Canada Commercial Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Canada Commercial Construction Market Analysis
Canada's commercial construction market is expected to register a CAGR of more than 5% through the forecast period.
- The commercial construction industry in Canada is expanding due to many factors, including low mortgage rates, pent-up assets, and a general shift in usage away from services and goods. The global pandemic slowed growth in the construction industry, but the sector has recovered significantly in the last four quarters as a result of economic recovery.In addition, Canadian commercial construction markets have faced labor shortages during COVID-19, further adding to capacity constraints.
- In Canada, the federal government has placed more than USD 1 billion in investments in the advancement of industrial research and the development of vaccines, which have assisted in the growth of the manufacturing sector. Large warehouse investments from a diverse group that includes the government, e-commerce players, and investment funds are also factoring into growth. Overall, significant growth in the Canadian commercial construction sector will happen in the coming years.
- Commercial office building projects will contribute to the industry's growth in Canada over the next few years. Even as the prospect of the workplace remains uncertain, 19 million square feet of office space is being constructed across the country. Moreover, in 2022, 252 large infrastructure projects were under development, valued at over 25 million U.S. dollars. The value of construction projects has also increased, as is evident by the skyscrapers built over the last decade in major Canadian cities. In general, the construction industry is an important economic driver for Canada as well as an indicator of the strength of the nation's economy.
Canada Commercial Construction Market Trends
Office Building Construction is Expected to Dominate the Market
Canada is home to some of the world's biggest and most successful companies, so naturally, there is high demand for office space. The volume of office space under construction in Canada increased between the third quarter of 2020 and the third quarter of 2021. As of the third quarter of 2021, over 17.3 million square feet of office space had been built in Canada. In 2021, the value of office real estate investment in Canada is expected to reach 7.4 billion Canadian dollars (USD 5.57 billion).
Office buildings are generally grouped into three classes: A, B, and C, which are dependent on factors such as location and facilities. Units that provide premium facilities are considered Class A. The net asking rent of a Class A office space in Canada is around 20 Canadian dollars per square foot.
During COVID-19, Vancouver had the second-lowest vacancy rate, whereas Montreal had the highest among the cities in the region. Vancouver has one of the most expensive housing markets globally, yet demand for office space is lower than in Toronto. Ontario generates a large portion of Canada's GDP, which means that office space is vital for the region. Downtown Toronto had significantly more available office space than Midtown Toronto, but both submarkets had similar vacancy rates.
Currie Barracks Mixed-use Development project construction work started in Q4 2021 and is expected to be completed in Q4 2024. The project aims to provide a community with residential, commercial, and retail facilities to house 11,000 residents. It is the final phase of a three-phase closed Canadian Forces base redevelopment.
Moreover, the Metrotown Property Redevelopment Project involves the construction of seven multipurpose facility towers on a 3.60-hectare site area on the south side of Kingsway at Nelson Avenue, next to Metropolis in Burnaby. The project aims to provide a diverse range of modern amenities, including residential, hotel, retail, commercial, and innovation space facilities, under one roof for people in the city.
The 1067 Yonge Street Office Complex project involves the construction of a 1,437 m2 four-story office complex in Toronto, Ontario, Canada. The 3700 Gilmore Way Expansion Project involves the construction of three- and five-story office buildings on 5 ha of land in Vancouver, British Columbia, Canada. Finally, the QRC West Phase II Office Complex project involves the construction of an 8,134 m2 seven-story building in Ontario, Canada.
These commercial office building projects will contribute to the industry's growth in Canada over the next few years.
Raise in Demand for LEED-certified Commercial Construction Buildings
According to the Canada Green Building Council (CAGBC) data, Canada ranked second globally on the annual list of the Top 10 countries and regions for LEED in 2021. In 2021, Canada certified 205 projects, representing more than 3.2 million gross square meters of LEED space.
In the construction of a green building, there is a requirement to get LEED certified, which operates in different cities depending on the code, material, and standards to be used in the construction. There are levels of LEED Certification that help the construction industry enhance the ability of buildings to perform and maintain environmental impacts that positively affect the health and comfort of the occupants. As of November 2022, there were 4,336 LEED-registered building projects in Canada. Offices and mixed-use offices are the types of spaces with the highest number of certifications. At that time, there were only 271 multifamily residential projects in the country certified by LEED.
A few examples of LEED-certified buildings in Canada include the three buildings at Purdy's Wharf in Halifax. The office complex was the first in Atlantic Canada to receive LEED Gold certification and uses seawater to chill the buildings' cooling water. And the first office building in Montreal to have LEED Platinum status, the Deloitte Tower, uses grey-tinted glass with a special coating to allow for more natural light and to control the heat inside the building. This means a significant reduction in energy consumption.
Moreover, LEED helps investors measure and manage their real estate performance. It allows investors to implement management practices that prioritize building efficiency, decrease operational costs, and increase asset value. Hence, the demand for LEED-certified commercial construction buildings in Canada is expected to increase over the forecast period.
