Why Calgary? Our Economy in Depth

Transcription

1 Why Calgary? Our Economy in Depth January 2018 Calgary Economic Development s collaborative energy makes us a conduit, connector and catalyst Calgary. 1

2 Table of Contents 01 Location Where is Calgary 02 About Us Who we are 03 Livability How we rank 04 Economy GDP, inflation and retail sales 05 Trade Imports and exports 06 Business Business formations, bankruptcies and taxes 07 Labour Market Employment, unemployment, labour force, income, earnings, wages and salaries 08 Demographics Population, immigration and migration 09 Education PSIs, STEM, K to 12 Schools 10 Real Estate Building permits, commercial rates, absorption, construction, major projects and residential housing 2

3 location 3

4 Global Perspective Calgary London New York Baghdad Tokyo Mexico City Hong Kong Caracas Rio de Janeiro Sydney 4

5 Canada/U.S. Proximity Calgary is ideally located, connecting the west and east of Canada and in close proximity to major American cities Vancouver Calgary Seattle Edmonton Saskatoon Regina Vancouver Winnipeg Montreal Ottawa Toronto Halifax San Francisco Denver Chicago New York City Washington, DC Los Angeles Dallas Houston 5

6 Western Canada s Business Centre More head offices per capita than any other Canadian city: Total of 124 head offices Second highest small business concentration of major cities in Canada Western Canada s distribution hub Highway 1 and Canamex Canadian Pacific Railway Canadian National Railway Grand Prairie Fort McMurray YYC has connections to 100 destinations Direct flights to Beijing, Mexico City and Zurich YYC handles 75 percent of Alberta s air cargo shipments and is Canada s second busiest airport for air cargo flights Banff Red Deer Edmonton 50 million people accessible by ground transportation within 24 hours Calgary 6

7 about us 7

8 Calgary Economic Development We work with business, government and community partners to position Calgary as the location of choice for the purpose of attracting business attraction & investment, fostering trade and developing Calgary s workforce. We are a steward of the 10-Year Economic Strategy for Calgary: Building on our Energy As conduit, connectors and catalyst, we collaborate to accelerate purposeful diversification, embrace shared prosperity and build a strong community. We are a not-for-profit corporation funded by the City of Calgary, community partners, other orders of government and the private sector 8

9 Building on our energy: 10-year Economic Strategy for Calgary global energy Calgary is an undisputed global energy centre. Our international reputation attracts new people, investment and business as we strengthen the energy value chain. innovative energy Calgary fosters a culture of innovation where problems are solved through a systems approach, harnessing the power of technology. community energy Calgary is a vibrant urban and prosperous community that offers people-friendly neighbourhoods, diverse housing and inspirational spaces. entrepreneurial energy Calgary is a magnet for businesses fostering pathways to purposeful economic diversification and growth. people energy Calgary embraces social inclusion and shared prosperity. collaborative energy Calgary is the best place to live in Canada, with strong collaboration between public, private and non-profit sector partners. 9

10 Global Business Centre Considering starting a business in Calgary? Our Global Business Centre provides temporary office space for short-term or long-term business a perfect solution for national or international visitors looking test the economy in the Calgary region. For local companies, the process of expanding internationally can be daunting. The Global Business Centre customizes services, meeting the individual needs of each company. We provide the space, the information and the connections necessary for successful trade development activities. 10

11 Supporting our Partners Action Calgary is a corporate partnership program that engages visionary Calgary business leaders to influence the movement of our economy from good to great. For Calgary to compete on a global stage we need our business community to invest in the city's future to influence growth and economic prosperity in Calgary. 11

12 Our Services and Areas of Focus 12

13 livability 13

14 Global Liveability Ranking Ranking of 140 global cities with 30 indicators Calgary has placed the 5 th Most Livable City in the World every year since 2009 Criteria: stability, healthcare, culture and environment, education and infrastructure The Economist Intelligence Unit,

15 Quality of Living Canada ranks 1 st in quality of life, 2 nd overall and 2 nd in citizenship and education Ranking among 60 countries and 65 attributes U.S. News Best Countries, 2016 Calgary ranks #2 in Canada For healthy lifestyle and life satisfaction Ranking among 10 Canadian metropolitan areas Grade A overall Criteria: healthy lifestyle, life satisfaction, health care, population health City Health Monitor, The Conference Board of Canada,

16 Attractiveness to Newcomers In an assessment of 43 features in seven categories that make cities attractive to newcomers here is how Calgary stacked up: #2 with Grade A in Overall Ranking #1 with Grade A for Economy #1 with Grade A for Innovation #5 with Grade A for Housing Conference Board of Canada - City Magnets III: Benchmarking the Attractiveness of 50 Canadian Cities,

17 Community A focus on family and a sense of community Calgary schools consistently top performers in Alberta Numerous charter and private schools Subsidies are available for eligible low- and middle-income parents who wish to use a licensed pre-school or child care facility There are 8 hospitals and 5 cancer care centres in Calgary Zone Calgary CMA charitable donations tied for the highest median donation of all major metropolitan markets in Canada at $440 in 2015 Alberta s annual median charitable contributions was $450 in 2015, above the national median donation of $300 and second highest in Canada Albertans reported the highest financial donations with an average of $863 in 2013 (the national average was $531) 50 per cent of Albertans volunteer (higher than the national average of 44 per cent in 2013) Sources: Statistics Canada 17

18 Getting Around Vast integrated network of roads, LRTs and buses The city is spread out covering more than 848 square kilometres Calgary boasts one of the most successful transit systems in the world The most rapid transit service per million residents of any major Canadian city Ridership of 110 million customers in ,369 km of transit routes 159 bus routes and 45 LRT stations Free and monthly permit parking at most LRT stations Among the easiest commutes of major cities in Canada Calgary is home to the car2go car sharing service with over 550 vehicles in the network and 100,000 members Several taxi companies serve Calgary Catch a taxi downtown at the cab stand 2 nd Street SW and 8 th Avenue SW (Stephen Avenue) Uber is available in Calgary Sources: The City of Calgary, Calgary Transit, INRIX, TomTom, Car2Go, Uber Fast Cities: A comparison of rapid transit in major Canadian cities, Pembina Institute, September

19 Enviable Lifestyle Active and healthy lifestyle An hour s drive to spectacular Banff and the Rocky Mountains The most extensive urban pathway and bikeway system in North America (~800 km along rivers; 290 km on-street bikeways; 138 km Rotary/Mattamy Greenway loop to be completed in 2017) World-class attractions and sporting amenities, including: Calgary Stampede, Spruce Meadows, Calgary Zoo, WinSport Canada Olympic Park, National Sports Hall of Fame, TELUS Spark Science Centre and the National Music Centre Studio Bell Abundant green space and parks including over 8,000 hectares of parkland and natural areas; 8,400 park benches; more than 1,100 playgrounds; over 700 rectangular sport fields and over 600 ball diamonds Calgarians are animal lovers - 1 in 10 choose to be proud pup parents! There are over 150 off-leash areas totaling more than 1,250 hectares A community rich in the arts, culture, entertainment and leisure activities and venues Home to St. Patrick s Island. Named one of 2016 s Great Places in Canada Source: The City of Calgary; Canadian Institute of Planners 19

