TORONTO, Nov. 5, 2014 /CNW/ - The construction and investment in office buildings and the ongoing operation of these buildings make a substantial contribution to the Canadian economy, producing $20.8 billion in annual economic activity, according to a report released by the Real Property Association of Canada (REALpac). These activities add to the economy in various ways by:
• Supporting 111,600 jobs each year, many of which are high-paying professional jobs;
• Generating $6.9 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 pension funds and insurance companies in Canada; and
• Contributing $2.5 billion in personal and corporate income tax revenues for the federal and provincial governments.
The landmark study, titled "The Contribution of the Office Real Estate Sector to the Canadian Economy", estimates the magnitude of the economic contribution of the office real estate sector and assesses its economic contribution in 2013. Capital investment in the office real estate sector totaled $7.7 billion in 2013. Some $4.5 billion was spent on new buildings, with the rest ($3.2 billion) invested in capital improvements, renovations and the upgrading of existing buildings.
The on-going operations of office buildings also generated about $1.2 billion in building management fees and approximately $1.3 billion in commercial brokerage fees from sales and leasing of office real estate sector properties.
The commercial real estate sector plays an important role in Canada's economy and standard of living. Development and construction of commercial real estate buildings, and subsequently their daily operations, creates directly thousands of jobs and adds tremendous value to Canada's gross domestic product. The commercial real estate sector provides workspace for millions of Canadians and places for Canadians to shop, eat and play. In addition, owners of the office 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 > Office Sector or www.realpac.ca/?page=OfficeContribution
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.