Rue Sainte-Catherine, Quebec’s main commercial artery, continues to show significant signs of trouble.
• Also read: Real Estate: Office presence in the Montreal region is decreasing
Despite investments in recent years, the number of vacant retail and commercial spaces continues to grow almost uncontrollably.
Last July, the rate of vacant commercial space reached a historic high of 18.2%. Specifically, no fewer than 105 of the 578 business premises along the 11 kilometer long stretch of this legendary thoroughfare were unoccupied, rented or completely abandoned.
Atmosphere of Sainte-Catherine Street West in the downtown area between Peel and De Bleury streets in Montreal, on Wednesday, October 4, 2023. In this photo, a store for rent. Photo agency QMI, JOEL LEMAY
“It’s as if we were killing the patient we were trying to save,” complains Christian-Pierre Côté, president of Côté Mercier Data Services, a Quebec company specializing in commercial analysis.
The situation is improving
In a comprehensive study released this morning, the company reports on the condition of 63 major arteries in 11 different Quebec administrative regions.
The authors conclude that we are generally seeing an improvement in the health of the province’s commercial arteries. The latter would have particularly benefited from the financial aid distributed to Quebecers to cope with inflation.
As a result, explains Mr Côté, vacancy rates on most arterial roads in the province have improved and now average 3.8%, while several dealers have done well.
Two worlds
The situation is completely different on Sainte-Catherine Street, a symbolic artery in Montreal that is characterized by numerous changes. Dealers are suffering, among other things, from major work that could probably extend beyond 2030.
“We cannot be satisfied, but we are encouraged by the progress made,” says Glenn Castanheira, CEO of Montréal Centre-ville. Despite everything, traffic and sales per square meter continue to grow.”
There are currently numerous “For Rent” signs on Sainte-Catherine Street. Photo agency QMI, JOEL LEMAY
While the vacancy rate in the west remains at a high level (14.4%), particularly due to a hesitant return of workers to the office towers in the city center, it is deteriorating completely in the east on Saint-Laurent-Straße.
In this latest period, where multiple economic realities and psychosocial issues collide, the vacancy rate has increased by 73% in just two years. In July it was 21.5%, compared to 17.1% in 2022 and 12.4% in 2021.
“In this sector we are dealing with several owners who have decided to throw in the towel because they have no recourse or solutions. They have stopped investing and are no longer looking for rentals, analyzes Mr. Côté.
Examples of success
Fortunately, other arteries in the metropolis look much better. This applies, among others, to Avenue Mont-Royal, which is only accessible to pedestrians in summer, and to Rue Masson in Rosemont. Only 3.2% of the retail space there is empty.
Claude Roy has operated a business on Masson Street in Montreal for 45 years. The Limasson bookstore is a pillar of the neighborhood. Photo Julien McEvoy
“Families have settled down and their children have grown up. Rue Masson is their village, they enjoy living and spending time here. They only go into the city if they don’t find something on the street first,” says Claude Roy, owner of the Limasson bookstore, which has been on this street for no less than 45 years.
The same is true for several arteries in the Quebec region, where Cartier Street and 3rd Avenue have among the lowest commercial property vacancy rates in the province. A favorable situation that could result in significant rent increases for businesses.
Limoilou as an example
In Limoilou, the development of 3rd Avenue is proceeding almost flawlessly, estimates Mr. Côté. However, St-Joseph-Straße in the Saint-Roch district remains problematic. The vacancy rate is 11.9%.
The Saguenay Lac-St-Jean arteries, in turn, show improvement with an overall decrease in vacancy from 7.3% to 3.5% in one year. However, Rue St-Dominique in Jonquière continues to stand out, with a vacancy rate of 7.2% and a vacancy rate of 13%.
Despite improvements, there is still a high proportion of vacant commercial space in Bas St-Laurent and the Côte-Nord. Of all the regions, only Montérégie and Lanaudière recorded an increase in their respective vacancies. The vacancy rate of Montérégie’s main arteries is 4.2%, while the vacancy rate of Lanaudière’s main arteries is 2%.
-With contribution from Julien McEvoy.
PROPORTION OF EMPTY BUSINESS PREMISES IN MONTRÉAL AND THE CAPITAL
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