Real estate rental and leasing and property management industries

Total operating revenues of the real estate rental and leasing and property management industries combined increased by 6% to reach $44.1 billion in 2002, compared with $41.6 billion in 2001. The non-residential sector grew by 7.5% and now accounts for $23 billion of the total operating revenue.

The residential sector expanded moderately (3.7%) to reach $18.7 billion. The modest growth was, in part, the result of favorable mortgage rates in 2002, which prompted households to buy rather than rent residences. Meanwhile, the property management sector grew by 3.9% to $2.3 billion in 2002.

Total operating expenses for the combined industries grew by 6.6% in 2002 to $35.5 billion. Property taxes and mortgage interest contributed 19% and 16% respectively, of the total operating expenses.

The industry before-tax profit margin dipped slightly in 2002 to 19%, down from 20% in 2001. The non-residential sector reported a profit margin of 20%, whereas the residential sector reported a profit margin of 18%.

Data on the real estate rental and leasing and property management service industries are now available for 2002. These data provide information such as operating revenues, operating expenses, salaries and wages, profit before income-tax and the number of establishments at the provincial and territorial levels. The industries comprise lessors of residential buildings (excluding social housing), lessors of non-residential buildings and property managers.

Available on CANSIM: table 352-0003.

Definitions, data sources and methods: survey number 4705.

For more information, or to enquire about the concepts, methods and data quality of this release, contact Adib Farhat (613-951-6306; adib.farhat@statcan.gc.ca), Service Industries Division.