Office Space Rental Costs

Major Canadian office markets show wide variation in rent levels. Downtown Class A average net rents (annual per sq. ft) are roughly: Vancouver $45.5, Toronto $35.5, and much lower in Montreal ($18.2), Calgary ($19.2) and Ottawa (~$19.3) cbre.ca. (By contrast, Montreal’s newer Class A assets command above ~$23/sq. ft. 2727coworking.com). Suburban rates tend to be 20–40% lower than downtown in each city. For example, Colliers reported Ottawa’s suburban average Class A at ~$16.40 informaconnect.com versus $25.15 downtown. In Montreal, newly-refurbished suburban offices lease at ≈$22/sq. ft avisonyoung.ca (versus downtown ~$23+ 2727coworking.com). (See table below for key comparisons.)

These figures (late 2024) come from industry reports (CBRE, Colliers) and illustrate that Vancouver and Toronto command the highest rents, while Montreal, Calgary and Ottawa offer much cheaper office space.

Salary and Labor Costs

Administrative and support staff: Wages are roughly comparable across major cities, often in the mid‑$20/hour range. For example, Job Bank (Dec 2024) reports median hourly pay for an administrative assistant at about $26.00 in Montreal, $25.05 in Toronto, $26.00 in Calgary, and $28.00 in Ottawa jobbank.gc.cajobbank.gc.ca. Vancouver-area (Metro Vancouver) is similar (median ≈$25). Thus, Montreal’s admin salaries are on par with Calgary and slightly above Toronto’s.

Technical and professional staff: Skilled-technical roles (e.g. software engineers) pay higher. In Montreal, a mid-career software engineer earns a median of ~$52.9/hr jobbank.gc.ca. Toronto and Ottawa medians are ~$55.3 and $54.3 respectively jobbank.gc.cajobbank.gc.ca, with Vancouver around $52.5 jobbank.gc.ca and Calgary ~$51.9 jobbank.gc.ca. Senior managers (IT or business managers) command still higher pay (often 30–50% above technical staff), but city differentials follow similar ranking (highest in Toronto/Vancouver). In short, Toronto and Vancouver usually offer the highest salaries, while Montreal’s are slightly lower, reflecting cost-of-living differences jobbank.gc.cajobbank.gc.ca.

(Note: Wages from Statistics Canada/Job Bank, 2022–23 data. Values are medians. High end salaries and benefits often exceed these medians.)

Business Taxes and Incentives

Corporate tax rates differ by province, though federal tax is uniform (15% on active business income). The combined federal + provincial general corporate tax rates are roughly 26.5% in Ontario and Quebec, 27.0% in BC, and much lower in Alberta (~23.0%) ey.com. Key figures (2024 rates):

• Federal: 15% (general rate) + provincial (OT and QC each add ~11.5%, for ~26.5% total) ey.com.

• Quebec (Montreal): Combined ≈26.5%. Small-business rate (income ≤ $500K) is ~15.0% combined ey.com.

• Ontario (Toronto/Ottawa): Combined ~26.5% general, ~17.5% small-business ey.com.

• British Columbia (Vancouver): ~27% general, 17.5–19.5% small-business ey.com.

• Alberta (Calgary): ~23.0% general, ~15.5% small-business ey.com (Alberta’s rates are lowest in Canada).

Beyond rates, provincial incentives matter. Quebec offers generous refundable tax credits for R&D and multimedia (e.g. 37.5–40% credits for interactive digital media and software R&D) revenuquebec.ca, as well as film, biotech, etc. Ontario and BC also have sectoral incentives, though generally less aggressive than Quebec’s. Companies can leverage federal SR&ED credits (15%) plus provincial credits (e.g. Quebec ~14–30%) to reduce effective R&D costs. In summary, Quebec and Ontario have similar headline rates, but Quebec’s array of credits (especially for tech/media companies) can significantly offset costs.

Utilities and Operational Costs

Electricity: Quebec’s hydroelectric power is very cheap. Hydro-Québec data (2024) show average industrial/commercial electricity ≈11.7¢/kWh in Montréal (for 10 MWh/month usage) hydroquebec.com. Vancouver’s rate is slightly higher (~12.2¢/kWh), while Toronto’s is higher yet (~14.9¢/kWh) hydroquebec.com. (Residential rates follow a similar ranking.) Alberta (Calgary) has deregulated prices (around 5–10¢/kWh average) but no GST on electricity.

Other utilities: Commercial gas costs (for heating) are typically lower in Alberta than in Quebec/Ontario (Alberta gas about 10–15% cheaper). Montreal’s mild winter (relative to Ottawa or Calgary) helps lower heating bills. Internet and telecom costs are broadly similar in all cities: high-speed business internet (~100–500 Mbps) is readily available for ~$50–100/month, competitive across providers. Basic phone/office utilities (water, sewage) are relatively low in Montreal and Ottawa (public systems) and somewhat higher in Vancouver/Toronto.

