CBRE

FIGURES|MONTREALOFFICE|Q42025

Signsofnewdemandtrendsemerging

18.3%

VacancyRate

Note:Arrowsindicatechangefrompreviousquarter.

476K

SFNetAbsorption

0K

SFUnderConstruction

$20.11

PSFNetAskingLeaseRate

FIGURE1:GMASupply&Demand

NetAbsorption&NewSupply(000sSF)VacancyRate(%)

Overview

1,500

30%20%10%0%

-Leasingending2025withstrongmomentasQ4hadthehighestnetabsorptionwith

476,000sq.ft.

1,000

500

0

-500

-1,000

-1,500

-WhileClassAAAvacancydecreasedto6.0%,positiveabsorptionstemmedfromClassA(235,000sq.ft.)andB(122,000sq.ft.).inQ4.Thisisanearlyindicationofanewdemandcycle.

-Subletspacedeclined400,000sq.ft.quarter-over-quarter.ThisisthelargestreductionsinceQ42002.

-Theofficesalesmarkethascontinuedtoimproveyear-over-year,aspreliminarydollarvolumesindicate2025totalledto6.5%higherthan2024.

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4202020212022202320242025

-ThescarcityofClassAAAspacehasstrengthenedlandlordleverageinpropertiesbelowa

5.0%vacancyrate.Thishascausednetrentalratetoincreaseashighas$41persq.ft.withminimalincentivesoffered.

NetAbsorptionNewSupplyVacancyRate

Source:CBREResearch,Q42025.

1CBRERESEARCH?2026CBRELimited

FIGURES|MONTREALOFFICE|Q42025

2CBRERESEARCH?2026CBRELimited

ClassAAAavailabilitiesshapingthenextdemandtrends

ThecontinuedtighteningofClassAAAhasledtoanearly208,000sq.ft.decreaseinavailabletrophyspaceyear-over-year,leavingfewoptionsforlargecontiguousblocksofspace.OnlyfivepropertiesofClassAAAorAAcanaccommodatetenantsrequiring35,000to50,000sq.ft.,andjustthreecansupportrequirementsbeyondthatthreshold.

Tenantsseekinglargerspacesareobligedtoconsidernon-trophyassets,asreflectedbythetwolargesttransactionsofthequarter:approximately100,000sq.ft.at1001Robert-BourassaBoulevard(ClassA)and107,000sq.ft.at111DukeStreet(ClassB).Thesedealsaccountedformostofthequarter’spositiveabsorptionandhighlightthataspillovertrendisstartingtotakeshape.Thistrendisexpectedtopersistinto2026.

Subletspacecontinuesitsdecline

2025markedthehighestlevelofsubleasespaceremoved,drivenlargelybynaturalexpiries.

Whenactivityinsubletspaceisseenhowever,tenantstypicallyleasetheirspaceforatermlongerthantheremainderofthesublet.

Currentdatashows2027willrepresentthelargestwaveofexpiriesbeforetheendofthedecade.Overthelast25years,Montrealhasmaintainedsubleaselevelsroughlybetween

500,000sq.ft.and1.0millionsq.ft.Currentsubletspacetotalsslightlyover1.5millionsq.ft.

exhibitingatrendtowardnormalizationwithhistoricnorms.

These“blend-and-extend”scenarioshavebecomemorecommonplace.Thetransactionat

1001Robert-BourassaBoulevardwasthemostnotablesubletdealthisyear,accountingfor

approximately10%oftheover1.0millionsq.ft.ofremovedsubletspace,showcasingthisfact.

FIGURE2:GMAHistoricalVacancyRatebyClass,Quarterly(%)

25%

20%

15%

22.3%

18.8%

.

161%

6.0%

10%

0%

5%

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2020

2021

2022

2023

2024

2025

ClassAAA一ClassAAClassAClassB

Source:CBREResearch,Q42025.

FIGURE3:ExpiryofAvailableSubletSpaceintheGMAbyyear(000sSF)

600

500

400

300

200

100

0

20262027202820292030-2037

AAA

AA

A

B

Source:CBREResearch,Q42025.

FIGURES|MONTREALOFFICE|Q42025

3CBRERESEARCH?2026CBRELimited

OfficesalestransactionsheightenedafterQ12025

PreliminaryAltusnumbersshow2025endedwithatotaldollarvolumeof$542million,withQ4accountingforapproximately22%oftheannualtotalor$140.7million.Q2recordedthehighestactivityinbothsizeanddollarvolume,primarilydrivenbyKingsettCapital’s$100million

acquisitionofBUSACproperties.Q4registeredthelargestnumberofdealsabove$25million,including3510Saint-LaurentBoulevard,1PlaceduCommerce,and950BeaumontStreet.OthernotablesalesincludeMondev'sacquisitionof6750DeL’EsplanadeAvenueandthesaleof

3530-3540&3575Saint-LaurentBoulevardbyAllied.Certainlandlordshavepulledspacefromthemarkettoimplementupgradesorpositionpropertiesforfuturesales.

