A longtime café on Wellington Street in Montreal’s Verdun borough is set to close next month, with the owner saying rising commercial rents are making it increasingly difficult for small businesses to survive.
Station W owner Simon Defoy announced the café will close after more than a decade in operation, following lease renewal negotiations with the building owner that ultimately failed.
“What I know is business owners are really scared of the price of their rent,” said Defoy.
Wellington Street has become one of Montreal’s busiest commercial corridors in recent years, attracting both tourists and new businesses. But some merchants say the growing popularity has also led to rising lease costs.
“When we got the title of the coolest city in the world or whatever, that brings lots of attention to the street,” said Defoy. “That brings lots of people that want to open businesses here. So of course, the side effect of it is, we can see the prices of the effect on the price of the rent, of the lease.”
In a statement to CityNews, the building owners refuted claims they demanded a 60 per cent rent increase.
“The commercial lease for Station W expires June 30, 2026 and does not contain any renewal clause,” the statement reads. “Over the past several months we engaged in negotiations to try to reach a new agreement.”
The owners added: “We wish to clarify that, contrary to what has been reported, we never demanded a 60 per cent rent increase. Various market scenarios were discussed as part of normal commercial negotiations, but a 60 per cent increase was never requested.”
Verdun borough Mayor Céline-Audrey Beauregard says the issue points to a broader lack of regulation surrounding commercial leases.
“The history of Wellington Street is for me a waking up call,” said Beauregard. “I hope it’s going to do that for the community of Verdun but elsewhere in Montreal and Quebec.”
Beauregard says the borough is looking at programs that could help entrepreneurs during lease negotiations and support efforts to purchase commercial buildings.
For Defoy, preserving independent businesses is essential to maintaining the character of neighbourhood streets.
“When we have small business owners, it’s different from chains,” he said. “We put more love into our community. We put more love into our streets. If we want to keep the real colors of who we are, we need to start thinking about helping entrepreneurs.”