20 economy 20

21 Key Stats Of 11 peer cities assessed, Calgary has the second highest level of economic power comparing GDP per capita - Deloitte, Benchmarking Calgary s Competitiveness, 2015 Of 11 peer cities assessed, Calgary has the second highest level of economic growth comparing GDP growth - Deloitte, Benchmarking Calgary s Competitiveness, 2015 Highest GDP per Capita in 2016 of major Canadian cities. - Statistics Canada, of the Top 10 World Banks and 10 of the Top 10 Investment Banks have a presence in Calgary - The Banker Database, 2017; Banks around the World,

22 Benchmarking Calgary s Competitiveness Calgary ranks 1 st in Population Growth (annual population growth rate) Calgary ranks 1 st in Labour Participation Calgary ranks 1 st in Education (highest education achieved) Calgary ranks 1 st in Industrial Land Price (price per sq. ft.) Calgary ranks 2 nd in Economic Power (GDP per capita) Calgary ranks 2 nd in Economic Growth (GDP growth) Calgary ranks 3 rd in Diversity (immigrant population) Calgary ranks 3 rd in Research & Development (annual R&D expenditures per capita) Calgary ranks 3 rd in Businesses per 100 people Calgary ranks 4 th in Commercial Real Estate (rent per sq. ft.) Calgary ranks 5 th in Housing Affordability (housing median multiple) Monitor Deloitte, December 2015 Peer Cities: Aberdeen, Atlanta, Brisbane, Chicago, Houston, Pittsburgh, Rio de Janeiro, Rotterdam, Singapore and Vancouver 22

23 Economic Scorecard Competitiveness Calgary ranks 2 nd in Inbound Seats per Capita Calgary ranks 3 rd in Marginal Effective Tax Rate on Capital Investment Calgary ranks 3 rd in Employment Growth (comparing five-year avg.) Calgary ranks 3 rd in Housing Affordability Calgary ranks 4 th in Overall (attractiveness to high-end talent and business investment) Calgary ranks 4 th in Real GDP per Capita Calgary ranks 4 th in Productivity Calgary ranks 6 th in Office Rents (US$ per sq. ft.) Calgary ranks 6 th in Unemployment Rate Greater Vancouver Economic Scorecard, Greater Vancouver Board of Trade, May 2016 Peer Cities: Barcelona, Copenhagen, Greater Vancouver, Halifax, Hong Kong, Houston, Los Angeles, Manchester, Miami, Montreal, Portland, Rotterdam, San Francisco, Seattle, Seoul, Shanghai, Singapore, Sydney and Toronto 23

24 Financial Competitiveness 8 of the Top 10 World Banks and 10 of the Top 10 Investment Banks have an office in Calgary. Total value of completed merger and acquisition deals in 2016 topped $85.6 billion, equivalent to more than onethird of all M&A activity across the country. High deal velocity and large deal size, with the average deal size estimated at $197 million, compared to $99 million in Toronto and $24 million in Vancouver. Highest concentration of head offices per capita in Canada, with 66 percent of head offices focused in energy and oil field services. Wealth management, private equity and asset management services have thrived in Calgary due to the concentration of private wealth in the city. Labour productivity in Calgary s Financial sector is 25 per cent higher than the Canadian average. The Banker, 2017; Statistics Canada, 2016; Stronger Together: The Strengths of Canada s Four Global Financial Centres, The Conference Board of Canada,

25 Economic Indicators Summary GDP Growth Calgary CMA F 4.2% 5.7% 5.6% -3.0% -3.2% 4.6% Alberta Capital Expenditure on Oil and Gas Extraction (Billions) $58.8 $65.1 $76.1 $38.0 $24.7 $25.3 Price of Oil WTI (EIA; $USD/barrel) $87.86 $97.63 $59.29 $48.67 $43.33 $50.79 WCS (AER; $USD/barrel) $57.87 $58.96 $43.24 $22.51 $29.48 $38.69 Price of Gas Henry Hub (EIA; $USD/mmBTU) $3.34 $4.24 $3.48 $2.72 $2.60 $3.10 AECO-C (AER; $CDN/GJ) $3.01 $3.68 $3.05 $2.19 $2.05 $2.99 Unemployment Rate 7.5% CMA (December) December 2017 Net Migration CMA; July 1 to June 30 of previous year; updated annually in February Office Vacancy Downtown (Q4) Building Permits $4.40 CMA (Billions) YTD November 2017 Benchmark Home Price $430,700 All Housing Types (December) November 2017 Housing Starts Single-Detached 4.9% 4.5% 4.5% 6.7% 28,781 37,286 35,424 19, % 9.1% 9.8% 17.6% 10.1% 23, % $5.25 $7.14 $7.33 $7.17 $5.42 $386,500 $421,000 $457,100 $448,100 $431,700 5,961 6,402 6,494 4,138 3,489 12, % 4,100-4,500 Sources: Alberta Energy Regulator, Canadian Real Estate Association, CBRE Limited, CMHC, The Conference Board of Canada, Industry Canada, Statistics Canada, U.S. Energy Information Administration 25

26 Major Canadian Cities Comparison Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 2016 Real GDP Growth 4.1% -3.4% -3.2% -0.8% 3.3% 1.9% 1.8% 1.3% 2017F Real GDP Growth 3.2% 3.9% 4.6% 3.6% 3.7% 2.5% 3.2% 2.9% CMA Population July Population Growth 1.6% 2.5% 2.5% 3.2% 1.9% 1.6% 1.1% 1.2% Unemployment Rate December 2017 Participation Rate December 2017 Employment Growth 62,400 26,300 16, ,700 3,100 55, ,500 December % 3.5% 2.0% 0.1% 4.5% 0.4% 2.6% 2.3% Full-Time Employment Growth December 2017 Part-Time Employment Growth December ,548,740 1,392,594 1,469, ,150 6,242,273 1,351, % 7.5% 7.5% 7.6% 6.0% 5.5% 67.2% 73.0% 73.2% 69.4% 66.8% 67.7% 5.7% -1.1% -4.6% -4.3% 2.6% -14.2% 4,093, % 2.1% 36,286, % 5.7% 65.8% 4.4% 4.3% 3.6% 1.0% 4.9% 4.6% 2.7% 2.7% 0.8% Provincial Average Weekly Earnings Octo ber 2017 $ $1, $1, $1, $ $ $ $ Source: Conference Board of Canada, Statistics Canada 26

27 GDP Annual Growth Rate Annual Real GDP Growth Rates Across Canada 10% 8% 6% 4.6% 4% 2% 0% -2% -4% -3.0% -3.2% -6% F Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Conference Board of Canada 27

28 GDP Annual Growth Rate Annual Forecasted Real GDP Growth Rates Across Canada 5.0% 4.5% 4.6% 4.0% 3.5% 3.0% 2.5% 2.5% 2.6% 2.0% 1.5% 2.1% 2.3% 1.0% 2017F 2018F 2019F 2020F 2021F Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Conference Board of Canada 28

29 $90,000 $80,000 $70,000 Annual GDP per Capita Across Canada $77,008 A leader in economic power, with the highest annual GDP per capita of major cities in Canada $60,000 $60,594 $56,685 $54,562 $50,000 $50,675 $46,325 $52,814 $49,170 $46,226 $40,000 $41,510 $30,000 $20,000 $10,000 $0 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada Source: Statistics Canada, 2016; updated annually in March 29

