CanaData’s latest construction starts forecasts are set out in the tables that accompany this report. The current year will see non-residential building starts in Canada drop to about half the level that they reached two years ago in 2007, 45.5 million square feet versus 92.1 million. The credit crunch, reduced international travel, lower world trade and high unemployment are all factors holding back privately-funded construction projects at this time. What is perhaps most remarkable, however, is the fact that interest rates remain so low in Canada and throughout the industrialized world. In no way are interest rates inhibiting factors with respect to investment.

Office vacancy rates in Canada continued to ratchet higher in the third quarter, reaching 8.2%, the highest level since the fourth quarter of 2005.

Heading into 2010, there are clear signs that the Ontario economy has turned the corner and started to expand.

This observation is reinforced by several key indicators.

The accompanying table records the 10 largest construction project starts in Canada in September 2009. Also included is the latest trend graph on starts. This looks at 12-month moving totals of the two major non-residential building categories in Canada − total ICI starts and engineering work. ICI stands for industrial, commercial and institutional.