Photo: Steve Davidson/Flickr
Office real estate added about $20 billion to the Canadian economy in 2013, supporting more than 100,000 jobs and generating billions in profits.
That’s according to a report released by the Real Property Association of Canada (REALpac) that assessed how much construction and investment in office buildings, as well as the ongoing operation of those buildings, was worth in economic activity.
REALpac, a Canadian industry association for owners and managers of investment real estate, found that — on top of 111,600 jobs and $4.4 billion in corporate profit — the office real estate sector also generated $6.9 billion in personal and other income and $2.5 billion in tax revenue.
In comparison, capital investment in the office sector totaled $7.7 billion, with some $4.5 billion spent on new buildings in 2013.
“Development and construction of commercial real estate buildings, and subsequently their daily operations, creates directly thousands of jobs and adds tremendous value to Canada’s gross domestic product,” says REALpac.
The ongoing operations of office real estate also accrued about $1.2 billion in building management fees and approximately $1.3 billion in commercial brokerage fees from the sale and leasing of offices.
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