Region of Waterloo Planning, Development and Legislative ... · • Six-storey apartment with 68 units (Phase 2 valued $9 million ) located at 180 Greenbrier Road This apartment building

Report: PDL-CPL-19-13

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Region of Waterloo

Planning, Development and Legislative Services

Community Planning

To: Chair Tom Galloway and Members of the Planning and Works Committee

Date: March 19, 2019 File Code: D07-40(A)

Subject: 2018 Building Permit Activity and Growth Monitoring

Recommendation:

For Information.

Summary:

This report provides a summary of building permit activity across Waterloo Region in 2018, along with comparisons to previous years. It reflects data related to new construction, according to information contained on building permits issued by the Area Municipalities. Building permit activity is one indicator of the strength of the local economy, as well as a predictor of population and employment growth. Re-urbanization levels are also monitored using building permits.

The total value of building permits issued for new construction in Waterloo Region was over $1 billion in 2018, a decrease of 3 per cent from the previous year’s values, and 8 per cent lower than the 10-year average. However, the value of residential building permits increased 8 per cent with a total of $721 million. The number of residential building units declined to 2,922 units from 3,229 units in the previous year.

Apartments remained the largest component of residential building permit activity with 1,374 units, representing close to half (47 per cent) of new units, while single-detached with 916 units were 31 per cent of the total new units.

Non-residential building permits were issued for 1.8 million square feet of floor space in 2018 with a total value of $286.6 million, down from 2.1 million square feet valued over $365.5 million in 2017. The dollar value increased only for the industrial sector, in comparison to previous year. Similarly, the square footage for industrial sector

March 19, 2019 Report: PDL-CPL-19-13

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increased while the square footage for commercial and institutional sectors declined.

Figure 1 - Summary of Building Permit Activity Change (2017-2018)

Building permits indicate that 48 per cent of new residential dwelling units in 2018 were within the built-up area (BUA) of the Region. This is the eighth consecutive year that the Places to Grow reurbanization target of 40 per cent and the Regional Official Plan target of 45 per cent have been exceeded. In addition, 54 per cent of new non-residential floor space was constructed inside the BUA.

Report:

Total Value of New Building Permit Activity

The total value of new residential and non-residential buildings for which building permits were issued in 2018 was over $1 billion, a decrease of 3 per cent from 2017 value, and 8 per cent lower than the 10 year average value of $1.1 billion in Waterloo Region. This was comprised of over $721 million in the residential sector, and $286.6 million in the industrial, commercial and institutional sectors (Figure 2).

Type Total Change from 2017

Precent Change from 2017 2018 Total

$52 million 8% $721.1 million

-307 units -10% 2,922 units

$12.9 million 10% $147.3 million

106,000 sq.ft. 11% 1,085,000 sq.ft.

$-15.1 million -15% $87.9 million

-146,000 sq.ft. -23% 497,000 sq.ft.

$-76.7 million -60% $51.4 million

-356,000 sq.ft. -62% 217,000 sq.ft.

$1.01 billion $-26.9 million

Residential

Industrial

Commercial

Institutional

Total $1.03 billion


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Figure 2 - Total Value of New Building Permits (2009-2018)

Building Activity in the Non-Residential Sector

Non-residential building permit values fluctuate from year to year by sector. The total value of non-residential permits issued in 2018 was $286.6 million, a decrease of 21.5 per cent from the value in 2017. This was comprised of an increase of $12.9 million in permit values in industrial, and decreases of $15.1 million in commercial and $76.7 million in institutional sectors (Figure 3).

Figure 3 - Total New Non-Residential Building Permit Value by Type (2009-2018)

Attachment 1 lists the top 25 non-residential permits by construction value. The highest values for individual 2018 non-residential building permits, by type, were:


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• Industrial: $48.8 million in three permits for the addition of a high-rise freezer, warehouse, and loading dock at Conestoga Cold Storage at 299 Trillium Drive in Kitchener.

• Commercial: $9.5 million for a new five-storey office building at The Boardwalk at 105 Ira Needles Boulevard in Waterloo.

• Institutional: $18 million for the new Regional Paramedic Services Headquarters at 1001 Erb’s Road in Wilmot.

There is variation in building activity between municipalities (Figures 4 and 5). In 2018, the value of non-residential construction in the cities was $228.6 million, lower than the 2017 value of $306.2 million. The non-residential permit value increased in Kitchener in 2018 compared to 2017, whereas Cambridge and Waterloo saw a decrease. In the townships, Wellesley and Wilmot saw increases in non-residential building permit values relative to 2017, with Wellesley reaching its ten-year high in non-residential construction value.