Throughout2025,Allieddisposedofapproximately6.6%ofitsMontrealportfoliofor$63million,withanadditional$17millionpending1.ThethreebuildingsweresoldtoLordBernierInc.(3510,3530-3540Saint-LaurentBoulevard)andArmco(3575Saint-LaurentBoulevard).Thereasoningbehindthedispositionsaretoredeploycapitalandenhanceliquidity.

Purchasershavebeenactiveinpreparingforanewofficedemandcycle.Certaininvestorshavefocusedonvalue-addopportunities,believingoperationalimprovementsandcreativelease-upstrategieswillbeparamounttodifferentiatingthemselvesinthemarket.Otheracquisitions

havefocusedonmaximizinghighestandbestusebyrepositioningforre-development.ThisscenarioisillustratedbyArmco’stransactionat3575Saint-LaurentBoulevard,whichisa

continuationoftheirstrategyat1245SherbrookeStreetWesttwoyearsago.

1:Allied,“SHORTFORMBASESHELFPROSPECTUS”,December16th2025.pg.3

FIGURE4:Totaltransactionvolumeandsizeperquarter

TransactionVolume(million$)TransactionSize(000sSF)

$250

$200

$150

$100

$50

$0

$240.2

1,596

$136.1

$121.7

$44.4

682

732

298

Q1Q2Q3Q4*

2,000

1,600

1,200

800

400

0

TotalTransactionAmountTotalSizeTransacted

*Preliminary

Sources:AltusDataStudios,December22nd,2025,CBREResearch,Q42025.

FIGURES|MONTREALOFFICE|Q42025

4CBRERESEARCH?2026CBRELimited

FIGURE5:GMAOfficeMarketStatistics,Q42025

Submarket

Inventory

(SF)

Vacancy

Rate

(%)

SubletSpace

(%ofVacantSpace)

Net

Absorption

(SF)

YTDNet

Absorption

(SF)

Under

Construction

(SF)

Avg.Net

AskingRent

(PSF)

Avg.Additional

AskingRent

(PSF)

Avg.Gross

AskingRent

(PSF)

CentralCore

25,272,857

18.4%

6.2%

59,433

9,604

0

$22.22

$23.51

$45.73

DowntownSouth7,466,34217.9%8.1%385,516404,6310$26.21$24.16$50.37

DowntownWest

3,784,923

15.2%

2.0%

10,027

-114,979

0

$18.36

$19.69

$38.05

DowntownEast

5,825,767

14.5%

34.7%

11,127

-14,050

0

$18.13

$17.18

$35.31

OldMontreal

3,185,736

21.4%

10.9%

-34,891

16,925

0

$22.76

$19.92

$42.68

Atwater/Westmount1,738,06617.1%2.9%-45,418-74,2500$24.29$17.77$42.06

CBDTOTAL

47,273,691

17.8%

9.3%

385,794

227,881

0

$22.40

$22.37

$44.77

Midtown14,472,97221.5%8.3%-44,675-172,7420$17.39$14.53$31.92

WestIsland

8,318,789

17.9%

21.4%

64,681

116,500

0

$17.20

$14.47

$31.67

Laval

3,916,140

17.6%

3.7%

46,127

89,661

0

$16.40

$14.60

$31.00

EastEnd

1,908,312

23.6%

4.5%

-27,984

-21,917

0

$15.18

$18.62

$33.80

SouthShore5,067,95714.2%13.9%52,18521,2700$17.28$13.46$30.74

SUBURBANTOTAL

33,684,170

19.2%

11.2%

90,334

32,772

0

$17.06

$14.72

$31.78

GMATOTAL

80,957,861

18.3%

10.2%

476,128

260,653

0

$20.11

$19.08

$39.19

LOFTOFFICE

7,934,659

16.5%

22.2%

-24,769

-138,510

0

$18.61

$13.02

$31.63

Source:CBREResearch,Q42025.

FIGURES|MONTREALOFFICE|Q42025

MarketAreaOverview

Definitions

AverageAskingLeaseRate:Acalculatedaveragethatincludesnetandgrossleaserate,weightedbytheircorrespondingavailablesquarefootage.

NetAbsorption:ThechangeinOccupiedsq.ft.fromoneperiodtothenext.

NetLeaseRate:Rentexcludesoneormoreofthe”net”costs(realpropertytaxes,buildinginsurance,andmajormaintenance)typicallyincludedinaGrossLeaseRate.

VacancyRate:Totalvacantsq.ft.dividedbythetotalbuildingarea.

VacantSpace:Spacethatcanbeoccupiedwithin30days.

SurveyCriteria

CBRE’smarketreportanalysesfullymodernofficebuildingsof20,000+sq.ft.acrosstheGMA.CBREassemblesallinformationthroughtelephoneconversationsandlistingsreceivedfromownersandmembersofthecommercialrealestatebrokeragecommunity.

Contacts

AlessandroMigliara

ResearchManager,Aut