Document Highlights
This report examines the short-and medium-term economic and profitability outlook for Canada’s non-residential construction industry.
Industry GDP—The non-residential construction industry is set to record its strongest performance of the past decade, thanks to robust growth in the industrial and institutional segments. However, this year’s surge will be short-lived, with business confidence and investment intentions heading downward.
Toronto’s Office Market—Toronto’s historically low office vacancy rate has led to a wave of new office tower projects, with 8 million square feet of office space currently under construction. The growing tech cluster will continue to support robust growth for office space over the next five years.
Consumer Spending and Housing Sector—Burdened by high levels of household indebtedness, Canadian consumers are now more vulnerable to increases in interest rates than in previous economic cycles. And with house prices expected to fall for the first time in a decade, consumer confidence is likely to take a hit. Together, these factors will weigh on demand for new retail space.
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