CANADA – QUÉBEC Trends and Developments Contributed by: Eleonora Eusepi and Bruno Burrogano, BCF Business Law LLP
continue to pursue multi-residential projects across the province, recognising the sustained demand fun - damentals and the income stability that rental assets can provide. However, development timelines are increasingly constrained by regulatory approval pro - cesses, zoning procedures, and construction costs, as outlined above, which together lengthen the period between project conception and revenue generation. Resale activity in the condominium market has slowed, largely due to the impact of higher interest rates on affordability and buyer confidence. Even so, pre-construction sales remain relatively active in cer - tain urban areas, particularly those with strong transit access, walkable amenities and proximity to employ - ment. Demand in these locations continues to be sup - ported by interest from both end users and investors. Co-ownership (condominium) law in Québec is gov - erned primarily, but not exclusively, by the Civil Code of Québec, which establishes the foundational legal framework for syndicates of co-owners, their gov - ernance obligations, and the rights and responsibili - ties of individual unit owners. Recent jurisprudence from the Court of Québec and the Superior Court has reinforced and, in some cases, clarified obligations relating to contingency fund adequacy, syndicate gov - ernance processes, and the disclosure obligations of sellers and syndicates of co-owners. These decisions highlight the need for strong governance practices and adequate financial reserves within co ownership corporations, and they carry practical implications for professionals advising on condominium acquisitions, syndicate governance, and disputes between unit The office sector continues to face vacancy issues driven by the widespread adoption of hybrid and remote work arrangements that fundamentally altered corporate space requirements during and following the COVID-19 pandemic. Across most office sub - markets, tenants are shrinking and consolidating their footprints, favouring newer, higher-quality buildings that offer strong amenities, modern infrastructure and a workplace environment capable of drawing employ - ees back in. This flight-to-quality trend is putting grow - ing pressure on older Class B and C buildings, many owners and syndicates. Commercial and office
of which face functional limitations, deferred capital investment and softening demand. While conversion to alternative uses such as residential, hotel or life sciences space is increasingly being explored, these projects often involve significant structural, regulatory and financial hurdles. Lease renewal strategies and tenant inducement pack - ages (including free rent periods, leasehold improve - ment allowances, and flexible lease term structures) remain key negotiating points in commercial leasing. Both landlords and tenants are approaching lease negotiations with greater sophistication, reflecting the complexity of the current office market environment. Retail performance varies meaningfully by format and location. Food-anchored retail centres and experiential retail formats (including fitness, entertainment, dining, and service-oriented uses) remain resilient, supported by consumer demand for in-person experiences that cannot be replicated online. By contrast, traditional enclosed malls and high-street retail in certain loca - tions require active repositioning strategies, including tenant remixing, physical reconfiguration, and in some cases, redevelopment to mixed-use formats. Industrial and logistics Industrial and logistics assets remain the strongest- performing segment of the Québec real estate mar - ket, supported by a convergence of structural demand drivers including continued e-commerce growth, nearshoring trends as companies reconfigure their supply chains to reduce geopolitical risk exposure, and broader supply chain reconfiguration in response to disruptions experienced in recent years. Demand continues from a diverse base of logistics operators, manufacturers, and distributors seeking modern industrial facilities, particularly those equipped with sufficient clear heights, loading capacity, power avail - ability, and proximity to key transportation corridors including highway networks, rail infrastructure, and port facilities. Industrial vacancy in the Greater Montréal Area remains at historically low levels, and rental rates have continued to appreciate, although the pace of rent growth is beginning to moderate as new sup - ply deliveries come to market. The constrained avail -
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