30 Calgary GDP by Industry Calgary s economy is diversifying Total GDP $49.5 Billion 53.9% Primary and Utilities 31.6% Primary and Utilities Total GDP $113.2 Billion 16.5% Finance, Insurance and Real Estate 2.7% Transportation and Warehousing 1.1% Information and Cultural Industries 3.0% Public Administration and Defence 10.6% Finance, Insurance and Real Estate 4.6% Business Services 5.7%, Wholesale and Retail Trade 6.8%, Non-Commercial Services 5.0% Construction 3.7%, Manufacturing 3.0%, Personal Services 9.3% Business Services 8.5%, Wholesale and Retail Trade 7.7%, Non-Commercial Services 7.0% Construction 5.2%, Manufacturing 4.0%, Personal Services Source: The Conference Board of Canada, % Transportation and Warehousing 2.7% Information and Cultural Industries 2.8% Public Administration and Defence 30

31 Calgary Forecast GDP by Industry 2017 (2007 $ Millions) 2021 (2007 $ Millions) Total change (%) Goods-Producing Industries 52,963 58, % Manufacturing 6,250 6, % Construction 8,015 8, % Primary and utilities 38,698 42, % Services-Producing Industries 65,373 71, % Transportation and warehousing 5,592 6, % Information and cultural industries 3,018 3, % Wholesale and retail trade 10,237 10, % Finance, insurance and real estate and leasing 19,258 21, % Business services 10,521 11, % Personal services 4,641 5, % Non-commercial services 8,946 9, % Public administration and defence 3,160 3, % All Industries 118, , % Source: The Conference Board of Canada,

32 Mining, Quarrying, Oil and Gas Extraction Oil and Gas Extraction Transportation and Warehousing Public Administration Utilities Manufacturing Real Estate, Rental and Leasing Construction Educational Services Agriculture, Forestry, Fishing, Hunting Information and Culture Retail Trade Accommodation and Food Services Wholesale Trade Health Care, Social Assistance Administrative, Support, Waste Management, Remediation Finance and Insurance Professional, Scientific, Technical Services Arts, Entertainment, Recreation Other Services Management of Companies and Enterprises CAD$ Billions $4.5 $4.5 $3.9 $4.9 $2.1 $1.8 $2.9 $2.2 $1.7 $1.7 $2.8 $2.2 $1.7 $1.6 $1.2 $1.2 $1.1 $1.0 $0.7 $0.8 $0.7 $0.7 $1.0 $1.0 $0.3 $0.3 $0.7 $0.6 $0.4 $0.4 $0.4 $0.3 $0.3 $0.2 $0.0 $0.1 $10.0 $9.1 $25.8 $26.4 $24.7 $25.3 Alberta Capital Spending by Industry $35.0 $30.0 $ Intentions $20.0 $15.0 $10.0 $5.0 $0.0 Source: Table , Statistics Canada 32

33 Growth Rate Retail Sales Growth Across Canada 60% 50% 50.7% 40% 40.2% 42.9% 38.5% 30% 26.2% 28.9% 24.7% 22.9% 30.6% 33.5% 20% 10% 0% 13.4% 6.5% 6.8% 8.3% 15.3% 12.0% 9.0% 5.2% 1.2% 1.4% 17.5% 17.5% 14.8% 7.2% 6.9% 5.2% 5.7% 4.3% 5.1% 5.8% 3.5% -1.0% -10% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 2015/2016 Retail Sales Growth 2016/2017F Retail Sales Growth 5-Year Retail Sales Growth ( ) 10-Year Retail Sales Growth ( ) Source: Conference Board of Canada,

34 Inflation Growth Across Canada 20% 18% 18.4% 16% 15.6% 15.6% 14.6% 14% 12.9% 13.6% 13.7% 13.1% 12% 10% 8% 7.4% 8.3% 6% 4% 2% 3.0% 1.9% 5.4% 2.7% 6.1% 1.1% 2.6% 0.9% 3.9% 6.5% 0.6% 2.2% 2.2% 1.4% 1.9% 5.7% 1.7% 0.6% 4.5% 2.1% 1.5% 5.9% 0% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Current-YTD Growth Rate Previous-Year Growth Rate 5-Year Total Growth Rate ( ) 10-Year Total Growth Rate ( ) Source: Statistics Canada, November

35 trade 35

36 Key Stats Alberta is the third largest exporter of agri-food products in Canada. - Alberta Agriculture, 2015 Alberta s Top Export Category in 2016 was Oil and Gas Extraction at $49.75 billion. - Trade Data Online, 2016 There are 40 international consulate offices in Calgary. - Global Affairs Canada, 2017 Calgary s financial services sector handles 9.5 per cent of global energy M&A deal volume and 17 per cent of their total value - Five-Year Average, Bloomberg Data,

37 Alberta Exports January to September 2017 Top 5 Export Categories (NAICS) CAD$ billion Oil and Gas Extraction $49.41 Resin and Synthetic Rubber Manufacturing $3.22 Petroleum Refineries $2.55 Animal Processing $2.05 Oilseed (except Soybean) Farming $1.49 Top 5 Export Countries CAD$ billion Alberta exports totaled $74.66B for the first 9 months of 2017 United States $65.28 China $2.82 Japan $1.28 Mexico $0.96 South Korea $0.30 Source: Industry Canada - Trade Data Online,

38 Alberta Exports 2016 Top 5 Export Categories (NAICS) CAD$ billion Oil and Gas Extraction $49.75 Resin and Synthetic Rubber Manufacturing $4.23 Animal Processing $2.65 Petroleum Refineries $2.09 Oilseed (except Soybean) Farming $1.91 In 2016, Alberta exports totaled $79.3B Top 5 Export Countries CAD$ billion United States $68.06 China $3.11 Japan $1.69 Mexico $0.94 South Korea $0.36 Source: Industry Canada - Trade Data Online, 2016 (Revised August 2017) 38

39 Alberta Imports January to September 2017 Top 5 Import Categories (NAICS) CAD$ billion Petroleum Refineries $4.63 Metal Valve Manufacturing $0.55 Navigational, Measuring, Medical and Control Instruments Manufacturing $0.52 Resin and Synthetic Rubber Manufacturing $0.42 All Other Chemical Product Manufacturing $0.42 Alberta imports totaled $20.7B for the first 9 months of 2017 Top 5 Import Countries CAD$ billion United States $13.51 China $2.25 Mexico $1.17 Germany $0.46 Italy $0.32 Source: Industry Canada - Trade Data Online,

40 Alberta Imports 2016 Top 5 Import Categories (NAICS) CAD$ billion Petroleum Refineries $4.93 Aerospace Product and Parts Manufacturing $1.12 Navigational, Measuring, Medical and Control Instruments Manufacturing $0.64 Metal Valve Manufacturing $0.62 Engine, Turbine & Power Transmission Equipment Manufacturing $0.52 In 2016, Alberta imports totaled $25.0B Top 5 Import Countries CAD$ billion United States $16.36 China $2.42 Mexico $1.54 Germany $0.55 South Korea $0.42 Source: Industry Canada - Trade Data Online, 2016 (Revised August 2017) 40

41 business 41

42 Key Stats Second highest small business concentration of major cities in Canada. - Statistics Canada, 2016 Among the lowest business bankruptcy rates per capita of major cities in Canada. - Office of the Superintendent of Bankruptcy Canada, 2016 Highest head office concentration of major cities in Canada. - FP500 Database, 2017 In 2015, Calgary had the highest research and development expenditures among its Canadian peers: $826 per capita. - Deloitte, Benchmarking Calgary s Competitiveness,

