The Economic and Social Impact of Vacant Commercial Spaces in Montreal

Montreal is currently grappling with a high volume of inactive or “ghost” commercial properties, with recent surveys identifying 423 vacant storefronts across 35 kilometers of major metropolitan arteries. These neglected buildings, often characterized by boarded windows, graffiti, and structural decay, create significant public safety and economic challenges for business owners and residents, according to reports from La Presse.

The Scope of Commercial Vacancy in Montreal

Commercial vacancy rates vary by neighborhood, but the primary concern for urban planners and local businesses is the rise of “inactive” or “off-market” spaces. Unlike traditional vacancies where a property is actively listed for lease or sale, these ghost units remain tied up in long-term administrative or succession disputes.

According to data collected by La Presse in April, the issue is pervasive across key commercial corridors, including:
* Saint-Denis: Nearly one in ten storefronts is considered inactive, a figure the local commercial development society (SDC) identifies as the “biggest problem” of the artery.
* Avenue du Mont-Royal: While global vacancy rates remain low (less than 10%), over half of those vacancies are classified as inactive.
* Sainte-Catherine Est: Business owners report that clusters of abandoned buildings create “pockets” of decay that discourage foot traffic and new investment.

Public Safety and Neighborhood Decay

The presence of neglected buildings often triggers what urban experts call the “broken window theory,” where visible signs of disorder lead to further environmental degradation. Business owners, such as José Restrepo, copropriétaire of St-Viateur Bagel on the Avenue du Mont-Royal, have reported recurring issues with pests, structural instability, and squatters. Restrepo noted that he has personally had to board up neighboring windows and address structural hazards, such as crumbling balconies, to protect his own establishment and its patrons.

The City of Montreal maintains that it has limited legal authority to force owners to lease their spaces. However, the city does enforce building maintenance regulations. In 2025, the Plateau-Mont-Royal borough issued seven infraction notices related to the occupation and maintenance of buildings. Penalties for non-compliance can range from $1,000 to $40,000, with higher amounts for heritage properties.

Barriers to Revitalization

A recurring issue for SDCs is the inability to contact property owners. In many cases, official records—such as municipal property tax rolls or business registries—list outdated contact information or private addresses that are unresponsive.

For instance, the former Bambou Bleu restaurant on rue Saint-Denis has remained vacant for at least five years. Efforts by the local SDC to reach the owner have been unsuccessful, as the phone number associated with the property is managed by a tenant who claims the owner does not wish to be contacted. This lack of transparency prevents potential entrepreneurs from inquiring about rental opportunities, effectively removing these properties from the local economy.

Seeking Solutions: Taxation and Enforcement

Local business owners and political representatives are increasingly calling for more aggressive measures to combat the ghost property trend. Alexandre Leduc, the député solidaire of his constituency, has publicly requested that the City of Montreal implement a tax on empty commercial spaces.

Proponents of this measure argue that without financial penalties, owners of stagnant properties have little incentive to renovate or list their units. As long as these spaces remain unmanaged, they continue to act as a drag on the economic vitality of Montreal’s historic commercial streets, forcing active businesses to navigate an environment characterized by decreased foot traffic and declining public appeal.