Halton Region Economic Review 2015

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1 1 Halton Region Economic Review 2015

2 Table of contents Message from Regional Chair Gary

........................ 4 Overview: doing business in Halton.

..................... 10 Real estate activity.

........................ 23 2015 business news.

2 2 Table of contents Message from Regional Chair Gary Carr Central location Overview: doing business in Halton Overview: living in Halton Employment Construction activity Real estate activity Infrastructure business news Living here Our services Contact us

3 Message from Regional Chair Gary Carr Halton Region is committed to supporting and sustaining a strong local economy and ensuring businesses succeed throughout the region.

3 3 Message from Regional Chair Gary Carr Halton Region is committed to supporting and sustaining a strong local economy and ensuring businesses succeed throughout the region. When businesses locate in Halton, they are choosing one of the best places to do business in Canada. Businesses in our area benefit from a deep talent pool of professionals, proximity to leading educational institutions, easy access to major markets and a high quality of life that is second to none. On behalf of Regional Council, I am proud to present Halton Region s Economic Development Economic Review 2015 report (2015 Economic Review). This annual review provides an overview of business investment in our region and highlights how we are performing from an economic development perspective. By working together with our local municipalities and key community partners, we have again accomplished impressive results, including: Achieving a AAA credit rating for more than 25 consecutive years; Achieving a 5.3 per cent unemployment rate, significantly lower than the rest of the Greater Toronto and Hamilton Area (GTHA), Ontario and Canada; Keeping property tax rates low when compared to other GTHA municipalities; Creating a confident business outlook, with 83 per cent of businesses surveyed anticipating economic conditions in Halton to remain stable or improve; and Investing in infrastructure with an additional $295 million into water, wastewater and transportation projects. By planning for today and tomorrow, Halton Region will continue to support its vibrant and growing business community. I encourage you to learn more about our thriving economy, an integral part of what makes Halton a great place to live, work, raise a family and retire. If you have any questions or comments, please contact me by dialing 311 or ing gary.carr@halton.ca. You can also find me on LinkedIn or Facebook. Gary Carr Halton Regional Chair

4 4 Halton Ottawa 1hr 4.5hrs Montreal 1hr 5.5hrs Waterloo 30 min Toronto 30 min Niagara Falls 1hr Boston 1.5hrs 8hrs Chicago 1.5hr 7hrs Detroit 1hr 3 hrs Buffalo 30 min 1hr New York 1.5hrs 7hrs Washington 1.5hrs 8hrs

5 Overview: doing business in Halton 5 Population 543,557 Land area 969 km 2 Jobs in Halton - workforce 220,026* Businesses 13,259* Credit rating AAA 2015 Gross Regional operating budget $800M 2015 Gross Regional capital budget $406M Business parks 16 Halton s four municipalities: City of Burlington Town of Halton Hills Town of Milton Town of Oakville * Preliminary estimate - Halton Employment Survey 2015

6 Overview: living in Halton 6 Demographics Population 51% 49% Median age 39.3 Years Population growth 544K K M 2041 Diverse and multicultural communities Americas Europe Africa Asia Other Quality of life Central location 30 mins to Toronto 1 hr to Niagara Falls Natural environment 420 km 2 of green space 26 km of waterfront 13 conservation parks Average housing price 2015 $667,688 Great place to live 93% Halton business owners say quality of life is in line or better than the rest of the GTHA. In comparison Post-secondary education Average household income Unemployment rate 6.8% 6.9% 5.3% Ontario Canada Halton Growth in total construction value $808M $1.1B $1.8B 64% 65% 74% $79K $86K $119K Canada Ontario Halton Canada Ontario Halton Sources: Statistics Canada Census, National Household Survey, Labour Force Survey, Building Permit statistics, Toronto Real Estate Board. For more detailed demographics and maps, visit halton.ca/datacentre

7 7 Almost 50% of our employees live in Halton. It s the perfect spot for our head office. Our customers appreciate that we re here in the region. We expect to be here for a long time. Blake Macaskill Managing Director, CIT Canada Burlington, ON Employment