43 Canada s Competitive Business Climate Canada ranks 1 st in Business Environment in the G7 and G20 The Economist Intelligence Unit, September 2017 Canada is ranks 2 nd in business and 2 nd overall in ease of starting a business in the G20 and 1 st in the G7 for lowest number of procedures and time required to establish a business Forbes, December 2016; Doing Business in 2017, The World Bank Group, 2016 Canada offers the lowest total effective tax rate* of the G7 *Sum of profit taxes, labour taxes and other taxes, PriceWaterhouseCoopers, Paying Taxes 2017 Canada ranks 1 st in potential for investment and growth in its economic infrastructure Global Infrastructure Investment Index, ARCADIS NV Consulting, May 2016 Canada ranks 1 st in Soundness of Banks in the G7 and 2 nd in the world Soundness of Banks World Rank, Global Competitiveness Report, Canada ranks 1 st on the Global Opportunity Index in the G7 and G20 for economic and institutional factors in attracting FDI Milken Institute, September 2016 Canada ranks 2 nd in Entrepreneurship of the G7 Global Entrepreneurship Index 2017, The Global Entrepreneurship and Development Institute, November 13, 2016 Canada s talent pool is the most highly educated among OECD countries Education at a Glance, OECD, September 2017 Canada ranks 1 st in the G7 in quality of life OECD, June 2016 Invest in Canada, October

44 Investment into Calgary Amazon.com Distribution Centre Mission Produce RocketSpace Tech Accelerator Source: fdi Markets; Global Affairs Canada,

45 FDI Investment into Calgary 8 FDI Projects in ,155 Jobs Created $301M Total Capital Investment 2017 Calgary FDI Investments ($Million) Jobs Created Industry Sector Project Date Amazon.com $ Consumer Products October 2017 Mission Produce $ Food & Tobacco May 2017 Regus Canada $ Real Estate May 2017 Uber Technologies $ Software & IT services April 2017 Green Cat Renewables $ Business Services March 2017 Berkana Resources $ Software & IT services May 2017 Viiz $ Business Services September 2017 RocketSpace $ Business Services May 2017 Source: fdi Markets; Global Affairs Canada 45

46 Calgary CMA Businesses by Industry Real estate and rental and leasing, 2,405, 4.2% Professional, scientific and technical services, 11,767, 20.4% Management of companies and enterprises, 435, 0.8% All Industries: Finance and insurance, 1,880, 3.3% Information and cultural industries, 473, 0.8% Administrative and support, waste management and remediation services, 2,666, 4.6% 57,646 Transportation and warehousing, 2,260, 3.9% Educational services, 694, 1.2% Retail trade, 4,936, 8.6% Health care and social assistance, 4,475, 7.8% Arts, entertainment and recreation, 547, 0.9% Wholesale trade, 2,511, 4.4% Accommodation and food services, 3,324, 5.8% Manufacturing, 1,615, 2.8% Other services, 4,093, 7.1% Construction, 6,844, 11.9% Utilities, 97, 0.2% Mining, quarrying, and oil and gas extraction, 1,231, 2.1% Agriculture, forestry, fishing and hunting, 277, 0.5% Public administration, 79, 0.1% Unclassified, 5,037, 8.7% Source: Total with Employees, All Industries 58,780, Statistics Canada, June

47 Calgary CMA Business Establishments by Number of Employees 5-9 Employees 8, % Employees 5, % 1-4 Employees 37, % Employees 4, % Employees 1, % Employees % 500+ Employees % Employees % Source: Total with Employees, All Industries 58,780, Statistics Canada, December

48 Small Businesses per Capita Across Canada 37.4 Second highest small business concentration Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Statistics Canada, CMA Population, 2016 and Canadian Business Counts, June 2017 Less Than 50 Employees (Per 1,000 Population) 48

49 Number of Self-Employed per Capita (per 1,000 population) Self-Employed per Capita and 10-Year Growth % % 37.8% % % % % % % 35% 30% 25% 20% 15% 10% 5% 10-Year Growth in Total Number of Self-Employed 0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Alberta Canada 0% Source: Statistics Canada, 2016, per 1,000 Population 49

50 4,800 (2.7%) 2,100 (2.3%) 3,600 (2.2%) 10,900 (2.1%) 3,000 (4.1%) 6,700 (2.5%) 31,200 (14.4%) 24,000 (10.3%) 20,100 (17.6%) 27,900 (25.0%) 24,600 (24.0%) 19,000 (21.5%) 9,200 (9.6%) 19,800 (14.8%) 13,700 (13.3%) 50,700 (23.6%) 32,500 (24.2%) 32,500 (28.2%) 27,900 (21.9%) 10,900 (8.7%) 17,200 (22.8%) 24,000 (29.0%) 22,100 (21.0%) 9,200 (9.7%) 60,100 (30.9%) 54,100 (18.0%) 46,500 (14.4%) 27,500 (10.3%) 51,400 (10.1%) 82,000 (14.2%) 67,400 (22.9%) 74,500 (26.8%) 62,700 (23.0%) 137,900 (21.2%) 141,300 (27.6%) 125,300 (24.8%) Number of Self-Employed by Age Group 200, , , , , ,000 80,000 60,000 40,000 20,000 0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Ages: Ages: Ages: Ages: Ages Ages 65+ Source: Statistics Canada,

51 City of Calgary Business Openings and Closures 4,500 4,000 3,842 3,795 3,500 3,286 3,000 2,500 2,000 2,444 2,435 2,108 1,500 1, New Business Openings Business Closures 5-Year Average ( ) Note: Exclusive of moves/relocations. Source: The City of Calgary Corporate Economics, November

52 Calgary CMA Number of Business Bankruptcies YTD Source: Office of the Superintendent of Bankruptcy Canada, Q

53 Business Bankruptcy Rates Across Canada Low business bankruptcy rates Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Office of the Superintendent of Bankruptcy Canada, 2016, (Per 1,000 Businesses) 53

54 Head Offices per Capita (per 100,000 population) Head Offices per Capita Across Canada % 28.6% 35% Highest HQ Concentration in Canada % 15.9% % -11.1% % % % % 15% 5% -5% -15% 10-Year Growth Rate in Number of Head Offices 0 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 2017 Head Offices per Capita 10-Year Growth Rate ( ) -25% Source: FP Database, FP Database, Statistics Canada,

55 Number of Head Offices Across Canada Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 2008 Number of Head Offices 2016 Number of Head Offices 2017 Number of Head Offices Source: FP Database, FP Database 55