Figure 4 - Total New Non-Residential Building Permit Value by City (2009-2018)


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Figure 5 - Total New Non-Residential Building Permit Value by Township (2009-2018)

New non-residential floor space is to be created through these building permits for 1.8 million square feet, a decrease of 18 per cent compared to last year. Compared to 2017, industrial square footage on building permits increased 11 per cent to over a million square feet and commercial square footage (consisting of a mix of office, recreational, and retail) decreased by 23 per cent to almost half a million square feet. The institutional sector also decreased 62 per cent compared to last year, with 216,646 square feet. Figure 6 illustrates the ten-year historical variation in non-residential floor space.

Figure 6 - Total New Non-Residential Floor Space by Sector (2008-2018)

New non-residential building permit floor space among the cities was highest in


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Cambridge in 2018 (Figure 7). The townships contributed 24.1 per cent of the new floor space in the Region, with an increase in Wilmot (Figure 8). The highest square footage for individual 2018 non-residential building permits, in the townships were:

• Woolwich: New 63,300 square foot, 6-storey hotel at 14 Benjamin Road • Wilmot: New 50,800 square foot, Regional Paramedic Services Headquarters at

1001 Erb’s Road. • Wellesley: Addition of 44,000 square foot to AMI Attachments (heavy equipment

such as diggers or movers attachments) at 1270 Geddes Street, Hawkesville. • North Dumfries: Addition of 42,000 square foot to Cedar Creek Public School

(WRDSB) at 55 Hilltop Drive, Ayr.

Figure 7 - Total Non-Residential Floor Space by City (2009-2018)

Figure 8 - Total Non-Residential Floor Space by Township (2008-2018)

Building Permit Activity in the Residential Sector

The total value of building permits issued for new residential construction in Waterloo


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Region was over $721 million in 2018, an increase of 8 per cent over the 2017 value of 669 million, and similar to the 10-year average of $715 million dollars. Building permits were issued for 2,922 units, representing 307 fewer units or 10 per cent less than 2017.

Apartments remained the largest component of residential building activity with 1,374 units representing nearly half (47%) of new units (Figures 9, 10). Approximately 53 per cent of units are ground-oriented. Single-detached dwellings represented close to one-third (31%) of building activity with 916 units. Townhouses (20%) and semi-detached (2%) dwelling types made up the remaining shares, at 572 and 60 units respectively.

Figure 9 - New Residential Units by Type in 2018

Figure 10 - New Residential Units by Structure Type (1988-2018)


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In 2018, the number of new residential units with building permits was lower in all municipalities except Cambridge, Kitchener and Woolwich (Figure 11), affecting all types of residential units except semi-detached. The location of all residential building permits issued for new construction in 2018 is shown on Map 1 (Attachment 2). Each circle is representative of the number of units to be constructed.

Figure 11 - Total New Residential Units by Type and Municipality (2017-2018)

Long-Term Trends in Residential Building Permit Activity

The number of new units (2,922) in 2018 was lower than the averages for the past ten years (3,445), and 30 years (3,336) (Figure 12). The cyclical nature of residential building activity over the past two decades reflects many factors including demand, housing prices and mortgage rates. Activity in recent years has also been influenced by the expiry of core area development charges, which affects the timing of certain projects. Additionally, the shift towards apartments brings units to the building permit stage in larger blocks, which can also cause a less predictable pattern.

Figure 12 - Historic Residential Building Activity (1988-2018)

2017 2018 2017 2018 2017 2018 2017 2018 2017 2018Cambridge 222 313 4 4 269 130 67 119 562 566 1%Kitchener 300 307 8 28 308 405 554 579 1,170 1,319 13%Waterloo 253 156 2 2 59 8 888 617 1,202 783 -35%North Dumfries 43 18 19 0 10 0 0 39 72 57 -21%Wellesley 14 11 3 3 0 0 1 0 18 14 -22%Wilmot 98 73 2 4 4 0 11 12 115 89 -23%Woolwich 61 38 10 19 11 29 8 8 90 94 4%Region 991 916 48 60 661 572 1,529 1,374 3,229 2,922 -10%% by Type 31% 31% 1% 2% 20% 20% 47% 47% 100% 100%% Change

Semi-detachedSingle %Change

TotalTownhouse Apartment

-8% 25% -13% -10% -10%


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Students and Seniors

Construction in the student-oriented market continued in 2018, although at a more moderate pace than previous years. The combined value of these permits was $41.9 million, compared to $22.3 million in 2017. Residential building permits were issued for four primarily student-oriented projects in 2018:

• Sage X Condos with 137 units (147 bedrooms), valued $12 million located at 257 Hemlock Street (6-storey)

• U-Style Condo with 85 units (85 bedrooms), valued $10.4 million located at 246 Lester Street (12-storey)

• Six-storey apartment with 40 units (40 bedrooms), valued $10 million located at 50 Hickory Street West

• Six-storey apartment with 57 units (57 bedrooms), valued $9.5 million located at 311 Batavia Place

There is one senior-oriented project within building permits in 2018:

• Six-storey apartment with 68 units (Phase 2) valued $9 million located at 180 Greenbrier Road

This apartment building anticipates many seniors. The proposed building includes 10 barrier-free apartments for mobility-challenged individuals. The developer is also building additional handicap parking spots for this project. However, the apartment is not restricted to seniors.

While some student-oriented and senior permits are identified as such on the permit itself, Regional staff identifies additional student-oriented permits by their location and marketing.

Comparisons with CMHC Housing Starts

Canada Mortgage and Housing Corporation (CMHC) reported 3,103 housing units were started in 2018 in the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA), which covers Kitchener, Waterloo, Cambridge, Woolwich and North Dumfries. Starts are counted at the beginning of construction work on a building, usually when concrete has been poured for the footing. This figure has decreased 19.4 per cent from the 3,850 starts reported by CMHC in 2017. Overall, housing starts in the province of Ontario increased 1 per cent, according to CMHC.

Monitoring Growth with Building Permits

On June 16, 2006, the Province brought into force the Places to Grow: Growth Plan for the Greater Golden Horseshoe (Growth Plan), which included an objective to accommodate more growth through re-urbanization. The Growth Plan set a minimum


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target by 2015 that 40 per cent of new residential units are to be constructed within the Built Up Area (BUA), which is the extent of the area that was already developed in 2006. The Region of Waterloo Official Plan’s target is 45 per cent.

Building permits were issued for 1,402 units in the BUA, out of a total of 2,922 units across the Region in 2018, representing 48 per cent of all new residential units. For nine consecutive years, both the Places to Grow reurbanization target of 40 per cent and the Regional Official Plan growth target of 45 per cent have been exceeded. Although the targets were to be achieved by 2015, both targets have been exceeded each year since 2010 (Figures 13 and 14.)

Figure 13 - Units Constructed Inside the Built Up Area (BUA)

YearTotal Units in

Region of Waterloo

Units Inside the Built Up

Area

Percent of Units Inside the Built Up

Area2006* 1,391 597 43%2007 3,112 1,430 46%2008 2,968 974 33%2009 2,778 1,032 37%2010 4,167 2,394 57%2011 3,601 1,948 54%2012 2,411 1,160 48%2013 2,569 1,412 55%2014 3,804 2,359 62%2015 3,604 1,754 49%2016 5,367 2,901 54%2017 3,229 1,659 51%2018 2,922 1,402 48%

* Since effective date of Places to Grow, June 16, 2006.


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Figure 14 - Percentage of Total Units in the Region within the Places to Grow Built Up Area (2006-2018)

While there is no policy target for the amount of non-residential activity within the BUA, Figures 15 and 16 show industrial, commercial and institutional building permit activity both inside the BUA and for the Region as a whole, measured in size of new construction.

In 2018, permits were issued inside the BUA for 54 per cent of non-residential floor space. On average, since June 16, 2006, 64 per cent of non-residential floor space was inside the BUA.

Figure 15 - Non-Residential Floor Area Constructed within the Built Up Area

Year

Total Floor Area in

Region of Waterloo

(Sq Ft)

Total Floor Area Inside the BUA (Sq

Ft)

Percent of Floor Area Inside the

BUA

2006* 1,640,291 1,089,946 66%2007 2,714,831 1,774,165 65%2008 3,307,768 2,245,127 68%2009 2,309,971 1,318,802 57%2010 3,587,303 1,940,050 54%2011 1,523,833 987,125 65%2012 1,907,746 1,445,808 76%2013 1,311,766 715,532 55%2014 2,184,068 1,431,411 66%2015 1,777,612 1,333,405 75%2016 1,842,740 1,137,730 62%2017 2,188,911 1,461,929 67%2018 1,791,623 967,656 54%

* Since effective date of Places to Grow, June 16, 2006.


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Figure 16 – Per cent of Non-Residential Floor Area Constructed within the Built Up Area (2006-2018)

Area Municipal Consultation/Coordination

Building permit data is collected by the Area Municipalities and submitted to the Region. This data is compiled for use in Regional development charge calculations, development tracking, forecasts, growth monitoring and reporting. Municipal staff is consulted to verify and provide insight into the data. Ongoing corrections and building permit cancellations must be taken into consideration when comparing the data in this report to previous building activity reports. Copies of this report have been circulated to Area Municipalities.

