Construction Activity

Halton's total value of new construction and expansions rose 16 percent during the 4th quarter of 2012 from the same period in 2011, reaching over $382 million in building permit value. The rise is largely attributable to a substantial increase in industrial and institutional investments. The 4th quarter of 2012 saw industrial permit values increase a substantial 949 percent from the same period in 2011 ($7.5 million to $78.6 million), while institutional permit values rose 652 percent ($13.5 million to $101.7 million).

Several significant industrial permits issued during the period contributed to the increase including: the new Lowe's Canada Distribution Centre in Milton ($22.5 million), an expansion to Gordon Food Services in Milton ($13.5 million) and a new industrial building in Halton Hills by First Gulf and Sun Life ($12.3 million). Industrial permit values were also boosted by the new Milton Operations Centre on Regional Road 25 valued at over $12 million (Note: Town of Milton categorized this permit as industrial due to its intended use).

Institutional permits issued included several new investments into educational facilities, including: a new residence at Sheridan College in Oakville (over $30 million), the new Milton Catholic Secondary School ($29 million), and new elementary schools in Burlington ($10 million) and Milton ($10.7 million). Additionally, a $13 million renovation and expansion to the Cama Woodlands Long Term Care Facility in Burlington was initiated during the quarter.

Commercial and residential construction values fell in the 4th quarter from 2011 values by 44 percent and 36 percent, respectively. Retail commercial investments included a new retail plaza on Cornwall Rd. in Oakville ($2.9 million) and the foundation permit for a condominium apartment ($2.7 million) also in Oakville.

A total of 1,971 building permits were issued in Halton during the 4th quarter, representing an increase of 30 percent from the same period in 2011. Residential permits accounted for 40 percent of all building permits issued, while 12 percent of permits issued were attributable to non-residential developments.

* Figures may not add due to rounding
Source: Local Municipal building departments and Halton Economic Development.

* includes apartment registrations, renovations and additions
** includes industrial, commercial, institutional (ICI)
*** excluding signs
Source: Local Municipal building departments

* Excludes site servicing, heating and plumbing. Both new construction, additions and internal alterations are included.
Source: Local Municipal building departments and Halton Economic Development.

Employment in Ontario grew by 34,800 new jobs in the 4th quarter of 2012 - an increase of 0.5 percent from the previous 3rd quarter. Ontario's 4th quarter unemployment rate was 8.0 percent, representing a slight increase from 7.9 percent in the 3rd quarter.

Halton's unemployment rate increased during the 4th quarter from the same period last year, rising from 4.8 percent to 6.2 percent. This is slightly higher than Halton's five year average unemployment rate of 5.6 percent. Meanwhile, the number of Halton residents participating in the labour market fell to 70.6 percent, from 71.1 percent during the same quarter of 2011.

Sources:
1. Halton Region Best Planning Estimates, June 2011 (forecasted)
2. Based on Halton's land area of 967 square kilometres
3. Financial Post Markets, Canadian Demographics, 2010 to 2012
4. Statistics Canada, Labour Force Survey Estimates (Custom Tabulation, 3 month moving average, unadjusted).
5. Statistics Canada, Employment Insurance Statistics (Table 276-0006, average number of beneficiaries receiving regular benefits).
6. Statistics Canada, Canadian Business Patterns. As of December 2009, 2010 2011.
7. Office of the Superintendent of Bankruptcy Canada.
8. Local Municipal building departments and Halton Economic Development
9. CBRE. Based on rates in Burlington, Milton and Oakville.
10. CBRE. Based on rates in Burlington and Oakville.
11. Toronto Real Estate Board, Market Watch

Halton Hills Welcomes New Development

On October 11, 2012 Dave Carreiro of First Gulf Inc. and Wayne Walton of Sun Life Financial hosted an open house for Commercial Real Estate Brokers at their new project located at 8041 Fifth Line in Halton Hills. The 435,000 sq.ft. building, currently under construction and available for lease, is one of the largest in Halton Hills and features a strategic location close to Highways 401 and 407. First Gulf has built seven buildings in the Halton Hills 401 Corridor totalling 1.5 million sq. ft. and which house over 400 employees.

Three Innovative Oakville Companies Expand

Three innovative companies are expanding their businesses and creating nearly 170 new jobs in Oakville, thanks to an investment of up to $3.075 million by the Government of Canada. Through the Investing in Business Innovation initiative, FedDev Ontario is contributing up to $925,000 to Smart Energy Instruments Inc. and up to $500,000 to ARDA Power Inc. This funding will allow Smart Energy Instruments Inc. to further develop, test and bring to market technology for measuring dozens of complex electric power quantities, synchronized across an entire grid and to communicate this information in real time. Through its Prosperity Initiative, FedDev Ontario is contributing up to $1.65 million to aerospace firm VAC Developments to upgrade its technology and train its employees with the goal of attracting larger contracts for precision mechanical components and assemblies in the aerospace market.

Halton Hosts Real Estate Forum

On November 8, 2012, more than 200 industrial, commercial developers and real estate brokers from the Greater Toronto Area (GTA), along with Regional and Local Municipal elected officials and staff, attended Halton Region's Real Estate Forum for an update on the industrial and commercial real estate market in Halton and the GTA.

The third annual event was presented by Halton Region Economic Development in partnership with the Burlington Economic Development Corporation (BEDC) and the economic development offices at the Towns of Halton Investment Attraction & Retention Hills, Milton and Oakville. The session featured a keynote address and two panels who provided their perspectives on the state of the industrial and commercial office real estate markets.

A key message voiced by the speakers was that Halton is indeed a location of choice - a great place to live and work and is definitely on the radar screen for forward thinking businesses. Keynote speaker Sheila Botting, Partner & National Leader, Deloitte Real Estate, discussed changing demographics, productivity and how the real estate game is changing. "Commercial real estate can be a catalyst for growth in our economy," said Ms. Botting. Office panelists John Arnoldi (Colliers International), Dave Carreiro (First Gulf Corporation) and Chris Holtved (PaulsProperties Corp.) along with Wayne Walton (Sun Life Financial), Ken Nevar (Cooper Construction) and John McCall (Oxford Properties Group) indicated that Halton is a big part of their respective businesses, agreeing that land availability is greater and operating costs and taxes are lower than other areas in the GTA.

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