Non Residential Construction Poised for Growth

A report on CanadaConstruction.net shows favorable things for the commercial real estate industry. And with the recent employment numbers coming out of the City of Prince George, there has never been a better time to invest in Prince George and Commercial Property. And Denise can help!

Canada’s non-residential construction industry is expecting a modest turnaround this year while the residential sector is forecast to see a small contraction, according to The Conference Board of Canada’s latest outlook.

Following two years of contractions, the non-residential construction industry is forecast to grow by 1.9 per cent this year. The value of new non-residential building permits increased by an estimated 15 per cent last year to reach $35 billion, indicating a healthy number of non-residential projects in the pipeline.

Growth in e-commerce continues to drive demand for more warehouse space. In combination with several new mining projects and planned plant expansions, this will support growth in the industrial segment, the conference board predicts. Meanwhile, the institutional segment is expected to be supported by federal government infrastructure spending on new community centres and recreation facilities. Additionally, provincial infrastructure spending on schools and hospitals will continue to support the industry.

Overall, non-residential construction industry pre-tax profits are expected to rise by 8 per cent to reach $2.3 billion this year and then grow at an annual rate of around 6 per cent over the next four years.

However, business investment levels are expected to remain below their 2014 peaks, lowering growth opportunities for non-residential construction going forward.

Things are looking good for Prince George now is the time to start that business you have always wanted to! Like the article says, with the e-commerce driving the need for warehouse space and other commercial space, the demand for commercial space is high!