Standing outside his bustling Wellington St. caf\u00e9 on Thursday, Simon Defoy launched a heartfelt plea for Quebec to regulate commercial leases before more businesses like his are priced out. <\/p>\n
Defoy, the owner of Station W, announced this week he\u2019s closing the caf\u00e9 next month after fighting a 60 per cent rent increase before his landlord chose to instead sign a lease with someone else.\u00a0<\/p>\n
\u201cIt\u2019s not only businesses that are at stake, but the survival of independent commerce and entrepreneurship,\u201d Defoy said. \u201cThe beating heart of our neighbourhoods, our villages, our small towns.\u201d<\/p>\n
Unlike residential leases, commercial leases in Quebec aren\u2019t governed by regulations or a tribunal. A growing number of Montreal businesses have spoken out against the situation in recent years, pushing back against rent hikes fuelled by speculation<\/a>.<\/p>\n Defoy said he opened his caf\u00e9 nearly 13 years ago and has seen Wellington St. evolve and develop\u200a \u2014 it was named the coolest street in the world in\u00a02022<\/a> \u200a\u2014\u200a and witnessed the pressure it\u2019s put on business owners along the strip.<\/p>\n Since announcing the caf\u00e9 is closing,\u00a0Defoy said he\u2019s already heard from several others facing similar circumstances and fearing they won\u2019t be able to absorb their next rent increase.<\/p>\n \u201cWithout legislation, it sort of gives everyone free rein,\u201d he said. \u201cAnd, unfortunately, when there is too much abuse, you have no choice but to legislate \u2014 and I think we\u2019ve reached that point.\u201d<\/p>\n The local business\u00a0development group, the SDC Wellington, said the caf\u00e9\u2019s closing highlights how even successful, deeply rooted businesses are at risk of disappearing without regulatory oversight. <\/p>\n General manager Patrick Mainville said he supports the calls for regulation, noting his organization often works with new businesses to explain how commercial leases are negotiated and the potential pitfalls.<\/p>\n \u201cWe need to open up the conversation,\u201d Mainville said. \u201cWe want there to be a dialogue, an exchange on how we can better manage commercial leases and protect business owners.\u201d<\/p>\n Verdun borough mayor C\u00e9line-Audrey Beauregard said she was shocked by the caf\u00e9\u2019s closing and noted it was one of the pillars that helped build Wellington St. into what it is today.<\/p>\n Beauregard spoke of new players purchasing commercial spaces and driving up rent prices, and the gentrification seen in the borough.\u00a0She described Station W\u2019s closing as a \u201cred flag\u201d she hopes will serve as a wake-up call.<\/p>\n \u201cIt\u2019s a clear warning sign that concrete action is absolutely necessary, because otherwise, we\u2019re going to go downhill,\u201d she said. \u201cAnd once you start going downhill, it goes fast and it\u2019s very hard to get back.\u201d<\/p>\n Beauregard said she only has so much power as a municipal politician, but pointed to efforts to help entrepreneurs acquire commercial spaces to shield them from the issue.<\/p>\n She vowed to keep pushing the issue and work on solutions.<\/p>\n \u201cI\u2019m going to look at what\u2019s being done elsewhere to see how people are coping with the pressure,\u201d she said. \u201cAnd how we can develop tools at the municipal level to play our part.\u201d<\/p>\n The question of regulating commercial leases has been brought to the provincial government before.\u00a0<\/p>\n In 2023, Qu\u00e9bec solidaire suggested the creation of a standard commercial lease, similar to those already in existence for residential leases, to make it more difficult to include abusive clauses.<\/p>\n