56 Taxes Across Canada Competitive Tax Environment No payroll tax, no health care premiums and no PST. Vancouver / British Columbia Edmonton / Alberta Calgary / Alberta Saskatoon / Saskatchewan Winnipeg / Manitoba Toronto / Ontario Ottawa / Ontario Montreal / Quebec 2016 Total Effective Tax Rates (City Level) 35.3% 29.3% 30.1% 31.9% 36.3% 34.1% 37.7% 41.3% Provincial Sales Tax 7% 0% 0% 6%** 8% 8% 8% 9.975% 2016 Provincial Personal Income Tax 5.06% % 10% - 15% 10% - 15% 11% - 15% 10.8% % 5.05% % 5.05% % 16% % 2017 Provincial Corporate Income Tax (General) 11.0% 12.0% 12.0% 12%** 12.0% 11.5% 11.5% 11.8% 2017 Provincial Corporate Income Tax (Small Business) 2.0%** 2.0% 2.0% 2.0% 0.0% 3.5% 3.5% 8.0% 2016 Provincial Payroll Tax (Employer Health Premiums) 0% 0% 0% 0% 2.15% to 4.3% 0.98% % 0.98% % 2.7% % 2016 Land Transfer Tax 1% - 2% 0% 0% 0% - 0.3% 0% - 2% 0.5% - 2% 0.5% - 2% 0.5% - 3.5% 2016 Local, Provincial & Federal Gasoline Tax /L 23 /L 23 /L 25 /L 24 /L 24.7 /L 24.7 /L 33.2 /L 2017 Carbon Pricing* (per tonne of emissions) $30 $20 $20 $18 $18 $ Health Care Premiums (Annual) $0 - $900 $0 $0 $0 $0 $0 - $900 $0 - $900 $0 - $660 *Ontario and Quebec have cap and trade systems. Source: Trevor Tombe, UCSPP & Maclean's, December 2016 **As per Government of British Columbia Budget, April 1, 2017; Government of Saskatchewan, October 25, 2017; Government of Ontario, November 15, Sources: Revenue Canada, Government of Alberta, Government of British Columbia, Government of Ontario, Government of Quebec, Government of Saskatchewan, 2016 KPMG Competitive Alternatives: Focus on Tax Report; pwc Tax Facts and Figures, Canada

57 45.0% Calgary's Tax Advantage 41.3% 40.0% 37.7% 35.0% 30.0% 29.3% 30.1% 31.9% 34.1% 35.3% 10.8% 23.0% 25.0% 10.8% 10.9% 11.1% 15.5% 23.6% 20.0% 10.2% 15.0% 4.3% 5.2% 8.8% 6.7% 10.2% 10.0% 5.9% 5.0% 14.2% 14.0% 12.0% 11.9% 14.3% 8.2% 8.1% 0.0% Edmonton Calgary Saskatoon Toronto Vancouver Gatineau (National Capital Region) Corporate Income Taxes Other Corporate Taxes Statutory Labour Costs Montreal Source: KPMG Competitive Alternatives: Focus on Tax Report,

58 Estimated Commercial Property Taxes per $40.00 $35.00 $1,000 of Assessment FIGURES IN THIS CHART ARE CALCULATED BY MULTIPLYING THE COMMERCIAL TAX RATE BY 1000 TO GIVE THE TAXES PAID PER $1,000 OF ASSESSMENT. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO. $37.75 Low commercial property taxes $30.00 $28.63 $26.40 $25.00 $20.00 $19.13 $18.45 $15.00 $13.86 $15.93 $10.00 $5.00 $0.00 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal It should be noted that The City of Calgary is consolidating the business tax (0.0427) with the non -residential property tax. This is an incremental process, culminating with the elimination of the business tax by Source: REALpac,

59 labour market 59

60 Workforce Attraction Ranking of 150 global cities Calgary ranked in the global Top 10 Most Attractive Cities for Workers Financial (salary levels, living costs, taxes) + Lifestyle (quality of living, social benefits) AIRINC, Global 150 Scorecard, March

61 Key Stats Of 8 peer cities assessed, Calgary has the highest level of educational attainment. - Deloitte, Benchmarking Calgary s Competitiveness, 2015 Calgary has the highest labour force productivity and labour force participation of major Canadian cities. - The Conference Board of Canada and Statistics Canada, 2016/2017 Calgary has the highest proportion of STEM graduates of major Canadian cities. - Census 2016, Statistics Canada Calgary has the highest millionaires per capita of major Canadian cities. - Statistics Canada, 2015 Calgary has the highest number of engineers and geoscientists per capita of major Canadian cities. - Statistics Canada, 2016 Calgary is ranked as a top tech talent market in Canada. - Scoring Canadian Tech Talent, CBRE,

62 Labour Demand ICT is outpacing all job growth by 4:1. Canada will need to fill 182,000 ICT professional positions by 2019 (17,300 for Alberta). - ICTC, Labour Market Outlook, Finance, Insurance, Real Estate and Leasing will grow by 1.6% annually, reaching 4.8% of total employment in 2019 and gain 68,100 jobs by Government of Alberta, 2016; Statistics Canada, 2016 Manufacturing accounts for 6.1% of total employment in Alberta, employment will grow by 1.1% annually and account for 6.5% of total employment by Government of Alberta, 2016 The Logistics sector in Alberta will grow by about 7,470 workers from 2016 to APGC, 2016 Oil and Gas will have 28,025 to 36,240 net hiring requirements in Canada from 2017 to PETROLMI/ENFORM, 2016 Clean Tech (including Renewables) will employ anywhere from 76,000 to 100,000 Canadians directly by 2022, up from 55,600 jobs in Analytica Advisors, 2016 Agriculture will need to fill 23,300 potential jobs in Alberta by AgriLMI CAHRC,

63 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Calgary CMA Historical Unemployment Rate 12% Cycle highs and lows 10.2% 10% 8.9% 7.5% 8% 7.5% 6% 4.6% 4.5% 4% 2% Source: Statistics Canada 0%

64 Unemployment Rate Across Canada 12% 10% 10.1% 8% 7.5% 7.5% 7.5% 7.5% 7.6% 6.8% 6.7% 6.9% 6% 5.1% 6.0% 6.1% 5.5% 6.1% 5.7% 4% 4.1% 2% 0% Vancouver Edmonton Calgary Toronto Ottawa Montreal Saskatoon Canada December 2016 December 2017 Source: Statistics Canada 64

65 Youth Unemployment Rate Across Canada (Ages: 15 to 24 Years) 18% 16.9% 16.6% 16% 14% 12% 10% 9.5% 11.3% 12.0% 10.4% 12.2% 12.9% 9.8% 13.2% 12.2% 12.4% 11.4% 9.8% 9.7% 12.6% 11.1% 8.4% 8.7% 8% 6% 5.6% 4% 2% 0% Vancouver Edmonton Calgary Regina sdskatoon Winnipeg Toronto Ottawa Montreal Canada December 2016 December 2017 Source: Statistics Canada 65

66 Labour Force Participation Rate Across Canada 76% 74% 73.0% 75.0% 73.2% Highest labour force participation rate in Canada 72% 71.6% 70.9% 70% 69.4% 68.9% 68% 67.2% 66.8% 67.7% 66.6% 67.3% 66% 65.8% 65.8% 65.8% 65.8% 64% 62% 60% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada December 2016 December 2017 Source: Statistics Canada 66

67 Growth Rate Labour Force Growth Across Canada 30% 25% 20% 19.1% 26.6% 25.9% 23.9% 17.1% The employed are persons having a job or business, whereas the unemployed are without work, are available for work, and are actively seeking work. Together the unemployed and the employed constitute the labour force. Persons not in the labour force are those who, during the reference period, were unwilling or unable to offer or supply labour services under conditions existing in their labour markets (this includes persons who were full-time students currently attending school). 15% 10% 10.9% 11.1% 11.4% 11.7% 7.8% 9.3% 11.4% 9.6% 6.0% 5% 0% 3.5% 3.5% 4.0% 3.6% 2.0% 0.7% 0.8% 0.2% Vancouver Edmonton Calgary SBskatoon Toronto Ottawa Montreal Canada -0.8% -0.2% -5% 12-Month Labour Force Growth 5-Year Labour Force Growth 10-Year Labour Force Growth Source: Statistics Canada, December

