TORONTO, Nov. 21, 2014 /CNW/ - Capital investment in the retail real estate sector totaled $6.9 billion in 2013, according to a report released by the Real Property Association of Canada (REALpac) titled "The Contribution of the Retail Real Estate Sector to the Canadian Economy". Some $4.7 billion was spent on new buildings, with the rest ($2.2 billion) invested in capital improvements, renovations and the upgrading of existing buildings.
"As a real estate asset class there is no better investment than really great retail and you will continue to see smart owners enhance and reinvest in these assets", said Blake Hutcheson, President and CEO, Oxford Properties Group, and Member of REALpac. "This is what our tenants and customers want and the payback is convincing for both owners and the economy at large", he added.
The ongoing operations of retail buildings also generated about $1.0 billion in building management fees and approximately $1.0 billion in commercial brokerage fees from sales and leasing of retail real estate sector properties.
Taken together, the construction and investment in retail buildings and the ongoing operation of these buildings make a substantial contribution to the Canadian economy, producing $18.3 billion in annual economic activity. These activities add to the economy in various ways by:
- Supporting 97,700 jobs each year, many of which are high-paying professional jobs;
- Generating $6.0 billion in income, related to personal income and other sources of income;
- Generating $3.9 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 $2.2 billion in personal and corporate income tax revenues for the federal and provincial governments.
The retail real estate sector plays an important role in Canada's economy. The development and construction of retail buildings and their daily operations directly support thousands of work opportunities for Canadians. The construction and investment in retail 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 retail 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 > Retail Sector or http://www.realpac.ca/?page=RetailContribution.
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.