Skyrocketing Building and Construction Costs

In Vancouver, Montreal and Toronto construction costs have increased substantially over the past five years. The increase is due to supply and demand. With unprecedented residential, commercial and infrastructure construction in Canada’s major cities, labour, materials and land costs have all skyrocketed.

  • Market anticipated to remain tight for at least another few years, so costs and the time required to complete a project will likely continue to rise
  • Vancouver labour costs are also the highest in Canada, at $65.85 CAD per hour
  • Permitting process has grown from a few weeks to a few months
VANCOUVER

± 50% increase in construction cost

  • The Greater Montreal Area is experiencing more infrastructure development than it has seen in 50 years, which has caused the labour and materials shortages
  • A half million square foot project typically required 8-9 months from planning to completion before the construction boom; the same project may now require up to 1.5 years
  • Building projects within 500 metres of the new REM stations will incur a significant premium
 MONTREAL 

± 20% increase in construction cost


  • Labour shortages and the negotiating strength of the sub-trades are exerting the most significant impact on rising costs
  • Office furniture costs have tripled over the past decade
  • Lead times for securing fixtures, furnishings, flooring and other fittings have increased substantially, requiring more pre-planning
  • Market is likely to be challenging for a number of years to come
 TORONTO ± 25% increase in construction cost

 

 

Occupier Strategies
Plan building or
renovation
costs ahead of lease
expiry


Different office plans will
incur different costs

Assemble a highly
competent consulting
team to avoid
unexpected costs

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