For institutional fund strategies, Downtown CBD carries the strongest investor flag in Montreal, with prime yields around 6.6%.

  • Trophy submarket (Downtown CBD) carries the strongest investor flag.
  • Prime yield: 6.6%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Montreal office fund strategy and flag

For institutional fund strategies, Downtown CBD carries the strongest investor flag in Montreal, with prime yields around 6.6%.

TL;DR

  • Trophy submarket (Downtown CBD) carries the strongest investor flag.
  • Prime yield: 6.6%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Montreal, that's Downtown CBD and assets like Place Ville Marie, 1000 De La Gauchetière.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityMontreal
countryCanada
regionAmericas
classARentLocal38 CAD/sqft/yr
classARentUsd$28/sqft/yr
vacancy18.6%
typicalLeaseYears10
typicalRentFreeMonths12
submarkets5
primeYieldPct6.6%
primeYield6.6%
trophyAnchorDowntown CBD

Frequently asked questions

Where do core funds buy in Montreal?
Trophy submarket — Downtown CBD — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

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