Canada Commercial Construction Industry Overview
The Canadian commercial construction market is highly competitive and fragmented in nature, with large companies claiming significant market share. To meet the growing demand from end users, key players are also growing their businesses through mergers, acquisitions, strategic partnerships, etc.
Moreover, some of the players are emerging in the market by actively expanding their presence through the development of new projects. Anthem Properties, for example, has bought 95 acres in Southeast Calgary in order to build a business park with 1.5 million square feet of class-A warehouse and distribution space, as well as retail space.
A few key players in the market include SNC-Lavalin Group Inc., PCL Construction, EllisDon Group, Pomerleau, Inc., Bird Construction Company, and IDL Projects Limited.
Canada Commercial Construction Market Leaders
-
SNC-Lavalin Group Inc.
-
PCL Construction
-
EllisDon Group
-
Pomerleau, Inc.
-
Bird construction company
*Disclaimer: Major Players sorted in no particular order
Canada Commercial Construction Market News
- March 2022: Anthem Properties (a Canadian development, investment, and management company), along with KingSett Capital (a capital market company), have acquired an 8.34-acre mixed-use site located at Willingdon Avenue and Dawson Street in the City of Burnaby's active Brentwood Town Centre. The company developed this space into a four-phased master-planned community, including 2,100 market condominiums, 340 rental units, and 60,000 square feet of new retail and office spaces.
- January 2022: Bird Construction Inc. (a Canadian construction company) has entered into a three-year strategic partnership for the Building Good initiative along with Chandos Construction Inc. (North America's commercial builder). Building Good is a thought leadership initiative that aims to catalyze owners and industry partners to change the way the architecture, engineering, and construction industries design and build for the betterment of people and the planet.
Canada Commercial Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Overview of Commercial Construction Market in Canada
- 4.2 Current Market Scenario
- 4.3 Technological Trends
- 4.4 Government Regulations
- 4.5 Value Chain / Supply Chain Analysis
- 4.6 Brief on Construction Costs (average cost, office and retail space, per sq feet)
- 4.7 Insights into the newly office space completions (sq. feet)
- 4.8 Insights into Existing and Upcoming Projects
- 4.9 Impact of COVID-19 on Canada Commercial Construction Market (Analyst View)
5. MARKET DYNAMICS
- 5.1 Drivers
- 5.2 Restraints
- 5.3 Opportunities
-
5.4 Industry Attractiveness - Porter's Five Forces Analysis
- 5.4.1 Bargaining Power of Suppliers
- 5.4.2 Bargaining Power of Consumers
- 5.4.3 Threat of New Entrants
- 5.4.4 Threat of Substitutes
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
-
6.1 By Type
- 6.1.1 Hospitality Construction
- 6.1.2 Office Building Construction
- 6.1.3 Retail Construction
- 6.1.4 Institutional Construction
- 6.1.5 Other Types
-
6.2 By Key Cities
- 6.2.1 Toronto
- 6.2.2 Ottawa
- 6.2.3 Vancouver
- 6.2.4 Rest of Canada
7. COMPETITIVE LANDSCAPE
- 7.1 Overview (Market Concentration and Major Players)
-
7.2 Company Profiles
- 7.2.1 SNC-Lavalin Group Inc.
- 7.2.2 PCL Construction
- 7.2.3 EllisDon Group
- 7.2.4 Pomerleau, Inc.
- 7.2.5 Bird Construction Company
- 7.2.6 IDL Projects Inc
- 7.2.7 Graham Group Ltd.
- 7.2.8 Dalcon Inc
- 7.2.9 Heatherbrae Builders
- 7.2.10 Chandos Construction Ltd*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
Canada Commercial Construction Industry Segmentation
Commercial construction is the business of building and leasing or selling spaces in the private sector. These spaces can include but aren't limited to, offices, manufacturing plants, medical centers, and retail shopping centers. Commercial construction projects and businesses primarily vary in size and scale. Additionally, it involves the designing, renovating, and building of commercial structures.
Canada's commercial construction market is segmented by type (hospitality, office buildings, retail, institutional, and others) and by key cities (Toronto, Ottawa, Vancouver and the Rest of Canada). The report offers market size and forecast values (USD) for all the above segments.
| By Type | Hospitality Construction |
| Office Building Construction | |
| Retail Construction | |
| Institutional Construction | |
| Other Types | |
| By Key Cities | Toronto |
| Ottawa | |
| Vancouver | |
| Rest of Canada |
Canada Commercial Construction Market Research FAQs
What is the current Canada Commercial Construction Market size?
The Canada Commercial Construction Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Canada Commercial Construction Market?
SNC-Lavalin Group Inc., PCL Construction, EllisDon Group, Pomerleau, Inc. and Bird construction company are the major companies operating in the Canada Commercial Construction Market.
What years does this Canada Commercial Construction Market cover?
The report covers the Canada Commercial Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Canada Commercial Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Commercial Construction Industry Report
Statistics for the 2024 Canada Commercial Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Commercial Construction analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
