs versus port-market occupancy
TEUs TEUs Port-market occupancy* 95.00% 1,400,000
1,200,000 93.00%
1,000,000 91.00% 800,000
600,000 89.00%
400,000 87.00% 200,000
0 85.00% 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 4 Port of Montreal Significant Capital Investment Setting the Stage for Future Growth
4 5 3 Viau (Termont) Terminal 2
1 Maisonneuve (Termont) Racine (MGTP) Terminal Terminal
Where? What? Who? When? 1 Port of Montreal (Viau Terminal) Expansion Port of Montréal & Termont January 2017 Demolition of de Boucherville Bridge 2 Highway 25 / Notre-Dame Est City of Montréal Q3 2018 Easier heavy goods transport from Port of Montréal 3 Notre-Dame Est 20 million S.F. land sold to container operator Raymont Logistics January 2016 4 5781 Notre-Dame Est Sold to developer/investor Shapiro Group April 2017 5 7101 Notre-Dame Est Sold to developer/investor Vista/Divco July 2017 The Effects of Additional Rents and tax Subsidies
South Shore $3.05
North Shore $2.97
Laval $3.61
Economic Development East End $2.76 Incentive Program (EDIP)
Lachine $3.57
PR@M? Saint-Laurent $3.22
West Island $3.27
GMA $3.22
$0.00 $1.00 $2.00 $3.00 $4.00
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 6 Construction Industrial Projects since 2016 (Completed or Under Construction)
230,827 S.F.
1,296,171 S.F. IKEA, Beauharnois Costco, Varennes 1,000,000 square feet 550,000 square feet
2,236,357 S.F.
3801 F.-X. Tessier, Vaudreuil-Dorion 2850 Matte, Brossard Built-to-Suit (Lease) Owner-Occupier Build Speculative 145,120 square feet 40,000 square feet
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 7 Translation Overview Largest leases signed in 2017
9225 Henri-Bourassa Est, Rivière-des-Prairies 20701 Sainte-Marie, St-Anne-de-Bellevue 3055 Anderson, Terrebonne New lease New lease New lease 272,898 square feet 140,560 square feet 136,982 square feet
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. 8 Thank you Merci