Corporate Strategic Plan:

Tracking and reporting building permit activity contributes to Strategic Focus Area 2: Manage Growth to Foster Thriving and Productive Urban and Rural Communities

Financial Implications:

Nil.

Other Department Consultations/Concurrence:

Nil.


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Attachments:

Attachment 1 – Top 25 Non-Residential permits by Construction Value in 2018 Attachment 2 – Map 1 - 2018 Residential Building Activity

Prepared By: Rehan Waheed, Planning Data Analyst

Approved By: Rod Regier, Commissioner, Planning, Development and Legislative Services


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Address Municipality Structure Type Floor AreaConstruction

Value Comment

299 Trillium Dr Kitchener Ind 0 $21,000,000 Addition of freezer and loading dock (phase 10) at Conestoga Cold Storage, includes mechanical and electrical work.

299 Trillium Dr Kitchener Ind 56,967 $18,800,000 Addition of high-rise freezer shell only (phase 10) at Conestoga Cold Storage.

1001 Erb's Rd Wilmot Inst 50,781 $18,178,000 New Regional Paramedic Services Headquarters in Northwest Waterloo.

50 High Ridge Crt Cambridge Ind 159,075 $15,000,000 New production facil ity - Caplink.

105 Ira Needles Blvd Waterloo Comm 100,807 $9,500,000 New 5-storey office building at the Boardwalk.

175 Indian Rd Kitchener Inst 29,607 $9,300,000 Addition of 2-storey building at Grand River Collegiate Institute (WRDSB).299 Trillium Dr Kitchener Ind 20,267 $9,000,000 Addition of a freezer warehouse (Phase 11) to Conestoga Cold Storage including site services.550 Weber St N Waterloo Comm 33,182 $8,000,000 Addition of 2-storey Volkswagen dealership.

25 Tyler St Cambridge Ind 143,918 $7,500,000 New multi-unit industrial building (rentable).

100 Victoria St S Kitchener Comm 0 $7,225,000 New one level below grade and four levels above grade parking garage for a 23-storey residential tower (Tower 2 only).

55 Hilltop Dr North Dumfries Inst 42,346 $7,000,000 Addition to Cedar Creek Public School (WRDSB).

14 Benjamin Rd Woolwich Comm 63,344 $7,000,000 New 6-storey hotel (Holiday Inn Express and Suites St. Jacobs Area)1024 Alfred St Wellesley Ind 22,219 $5,900,000 Addition of new feed mill and warehouse facility (Jones Feed Mills Ltd).105 Boxwood Dr Cambridge Ind 75,094 $5,120,000 New multi-unit industrial building (for lease).25 Breithaupt St Kitchener Comm 0 $5,000,000 Interior finish of an office addition on 2nd Floor at Google.1800 Strasburg Rd Kitchener Comm 36,156 $4,500,000 Addition of a new truck maintenance and repair facility with office (Becker Bros. Trucking).352 Maple Ave Kitchener Ind 15,446 $4,400,000 Addition and alterations to create self-storage building (Bordan Cold Storage Ltd).375 Boxwood Dr Cambridge Comm 18,974 $4,000,000 Addition of contractor's office and shop (Amico Corporation)2188 Shirley Dr Kitchener Ind 33,421 $3,800,000 New industrial manufacturing building with showroom and office (Natural Stone City Inc).

749 Grand Valley Dr Cambridge Inst 17,642 $3,700,000 Addition and renovations to Ryerson Public School (WRDSB).60 Barnes Rd Cambridge Ind 49,567 $3,700,000 New multi-tenant industrial building (rentable)1241 Strasburg Rd Kitchener Comm 18,552 $3,700,000 New office building.1270 Geddes St Wellesley Ind 43,999 $3,675,000 Addition to AMI Attachments (heavy equipment such as diggers or movers attachments)

25 Goddard Cres Cambridge Ind 23,860 $3,500,000 New production facility - Flamaglo Foods Ltd.

865 Weber St N Woolwich Comm 37,376 $3,500,000 New multi-unit building with Sarmazian Carpet store, other commercial retail units, and warehouse space.

Attachment 1 - Top 25 Non-Residential Permits by Construction Value in 2018 - Region of Waterloo


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Attachment 2

Documents

Region of Waterloo Planning, Development and Legislative ... · • Six-storey apartment with 68 units (Phase 2 valued $9 million ) located at 180 Greenbrier Road This apartment building