Oct 19, 2015 marked an era of change for Canada—a change to a Liberal majority government. What does that mean for the commercial real estate industry over the next four years?
Well, while the Liberal government is not planning to directly invest in the commercial real estate industry at this time, some of their mandates, if fulfilled, could have a significant impact on the industry.
For example, one of the main mandates of our new Liberal majority government is to largely invest into each province’s transportation infrastructure. This means improving and adding public transit options as well as improving local roadways and highways. For commercial real estate owners, improvements in transportation around their properties could improve the marketability of the office spaces available for lease. Commercial real estate owners would not be forced to lower their lease rates to attract potential leasers. Instead they would just remarket their available office space as “accessible to” multiple forms of transit. If successful, this could potentially lower the percentage of office vacancies, at least within Ontario.
Another Liberal government mandate is to significantly invest in Canada’s social infrastructure, that is, to improve where people live and increase their options/locations for child care. For commercial real estate owners, there is an opportunity to further improve the marketability of their lease properties by adding their properties on the list as potential hot spots in which daycare centres could be built, thereby getting in on the $6+ million that the liberal government plans to invest in this area.
Finally, the Liberal government wants to invest in renewable energy. This could be significant in causing new renewable energy companies to be formed or existing ones to expand into and throughout Canada. For commercial real estate owners, this could mean more potential leasers for their properties.
“Every dollar we spend on public infrastructure grows our economy, creates jobs, and strengthens our cities and towns… Government has a responsibility to act decisively and for the public good. Canada’s economic growth was made possible by building ambitiously. We must do so again if we are to transform our transit and transportation systems, create more liveable communities, and ensure that we adapt to a changing climate.”
Only time will tell what the true effect the Liberal government will have on the commercial real estate industry.
DJ McGauley and Associates Inc. is your Space Planning, Renovation and Facilities Management company of choice for the Toronto, GTA and surrounding areas. If an office move or reconstruction of your 2,000 – 25,000 sq.ft. office space is in your plans, contact us to arrange a no-obligation site meeting. Our friendly experienced team will work seamlessly with your staff to guide you through the process, allowing your employees to enjoy a productive, stress-free experience.
August 27, 2015, Liberal Party of Canada, “Trudeau commits to largest infrastructure investment in Canadian history”, https://www.liberal.ca/trudeau-commits-to-largest-infrastructure-investment-in-canadian-history/
Liberal Party of Canada, “Real Change: An Historic Investment Plan to Strengthen the Middle Class, Create Jobs and Grow Our Economy”, https://www.liberal.ca/files/2015/08/An-historic-investment-plan.pdf