Transportation and Commuting

Infrastructure: All five cities have major airports, highways and transit. Toronto Pearson (YYZ) is Canada’s busiest hub (~50M passengers pre‑COVID), with other airports (Billy Bishop in Toronto, YUL in Montreal, YVR in Vancouver, YYC in Calgary, YOW in Ottawa) offering international and regional service. Public transit networks vary: Montreal has an extensive métro+buses system (STM); Toronto has the largest network (TTC subway/buses/GO commuter rail); Vancouver has SkyTrain + buses (TransLink); Calgary has light rail (C‑Train) + buses; Ottawa has light rail (O‑Train) + buses.

Commuting times: Statistics Canada (2021) reports average one-way commute times of ~29.8 min in Toronto, ~27.0 min in Montreal, ~27.3 min in Vancouver, and much shorter ~23–24 min in Ottawa and Calgary www150.statcan.gc.ca. In general, Montreal’s commute is slightly below Toronto’s, reflecting efficient transit usage. (For workers using transit, times are longer: national average ~43 min; Toronto’s transit riders average ~72 min vs. Montreal ~55 min – see sources above.)

Transit costs: Monthly transit passes for adults (all-zones) are roughly: Montreal: C$~100–105 ctvnews.ca, Toronto: ~$156 ttc.ca, Vancouver: ~$107 (one zone) translink.ca (multi-zone up to ~$149), Calgary: $118 calgarytransit.com, Ottawa: ~$130–135 (2025 rate). Gasoline prices (subject to taxes) are comparable across provinces, with Alberta typically slightly lower than Ontario/Quebec due to smaller fuel taxes. Overall, commuting costs (fuel, tolls, parking) are modestly lower in Montreal and Calgary than in Toronto or Vancouver.

Quality of Life Factors

Quality of life can influence employee retention. All five cities rank highly in global liveability surveys. Mercer’s 2024 Quality of Living index placed Vancouver #7 worldwide, Toronto #13, Montreal and Ottawa tied at #20, and Calgary #25 mercer.com. Key points:

• Housing affordability: Montreal is notably more affordable than Toronto/Vancouver. National Bank data show Montreal’s median home price ~$567K (Q1 2025), requiring ~$131K income (mortgage ≈43.4% of income) nbc.ca; by contrast, Toronto’s median ~$1.18M (income ~$186K, mortgage ~77.8% of income) and Vancouver ~$1.30M (~93% of income) nbc.ca. Calgary ($664K, 40.3% MPPI) and Ottawa ($694K, 44.8% MPPI) are also more affordable than Toronto/Vancouver nbc.ca. Rents follow suit: average Montreal rents are lower, easing living costs.

• Culture and education: Montreal offers rich cultural amenities (festivals, arts, cuisine) and world-class universities (McGill, UdeM). Toronto is highly diverse with global economic centers and top schools (U of T). Vancouver boasts natural scenery and milder climate. Calgary/Ottawa have fewer large-city cultural venues but strong community services. Montreal’s bilingual (French/English) environment and lower housing costs make it attractive, though harsh winters can be a downside.

• Healthcare and services: All cities have comparable healthcare access under Canada’s universal system. (Some provincial differences: Quebec spends slightly more per capita on health and has slightly higher physician density than Ontario; wait times are a nationwide issue but improved recently.) Public education quality is similar (each province has its school and post-secondary system). Public safety and pollution levels are comparable across these cities.

Language Considerations (Montreal)

Montreal is in French-speaking Quebec, so French-language laws affect business. By law, the primary language of the workplace must be French once an office is established in Québec. All public signage, commercial advertising, and product information must be in French (with English only as secondary). Internal communications (contracts, manuals, HR policies) must be available in French scriptis.com. As of 2025, Bill 96 expands these rules: companies with 25+ employees must register with Quebec’s Office québécois de la langue française (OQLF) and create a “francization” plan, and firms with 25–99 workers must form francization committees scriptis.com. This often means recruiting bilingual (English/French) staff or investing in language training/translation, adding to operational costs and complexity. Nevertheless, Montreal’s workforce is highly bilingual (≈80% bilingual, 69% English–French bilingual) statcan.gc.ca, easing some transitions. In short, new Montreal offices must budget for French compliance (signage, translation, training) alongside the normal business costs.

Sources: Official market and government data (StatsCan, CBRE, Colliers, Hydro-Québec, etc.) were used for rents, wages, and taxes cbre.caey.com hydroquebec.comnbc.ca. Quality-of-life and commuting data come from Mercer and Statistics Canada mercer.comwww150.statcan.gc.ca. Language-law impacts are drawn from Quebec legislation summaries scriptis.comscriptis.com.