The Ontario local Government has confirmed their previous statement that they expect the reopening of construction sites across the state. The coronavirus pandemic has closed all large retail stores, malls, and various other activities, including construction sites.
Some of the construction sites were opened during April, but not all of them. However, this new announcement opened all construction projects in May, including commercial buildings.
In 2016, the whole construction industry in Ontario employed over 500,000 people. This includes both residential and non-residential construction. But the story doesn’t end here. Those construction companies are building retail and commercial space for new investments coming into the state.
Without construction, other businesses are suffering as well. Richard Lyall, the President of Residential Construction Council of Ontario, stated that “It’s critical for the government to get the economy going again as construction is a huge part of Ontario’s economy.”
The announcement includes the continuation of work on construction projects involving, residential development, commercial development, excavation, site preparation, education, digital infrastructure, telecommunication work, logistics & shipping infrastructure, and so on.
This is excellent news, as all CRE projects in Canada were sitting in place for quite some time now. Although no one knows if stage one of phase 2 will end in a three-week period or four weeks, this is still positive business news. It shows that things are moving in a more positive direction and that we can expect the CRE construction to ramp back up again.
This phase of reopening does not involve several businesses. Businesses like retail, outdoor and indoor household services, golf courses, sporting clubs, and libraries have been allowed to conduct business since May 19th; however, restaurants, barbershops, hair and nail salons are not included in this phase of reopening in the province of Ontario.
Each sector has different restrictions regarding reopening in order to remain vigilant in the event of another flair up of coronavirus cases.
Daily there are more retail construction sites continuing their construction operations, including construction related to petroleum, hospital work, and retail space.
Cities like Calgary are already preparing to reopen their retail sector and their mall, so this is good news for other provinces too, like Ontario. Malls have opened their doors to customers and are taking precautions as they can to keep their workers and customers safe.
All of this news is really encouraging, especially for companies looking to invest in CRE development. Canada is moving in the right direction and has been re-opening its economy more each week. At ReDev, our goal is to maximize investor returns and to keep communicate open with our investors to ensure our goals and objectives are aligned. We have a 3-step process to identify value for all our investments - from due diligence to a tax-efficient exit strategy. Contact us today to learn about our opportunities.