68 Growth Rate Employment Growth Across Canada 25% 21.9% 20.5% 20% 19.2% 19.1% 18.0% 15% 14.2% 12.3% 10.7% 10% 7.4% 8.3% 9.1% 8.4% 7.9% 9.2% 5% 4.6% 3.5% 2.0% 0.1% 4.5% 0.4% 1.9% 2.6% 1.5% 5.0% 0% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 12-Month Employment Growth 5-Year Employment Growth 10-Year Employment Growth Source: Statistics Canada, December

69 Annual Employment Growth 10.0% 5.0% 0.0% 4.4% 5.7% 4.6% 3.5% 4.3% 2.0% 3.6% 1.0% 0.1% 4.9% 4.5% 4.6% 2.6% 0.4% 2.7% 2.7% 2.6% 2.1% 2.3% 0.8% -1.1% -5.0% -4.6% -4.3% -10.0% -15.0% -14.2% -20.0% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Total Employment Growth Rate Full-Time Employment Growth Rate Part-Time Employment Growth Rate Source: Statistics Canada, December December

70 Calgary CMA Employment by Industry Accommodation and Food Services 61, % Information, Culture and Recreation 34, % Other Services 33, % Public Administration 31, % Agriculture 3, % Forestry, Fishing, Mining, Quarrying, Oil and Gas 47, % Utilities 9, % Construction 80, % Manufacturing 40, % Diverse employment Health Care and Social Assistance 86, % Educational Services 55, % Wholesale & Retail Trade 123, % Business, Building and Other Support Services 35, % Professional, Scientific and Technical Services 93, % Finance, Insurance, Real Estate and Leasing 40, % Transportation and Warehousing 55, % Source: Statistics Canada, December

71 Calgary Historical Employment by Industry Non-Commercial Services (14.9%) Non-Commercial Services (17.4%) Total Employment: 368,493 Business Services (10.2%) Personal Services (12.0%) Construction (5.6%) Business Services (14.4%) Wholesale and Retail Trade (17.3%) Wholesale and Retail Trade (14.1%) Personal Services (14.0%) Total Employment: 803,625 Primary and Utilities (11.3%) Construction (9.4%) Information and Cultural Industries (2.8%) Transportation and Warehousing (5.6%) Manufacturing (8.0%) Finance, Insurance and Real Estate (6.7%) Public Administration and Defence (5.4%) Primary and Utilities (8.2%) Transportation and Warehousing (6.9%) Manufacturing (5.7%) Finance, Insurance and Real Estate (5.5%) Public Administration and Defence (2.9%) Information and Cultural Industries (1.7%) Source: Conference Board of Canada,

72 GDP per Employee $160,000 $140,000 Labour Force Productivity $140,800 Most productive workforce in Canada $120,000 $110,771 $100,000 $95,024 $102,064 $102,510 $92,499 $94,395 $80,000 $81,983 $60,000 $40,000 $20,000 $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Conference Board of Canada,

73 Calgary CMA Average Overall Hourly Wages by Industry All Industries Agriculture, forestry, fishing and hunting Mining, quarrying, and oil and gas extraction Utilities Construction Manufacturing Wholesale trade Retail trade Transportation and warehousing Information and cultural industries Finance, insurance, real estate and leasing Professional, scientific and technical services Management of companies and enterprises Administrative and support, waste management and Educational services Health care and social assistance Arts, entertainment and recreation Accommodation and food services Other services Public administration n/a n/a $30.57 $47.22 $44.25 $32.83 $28.52 $32.93 $19.54 $27.27 $33.84 $32.24 $39.58 $24.06 $34.36 $31.58 $20.25 $15.57 $22.62 $39.87 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 Source: Statistics Canada,

74 BC AB SK MB ON QC NB NS PEI NL Canada Average Weekly Earnings Average Weekly Earnings Across Canada and Growth Rates $1, % $1, % 4.1% $1, % $1,000 $ $1, $1, % 3.1% 3.1% $ $ $ $ % $ % $ $ % $800 $ % 1.3% 1.0% 2.0% 1.0% Growth Rate $ % $ % -1.0% $0-2.0% Average Weekly Earnings Growth Rate Over Previous Year Source: Statistics Canada, October

75 Average Wages and Salaries Across Canada $80,000 $74, % $70,000 $60,000 $50,000 $46,857 $63, % $51, % $53, % $52, % $45, % 1.5% 1.0% 0.5% $40, % 0.0% $30, % -0.5% $20, % $10, % -1.5% $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal -2.0% 2017F Average Wages and Salaries per Employee 2016 Growth Rate Source: Conference Board of Canada,

76 Average Wages and Salaries Growth Rates Across Canada 40% 35% 35.3% 30% 25% 22.7% 20% 19.1% 18.7% 20.6% 15% 13.2% 13.7% 14.3% 10% 7.2% 7.4% 9.9% 7.0% 7.6% 7.6% 9.2% 5% 3.2% 0% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 5-Year Total Growth Rate ( ) 10-Year Total Growth Rate ( ) Source: Conference Board of Canada,

77 Personal Income per Capita Personal Income per Capita 6.5% $70,000 $64, % $60, % $50,000 $40,000 $30,000 $48, % 2.2% $53, % $49, % $49,957 $47, % 1.5% 1.2% 1.3% 3.6% $44, % $47, % 2.1% 3.5% 2.5% 1.5% 0.5% Growth Rate -0.3% $20, % -0.5% -1.5% $10, % -2.2% -2.5% $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 2017 Personal Income per Capita 2016 Growth Rate 2017 Growth Rate -3.5% Source: Conference Board of Canada,

78 Personal Income per Capita 30% Historical Growth Rates 25% 23.6% 24.7% 22.2% 20% 19.1% 15.7% 17.2% 16.7% 17.2% 15% 12.8% 12.3% 10.6% 10.6% 10% 7.0% 5% 2.8% 4.8% 0% 0.8% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 5-Year Total Growth Rate ( ) 10-Year Total Growth Rate ( ) Source: Conference Board of Canada,

79 Millionaires Per Capita % increase over 2014 Millionaires in Calgary reported a median income of $ million in Vancouver Edmonton Calgary Toronto Ottawa Montreal Canada 2013 Millionaires Per Capita (per 100,000 population) 2014 Millionaires Per Capita (per 100,000 population) 2015 Millionaires Per Capita (per 100,000 population) Taxfiler data released on a 2 year lag to current year. Source: Statistics Canada, 2015, Per 100,000 Population 79

80 demographics 80

81 Demographic Rankings Second highest level of educational attainment of major Canadian cities Calgary ranked #3 in Top 10 Places to Raise Kids Calgary ranked #19 in Overall Ranking MoneySense Magazine s - Canada s Best Places to Live,

82 Key Stats 76.6 per cent of Calgarians are aged 20 and older; 47.7 per cent are within the core working age group of 25 to Calgary CMA, Statistics Canada, per cent of Calgary s population are immigrants and 33.7 per cent are visible minority. - Calgary CMA, Census 2016, Statistics Canada Calgary has the highest population growth over the past decade of major cities in Canada. - Statistics Canada, 2016 Most frequently reported ethnic origins for Calgary are English (21.7 per cent), Canadian (20.1 per cent) and Scottish (17.5 per cent). - Calgary CMA, Census 2016, Statistics Canada 82

