Statistics Canada: Commercial Building Permits Reach $3.3B in October

Statistics Canada: Commercial Building Permits Reach $3.3B in October

An increase in building permits for commercial real estate properties in Canada partly reflected growing demand, which may continue in 2018. Statistics Canada said that the value of consents in October rose to $3.3 billion.

In Vancouver, commercial real estate properties like those offered by firms such as have been attractive for investors, as many are willing to pay a premium for prized assets.

Vancouver Market

Vancouver analysts estimate that commercial property values may increase to unprecedented highs in 2018, following big-ticket transactions with huge per-square-foot (PSF) price tags.

For instance, the acquisition of 170,000 square feet of space at the 30-storey Bosa Development office building involved a $2,000 PSF value.

Leasing rates may also increase to more than $50 PSF with the like of Amazon pushing rental prices further. The U.S. tech giant recently signed a pre-leasing deal for 150,000 square feet of space at Oxford Properties’ new office development.

These transactions are just some of several deals that helped lower the city’s vacancy rate, down to 5 percent in 2017 from 10 percent year over year.

Other Regions

Statistics Canada said that the building consents for warehouses in Quebec, as well as offices, and recreation buildings in Ontario, drove the increase in commercial approvals for October. The value of commercial permits in Ontario and Quebec cost $733.5 million and $127.3 million, respectively.

On the other hand, permits for industrial projects amounted to more than $700 million in October for the first time in the last five years. Year-to-date, the total value of approvals in the industrial sector reached $5.3 billion.

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Commercial assets seem to be the better choice for real estate investors in Canada, although it still carries risks like any other type of investment. You should consult a certified property consultant to help you make a wise decision.