TORONTO, Sept. 19, 2012 /CNW/ - The commercial real estate sector (CRE
Sector) makes a substantial contribution to the Canadian economy,
generating $63.3 billion in economic activity in 2011, according to a
groundbreaking new research report from the Real Property Association
of Canada (REALpac) and the NAIOP Research Foundation. To put this
value into perspective, the economic activity of the Canadian CRE
Sector is more than twice as large as the entire economy of the
province of Newfoundland & Labrador. The CRE sector adds to the
Canadian economy in various ways by:
Supporting 340,000 jobs, many of which are high-paying professional
jobs, which is roughly equivalent to the total employment in the entire
Canadian agriculture industry;
Generating $18.1 billion in personal income, related to labour income
and other sources of income, which is more than twice the labour income
of the Canadian agriculture, forestry, and fishing industries combined;
Generating $12.5 billion in corporate profits earned by many small and
medium companies, as well as some of the largest pension funds and
insurance companies in Canada;
Contributing $7.2 billion in personal and corporate income tax revenues
for the federal and provincial governments; and ultimately
Accounting for $32.4 billion in total net contribution to Canada's GDP,
which is more than the total GDP of New Brunswick.
Prepared by Altus Group Economic Consulting, "The Contribution of the
Commercial Real Estate Sector to the Canadian Economy" shows that
capital investment in the CRE Sector totalled some $21.6 billion in
2011, accounting for about half of the total spending in Canada on
non-residential construction. Some $14.9 billion was spent on new
buildings; the rest ($6.7 billion) accounted for capital improvements,
renovations and the upgrading of existing buildings.
The on-going operations of CRE Sector buildings also generated $3.5
billion in building management fees and almost the same amount for
commercial brokerage fees from sales of commercial properties in 2011.
The CRE Sector also generates an array of other benefits to the national
economy such as the promotion of economic development and accommodation
of employment growth. In addition, properties owned by the CRE Sector
provide substantial revenue to municipalities and school boards across
Canada through realty taxes.
The CRE Sector plays an important role in Canada's economy and the
quality of life for all Canadians. Development and construction of
commercial real estate buildings, and subsequently their daily
operations, creates directly thousands of jobs and adds tremendous
value to the Canadian GDP. Beyond the strict numbers of economic
activity, spinoff benefits, jobs created, income earned and taxes
generated, the CRE Sector is also responsible for imparting a
tremendous benefit to communities across Canada by providing
high-quality workspaces for millions of Canadians and places for
Canadians to live, eat, shop and play.
To download "The Contribution of the Commercial Real Estate Sector to
the Canadian Economy", please go to www.realpac.ca.
About the Real Property Association of Canada
REALpac is Canada's premier industry association for investment real
property leaders. Our mission is to collectively influence public
policy, to educate government and the public, and to ensure stable and
beneficial real estate capital and property markets in Canada.
REALpac members currently own in excess of $180 Billion CAD in real
estate assets located in the major centres across Canada. Members
include real estate investment trusts, publicly traded and large
private companies, banks, brokerages, crown corporations, investment
dealers, life companies, lenders, and pension funds. For more
information, please visit us at www.realpac.ca.
About NAIOP and the NAIOP Research Foundation
NAIOP represents commercial real estate developers, owners and investors
of office, industrial, retail and mixed-use properties. It provides
strong advocacy, education and business opportunities, and connects its
members through a powerful North American network. For more
information, visit www.naiop.org.
The NAIOP Research Foundation was established in 2000 as a 501(c)(3)
organization to support the work of individuals and organizations
engaged in real estate development, investment and operations. The
Foundation's core purpose is to provide these individuals and
organizations with the highest level of research information on how
real properties, especially office, industrial and mixed-use
properties, impact and benefit communities throughout North America.
The initial funding for the Research Foundation was underwritten by
NAIOP and its Founding Governors with an endowment fund established to
fund future research. For more information, visit www.naioprf.org.
About Altus Group Limited
Altus leads the global real estate industry in offering professional
real estate advisory services, data solutions and intelligence about an
organization's assets, generating a wealth of knowledge and insight.
With a staff of over 1,700, Altus has a network of over 60 offices in
14 countries worldwide, including Canada, the United Kingdom,
Australia, Asia and the United States. We operate five interrelated
Business Units, bringing years of experience and a broad range of
expertise together into one comprehensive platform: Research, Valuation
and Advisory; Cost Consulting and Project Management; Realty Tax
Consulting, Geomatics and ARGUS Software. Altusʹ clients include banks,
financial institutions, governments, pension funds, asset and fund
managers, developers and landlords and companies engaged in the oil and
gas industry. Visit us at www.altusgroup.com.
About Altus Group Economic Consulting
Altus Group Economic Consulting was formed in February 2007 when Clayton
Research Associates Limited (est. in 1972) joined in Altus Group. Altus
Group Economic Consulting is a group of urban and real estate
economists and provides strategic advice and information to both
private and public sector clients across Canada. The division
specializes in real estate market analysis, land use planning issues,
property investment and financing, and building products and technology
analysis. Altus Group Economic Consulting has gained a reputation for
astute and independent advice and analysis, based on extensive in-house
expertise, a unique information base, leading edge analytical
techniques and extensive contacts throughout Canada.
SOURCE: Real Property Association of Canada
For further information:
Paul Morse, CEO, REALpac, 416-629-6587 or 416-642-2700 x225, or Kathryn Hamilton, Vice President for Marketing and Communications, NAIOP, 703-904-7100, x165.