Real estate rental and leasing and property management industries, 2015
Real estate rental and leasing and property management industries generated $97.7 billion in operating revenue in 2015, up 4.4% from 2014. These industries reported operating expenses of $64.1 billion, up 3.6% from 2014, resulting in an increase in the profit margin from 33.8% to 34.3%.
The largest of the three industries was non-residential leasing. Operating revenue for this industry increased 3.8% to $51.3 billion in 2015. Operating expenses rose 3.0% to $33.4 billion in 2015. At the provincial level, Alberta experienced a 1.9% decrease in operating revenue from 2014 to 2015. One factor underlying the decline was the drop in the world price of crude petroleum, which began in the fall of 2014, and the negative impact that this had on the Alberta economy. The office vacancy rate in Calgary increased from 11.0% in the fourth quarter of 2014 to 18.2% in the fourth quarter of 2015.
While Alberta reported a decrease in the non-residential industry, it remained in the top four provinces in terms of provincial share of operating revenue. Ontario had the largest share of rental income at 41.1%, followed by Quebec (18.0%), Alberta (16.4%) and British Columbia (15.8%).
Lessors of residential buildings and dwellings reported a 5.2% increase in operating revenue to $40.1 billion in 2015. Operating expenses for the industry increased by 4.5% to $25.9 billion. At the provincial level, firms in Alberta experienced the slowest pace of growth. Their operating revenue increased by 0.2% from 2014 to 2015. One factor which may have contributed to the slower growth was the decline in employment, which fell by 1.0% during the same period. With the decline in employment, the rental vacancy rate in Alberta more than doubled, from 2.1% in 2014 to 5.7% in 2015.
Ontario had the largest share of the residential rental income at 37.3%, followed by Quebec (26.4%), British Columbia (15.8%) and Alberta (11.3%).
The real estate property management industry generated $6.2 billion in operating revenue, up 4.0% from 2014. This industry also reported operating expenses of $4.9 billion, up 3.0% from the previous year.
Note to readers
Data for 2013 and 2014 have been revised.
Data on office vacancy rates in Calgary were obtained from CBRE Group Canada Office MarketView, for the fourth quarter of 2014 and the fourth quarter of 2015.
Data on the decline in employment in Alberta were obtained from the Survey of Employment, Payrolls and Hours, CANSIM table 281-0024.
Data on rental vacancy rates in Alberta and Calgary were obtained from Canada Mortgage and Housing Corporation Rental Vacancy Rate, Canada, Provinces and Metropolitan Areas, 1992 to 2015 (percent).
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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