Montoni has launched a line of industrial condos — small-scale commercial buildings that can be laid out like a townhome community — with small- and medium-sized businesses in search of flexibility as the target audience.

Made by the Montreal-based developer and builder, the products are an industrial building divided into smaller sections called locals which are separately owned. The locals include warehouse and office space.

A first-time offering by Montoni, the sections can range from 4,500 square feet to over 6,000 square feet, with per-square-foot costs going from $295 to $340 including the mezzanine.

“It’s a brand new product that a customer can get and invest in,” Mark Sevo, Montoni’s vice-president of real estate, said in an interview with RENX. “There’s nothing like that peace of mind to be able to come in, own your business, own a local, have a brand new build, don’t have to worry about capex for a long time.”

Stability, flexibility key to industrial condos

Approximately two years ago, Montoni met a business partner which faced land constraints in the West Coast market for industrial properties, Sevo said. Compact industrial buildings were found to be in high demand to overcome such a limitation, he said.

“It’s the same offering that we would offer in our typical industrial projects, but for smaller end-users.”

Small- and medium-sized enterprises (SMEs) have the opportunity to own a warehouse, a mezzanine and an office with the industrial condos, Sevo said. For such businesses, the product offers more stable costs compared to larger industrial properties, without worry of changing lease rates.

An additional benefit and stand-out feature of the product line is the flexibility, Sevo said. The industrial condos could be leased out by clients that have seen business needs change, for example.

Finally, the SMEs can use the real estate to grow their wealth as the condos can appreciate in value. SMEs are looking at real estate “more as a strategic advantage for them in the short-term to help them grow their business,” Sevo said.

“You want to buy? You have the opportunity. You want to lease? You can lease. You want to buy, then get out? We’re there to help support your growth in any way we can.”

Trades businesses – electricians, plumbers, painters and construction firms, for example – are expected to be eager buyers of the industrial condos because of the flexibility.

Montoni’s industrial condo projects

The first deployment of the industrial condo is in Masouche, Que., a 16-unit project spread across two buildings that was finished in the spring of 2025. Located in the North Shore of Montreal, the property offers office and warehouse facilities in the locals, designed for industrial and manufacturing businesses. Approximately 90 per cent of the units have been sold, Sevo said.

A more recent project is in Châteauguay, the second deployment of the industrial condos. Construction started in June, with delivery anticipated for Q2 2027. The 87,558 square-foot building is designed to have 14 units ranging from 5,753 square feet to 6,430 square feet.

Montoni has heard positive feedback from its clients regarding the industrial condos, Sevo said, particularly the ability of the product to be owned or leased. The company is developing and building both projects. Sevo declined to disclose the names of its clients.

A third industrial condo project is planned to join the first in the North Shore of Montreal.