Economic and Development Activity Report
Halton Region Economic Development publishes a quarterly newsletter that reports on Halton’s economic performance with respect to development, labour force, and real estate markets. Sign-up here to receive the quarterly report delivered to your inbox.
Highlights from the 2018 Q3 Economic and Development Report:
Construction activity slows during the second quarter of 2018
Emerging from record-breaking levels of development initiated across Halton during 2017, total building permit construction value declined by 26% year-over-year in Q3 – suggesting a return to normal growth trends. Despite a significant decline in total construction value, commercial construction permits remained strong with a few substantial building projects. A major commercial development initiated during the quarter was a $4.7 million investment in building alterations at Alphor Research Inc. at 2884 Portland Drive in Oakville. In addition, Oakville Trafalgar Memorial Hospital added a $4 million parking garage.
Halton’s industrial and office real estate markets continue to be high in demand
Halton’s industrial availability rate dropped a further 1.8 percentage points year-over-year to 4.2% during the third quarter of 2018. All Halton sub-markets experienced a decrease in availability during the third quarter. Oakville recorded the largest decline in availability, falling 3.2 percentage points to finish the quarter at 2%. This is an indicator of strong demand in the industrial market – despite large inventory, absorption rates are high and availability rates are low. The vacancy rate in the office market edged up 0.8 percentage points and absorption increased by a modest 22,051 sq. ft. – signifying stability in the commercial market. Industrial average net asking rents increased by $0.43 year-over-year to $6.70 per sf. in the third quarter. The highest average net asking rent was found in Oakville at $7.78 per sf.
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