Altus Group provides the hard construction costs for industrial and commercial real estate projects across Western Canada

The Canadian economy is remarkable. It topped $2 trillion in size last year, supports a population of over 35 million people and has a remarkably sustainable construction sector that will likely start some 220,000 new homes this year and initiate some 280 million square feet of new commercial, industrial and institutional construction.

This year started with significant tailwinds from remarkable employment and economic growth in 2017. Almost 425,000 net new jobs were created in 2017 – a 15-year high – and the economy advanced just over 3 per cent, which is among the fastest- growing years since the recession a decade ago.

The Altus Group’s annual Construction Cost Guide is Canada’s real estate industry’s leading guide to costing development projects. It is trusted as a budgeting tool by public bodies, developers, lenders, contractors, consultants and various industry professionals.

The guide is founded upon Altus Group’s proprietary database of project costs, which includes project data from over 1,400 Canadian cost and project management engagements in 2017 alone. Drawing upon this comprehensive catalogue, Altus experts have analyzed the information and provided a succinct summary of the findings for each major market across the country.

construction costs
Note: While using the Altus cost guide helps develop a rough preliminary project financial plan, we strongly recommend you seek professional expert advice to provide a more precise, project-specific estimate and pro forma. The construction costs presented here represent hard costs only, and do not include soft costs, including land costs, legal and insurance costs, government fees, financing costs, environmental costs, property taxes, marketing and sales costs and commissions, or the developer profit. Also, new trade tariffs on some building products, such as steel, aluminum and lumber, will likely increase construction costs in 2018 above current estimates.


Tight rental market conditions persist in 2017 despite new additions to supply!

“According to the result of the Rental Market Survey conducted in October 2017, the vacancy rate in the Kelowna area declined to 0.2%, compared with 0.6% in October 2016.1 Continued tightness in the rental market can be attributed to a variety of factors including a significant increase in rental housing demand outpacing supply, the rising cost of homeownership relative to rents, rising enrolment in post-secondary institutions, strong population growth and growing employment opportunities for young people.

On the supply side, the primary apartment rental universe expanded by 289 units between the October 2016 and October 2017 surveys. These additions to the rental universe, which were mostly bachelor units, were insufficient to meet strong demand for new rental units.”

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Kelowna, Surrey among 2018’s best real estate investment destinations

Western Investor’s annual take on the top five towns to place your real estate investments in Western Canada over the next year

No. 1: Kelowna

The largest city – 127,800 residents – between Metro Vancouver and Calgary, Kelowna is the dominant trading centre for the Okanagan Valley, B.C.’s third most populous region. Together with neighbouring Vernon, West Kelowna, Peachland and Lake Country, the greater Kelowna area has a population of 256,216, up 7.4 per cent from 2011. It also has a blossoming high-tech sector, which has rocketed in the past few years into a $1.3 billion industry that involves more than 200 companies.