City building boom cools, but lots in the works downtown
http://www.thespec.com/news-story/41...orks-downtown/
Building permits issued by the city in August totalled $66 million — a $9 million decline from the month before and one of the lowest months of the year.
The city's economic development director, Neil Everson, said it's a reflection of a bit of a slowdown in development. He said when comparing the figures to past years, it's important to keep perspective.
Hamilton experienced a building boom from 2010 to 2012 when it reached between $800 million and more than $1 billion in permits.
"That's a tough act to follow," he said.
So far this year, about 4,300 permits have been issued worth $669,791. Everson said he expects that figure will come close to hitting $800,000 again this year, helped by the new football stadium permits this fall.
"We do expect to make a number of announcements in the next few months, either late this year or early next — nothing huge, but in that 30,000 to 40,000 square foot range," he said. "A lot will be happening in the downtown."
However, most of that development will be residential and some commercial, he said. The industrial sector year to date is down by 16 per cent, while the commercial sector is up 17 per cent, and institutional (McMaster, Mohawk and schools, for example) has increased by 7 per cent.
Although the residential sector has dropped slightly by 3 per cent, Everson said he expects that will grow.
In August, the residential growth was the strongest sector, accounting for 68 per cent of the month's total permits, valued at $45 million.
"A lot of the growth in the entire GTA is residential. If you see cranes in Toronto, a lot of those are working on condo towers," he said.
In August, the city's commercial activity accounted for 8.4 per cent, industrial activity was at 4 per cent, and institutional activity was at 15 per cent of total permits.
"I would say Hamilton is like the rest of Ontario in that there is a bit of slowing of development. It's not bad, but it is a bit slower," said Everson.
"Last year at this time our building department couldn't keep up, the pace was that crazy."