8 Employment overview 8 Unemployment rate Halton 5.3% Lower than: Greater Toronto Area 7.1% Ontario 6.8% Canada 6.9% Business growth + 66 new places of employment in 2015 (13,259* business count) Participation rate Halton 70.4% Higher than: Greater Toronto Area 66.8% Ontario 65.2% Canada 65.8% Job growth + 1,769 new jobs created in 2015 (220,026* employment count) *preliminary estimate - Halton Employment Survey 2015 Source: Statistics Canada, Labour Force Survey Custom tabulation, three-month moving avg. unadjusted A strong labour market and a highly-educated workforce give Halton businesses a competitive edge. For more information about Halton s workforce, visit halton.ca/whyhalton

9 Employment overview 9 Over 1/3 of Halton business owners plan on hiring additional staff in in 5 Halton business owners rank availability of skilled labour favourably 90% of Halton business owners anticipate steady or higher profits in 2016 Major employment sectors in Halton Retail Manufacturing Healthcare Sources: Halton Business Conditions Survey 2015 and Halton Employment Survey 2015

10 10 The positive relationship between all parties a.b.m. Canada, our chosen contractor, the Town of Milton and Halton Region helped us to execute this project [the new head office and plastics manufacturing operation] in a short time period. Franco Veglio C.E.O. a.b.m. Canada - Milton, ON Construction activity

11 Development activity 11 Halton non-residential construction value ($ millions) 1, % of Halton business owners plan on investing in growth over the next year Construction value Change Industrial -27% 22% Commercial -9% 11% Institutional 279% 76% Total non-residential 24% 19% Avg. change since 2005 Sources: Statistics Canada, Building Permits Survey (Publication XWF), February 2016 and Halton Business Conditions Survey 2015 Over the last decade, Halton s average annual non-residential development growth increased nearly 20%. For detailed development statistics visit halton.ca/datacentre

12 Development activity 12 Halton annual non-residential total floor area (TFA) built (million sq. ft.) * projected * Total floor area built (sq. ft.) 2015 total value Growth Industrial 3,800, % Office 345,485-43% Retail 267,320-51% Other* 662,477 8% Total non-residential 5,075,560 89% *Including institutional Source: Halton Region, Non-Residential Development Charges Database Learn more at halton.ca/datacentre

13 Development activity across GTHA 13 Non-residential portion of total assessment Greater Toronto and Hamilton Area (GTHA), 2014 Halton Hills Durham Region Hamilton Oakville Halton Region York Region Milton Burlington Toronto Peel Region 12.0 % 12.2 % 12.4 % 14.0 % 15.3 % 16.0 % 16.4 % 17.4 % 19.9 % 21.6 % Source: Ontario Ministry of Municipal Affairs, Financial Information Returns In 2014, 15.3% of Halton s total assessment base was non-residential (industrial, commercial and institutional). This figure represents a 0.2% annual increase.

14 Commercial development 14 Ten-year growth trend in commercial construction value across Halton ($ millions) Commercial $ value trendline forecast Source: Statistics Canada, Building Permits Survey (Publication XWF), February 2016 $271M Total value of new commercial construction 612,805 sq. ft. Total commercial floor area built* *Includes office and retail Notable commercial developments: $15.7M Great Lakes Business Park, Oakville $6.4M Joshua Creek Corporate Centre, Oakville $2M Lamenza Investments Corporation, Burlington For a complete listing of commercial developments over $1M, please visit halton.ca/datacentre

15 Industrial development 15 Ten-year growth trend in industrial construction value across Halton ($ millions) Industrial $ value trendline forecast Source: Statistics Canada, Building Permits Survey (Publication XWF), February 2016 $129M Total value of new industrial construction 3.8M sq. ft. Total industrial floor area built Notable industrial developments: $40M Emery Investments Distribution centre, Milton $30M Prologis Distribution Centre Industrial warehouse, Milton $26M Broccolini Construction Inc. Storage warehouse, Halton Hills For a complete listing of industrial developments over $1M, please visit halton.ca/datacentre