83 Who are Calgarians? Calgarians are young. The median age is 36.4 years old. 36 $ $99,583 median 2015 total household income. - Calgary CMA, Census 2016, Statistics Canada - Calgary CMA, Statistics Canada, 2016 More than 120 languages spoken in Calgary. - Calgary CMA, Census 2016, Statistics Canada 120 Calgary has the 3 rd highest education level attained of major cities in Canada. - Calgary CMA, Census 2016, Statistics Canada 33.7% of Calgary s population is visible minority. 34% Average household is comprised of 2.6 people. - Calgary CMA, Census 2016, Statistics Canada - Calgary CMA, Census 2016, Statistics Canada POPULATION: 1.47 MILLION - Calgary CMA, Metropolitan Outlook, Conference Board of Canada,

84 Persons 1,700,000 Calgary and Region Population 1,600,000 1,505,796 1,539, % 1,576,249 1,500,000 1,400,000 1,363,607 1,405,719 1,456,794 1,353,931 1,401,747 1,433, % 1,469,341 1,304,711 1,300,000 1,264,460 1,230,915 1,235,171 1,200,000 1,100,000 1,090,936 1,120, % 1,156, % 1,195, % 2.90% 0.36% 2021 Calgary CMA forecast population 1,000, million 900, , City of Calgary Calgary CMA Calgary Economic Region Source: City of Calgary Civic Census (as at April 1, 2016), Statistics Canada (as at July 1, 2016), Tables and , The Conference Board of Canada 84

85 Population Growth City of Calgary Population Growth 40,000 35,000 35, ,461 38,508 35, % 30,000 28,183 29, % 25,000 20,000 25,557 17,631 22, ,563 19,421 19,658 26,201 28,017 24, % 15,000 12,441 12,920 9,563 10,000 6,060 4, % 5, ,000 9,887 10,552 9,695 9,643 10,214 9,858 9,631 10,260 10,491 10,812 10, % ,154-6, % -0.5% Natural Increase Net Migration Annexation Annual Growth Rate Source: City of Calgary, Civic Census is Conducted Annually on April 1 85

86 Population Growth Calgary CMA Components of 60,000 50,000 Population Growth In 2016, 59.7% of migrants to Calgary were from international origins. Over the last 5 years, 43% of people moving to Calgary were of international origin. 49,220 47,816 International migration accounted for 59.7 percent of 2016 population growth 40,000 30,000 20,000 10, ,251 29,381 32,043 33,382 20,787 20,807 35,769 15,857 31,825 15,332 18,563 24,302 19,153 20,964 24,302 9,409 21,345 2,232 13,644 11,998 9,359 12,845 6,494 7,119 10,001 6,644 4,956 1,282 3,085 3,565 2,855 2,619 2,595 2, ,021 10,864 11,359 11,438 11,209 11,470 11,934 12,392 12,702 12, ,849-1,985-1,881-2, ,043-1,693-2,124-10,000 Natural Increase Net Intraprovincial Migration Net Interprovincial Migration Net International Migration Residual Deviation Source:Calgary Census Metropolitan Area (CMA), Statistics Canada, July 1,

87 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Population CMA Population Across Canada 7,000,000 6,000,000 Canadian Population: 36,286,425 Growth Over Previous Year: 2.5% 3.16% 6,123, % 3.00% 5,000, % 2.50% 2.64% 2.50% 2.16% 4,000, % 4,049, % 1.65% 1.60% 3,000,000 2,507, % 1.50% 2,000,000 1,359,158 1,433,572 1,329, % 1,000, , % 240, , % Source: Statistics Canada, July 1,

88 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada 1.6% 1.0% 5.7% 2.5% 2.4% 2.5% 2.3% 2.6% 1.8% 3.2% 2.3% 2.2% 1.5% 1.9% 1.1% 1.6% 1.0% 4.8% 1.1% 0.8% 4.0% 1.2% 0.9% 4.4% 6.9% 6.4% 10.1% 12.4% 12.6% 12.2% 10.2% 10.3% 14.9% 12.9% 15.2% 13.7% 22.1% 26.1% 27.4% 29.1% CMA Population Growth Rates 35% Across Canada 30% 25% 20% 15% 10% 5% 0% Current-Year Growth Rate Previous-Year Growth Rate 5-Year Total Growth Rate ( ) 10-Year Total Growth Rate ( ) Source: Statistics Canada, July 1,

89 Components of Population Growth 120,000 Across Canada 105, ,000 80,000 60,000 45,484 40,000 32,211 35,384 20, ,611 12,763 8,583 10,236 7,451 5,214 2,375 2,595 21,345 4,090 17,149 9,015 6,185 2,651 3,477-20,000-5, ,141-9,357-40,000-26,903 Vancouver Edmonton Calgary Toronto Ottawa Montreal Natural Increase Net Intraprovincial Migration Net Interprovincial Migration Net International Migration Source: Statistics Canada, July 1,

90 Generation Z Born: Millennials Born: Generation X Born: Baby Boomers Born: Silent Generation Born: Greatest Generation Calgary CMA Population by Age Group 1, years and over 5,217 4, to 89 years 7,651 7, to 84 years 10,772 10, to 79 years 14,145 15, to 74 years 19,164 24, to 69 years 28,700 34, to 64 years 37,548 47,382 52, to 59 years 50 to 54 years 46,477 48,208 52, to 49 years 49,926 56, to 44 years 55,005 59, to 39 years 61,669 66, to 34 years 67,882 60, to 29 years 60,152 49, to 24 years 46,282 41, to 19 years 39,006 38, to 14 years 38,981 43,278 5 to 9 years 43,836 46,379 0 to 4 years 45,518 Males Females Source: Statistics Canada, July 1,

91 Top Source Countries for Permanent Residents Philippines 5,405 25% Other (116 Countries) 6,745 31% Total: 21,695 Mexico 425 2% Syria 515 2% Iran 535 3% United States of America 605 3% United Kingdom and Colonies 705 3% People's Republic of China 850 4% Nigeria 1,175 5% Pakistan 1,335 6% India 3,400 16% Source: IIRC, Statistics Canada, 2015, Calgary CMA 91

92 Top Source Countries for Permanent Residents, 2006 to 2015 Philippines 30,690 20% Other (116 Countries) 52,140 33% Total: 155,855 India 23,420 15% Ethiopia 2,735 2% Republic of Korea 3,380 2% United States of America 5,130 3% Iran 3,410 2% Nigeria 6,465 4% United Kingdom and Colonies 7,105 5% Pakistan 8,975 6% People's Republic of China 12,405 8% Source: Source: Citizenship and Immigration Canada,

93 Permanent Residents Level of Education Secondary or Less 5,155 24% Total: 21,695 Education Qualification not stated 5,345 25% Formal Trade Cert. or Apprenticeship 755 3% Non-University Certificate or Diploma 1,045 5% Doctorate 190 1% Some University - No Degree 1,150 5% Master's Degree 2,300 10% Some Post-Grad. Education - No Degree 355 2% Bachelor's Degree 5,390 25% % with Bachelor's or higher Source: IIRC, Statistics Canada, 2015, Calgary CMA 93

94 Permanent Residents by Age Group 15 to 24 Years 2,375 11% Total: 21, to 44 Years 12,145 56% 0 to 14 Years 4,490 21% Not Stated % 525 2% 45 to 64 Years 2,170 10% Source: IIRC, Statistics Canada, 2015, Calgary CMA 94

95 Median Age Across Canada Young population Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada Source: Statistics Canada, July 1,

