Multifamily | BRIVIA Group Sells Phase 2 of LB9 Rental Condo Project

July was marked by a notable transaction in the Capitale-Nationale region. MC Properties acquired a 15-story multifamily building at 7755 rue des Métis, in the Lebourgneuf neighborhood, for $56.4 million. This building of 218 units  represents Phase 2 of the LB9 project developed by Brivia Group. More details in this video.

Industrial | Amazon buys land for future distribution center built by Broccolini

Amazon acquired a 917,000-square-foot plot of land on Chemin de l’Énergie in Varennes for $41 million. This site, formerly occupied by Mométal Structures, was purchased in 2021 by Broccolini, who will develop a state-of-the-art distribution center for Amazon, consisting of a 398,000-square-foot building with 45 loading docks. Amazon is strengthening its presence in the Greater Montreal area with this fourth distribution center.

Office | Bluestone Acquires Office Building in Côte-des-Neiges

Bluestone Group recently acquired a five-story office building in the Côte-des-Neiges neighborhood of Montreal for $13.3 million. Built in 1963, the building totals 48,100 square feet. For all the details on this acquisition and the key players involved, check out our Instagram reel.

Retail | PMML Assists Groupe Ferron in Selling a Branch

Groupe Ferron recently sold its building on Molson Street in the Rosemont neighborhood of Montreal, with the assistance of one of our PMML brokers. The 51,000 square foot building, home to the Odessa Poissonnier branch, was acquired by Mesdav Properties for $12.2 million. More information here.

Land | Mondev Sells 5 Lots in Laval

Mondev recently sold five industrial lots in Laval, totaling 665,000 square feet, for $24.25 million. The acquisition, made by the hardware store chain Canac, is strategically located near A440 and Route 117 in the Fabreville sector. This transaction marks an important step for Canac, as it continues to expand its real estate assets. Watch the video.

Multifamily

July 2024 stands out for its sustained activity, defying the usual summer slowdown. A total of 2,520 transactions were recorded over the past 12 months in the provincial multifamily market, marking a quarterly increase of 21% and an annual growth of 32%. In terms of investment volume, it reached $4.87 billion over the same period, reflecting a quarterly rise of 19%.

The profitability of multifamily properties remains highly attractive, with the median capitalization rate (cap rate) steadily increasing since January 2024, reaching 4.22% in July 2024, up from 4.15% at the beginning of the year. Active investors also benefit from a notable appreciation in property values, with the median cost per unit up 10% year-over-year, standing at $143,000 per unit in July 2024.

Industrial

The industrial real estate market experienced a slight decline in the number of transactions over the past year, dropping from 817 cumulative sales in July 2023 to 798 in July 2024. However, following a period of declining investment volume from July 2023 to last February, a recovery has begun, reaching $3.05 billion in transactions by July 2024, a quarterly increase of 25%. Industrial properties continue to appreciate across the province, with the average price per square foot reaching $185 in July 2024, representing a 9% increase over the past year.

Office

Activity in the office real estate market continued to grow over the last quarter, reaching 483 transactions over a 12-month period by July 2024, which represents a 42% annual increase and a 6% quarterly rise. The investment volume also progressed, increasing by 15% in one quarter to $1.058 billion by July 2024. However, a slight decrease in the price per square foot was observed in July 2024, settling at $248 compared to $250 in June 2024.

Retail

The retail real estate market saw a decrease in the cumulative 12-month investment volume across the province, down 18% year-over-year, reaching $1.76 billion by July 2024. The number of transactions also slightly declined by 2% over the same period but rebounded in the last quarter, showing a 14% increase with 981 transactions accumulated over 12 months by July 2024. Over the past year, the average price per square foot of commercial properties fluctuated, settling at $223 in July 2024 after peaking at $228 per square foot in June.

Land

The number of land sales experienced steady growth over the past year, as illustrated in the chart below. By July 2024, 3,351 sales were recorded over the previous 12 months, representing a 41% increase from the previous year. The investment volume also followed an upward trend, reaching $2.89 billion in July, a 31% increase year-over-year. However, the average price per square foot for land showed more volatility, settling at $53 in July 2024, compared to $45 a year earlier.

The mortgage market has seen a resurgence in attractiveness over the past 12 months, with a 5% increase in both the number of loans and their total volume. Loans granted for new acquisitions account for 35% of the total loans during this period, which equals 3,858 loans, but only 16% of the total volume, amounting to $11.95 billion.

The number of financings for new acquisitions increased by 7% in one quarter and by 11% year-over-year, driven by the attractive market.

Refinancing volume, on the other hand, increased by 7% over the past 12 months. However, a quarterly decrease of 5% was observed in refinancing volume.