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Market Trends for Saguenay 2023 | Multifamily and Industrial

The multi-residential and industrial real estate market in Saguenay underwent a notable transition between January 2022 and December 2023, characterized by significant shifts. In this article, we will focus on a detailed analysis of the multifamily market, including those with 5 to 11 units, those with 12 to 24 units, and the industrial market. This analysis will take an in-depth look at transaction volumes, cost per unit (CPL), gross (GRM) and net (NRM) income multipliers, as well as the overall discount rate (ADR). It’s also worth noting that outside investors are taking a close look at our market, attracted by the growth potential confirmed by comparable sectors such as Trois-Rivières and Sherbrooke. Finally, I’ll share my general impressions of the current state of our regional market.


Transaction volume for 5 to 11-unit buildings went up 17% than the previous year, at $28 million. This increase is also reflected in the number of transactions, which rose by 5% to a total of 59 properties transacted during the reference period. Cost per unit (CPL) rose significantly by 16% to $73,000. In addition, at a growth rate of 8.6%, the gross revenue multiplier (GRM) was also on the rise, demonstrating the growing value of investments in this category, and stood at 10.1. The net income multiplier (NIM) also recorded a notable increase of 25%, standing at 22.3. The overall discount rate (ADR) decreased by 25%, reaching a ratio of 4.5%, confirming enormous profitability potential. The market for 5- to 11-unit buildings remains attractive to investors as one of the most affordable markets in the Saguenay, with attractive optimization and yield opportunities.


The 12 to 24-unit building category also recorded changes, with a transaction volume of $9 million, down 44%. The number of transactions also fell by 31%, with only 9 recorded.

In addition, the cost per unit (CPL) fell significantly by 31%, averaging $61,000. Although the gross income multiplier (GIM) fell by 4% to 9.7, the net income multiplier (NIM) rose by 25% to 22.8. Despite a 25% drop in the overall discount rate (ADR), which now stands at 4.4%, the 12 to 24-unit building market offers more than attractive investment opportunities. It should be noted that this type of building is a rarity, and the small sample size of our sector has a direct impact on the massive variations.


On the industrial property front, the data show a positive change, with a significant increase in transaction volumes across all categories. We expect an influx of investors who will now turn to this type of asset.

LIGHT INDUSTRIAL: Transaction volumes for light industrial buildings rose from $3 million to $12 million between 2022 and 2023. The number of transactions also doubled, with 8 transactions recorded, for a total of 126,838 square feet. The price per square foot decreased slightly by 8%, reaching $111 in 2023.

HEAVY INDUSTRIAL:  On the heavy industrial side, transaction volume increased significantly, reaching $2 million in 2023. The total area transacted fell by 47%, but the price per square foot rose sharply to $130.

WAREHOUSES: Transaction volume was up in 2023, totaling $6 million, with 1 transaction recorded. Total surface area reached 25,400 sq.ft., with a price per square foot of $236.

In conclusion, despite some variations, the Saguenay real estate market continues to present extremely attractive investment opportunities, both in the multifamily housing sector and in industrial real estate. Investors can take advantage of these positive trends to make profitable and sustainable investments in the region, while taking into account interest rate fluctuations and their impact on the self-financing capacity of buildings.

Let’s not forget that real estate is a marathon, and that time is our ally, as demonstrated by the 52% increase in the cost per unit over 4 years. Saguenay ranks as the 3rd region with the highest increase in cost per unit over 4 years. Use it wisely.