Every quarter CREA's Real Estate Market Analysts publish key economic indicators for commercial real estate. Stay up to date on economic trends impacting the commercial industry by reviewing the Fall 2015 Commercial Snapshot Report, highlighting changes in Non-Residential Building Permits, Unemployment Rates, Housing Starts, and GDP.
Here is CREA's Analyst's take on the different economic indicators found in the report:
Non-Residential Building Permits:The drop in oil prices has begun to translate into layoffs and rising availability rates amid lower demand for non-residential space. As a result, non-residential construction permits have retreated from record levels recorded last year. Applications for non-residential permits could remain under downward pressure pending a recovery in oil prices or an offsetting improvement in prospects among other Canadian industries whose exports rise as the U.S. economy gains strength.
Unemployment Rate:The national unemployment rate has begun trending higher in recent months. Persistently low oil prices have caused capital investment to slow, resulting in slower job growth as more people look for work.
Housing Starts:Housing starts have remained elevated in recent months. This is due in large part to the construction of multi-family residential units, which account for a growing share of total starts in large urban centers. A rising number of completed but unoccupied condo units are fueling debate about whether the condo market is at risk of becoming overbuilt in some Canadian cities.
GDP Growth:After a weak first half of the year, the Canadian economy appears to be recovering as a low Canadian dollar and strong growth south of the border help boost Canadian exports. Canadian economic growth is expected to remain tepid while low commodity prices weigh on business investment and the dollar volume of Canadian exports.
With all the changes that have been happening in the economy in the past few years both nationally and locally, you may be wondering what your commercial property is worth. If so, contact me today for a free market analysis.