TORONTO, Dec. 9, 2014 /CNW/ - Capital investment in the industrial real estate sector totaled $8.7 billion in 2013, according to a report released by the Real Property Association of Canada (REALpac) titled "The Contribution of the Industrial Real Estate Sector to the Canadian Economy". Some $6.8 billion was spent on new buildings, with the rest ($1.9 billion) invested in capital improvements, renovations and the upgrading of existing buildings.
The ongoing operations of industrial buildings also generated about $1.4 billion in building management fees and approximately $450 million in commercial brokerage fees from sales and leasing of industrial real estate sector properties.
Taken together, the construction and investment in industrial buildings and the ongoing operation of these buildings make a substantial contribution to the Canadian economy, producing $21.7 billion in annual economic activity. These activities add to the economy in various ways by:
- Supporting 111,900 jobs each year, many of which are high-paying professional jobs;
- Generating $7.0 billion in income, related to personal income and other sources of income;
- Generating $4.4 billion in corporate profits earned by many small and medium companies, and some of the largest companies in Canada, such as pension funds and insurance companies; and
- Contributing $2.6 billion in personal and corporate income tax revenues for the federal and provincial governments.
"As a real estate asset class, industrial has really come into its own as a recognized stable investment, and it has moved to the leading edge of the economy as industrial owners are developing and reinvesting in their properties to respond to rapidly changing trends in the way goods are purchased and delivered to consumers in this country and around the world," said Kevan Gorrie, Trustee, President & Co-Chief Executive Officer at PIRET, Pure Industrial Real Estate Trust.
The industrial real estate sector plays an important role in Canada's economy. The development and construction of industrial buildings and their daily operations directly support thousands of work opportunities for Canadians. The construction and investment in industrial buildings and the ongoing operation of these buildings make a substantial contribution to the Canadian economy and generates millions of dollars in tax revenues for the federal and provincial governments. In addition, owners of the industrial buildings contribute substantial revenue to municipalities and school boards across Canada through realty taxes.
To purchase the full report, visit realpac.ca > Research > CRE Contribution to the Canadian Economy > Industrial or http://www.realpac.ca/?page=IndustrialContribution.
REALpac is Canada's most senior, influential and informative voice in the real property investment industry. REALpac brings together the industry's Chief Executives to collectively influence public policy, to educate government and the public, to ensure stable and beneficial real estate property and capital markets and to promote the performance of the real property sector in Canada. Member companies include publicly traded real estate companies, real estate investment trusts (REITs), private companies, pension funds, banks and life insurance companies with investment real estate assets each in excess of $100 million, large owner/occupiers and pension fund advisers as well as individually selected investment dealers and real estate brokerages. The commercial real estate sector makes a substantial contribution to the Canadian economy, generating $63.3 billion in economic activity in 2011. Collectively, REALpac members currently own in excess of $200 Billion CAD in real estate assets located in the major centres across Canada. Visit us at realpac.ca.
SOURCE: Real Property Association of Canada
For further information: Media are invited to contact Carolyn Lane, VP, Communications, [email protected], to receive a complimentary copy of the report.