Commercial property construction is soaring in Canada with over 20.7 million square feet of office space being created. Although the United States has a bigger economy, the Americans trail behind Canada in office construction, with only 126 million square feet currently being built. That rate represents nearly half of Canada’s rate. 79% of the offices being built south of the border are being built in cities with a population greater than 2.4 million. In comparison, a whopping 89% of office construction in Canada is taking place in Toronto, Montreal, and Vancouver alone.
The demand for office and commercial space is sustained by international companies in the finance and tech industries. The relentless demand for office space in Canada provides an impression of sparse office availability. Commercial developers have capitalized on the demand for commercial space by rapidly constructing new commercial properties. Developers need not worry of finding buyers or tenants as the vacancy rate for commercial space in Canada is extremely low, sitting at only 9.2%. In contrast, the vacancy rate in the U.S. is over 12%.
Vacancy rates are forecasted to increase in the next few years in Canada’s larger cities such as Toronto where the rate is expected to double 0ver the next 4 years. While vacancy is at a very low 2.9% in Toronto this year, it is expected to reach 6% by 2023, still much lower than in the U.S. In Vancouver, the current rate is 2%, and will likely also climb to 6% in the next few years.
With vacancy rates being so low, now is a great time to invest into commercial real estate in Toronto and other parts of Canada. At Clover Mortgage, we have mortgage brokers that specialize in commercial properties.
If you are interested in buying or building a commercial property, our commercial mortgage brokers can find you outstanding deals on mortgages to finance your projects. With over 20 years of experience and close connections with over 50 lenders, you can be sure to find an excellent mortgage deal that suits your needs.