Commercial Real Estate Market of the Month: Chicoutimi

A New Era for Chicoutimi: Growth Beyond Forestry and Aluminum

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Chicoutimi, located within Quebec’s Saguenay region, has long been defined by its industrial heritage in forestry, aluminum production, and hydroelectric power. Today, the market is undergoing a major economic shift. Growth in tourism, education, and technology sectors has diversified the local economy, driving new demand for commercial, retail, and service-oriented real estate. This transition is positioning Chicoutimi as a balanced market—one that maintains its industrial strength while attracting institutional attention across multiple asset classes.

Port Upgrades and Prime Corridors Fuel Industrial Demand

Chicoutimi is rapidly emerging as a strategic gateway to Northern Quebec. A major catalyst for this growth is the ongoing $250 million infrastructure expansion at the Port of Saguenay, which is enhancing rail connectivity, maritime capacity, and logistics efficiency. These upgrades are expected to solidify Chicoutimi’s role as a key distribution and export hub, unlocking new opportunities for industrial users, developers, and investors alike.

The area surrounding Boulevard Talbot and Boulevard du Royaume has become a focal point of activity, attracting national retailers, logistics operators, and service providers seeking high exposure, strategically located real estate. As infrastructure investment advances, Chicoutimi is gaining momentum as a long-term growth market supported by economic stability and expanding demand drivers.

Industrial Market: Strong Demand and Limited Supply

Chicoutimi’s industrial sector continues to outperform, supported by limited inventory, sustained tenant demand, and increasing rental rates.

• Rental Rates: Legacy industrial product typically leases between $10.00 – $12.00 per square foot (net), while modern or newly constructed facilities are commanding $12.50 – $15.50 per square foot (net).
• Market Drivers: Assets with strong frontage and accessibility—particularly along Boulevard Saint-Paul and Boulevard du Saguenay—are achieving near-retail rental values due to their visibility and strategic positioning.
• Regional Dynamics: Neighboring centres such as Alma are experiencing similar trends, with aluminum and forestry production continuing to support exceptionally low vacancy rates.

Despite the availability of developable land in the Chicoutimi market, the delivery of new industrial inventory remains limited. The majority of recent construction activity has been driven by a select group of developers like Les Immeubles Saguenay, resulting in a tightly constrained pipeline. This restricted supply, in combination with sustained tenant demand, has contributed to upward pressure on rental rates and a notable acceleration in pre-leasing activity, reinforcing the market’s position as a competitive and in-demand industrial hub.

Key Takeaways for Commercial Real Estate Tenants

Chicoutimi’s industrial market is expected to remain tight, particularly for small and mid size users seeking modern, high quality space. Inventory along key corridors such as Boulevard Talbot, Boulevard du Royaume, and Boulevard Saint Paul is limited, and pre leasing activity is accelerating as demand continues to outpace new construction. With most development driven by a small number of active developers, options for smaller users may remain constrained in the near term.

As infrastructure upgrades at the Port of Saguenay enhance logistics and distribution capabilities, the market will continue attracting national retailers, logistics operators, and service providers. While this strengthens long term fundamentals, tenants, especially small and mid size operators, should plan proactively to secure space and avoid competition driven delays.

In summary, Chicoutimi’s industrial market is evolving rapidly. Tight inventory, strong demand, and infrastructure investments are creating a competitive environment where tenants, developers, and investors must act strategically to capitalize on emerging opportunities.

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Looking to lease industrial real estate in Chicoutimi? Our tenant-focused advisors are here to help you navigate the market with tailored insights and on-the-ground expertise.

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Our Market Intelligence team is committed to helping you stay ahead of the curve by identifying key trends that maximize both space and operational efficiency. With customized insights grounded in real-time data and extensive industry expertise, we ensure you’re equipped to make informed decisions in this competitive market.