Canada’s thriving economy largely due to commercial real estate
Mortgage rates in Alberta and other parts of Canada may be a partial explanation for why the commercial real estate industry contributed billions of dollars to the country's economic vitality last year.
According to the Real Property Association of Canada, the commercial real estate sector added $63 billion to the nation's coffers in 2011, helping to create more than 340,000 jobs, generating $18.1 billion in personal income and $12.5 billion in profits among small and medium-sized companies.
The report, titled "The Contribution of the Commercial Real Estate Sector to the Canadian Economy," also detailed how much was invested in certain portions of commercial development. About 50 per cent of the total spending in the commercial real estate sector was put toward non-residential construction such as new business properties and renovating existing structures.
REALpac indicated that Canada's CRE sector alone accounts for more than $32 billion of Canada's gross domestic product, which is more than the total GDP of consistently strong economies like New Brunswick's.