Is Class A office cheaper in Montreal or Toronto?

Montreal is cheaper on a USD basis: $28/sqft vs $57/sqft.

Which has better talent depth, Montreal or Toronto?

Montreal indexes higher on talent depth (86 vs 80).

Which has more sublease availability, Montreal or Toronto?

Montreal carries higher vacancy (18.6% vs 17.6%) and therefore typically more sublease overhang.

What lease term should I expect in Montreal vs Toronto?

Montreal typical term is 10 years with 12 months rent-free; Toronto typical term is 10 years with 18 months rent-free.

Montreal ($28/sqft, 18.6% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: Montreal on talent depth and Toronto on rent and tax.

Class A rent: Montreal $28/sqft vs Toronto $57/sqft.
Vacancy: Montreal 18.6% vs Toronto 17.6%.
Talent index: Montreal 86 vs Toronto 80.
Corporate tax: Montreal 26.5% vs Toronto 26.5%.
Premium flex/seat/month: Montreal $580 vs Toronto $920.

Montreal vs Toronto: Class A office comparison

Montreal ($28/sqft, 18.6% vacancy) and Toronto ($57/sqft, 17.6% vacancy) compete on different axes: Montreal on talent depth and Toronto on rent and tax.

TL;DR

Class A rent: Montreal $28/sqft vs Toronto $57/sqft.
Vacancy: Montreal 18.6% vs Toronto 17.6%.
Talent index: Montreal 86 vs Toronto 80.
Corporate tax: Montreal 26.5% vs Toronto 26.5%.
Premium flex/seat/month: Montreal $580 vs Toronto $920.

Market data side-by-side

Metric	Montreal	Toronto
Region	Americas	Americas
Country	Canada	Canada
Class A rent (USD/sqft/yr)	$28	$57
Class A rent (local)	38 CAD	78 CAD
Vacancy	18.6%	17.6%
Trend	flat	flat
Prime yield	6.6%	5.5%
Premium flex / seat / month (USD)	$580	$920
Submarkets covered	5	6
Corporate tax	26.5%	26.5%

Lease norms

Metric	Montreal	Toronto
Typical term	10 yrs	10 yrs
Typical rent-free	12 mos	18 mos
Lease norms	Net leases (tenant pays opex separately). 10-year terms standard. Free rent of 10-14 months and TI of C$60-$100/sqft typical on a 10-year Class A deal.	Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI). Rent-free of 12-24 months on a 10-year term is current market. Bank guarantees common for non-investment-grade covenants.
Tax note	15% federal plus 11.5% Quebec corporate income tax for a combined rate of 26.5%. Quebec offers material tax credits for film/TV, multimedia, and AI/R&D activities.	Combined federal + Ontario corporate tax 26.5%. Toronto Municipal Land Transfer Tax applies on purchase, not on lease.

Talent

Metric	Montreal	Toronto
Talent index (0–100)	86	80
Talent note	Deepest French-English bilingual professional talent in North America. Structural AI research cluster (Yoshua Bengio at MILA, Element AI alumni). Strong aerospace, video games, and creative industries talent.	Deepest financial-services and tech talent pool in Canada. Average all-in compensation indexes 80.

Transit & commute

Montreal: STM Métro (four lines), exo commuter rail, and REM automated light rail (opening progressively 2024-25). Downtown is highly walkable and Métro-served. The Underground City connects 33 km of pedestrian passages.

Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.

Top submarkets — Montreal

Downtown CBD — trophy tier · C$52/sqft/yr · ≈ $38.5 PSF/yr USD
Griffintown & Old Port — prime tier · C$44/sqft/yr · ≈ $32.6 PSF/yr USD
René-Lévesque West — prime tier · C$42/sqft/yr · ≈ $31.1 PSF/yr USD

Top submarkets — Toronto

Financial Core — trophy tier · C$82/sqft/yr · ≈ $60.7 PSF/yr USD
South Core — trophy tier · C$56/sqft/yr · ≈ $41.4 PSF/yr USD
King East & Distillery — prime tier · C$55/sqft/yr · ≈ $40.7 PSF/yr USD

Decision criteria

Pick by cost

Montreal is the cheaper Class A market on a USD basis.

Pick by talent depth

Montreal has the deeper talent index (86/100 vs 80/100).

Pick by tax

Tax rates are tied.

Pick by lease optionality

Montreal typical term is 10 years with 12 months free; Toronto runs 10 years with 18 months free.

Pick by transit

Montreal: STM Métro (four lines), exo commuter rail, and REM automated light rail (opening progressively 2024-25). Downtown is highly walkable and Métro-served. The Underground City connects 33 km of pedestrian passages. Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.

Run a 4-city comparison

Score Montreal, Toronto and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.

Run a 4-city comparison →

Frequently asked questions

Is Class A office cheaper in Montreal or Toronto?: Montreal is cheaper on a USD basis: $28/sqft vs $57/sqft.
Which has better talent depth, Montreal or Toronto?: Montreal indexes higher on talent depth (86 vs 80).
Which has more sublease availability, Montreal or Toronto?: Montreal carries higher vacancy (18.6% vs 17.6%) and therefore typically more sublease">sublease overhang.
What lease term should I expect in Montreal vs Toronto?: Montreal typical term is 10 years with 12 months rent-free; Toronto typical term is 10 years with 18 months rent-free.
How does transit and commuter access compare?: Montreal: STM Métro (four lines), exo commuter rail, and REM automated light rail (opening progressively 2024-25). Downtown is highly walkable and Métro-served. The Underground City connects 33 km of pedestrian passages. Toronto: TTC subway plus GO Transit commuter rail converge at Union Station. The PATH connects most Financial Core assets underground.

Editorial provenance

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

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction