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............... 5 Overview: Living in Halton.................... 6 Employment.......................... 7 Development activity..................... 10 Real estate competitiveness.................. 17 Employment lands....................... 23 2016 business news...................... 25 Living here........................... 27 Our services.......................... 29 Contact us........................... 31

3 Message from Regional Chair Gary Carr These are exciting times for Halton Region. Halton is the fastest growing regional municipality in Canada, growing 9.3 per cent since 2011 to 543,000 people according to the latest census. As detailed in this 2016 Economic Review, both development and job growth are more than keeping pace they are exceeding expectations. With more than 4,000 new jobs created in the region in 2016, we are providing more employment opportunities for Halton's highly skilled labour market. In addition, 40 per cent of the new development in 2016 was non-residential, a 21 per cent increase since last year. And, Halton's total buiding permit construction value in 2016 was a record-setting $2.14 billion, an increase of 19 per cent since 2015. In 2016, Halton's local municipalities once again ranked among the best places in Canada to live, raise children and do business. I am proud that Halton is home to 15 of Canada s fastest growing companies in 2016, including Secure Sense, the fastest growing IT company in all of Canada. This speaks to Halton Region s commitment to supporting and sustaining a strong local economy and ensuring businesses succeed throughout the region. Business confidence across the region is strong, with more than 90 per cent of businesses surveyed anticipating economic conditions in Halton to remain stable or improve, 7 out of 10 business owners planning on making productivity investments over the next 12 months, and one third of businesses intending to hire additional staff over the next 12 months. And, for businesses that are looking to hire, the quality of Halton s talent pool is second to none. Halton residents are among the most educated in Canada. It s no surprise that the 2016 average unemployment rate of 5.5 per cent is significantly lower than the rest of the Greater Toronto and Hamilton Area (GTHA), Ontario and Canada. I encourage you to read this report to learn more about what makes Halton a great place to live, work, and invest. If you have any questions or comments, please contact me by dialing 311 or emailing gary.carr@halton.ca. You can also find me on Twitter @garycarrhalton, LinkedIn or Facebook. Gary Carr Halton Regional Chair

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

Overview: doing business in Halton 5 Population 548,435 Land area 969 km 2 Jobs in Halton - workforce 224,299* Businesses 13,287* Credit rating AAA 2016 Gross Regional operating budget $844M 2016 Gross Regional capital budget $332.5M 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 2016

Overview: living in Halton 6 Demographics Population 51% 49% Median age 39.3 Years Population growth 548K 2016 820K 2031 1M 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 526 km 2 of green space 57 km of waterfront 13 conservation parks Average housing price 2016 $803,869 Great place to live 94% 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 7.0% Canada 6.6% Ontario 5.5% Halton Growth in total construction value $1.0B $1.3B $2.1B 64% 65% 74% $79K $86K $119K Canada Ontario Halton Canada Ontario Halton 2001 2011 2016 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 Halton offers such a range of high-quality neighbourhoods that it is no surprise many Siemens Canada employees call it home. Robert Hardt CEO, Siemens Canada Employment

Employment overview 8 Unemployment rate Halton 5.5% Lower than: Greater Toronto Area 7.0% Ontario 6.6% Canada 7.0% Participation rate Halton 67.1% Higher than: Greater Toronto Area 66.6% Ontario 65.0% Canada 65.7% Business + 28 net increase in places of employment in 2016 (13,287* business count) Jobs + 4,273 net increase in jobs in 2016 (224,299* employment count) Businesses in Halton have access to one of Canada s most educated pool of prospective employees. For more information about Halton s workforce, visit *preliminary estimate - Halton Employment Survey 2016 Source: Statistics Canada, Labour Force Survey Custom tabulation, three-month moving avg. unadjusted halton.ca/whyhalton

Employment overview 9 1/3 of Halton business owners plan on hiring additional staff in 2017 90% of Halton business owners anticipate stable or improved economic conditions in Halton in 2017 90% of Halton business owners anticipate steady or higher profits in 2017 Major employment sectors in Halton Manufacturing Retail Healthcare & Social Assistance Sources: Halton Business Conditions Survey 2016 and Halton Employment Survey 2016

10 We have been looking for a long time to find the right site in Southern Ontario that had rail and road access to the GTA. We are very excited about this project and its location and we are looking forward to attracting new businesses to Acton. Rob Doman Vice-President of Futura Properties Ltd. on Acton investment Development activity

Development activity 11 Halton non-residential construction value 2007-2016 ($ millions) 1,151.7 832.5 707.2 687.7 650.8 574.8 550.0 Top Developments $36M Broccolini commercial warehouse, Halton Hills $29M Bentall-Kennedy commercial warehouse, Halton Hillls $27.6M Hood Development Corp multi-storey office building, Oakville $18.8M First Gulf multi-storey office building, Oakville $15M Triovest Realty commercial warehouse, Halton Hills $10M Kingridge (Speers) Inc. four multi-storey office buildings, Oakville 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 34% 392.6 of Halton business owners plan on investing in growth over the next year. 336.5 352.3 Construction value Change 2015-2016 Industrial -50% 15% Commercial 33% 13% Institutional 42% 73% Total non-residential 21% 19% Sources: Statistics Canada, Building Permits Survey, February 2017 and Halton Business Conditions Survey 2016 Avg. change since 2006 Over the last decade, Halton averaged 22% annual non-residential development growth. For detailed development statistics visit halton.ca/datacentre

Development activity 12 Halton annual non-residential total floor area (TFA) built 2007 2017 (million sq. ft.) 7.16 5.95 5.08 3.87 3.5 1.68 1.57 2.02 2.10 2.69 2.74 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 forecast Total floor area built (sq. ft.) 2016 total value Growth 2015-2016 Industrial 1,125,237-70% Office 262,927-24% Retail 431,298 61% Other* 924,395 40% Total non-residential 2,743,857-46% *Including institutional Source: Halton Region, Non-Residential Development Charges Database Learn more at halton.ca/datacentre

Commercial development 13 Ten-year growth trend in commercial construction value across Halton 2007 2016 ($ millions) 532 364 408 234 178 190 310 299 276 369 Average $316M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2017 $368.5M Total value of new commercial construction in 2016 694,225 sq. ft. Total commercial floor area built* in 2016 *Includes office and retail For a complete listing of commercial developments over $1M, please visit halton.ca/datacentre

Industrial development 14 Ten-year growth trend in industrial construction value across Halton 2007-2016 ($ millions) 156 177 118 97 110 105 105 129 Average $105M 42 55 64 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2017 $64.5M Total value of new industrial construction in 2016 1.1M sq. ft. Total industrial floor area built in 2016 For a complete listing of industrial developments over $1M, please visit halton.ca/datacentre

Non-residential assessment 15 Non-residential portion of total assessment Greater Toronto and Hamilton Area (GTHA), 2015 Halton Hills Durham Region Hamilton Oakville Halton Region York Region Milton Burlington 12.0% 12.1% 12.5% 13.9% 15.2% 15.9% 16.2% 17.4% Toronto 19.6% Peel Region 21.5% Source: Ontario Ministry of Municipal Affairs, Financial Information Returns In 2015. 15.2% of Halton s total assessment base was non-residential (industrial, commercial and institutional). Non-residential assessment in Halton increased 1.1% in 2015.

Development activity across GTA 16 GTA industrial market shares, 2016 Halton 8% GTA comparison of total building permit construction value 2016 ($ thousands per capita*) Toronto 46% $790M GTA Industrial construction value Peel 30% 4.19 3.91 2.66 2.53 2.47 Durham 6% York 10% York Halton Toronto Peel Durham GTA commercial market shares, 2016 Residential ICI Toronto 55% Halton 9% $4.1B GTA Commercial construction value Durham 4% Peel 14% York 18% Second strongest development market by size across the GTA in 2016. Halton s share of the GTA commercial market grew from 7% in 2015 to 9% in 2016. *2016 population count from Statistics Canada Census Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2017

17 The major attraction is its proximity to Toronto, there are a lot of head offices around here and it has really come into its own given the 403-QEW. It has great transportation access. John Bartkiw Fengate s managing director of real estate Real estate competitiveness

Industrial real estate market summary 18 GTA industrial market vacancy rates (%), 2015 2016 12.3 6.0 6.5 4.2 5.0 0.2 0.0 1.8 0.9 1.4 1.8 2.2 1.7 1.6 0.7 1.5 1.7 2.9 2.9 2.8 2.0 2.8 Toronto Scarborough Markham Vaughan Etobicoke Mississauga Brampton Caledon Burlington Milton Oakville Average net rent (per sq. ft.) $6.07 Representing Burlington, Milton and Oakville $5.98 GTA GTA industrial market absorption 2016 (sq. ft. millions) 1.53 1.73 GTA East Q4 2015 Q4 2016 Toronto Central 1.06 GTA North Source: CBRE Ltd., MarketView Industrial 5.01 GTA West Industrial investment in north Halton drives absorption in the GTA West area. For more details about finding the right location for business investment, visit halton.ca/siteselection

Commercial real estate market summary 19 GTA office market vacancy rates (%), 2015 2016 4.7 4.2 Toronto Downtown 7.0 5.8 10.2 9.1 Toronto Midtown Average net rent (per sq. ft.) 13.6 12.3 Scarborough Markham N./ Richmond Hill 7.9 9.0 5.9 North Yonge $17.75 Representing Burlington and Oakville 10.7 Vaughan 22.2 19.6 16.0 14.5 Mississauga City Centre Meadowvale Mississauga Brampton Q4 2015 Q4 2016 Oakville Burlington GTA office market absorption, 2016 (sq. ft.) 2,648,947 26.5 25.6 22.7 21.0 22.0 21.5 Despite increased availability and vacancy, south Halton continues to be an active player in the GTA West office market. $17.53 GTA Source: CBRE Ltd., MarketView office 587,158 GTA East 192,229 Toronto Downtown Midtown Toronto -3,592 GTA North 1,059 GTA West For more information, visit halton.ca/siteselection

Residential real estate market summary 20 Housing sales 5,330 5,809 6,982 7,807 8,801 9,884 85% 85% increase over the past five years 2011 2012 2013 2014 2015 2016 Average home price ($) 543,414 556,407 580,954 620,467 665,189 803,869 48% 48% increase over the past five years 2011 2012 2013 2014 2015 2016 Average days-on-market 31 27 30 27 25 18 42% 42% decline over the past five years 2011 2012 2013 2014 2015 2016 Source: Toronto Real Estate Board, Market Watch

Propery taxes 21 Industrial property tax rates* 2016 (% of taxable assessment) Hamilton 5.55% Waterloo 3.37% Halton Hills 3.07% Burlington 3.05% Oakville 2.94% Milton 2.75% Toronto 2.71% Brampton 2.64% Caledon 2.39% Mississauga 2.37% Vaughan 2.00% Markham 1.96% Commercial property tax rates* 2016 (% of taxable assessment) Hamilton Waterloo Toronto Brampton Mississauga Caledon Halton Hills Burlington Oakville Vaughan Milton Markham 3.57% 3.27% 2.43% 2.24% 2.03% 1.97% 1.88% 1.86% 1.80% 1.71% 1.68% 1.67% Source: 2016 BMA Study * Municipal and education Halton maintains competitive tax rates for both industrial and commercial landowners. Commercial tax rates in Halton are among the lowest in the GTHA. Contact us to find out more about industrial and property tax rates ecdev@halton.ca

Development charges Development charge rates 1 across GTHA, 2016 ($/sq. ft.) $29.18 $26.36 $24.71 $23.61 $21.59 $21.58 $18.45 $18.04 $17.55 $16.98 $16.34 Markham Vaughan Oakville (Greenfield) 2 Mississauga Burlington (Greenfield) 2 Oakville (Built Boundary) 2 Burlington (Built Boundary) 2 Brampton Milton (Greenfield) 2 Caledon Halton Hills (Greenfield) 2 Milton (Built Boundary) 2 Halton Hills (Built Boundary) 2 Hamilton Whitby Toronto Total cost of development across GTHA, 2016 ($/sq. ft.) $191.46 $161.72 $160.82 $156.53 $145.96 $144.98 $142.67 $140.09 $136.73 $132.68 $131.71 $128.42 $117.45 $114.16 $113.52 $111.77 $14.35 Industrial $13.21 $12.55 $11.64 $1.07 Vaughan Brampton Markham Mississauga Oakville (Greenfield) 2 North York Oakville (Built Boundary) 2 Milton (Greenfield) 2 Milton (Built Boundary) 2 Etobicoke Burlington (Greenfield) 2 Burlington (Built Boundary) 2 Halton Hills (Greenfield) 2 Halton Hills (Built Boundary) 2 Whitby Hamilton $5.79 Office Industrial 3 Office 4 $33.07 $26.35 $24.71 $30.95 $21.59 $21.58 $18.45 $24.19 $17.55 $23.12 $18.79 $14.35 $15.66 $17.53 $13.08 $205.53 $169.31 $187.40 $189.24 $154.28 $161.79 $150.99 $128.36 $125.00 $142.28 $136.30 $102.60 $99.31 $98.49 $102.64 $133.00 Source: Watson & Associates. 1 Rates as of June 7, 2016. Includes upper- and lower-tier municipal rates and education. 2 Halton Region, Burlington, Milton and Oakville DC By-laws differentiate between retail and non-retail rates. Non-retail includes both industrial and office. Halton Hills differentiates between industrial, retail and other non-residential. 3 Reflecting a 300,000 sq.ft. industrial building on 18.12 acres, assuming a 5% developer profit. 4 Reflecting a 100,000 sq.ft. flex office building on 7.65 acres, assuming a 5% developer profit. Available, serviced employment lands at competitive prices make Halton an ideal GTHA location for both industrial and office development. Contact us for further information about development charges in Halton. ecdev@halton.ca 22 Land Cost Development Cost

23 For both international and locally based industries, Halton s employment areas have a strong appeal, given their proximity to major regional infrastructure. Watson & Associates Economists Ltd. Employment lands

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. 2016 Employment Land Servicing Highlights Burlington Milton Bronte Meadows Halton Hills Oakville 401 Corridor (Halton Hills) Derry GreenBusiness Park (Milton) Midtown Oakville Winston Park West (Oakville) Winston Park West (Oakville) Water and wastewater servicing now in place. The Town of Oakville has approved the Plan of subdivision for the southern portion of the Park. It is expected that the developer will be listing this site in 2017 Derry Green Business Park (Milton) Water servicing to support Phase 1 of Milton s Derry Green is now in place. Wastewater servicing is under construction and is expected to be complete by February 2018. Two industrial development applications in progress. 401 Corridor (Halton Hills) Secondary Plan process for the re-phasing of the 401 Corridor lands affected by the GTA-West Environmental Assessment underway Subwatershed study completed in December 2016. RFP for completion of an Area Servicing Plan (ASP) expected to be issued in early 2017 with a draft report expected by the end of 2017. Bronte Meadows ASP completed Midtown Oakville Significant progress completed on ASP For more details about Halton s business parks, visit halton.ca/businessparks

25 Halton s central location, talented workforce and access to research universities have helped attract significant business investment. 2016 business news

2016 Halton business news 26 Ippolito Fruit and Produce Ltd. announced an expansion and upgrade of its processing facility in Burlington to support demand across Canada and the United States, including the creation of 82 new positions. 401 Milton Futura Properties ROXUL Inc. Halton Hills 407 B.C. based Futura Properties purchased 55 acres of industrial land in Acton to develop into a high quality industrial sub division, citing rail and road access to the GTA as key considerations leading to the $30 million investment. Sheridan tops the list in 2016 annual ranking of research at Canadian colleges. Milton Education Village (MEV) announces plans to create a new university-led postsecondary site in Milton focused on on science, technology, engineering, arts and mathematics (STEAM). Fifteen Halton companies appear on the 2016 Profit 500 list of Canada s fastest growing companies including Burlington s Secure Sense (#1 fastest growing IT company in Canada). Etratech Enterprises, Inc. received funding from the Government of Canada to install new state-of-theart equipment that will support expansion into global markets, create jobs at the company s Burlington facility and strengthen southern Ontario s automotive supply chain. McMaster s new Health Leadership Academy unveiled at Burlington s Ron Joyce Centre. Ippolito Fruit and Produce Ltd. Burlington Milton Education Village 407 McMaster Health Leadership Academy Westcon-Comstor Oakville QEW 403 ROXUL Inc. celebrates LEED Gold certification of its North American Headquarters in Milton. WellSpring Pharma Services announced a $3 million capital investment in new equipment at their Oakville facility that enhances manufacturing and packaging capabilities and has led to a new strategic partnership with IDT Australia Ltd. to manufacture drugs targeting the U.S. market. Westcon-Comstor moves Canadian headquarters and 55 jobs from Montreal to new 47,500 square foot facility in Oakville. The new location better positions the company for further growth. Etratech Enterprises, Inc. Precision Record Inc. Sheridan College WellSpring Pharma Services Precision Record Inc. announced plans to open North America s second largest vinyl pressing plant in Burlington in early 2017. At full capacity, the new plant is expected to employ 200 people. The latest economic development information, including an RSS feed, is available at halton.ca/business 26

27 Four vibrant communities offer an ideal mix of arts and culture, recreation, leisure, shopping, dining and all the amenities of urban living, while still maintaining their distinctive local charm. Living here

Halton communities rank within top 10 28 Best Medium-Sized #1 City in Canada - Burlington Canada s Richest Places #4 Oakville Lowest Crime Severity #1 Index in Canada Canada s 10 Best Places #7 for New Canadians Burlington Most Lucrative Market #2 Milton Canada s Best Place to #2 Live Burlington Canada s Best Places to #2 Raise Kids Burlington #8 Small American City of the Future Burlington #10 Best Places for Business Burlington Best Small-Sized City in #13 Canada - Halton Hills Halton communities are among best places in Canada for business and living 20+ Years AAA Credit Rating. For more details why Halton is a great place to live and invest, visit halton.ca/whyhalton Source : Rogers Media - Profit and MoneySense

29 Halton Region s Economic Development Division: Your source for Halton business information. Our services

Halton economic development services 30 Halton s Economic Development team offers a one-stop shop for businesses of all sizes and stages of growth. Complimentary services and information include: Site selection and real estate solutions Online data centre and custom reporting on Halton s economy, industries, demographics, and more Connections to other business support organizations Business events and networking opportunities Export development Small Business Centre small business consultations Tourism development

Contact us 31 For more information about Halton or to get connected to opportunities, contact Halton s economic development team: 905-825-6000 or 1-866-442-5866 ecdev@halton.ca 1151 Bronte Road Oakville, Ontario L6M 3L1 CANADA halton.ca/invest Join the conversation! @haltonbusiness Facebook.com/haltonbusiness Linkedin.com/haltonbusiness

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