Quebec City Office Figures Q4 2024

–       Class B office has been stable year-over-year, maintaining around 10.0% vacancy while Class A has seen a significant yearly increase of 130 basis points (bps), reaching 16.4%.

–       The Central Business District (CBD) and Lebourgneuf submarkets are the largest contributors to the negative portion of annual absorption, with negative 60,000 sq. ft. and negative 92,000 sq. ft. on the year, respectively.

–       Net asking rents have shown minimal change year-over-year, staying around $16.50 per sq. ft. for class A and $14.60 per sq. ft. for class B. While front rates remain stagnant, tenant inducement is rising.

–       The Government of Quebec is considering downsizing their office footprint by leaving certain buildings, which may put upward pressure on vacancy. The vacancy rate has already climbed 80 bps year-over-year and is likely to continue to increase in 2025.