Some statistics to help you make a decision in your quest for Downtown Montreal office space for lease Class A office space for lease, representing 67% of the downtown core market, has a vacancy rate of 12.8% for the second quarter of this year; a slight increase from the 11.5% vacancy rate reached at the end of lat year.  Class B office space for lease, representing 28% of the downtown core market, finished the second quarter with a vacancy rate of 13.8%, a large decrease from 17% vacancy achieved at the end of last year Class C office space for lease, representing a small percentage of the total downtown core market, has a vacancy rate of 16.8%. The average asking rent for downtown core office space for lease is approximately $16 per square foot net. Presently, there are no new office projects underway downtown. However, Place Ville Marie, located on the corner of Mansfield Street and René-Lévesque Boulevard, has finished it's construction which mainly revolved around rehabilitating the building's envelope. The shortage of available tenants combined with low expansion from present tenants have pushed landlords to offer incentive packages to large tenants in search of space. Some tenants have benefited from the current market conditions by negotiating a new lease before the end of their present office leases... They took advantage of the rise in vacancy rates. Update end of last year and office space for lease forcast for this year Cental business district (Montreal financial core) Class 'A' office buildings The vacancy rate of office space fell to 10.3%. The average asking net lease rates fell to $13.82 psf.  Additional rents increased from $12.51 psf to $12.58 psf. In class 'B' office space buildings, the vacancy rate went down to 13.6%  Strong Absorbtion There was strong absorption also in the West Island, Downtown South, and Old Montreal markets,Central Core, Downtown East, Midtown, and Laval.  The worst performers in absorption were Downtown West, Atwater-Westmount, East End, and the South Shore. Vacancy rates and leasing rates fell Overall, vacancy rates fell to 12.6%.  Prime Class 'A' office space, saw sublet space increase. New Projects New office space construction projects were Antrev Management's Esplanade Loft Complex (125,000 SF of loft style office space for lease at 6750 Avenue de l'Esplanade). The largest office space project planned, Hines' 385,000 SF, 27-story office space tower at 900 de Maisonneuve West.  Completed projects are:  renovations at 685 Cathcart Street (70,000 sf of office space for lease) and the Gordon Brown Building (400 de Maisonneuve Boulevard West, 330,000 sf of loft style office space for lease). Outlook for 2012:  As vacancy rates drop to around 12.0%, tenants will find it increasingly difficult to find new space. High absorption and low vacancy numbers will begin to indicate that new office towers could be built in mid- to late-2012. With the future strength of demand for office space, and as landlords find that fewer incentives are needed to secure tenants, they will begin the push for increases in asking rents. Rents will begin to go up. By the end of 2012, and early into 2010, net effective rents and vacancy rates should reach peak levels. 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