Commercial construction leads Ontario’s ICI growth: OCS

According to the latest economic update by the Ontario Construction Secretariat (OCS), Ontario’s ICI construction market remained stable in November 2025, with non-residential investment holding steady despite a sharp decline in industrial construction.

The report noted that commercial construction continues to lead growth, driven by office buildings and rising investment in laboratory facilities. Year-to-date results show strong regional performance, particularly in Kingston, while commercial, institutional, and industrial drivers varied across major CMAs.

Ontario’s total building construction investment reached $10.1 billion in November 2025. Residential construction accounted for $7.12 billion, while non-residential investment totaled $3.0 billion.

In terms of non-residential investment, it remained mostly flat, rising just 0.05 per cent year over year. This stability reflects mixed performance across its components. Industrial construction declined by 8.48 per cent, while institutional construction edged up by only 0.18 per cent.

Commercial construction, however, showed solid growth, increasing 3.9 per cent month over month and 4.23 per cent year over year. Overall, commercial construction continues to be the primary driver of Ontario’s ICI market.

When it comes to growth in Ontario’s commercial construction sector, it was led by office buildings, which recorded an increase of $76.5 million compared to November 2024. This was the largest dollar increase among all structure types. Toronto attracted the highest level of office investment, while Belleville posted the strongest year-over-year growth at 234 per cent. The increase in office construction likely reflects renewed demand for office space as return-to-office policies continue to expand across industries.

Laboratory construction also showed strong momentum, with investment rising 81 per cent year over year across Ontario. Growth was concentrated primarily in Guelph and Toronto. The weakest-performing structure types across the province were churches, factories, government buildings, and hospitals.

Year-to-date ICI investment in Ontario stood at $32.38 billion, representing an increase of 6.9 per cent compared to the same period last year. Growth was concentrated in the commercial sector, according to the report, with office buildings and transportation infrastructure leading overall gains.

Total ICI investment across Ontario’s Census Metropolitan Areas increased by 7.7 per cent year to date. Kingston was the standout performer in 2025, recording a 68 per cent increase in total ICI investment compared to last year. Growth in Kingston was driven mainly by transportation projects, followed by schools and warehouses.

Kingston was followed by Kitchener-Cambridge-Waterloo and London, each posting growth of approximately 39 per cent, while St. Catharines-Niagara saw a 35 per cent increase. Brantford also performed well, with total investment rising 27 per cent year to date, supported largely by institutional construction, particularly schools and education-related projects.

While institutional construction led growth in Kingston, Kitchener, and Brantford, commercial construction was the main driver in St. Catharines. In London, growth was led primarily by the industrial sector.