16 This location [Oakville] appealed to us because it is a growing business community, is close to public transit and major highways, and has leading green design features, all of which support PwC s

16 16 This location [Oakville] appealed to us because it is a growing business community, is close to public transit and major highways, and has leading green design features, all of which support PwC s environmental objectives. Our aim is to create a truly unique PwC work space that meets the diverse and long-term needs of the firm, both for our people and our business. Raj Kothari GTA Managing Partner, PwC Oakville, ON Real estate activity

17 Industrial real estate market summary 17 GTA industrial market vacancy rates (%), Toronto Scarborough Markham Vaughan Mississauga Brampton Oakville Milton Burlington Caledon Average net rent (per sq. ft.) $5.44 Representing Burlington, Milton and Oakville Q Q GTA industrial market absorption 2015 (sq. ft. millions) GTA East Toronto Central $5.41 GTA Source: CBRE Ltd., MarketView Q GTA North 6.16 GTA West Key demand drivers such as Halton s premium location, proximity to highways and availability of new real estate continue to spur new development of industrial space. For more details about finding the right location for business investment, visit halton.ca/siteselection

18 Commercial real estate market summary 18 GTA office market vacancy rates (%), Toronto Downtown Toronto Midtown Scarborough Average net rent (per sq. ft.) $17.39 Representing Burlington and Oakville Markham North Yonge Vaughan Mississauga North / City Centre Richmond Hill Q Q Brampton Oakville Burlington GTA office market absorption, 2015 (sq. ft.) 757, Ongoing employment land development and infrastructure advances will ensure that Halton is well-represented in the GTA West s office market growth in the coming years. $17.69 GTA -193,791 GTA East Toronto Downtown 25, ,628-43,259 Toronto Midtown GTA North GTA West For more information, visit halton.ca/siteselection

19 Residential real estate market summary 19 Housing sales 4,692 5,330 5,809 6,982 7,807 8,801 88% 88% increase over the past five years Average home price ($) 517, , , , , ,688 29% 29% increase over the past five years Average days-on-market % 38% decline over the past five years Source: Toronto Real Estate Board, Market Watch

20 Propery taxes 20 Industrial property tax rates 2015 (% of taxable assessment) Hamilton Oshawa Halton Hills Burlington Oakville 3.13% 3.11% 3.02% 4.64% 5.66% Milton 2.80% Brampton 2.68% Mississauga 2.42% Vaughan 2.03% Markham 1.99% Commercial property tax rates 2015 (% of taxable assessment) Hamilton 3.62% Oshawa 3.13% Halton Hills Burlington 2.26% 2.05% Halton maintains competitive tax rates for both industrial and commercial landowners. Commercial tax rates in Halton are among the lowest in the GTHA. Oakville Milton Brampton Mississauga Vaughan Markham 1.9% 1.89% 1.84% 1.74% 1.70% 1.70% Contact us to find out more about industrial and property tax rates Rates as of July 1, Source: BMA Municipal Study, 2015

21 Development charges 21 Development charge rates* across Halton, 2015 ($/sq. ft.) Non-retail 2 HALTON Burlington (Greenfield) Retail 1 Oakville (Greenfield) Burlington (Built Boundary) Oakville (Built Boundary) Milton (Greenfield) 3 Halton Hills (Greenfield) 4 Milton (Built Boundary) Halton Hills (Built Boundary) Source: Halton Region 1 Rates as of July 1, applies to commercial retail. 2 Rates as of July 1, applies to non-retail (industrial and office) 3 Does not include Milton area-specific charges in Boyne Survey, Sherwood Survey or Derry Green 4 Rates as of July 1, 2015 Non-retail applies to industrial only and retail applies to retail and office Development charge rates* across GTHA, 2015 ($/sq. ft.) Industrial *Includes upper- and lower-tier municipal rates and education charges Source: BMA Municipal Study 2014 Select GTHA Vaughan Markham Brampton Mississauga Hamilton Oshawa Toronto Commercial Competitive development charges and available serviced employment lands make Halton a desirable GTHA location. Contact us for further information about development charges in Halton. ecdev@halton.ca

22 Development activity across GTA 22 GTA industrial market shares, 2015 Durham Toronto 11% 22% 11% $ 1.1 B GTA Industrial construction value 15% Halton 41% Peel GTA comparison of total building permit construction value ($ thousands per capita*) York GTA commercial market shares, 2015 Toronto 60% 7% $ 3.8 B GTA Сommercial construction value Halton 14% 3% 16% Peel York York Halton ICI Peel Toronto Residential Durham Second strongest development market by size across the GTA in Overall, Halton s total construction value grew by 17% over Durham *2011 population estimates Source: Statistics Canada, Building Permits Survey (Publication XWF), February 2016

23 23 A review of Greater Toronto Area corridors shows Halton Region as having the least congested corridors compared to other regional municipalities. CIMA + Consulting, Time Delay Study 2014 Infrastructure

24 Employment lands: infrastructure 24 Halton s inventory of serviced employment land coming on stream over the next several years will help ensure Halton continues to be investment ready. Milton Derry Green Corporate Business Park Regional servicing: $63.2M trunk Status: Secondary Plan approved infrastructure (initiated 2014/ by Halton Region in 2013, Ontario Halton Hills Halton Hills 401 Corridor completion 2017) Halton Hills 401 Corridor Regional servicing: $42.7M trunk Municipal Board (OMB) approval 2015 Status: Regional Official Plan infrastructure (initiated 2011) Amendment (ROPA) 38 added 240 ha of Milton Milton Derry Green Corporate Business Park employment lands, ROPA 43 re-phased employment areas affected by GTA West Environmental Assessment (EA) post 2021 Oakville Winston Park West Burlington Oakville Oakville Winston Park West Regional servicing: $8.3 million trunk infrastructure Status: Trunk water and wastewater servicing completed 2015 For more details about Halton s business parks, visit halton.ca/businessparks

25 Fifth Line Winston Churchill Blvd Employment lands: area servicing plans (ASP) 25 In 2015, Halton s area servicing plans will help ensure that employment land is investment-ready and that urban growth centres have the necessary infrastructure identified for intensification. Appleby Line Upper Middle Rd Burloak Drive QEW Cornwall Road Chartwell Mainway Trafalgar Rd QEW Lakeshore Road Bronte Meadows, Burlington Contract awarded; work underway Final ASP expected by Fall 2016 Midtown Oakville Contract awarded; work underway Final ASP expected by late Fall 2016 Derry Road Steeles Avenue Bell School Line Tremaine Road 401 Britannia Road Halton Hills 401 Corridor ASP to commence in 2017 Milton Education Village Timing of the ASP will be determined in line with the Milton Education Village Secondary Plan

Employment lands: infrastructure highlights 26 In 2015, Halton invested $295 million into water,

More than $3 billion is planned to be invested over the next 10 years (to 2025).

Milton completed in 2015 Water and Wastewater Mid Halton Wastewater Treatment Plant: Plant upgrades and

Plant: Plant upgrades and expansion to increase capacity and construct a new operations facility and

Creek to Tremaine Road in Milton Zone 1 Watermain: Tunneling watermain from Burloak Water Purification

headquarters: Construction began on a new, state-of-the-art, 235,000 sq. ft.

26 Employment lands: infrastructure highlights 26 In 2015, Halton invested $295 million into water, wastewater and transportation projects. More than $3 billion is planned to be invested over the next 10 years (to 2025). Regional roads Steeles Avenue reconstruction: Widening of Steeles Ave. between Winston Churchill Blvd. and Trafalgar Rd. in Halton Hills completed in 2015 Derry Road underpass: Underpass grade separation on Derry Road in Milton completed in 2015 Water and Wastewater Mid Halton Wastewater Treatment Plant: Plant upgrades and expansion to increase capacity and construct a new operations facility Skyway Wastewater Treatment Plant: Plant upgrades and expansion to increase capacity and construct a new operations facility and region-wide laboratory Britannia West Corridor Project: Extension to service lands from Sixteen Mile Creek to Tremaine Road in Milton Zone 1 Watermain: Tunneling watermain from Burloak Water Purification to Kitchen Reservoir to supply future development lands in north Oakville and Milton Facilities Police headquarters: Construction began on a new, state-of-the-art, 235,000 sq. ft. facility for the Halton Regional Police Service s Headquarters in October The facility is slated to be operational by 2017 and will be a central hub for police training, forensics, evidence management and administration. For more information about infrastructure investment in Halton, visit halton.ca/advancedinfrastructure

27 27 Halton s competitive edge as a leading business location continues to bring outstanding investment to the region business news

28 2015 Halton business news 28 Halton Hills Neovia Logistics Moody s Investors Service reaffirms AAA credit rating for Halton Region. Halton Healthcare Services opens their new, state-of-the-art, $2.7 billion Oakville-Trafalgar Memorial Hospital. The 2015 Pan Am/Parapan Am cycling events were held at the new world-class Mattamy National Cycling Centre in July and August. Ford Motor Company celebrates the global production start of the all-new 2015 Ford Edge at the newly-transformed Oakville Assembly plant and hires an additional 400 employees. Milton Emery Investments Mattamy National Cycling Centre Lowes Distribution ThreeOFour L-3 WESCAM receives $75 million investment from the Federal Government to build next generation surveillance technology. Laker Energy Products purchases a 65,000 sq. ft. manufacturing facility in Oakville. Lowe s opens a state-of-the-art 1.3 million sq. ft. distribution facility. Neovia Logistics opens a new state-of-the-art 435,000 sq. ft. facility in Halton Hills. L-3 WESCAM Burlington * Life Sciences Nutritional Secure Sense Solutions Halton Healthcare Oakville Laker Energy Carttera Ford Three Halton companies named to 2015 Profit 500: Life Science Nutritionals, Secure Sense Solutions and ThreeOFour. Atlantic Wind & Solar chooses Burlington for a 320 KW Solarpower plant. Emery Investments breaks ground on new 410,000 distribution centre in Milton. Carttera Private Equities breaks ground on new business park in Oakville. * Atlantic Wind & Solar The latest economic development information, including an RSS feed, is available at halton.ca/business 28

29 29 Halton offers such a range of high-quality neighbourhoods that it is no surprise many Siemens Canada employees call it home and love to avoid a daily commute downtown. Robert Hardt President and CEO, Siemens Canada Oakville, ON Living here

30 Halton communities rank within top #1 Overall Best Medium-sized City to Live - Burlington #6 Best Places for New Immigrants Burlington #1 Best Place for Business - Milton #7 Best Places to do Business Oakville #2 #2 #4 Overall Best Medium-sized City to Live Oakville Overall Best Places to Raise Kids Burlington Best Places for Business Burlington #8 #9 #9 Best Places to Raise Kids Milton Overall Best Smallsized City to Live - Halton Hills Best Places to Raise Kids Halton Hills Halton Region is one of the best places in Canada to live and do business. #4 Best Places to Raise Kids Oakville #10 Best Places to Retire Burlington For more details why Halton is a great place to live and invest, visit halton.ca/whyhalton Source : Rogers Media - Profit and MoneySense

31 31 Halton s Economic Development group can assist with your investment and location needs, offering a one-window approach. Our services

32 Halton economic development services 32 With a broad range of knowledge and contacts, we can provide you with support services and a detailed response that provides the information you need on our region s economy, labour force, business costs, infrastructure, real estate and lifestyle. Business development & site selection Industry news & resources 1 Online data centre First point of contact

33 Contact us 33 For more information about Halton or to get connected to opportunities, contact Halton s economic development team: or ecdev@halton.ca 1151 Bronte Road Oakville, Ontario L6M 3L1 CANADA halton.ca/invest Join the Facebook.com/haltonbusiness Linkedin.com/haltonbusiness

Halton Region Economic Review 2016

1 Halton Region Economic Review 2016 2 Table of contents Message from Regional Chair Gary Carr.............. 3 Central location......................... 4 Overview: Doing business in Halton...............