Warehousing and fulfillment
In the sheds category, it’s all about warehousing and fulfillment, which tied as the top development opportunities in our survey. Rising customer expectations for same-day e-commerce deliveries continue to spark demand for large-scale facilities close to population centres and transportation routes.
Included in the beds category are mid-priced apartments, which ranked third on our survey for development prospects. From co-living arrangements to traditional rental housing to moderately priced condos, the multifamily category still offers the affordable options many Canadians are looking for.
Demand remains strong, even as condo and rental housing construction has risen consistently and significantly across Canada over the years. Rental housing under construction was just 13,947 units in 2008, a number that rose to 56,394 in 2018. For condos, units under construction hit 120,923 in 2018, up from 94,658 in 2008.
Also on our list of best bets for 2020 is transit-oriented development. In Montreal, projections suggest the region’s Réseau express métropolitain project will spur about CA$5 billion in real estate development along the route.
And in Ontario, the regional transportation agency, Metrolinx, is moving to a market-driven approach to financing transit projects in which it will link new stations to development as it looks to capture land value in its rail network and real estate portfolio.
Rounding out our best bets for 2020 is senior housing. The industry is responding to the demand for senior housing with a variety of options, especially those tailored to seniors looking for a blend of convenience, security, high-end amenities and flexibility to suit their active lifestyles.
Despite the strong prospects, developers and operators face considerable costs, complexities and regulations in creating and running facilities and services that cater to Canada’s aging population.