register | confirm account | forgot password

Monday, January 18, 2016 - Non-residential construction held on in 2015

Todd Hirsch • Chief Economist

January 18, 2016

Non-residential construction held on in 2015

Signs of the economic slowdown are all around us in Alberta, but the one surprising indicator where we have yet to see much downturn is construction activity. Indeed, if a Martian landed in downtown Edmonton or Calgary today, it might well assume that the province is booming.
 
In the fourth quarter of last year, a total of $2.74 billion was spent on non-residential construction, essentially unchanged from the same quarter of 2014. For 2015 overall, total spending was up one per cent compared to 2014.
 
Commercial projects make up the largest portion of non-residential construction. This would include projects like office buildings, shopping malls and big-box retail complexes. In the fourth quarter, commercial construction did pull back a bit, from $1.83 billion in the third quarter to $1.77 billion in the fourth quarter, yet it remained near record high. An increase in industrial construction spending more than offset that drop.
 
The biggest drop in construction spending came in government and institutional spending. This category, however, could see some increase in the coming months. The federal government has been hinting at more spending for infrastructure. More details are expected in the spring budget.
 
But even though industrial and commercial spending showed some impressive results last quarter, both are certain to pull back in 2016. With more than enough downtown office space coming onto the market in both major cities, it could be years before construction on yet another office tower is announced.

posted in General at Mon, 18 Jan 2016 08:58:51 -0700



Archives

Categories

Listings (173)
News (1)

This site's content is the responsibility of Atif Rajan, licensed REALTOR® in the Province of Alberta.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.
The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

© 2017, All Rights Reserved | Privacy Policy | Mobile Site | REALTOR® Websites by RealPageMaker