2023-10-05 04:00:00
Rue Sainte-Catherine, the most important commercial artery in Quebec, continues to show significant signs of difficulty.
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Despite investments in recent years, the number of vacant storefronts and commercial spaces continues to grow almost uncontrollably.
Last July, the rate of vacant commercial premises reached a historic high, at 18.2%. Concretely, no less than 105 of the 578 business places along the 11 kilometers of this legendary artery were unoccupied, for rent or completely abandoned.
Atmosphere of Sainte-Catherine Street West in the Downtown area between Peel and De Bleury streets, in Montreal, on Wednesday, October 4, 2023. In this photo, a business for rent. Photo Agence QMI, JOEL LEMAY
“It’s as if we were killing the patient we wanted to save,” laments Christian-Pierre Côté, president of Côté Mercier Data Services, a Quebec company specializing in commercial evaluation.
The situation is improving
In an exhaustive study, made public this morning, the company reports on the health of 63 main commercial arteries in eleven different administrative regions of Quebec.
Its authors conclude that in general, we are witnessing an improvement in the health of the province’s commercial arteries. The latter would have particularly benefited from the financial aid distributed to Quebecers to help them cope with inflation.
As a result, explains Mr. Côté, while several merchants have done great business, the vacancy rates on the majority of arteries in the province have improved to stand today at 3.8%, on average. .
Two worlds
The situation is quite different on Sainte-Catherine Street, an emblematic artery of Montreal, marked by numerous transformations. Traders are suffering, among other things, from major works which might extend, it is believed, beyond 2030.
“We cannot be satisfied, but encouraged by the progress made,” explains Glenn Castanheira, CEO of Montréal Centre-ville. Because, despite everything, traffic and sales per square foot continue to grow.”
“For rent” signs currently abound on Sainte-Catherine Street. Photo Agence QMI, JOEL LEMAY
If the rate of vacant premises remains at high levels in the west (14.4%), due in particular to a timid return of workers to the office towers in the city center, it deteriorates completely in the east of Saint-Laurent Street.
In this last portion, where multiple economic realities and psychosocial problems collide, the rate of vacant premises has increased by 73% in just two years. In July it stood at 21.5%, compared to 17.1% in 2022, and 12.4% in 2021.
“In this sector, we are faced with several owners who, short of recourse or solutions, have decided to throw in the towel. They have stopped investing and are no longer looking to rent, analyzes Mr. Côté.
Examples of success
Fortunately, other arteries look much better in the metropolis. This is the case, among others, of Avenue Mont-Royal, entirely pedestrian during the summer, and of Rue Masson, in Rosemont. Only 3.2% of storefronts there are vacant.
Claude Roy has been running a business for 45 years on Masson Street in Montreal. Its Limasson bookstore is a pillar of the neighborhood. Photo Julien McEvoy
“Families have settled and their children have grown up. Rue Masson is their village, it is here that they like to live and spend. They won’t in the city only if they don’t find it on the street first,” rejoices Claude Roy, owner of the Limasson bookstore, present on this street for no less than 45 years.
The same is true of several arteries in the Quebec region, where Cartier Street and 3rd Avenue have among the lowest rates of vacant commercial premises in the province. A favorable situation which might very well herald significant rent increases for traders.
Limoilou as an example
In Limoilou, the evolution of 3rd avenue displays an almost faultless course, estimates Mr. Côté. In contrast, St-Joseph Street, in the Saint-Roch district, remains problematic. Its vacant premises rate reaches 11.9%.
For its part, the arteries of Saguenay Lac-St-Jean show an improvement with an overall reduction in vacancy from 7.3% to 3.5% in one year. Rue St-Dominique, in Jonquière, however, continues to stand out, with vacancy rates of 7.2%, and vacant premises of 13%.
Bas St-Laurent and the Côte-Nord still have excessive rates of vacant commercial premises despite an improvement. Of all the regions, only Montérégie and Lanaudière saw an increase in their respective vacancy. The vacancy rate of the major arteries of Montérégie stands at 4.2%, while that of the arteries of Lanaudière stands at 2%.
-With the contribution of Julien McEvoy.
PROPORTION OF VACANT COMMERCIAL PREMISES IN MONTRÉAL AND THE CAPITAL
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