Posted Feb 14, 2019, by Constance Wrigley-Thomas, NAIOP Greater Toronto Chapter
February 2019 - The NAIOP Research Foundation has published a report which quantifies the economic impact of commercial real estate investment in Canada, with a specific focus on estimating the impact tied to investment in the country’s largest Census Metropolitan Areas (CMAs), including Vancouver, Calgary, Edmonton, Toronto, Ottawa-Gatineau and Montreal.
The impact of commercial real estate investment is estimated in the report along three key measures of economic activity: gross domestic product (GDP, or value-added), employment and labour income. The analysis also includes estimates of the government revenues that are associated with the economic activity stimulated in the country by commercial real estate through the indirect taxes (sales taxes and user fees) charged on products and services, and taxes on the labour and corporate income that is generated.
In 2017, the $38.6 billion spent on commercial real estate in Canada supported:
• $40.2 billion in gross domestic product (GDP)
• $25.2 billion in labour income
• 419,197 jobs
• $10.1 billion in government revenues
In 2017, the spending devoted to hard construction costs in Canada supported:
• $25.6 billion in GDP
• $16.4 billion in labour income
• 265,700 jobs
• $6.6 billion in government revenues
To download the full report from the NAIOP Corporate website, click the “Go to Article” link below.