City of Vaughan

Highlights

• In the first two quarters of 2024, the city ranked ninth nationally by value of commercial building permits, and seventh in Ontario by value of non-residential building permits.
• Over the same period, the city issued building permits representing nearly $364 million in construction value.
• Vaughan remains the largest industrial market in York Region and the fourth largest industrial market in the Greater Toronto Hamilton Area with an industrial inventory of more than 100 million square feet.
• Vaughan had a record development year in 2023, issuing building permits across all categories totalling more than $2.6 billion in construction value.
• Since 2013, Vaughan has issued more than 45,000 building permits representing more than $16 billion.
• In the first half of 2024, Class A and B office spaces under 5,000 square feet saw high demand, led by professional services and smaller businesses in the financial and administrative sector.
• Skilled labour shortages, interest rates and building code updates contributed to a record low negative absorption in the Greater Toronto Area industrial market. Factories, warehouses, offices and transportation buildings had the highest rising construction costs.
  

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As an economic indicator, building permit values measure current demand in both residential and non-residential real estate markets and estimate future performance of the construction industry. Building permit activity is one indicator of the strength of the local economy, as well as a predictor of population and employment growth.

Vaughan experienced a record-breaking 2023, issuing more than $2.6 billion in construction value of building permits across all categories, contributing to more than 45,000 building permits issued and $16 billion in building permit construction value since 2013.

Vaughan had a record development year in 2023, issuing building permits across all categories totaling more than $2.6 billion in construction value. Since 2013, Vaughan has issued more than 45,000 building permits representing more than $16 billion in construction value.

Vaughan is one of the top development markets in the country, ranking ninth by value of building permits in Canada for commercial development by the end of the second quarter of 2024.

Vaughan ranks ninth nationally by value of commercial building permits in the first half of 2024, making it one of the leading development markets in the country. Commercial building permits include both office and retail buildings.

Top 10 Canadian Development Markets (Commercial) by Value of Permits, Q1 & Q2 2024:

1. Toronto
2. Montreal
3. Surrey
4. Calgary
5. Vancouver
6. Mississauga
7. Edmonton
8. Ottawa
9. Vaughan
10.  Winnipeg

Vaughan is the largest industrial market in York Region and the fourth largest industrial market in the Greater Toronto Hamilton Area.

With more than 100 million square feet of industrial inventory, Vaughan is one of the top industrial markets in the Greater Toronto Hamilton Area, and the largest industrial market in York Region. The city represents 61 per cent of the total industrial inventory in York Region at the end of the second quarter [1].

In the first half of 2024, Vaughan ranked in the top ten census subdivisions by construction value of industrial building permits when looking at only Ontario. The city ranked ninth after Toronto, Windsor, Brampton, London, Mississauga, Markham, Oakville, and Ottawa.

Top 10 Ontario Development Markets (Industrial) by Value of Permits, Q1 & Q2 2024:

1. Toronto
2. Windsor
3. Brampton
4. London
5. Mississauga
6. Markham
7. Oakville
8. Ottawa
9. Vaughan
10.  Guelph

By the end of the second quarter of 2024, the construction values for the city’s non-residential permits totaled nearly $364 million.

At the end of the second quarter, Vaughan’s building permit values for non-residential permits totaled nearly $364 million. This includes industrial, commercial, and institutional permits.

According to recent data released from Statistics Canada including the first and second quarter building permit data, Vaughan ranks seventh overall in Ontario by value of non-residential building permits. When looking at only Ontario, Vaughan is in the top ten census subdivisions by value of non-residential building permits, ranking seventh after Toronto, Windsor, Mississauga, Brampton, Ottawa, and London.

In the first half of 2024, Class A and B office spaces under 5,000 square feet saw high demand, led by professional services and smaller businesses in the financial and administrative sector.

The commercial market for the first half of 2024 saw notable market activity for Class A and B office space under 5,000 square feet by professional services and smaller businesses in the financial and administrative sectors [2]. The top three preferred markets for commercial investment across all asset classes were Halifax, Vancouver and Toronto [3].

Skilled labour shortages, interest rates and building code updates contributed to a record low negative absorption in the Greater Toronto Area industrial market. Factories, warehouses, offices and transportation buildings had the highest rising construction costs.

In the second quarter of 2024, the Greater Toronto Area industrial market saw a substantial negative absorption, the lowest historically since the third quarter of 2015 [4]. Factories, warehouses, office and transportation buildings had the highest increase in construction costs by building type. Key factors include skilled labour shortage, interest rates, and building code updates [5].

[1] Q2 2024 Toronto Office Market Report. Colliers.

[2] Q2 2024 Canadian CRE Investment Trends. Altus Group.

[3] Q2 2024 Toronto Industrial Market Report. Colliers.

[4] Q2 2024 Building Construction Price Indexes. Statistics Canada.

[5] Q2 2024 Toronto Industrial Market Report. Colliers.

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Definitions

Industrial buildings are defined as buildings used in the processing or production of goods or related to transportation and communication.

Commercial buildings are defined as buildings used in the trade or distribution of goods and services.

Institutional buildings are buildings used to house public and semi-public services, such as those related to health and welfare, education, or public administration, as well as buildings used for religious services.

Residential buildings are defined as buildings intended for private occupancy whether on a permanent basis or not. Dwellings are divided into the following types: single-family, mobile, cottage, semi-detached, row house and apartment building.

Non-Residential buildings are all buildings not intended for private occupancy whether on a permanent basis or not. This includes buildings used for institutional, commercial, or industrial purposes.

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Economic Development monitors economic trends, including non-residential market conditions. To stay up to date on the latest, following us on LinkedIn at Vaughan Economic Development  or visit vaughanbusiness.ca/Insights