Commercial financing in Montreal, QC

Montreal is a tier 1 market in the Capitalor coverage set: 1,762,949 residents, 43,100 tracked commercial buildings, and 98 lenders and brokers observed writing paper here. That works out to one active lender for roughly every 440 commercial buildings, a Lender Density Score of 100 — 2 of 134 nationally and 1 of 23 within QC.

Pricing starts from value, and value starts from the 5.4% Montreal cap-rate seed — the 20th tightest of the 134 markets Capitalor tracks. Applied to the $6,100,000 average transaction, that implies about $329,400 of net operating income before financing.

Take the anchor case: a conventional commercial mortgage at 5.05% over 25 years. Seventy percent of the average Montreal deal is $4,270,000, costing $301,039 a year to service. Coverage at a 1.25x floor caps the same loan at $3,737,829, so on the typical Montreal file coverage is the binding constraint and the number to solve for first.

Montreal is a deep lender market. On well-covenanted paper you should collect at least three competing quotes; spread dispersion between the best and worst bid in a market this deep is usually worth more than any rate-timing decision. 15 of the Capitalor product set are published for Montreal.

Deal flow in Montreal concentrates in named commercial and employment areas such as the Quartier des spectacles, Saint-Laurent's industrial sector and Griffintown. Capitalor publishes no separate figure for those areas: cap-rate seeds, lender counts, and deal sizes are collected and reported at the municipal level, so the numbers on this page apply across the city, and a corridor-level view has to come from asset-level comparables rather than from a published district statistic.