96 Visible Minority Rate Across Canada 60% 50% 48.9% 51.4% Third most diverse metropolitan area in Canada 40% 33.7% 30% 28.1% 25.7% 21.6% 22.6% 22.3% 20% 17.1% 17.7% 10% 0% Vancouver Edmonton Calgary Saskatoon Regina Winnipeg Toronto Ottawa Montreal Canada Source: Census 2016, Statistics Canada 96

97 Migrants per 1,000 Persons 25 Migration Rate Across Canada 23.2 Attractive to migrants Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada Source: Statistics Canada, July 1,

98 education 98

99 High Degree of Learning University of Calgary ranked as a Top 20 University Under 50 Years Old Second highest level of educational attainment of population 25 to 64 of major Canadian cities 18,666 postsecondary graduates in the Calgary Economic Region Times Higher Education, 2016 Statistics Canada, NHS 2011; Next Update Late 2017 Alberta Advanced Education Program Completions 2015/

100 Post-Secondary Enrolment More than 88,800 students enrolled in Calgary post-secondary institutions SAIT 27,912 Bow Valley College 11,638 ACAD 1,772 Ambrose University 696 University of Calgary 32,983 Mount Royal University 13,593 Olds College 2,324 St. Mary s University 838 Source: Alberta Advanced Education, Full-Time and Part-Time Students, Calgary Economic Region, 2015/2016 (Last Updated Spring 2017) 100

101 4,048 Post-Secondary STEM Completions STEM programs account for 27 percent of all bachelors degree or higher program completions in Calgary 1,267 science completions 90 technology completions 2,156 engineering & engineering technology 535 mathematics & computer science completions completions Source: Alberta Advanced Education, Credential Completions by 6-digit CIP code, 2015/

102 Public and Private K to 12 Schools new and public private public and Chinese / modernized schools schools private French Mandarin facilities by immersion schools 2018 Source: Calgary Board of Education, Calgary Catholic School Board, 2015/

103 real estate 103

104 Real Estate Indicators Summary Housing Starts Date Value Change/Rate (%) Year-to-Date Year-Over-Year C hange November 2017 Geography 10, % Calgary CMA Total Value of Building Permits Thousands; Year-Over-Year C hange November 2017 $494, % Calgary CMA Major Calgary Projects Billions; Month-Over-Month C hange December 2017 $ % City of Calgary Benchmark Detached Calgary House Price Year-Over-Year C hange December 2017 $499, % City of Calgary Downtown Office Vacancy Rate Q % City of Calgary Suburban Office Vacancy Rate Q % City of Calgary Industrial Real Estate Vacancy Rate Q % City of Calgary * Seasonally adjusted, 3 month moving average Sources: City of Calgary Corporate Economics, Statistics Canada, Conference Board of Canada, CMHC, CB Richard Ellis, Calgary Real Estate Board, Alberta Enterprise and Advanced Education, Alberta Major Projects 104

105 Major Canadian City Comparison Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Housing Starts YTD November ,496 10,718 10,851 1,695 36,498 8,420 21, ,669 Total Value of Building Permits (Billions) YTD November 2017 $8.13 $4.75 $4.40 $0.81 $17.14 $3.24 $8.46 $84.77 Downtown Office Vacancy Rate Q % 20.3% 27.4% N/A 4.0% 9.5% 8.7% 11.1% MLS Benchmark Single Detached Housing Prices November 2017 $1,608,500 $394,000 $482,100 $311,900 $861,400 $403,500 $347,700 $662,900 MLS Benchmark Composite Housing Price Growth 15.3% -1.4% -0.4% -1.6% 8.1% 8.3% 5.9% 3.2% November 2016 November 2017 Source: Canada Mortgage and Housing Corporation, Canadian Real Estate Association, CBRE Limited, Statistics Canada 105

106 Total Value of Building Permits ($ Billions) Total Value of Building Permits Across Canada $90 $85.9$ % $ % 12.5% 17.2% 19.0% 20% $60 $45 $30 3.3% -5.5% 6.2% 10% 0% -10% -20% Five-Year Growth Rate $18.2$17.1 $15 $0-32.8% $8.19$8.13 $8.46 $5.41 $4.75 $5.42 $7.40 $4.40 $3.27 $3.24 $0.87$0.81 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada -30% -40% 2016 Total Value 2017 Year-to-Date Total Value Five-Year Growth Rate ( ) Source: Statistics Canada, Census Metropolitan Area, November

107 Total Value of Permits ($ Billions) City of Calgary Annual Building Permit Values $7 Note: Number of permits does not include demolition permits. $6.05 (17,944 permits) 35.3% $6.50 $6.30 (18,350 permits) (15,630 permits) 44% $6 $4.53 (15,514 permits) 32% $5 $4 $3 $2 23.9% $2.27 $4.47 (16,592 permits) $ % $2.61 $3.43 $ % $4.02 $ % $3.67 $4.66 (14,683 permits) $1.85 $4.58 (8,119 permits) $ % 20% 8% -4% Growth Rate Over Previous Year $1 $2.26 $2.59 $2.81 $ % -26.0% $ % Residential Non-Residential Growth Rate Over Previous Year Source: City of Calgary, December

108 28% Commercial Real Estate Vacancy Rates 27.4% Across Canada High quality space available to lease 24% 20% 20.3% 18.8% 21.4% 16% 12% 8% 4% 5.0% 11.3% 2.6% 15.5% 15.0% 13.8% 12.2% 11.1% 10.7% 9.5% 8.5% 8.7% 8.1% 8.5% 6.2% 4.8% 3.8% 4.0% 4.3% 2.3% 0% Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada Downtown Office Vacancy Rate Suburban Office Vacancy Rate Industrial Availability Rate Source: CBRE Limited, Q

109 Overall Power SC Enclosed SC Community SC Street Front Neighbourhood SC Big Box Retailer Calgary Retail Vacancy 45,000,000 40,000,000 40,601, % 9.0% 8.0% 35,000, % 30,000, % 25,000,000 20,000, % 4.0% 4.2% 5.0% 4.0% 15,000,000 10,000,000 5,000,000 10,276,960 8,137,430 8,087, % 1.1% 6,025, % 4,750,938 3,322, % 2.0% 1.0% 0 0.0% Total Area (SF) Vacancy Rate (%) Source: Barclay Street, Q4 2017, *Shopping Centre (SC) 109

110 Average Rental Rate (per square foot per year) Commercial Real Estate Net Rental Rates $35.00 $30.00 $30.83 Across Canada $29.85 Lowest downtown office Class A net rental rates compared to other markets $25.00 $24.39 $22.82 $20.72 $22.96 $22.82 $22.42 $20.00 N/A $18.49 $17.04 $16.91 $16.22 $18.18 $15.00 $10.00 $9.99 $9.70 $9.23 $7.02 $6.27 $5.59 $6.93 $5.00 $0.00 Vancouver Edmonton Calgary Toronto Ottawa Montreal Canada Downtown Office Average Class A Net Rent Suburban Office Average Class A Net Rent Industrial Average Net Rent Source: CBRE Limited, Q

111 Square Feet Office Space Absorption Across Canada 1,400,000 1,200,000 1,223,462 1,000, , , , , , , , , , , ,093 46, , ,193 10,527 38, , , , , , ,000 Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada Downtown Office Absorption Suburban Office Absorption Source: CBRE Limited, Q

112 Square Feet 8,000,000 Industrial Space Absorption Across Canada 7,000,000 6,783,514 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 2,361,423 2,173,722 1,000, , ,805 1,169,338 99,248-2,413-1,000,000 Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada Source: CBRE Limited, Q

113 Square Feet Under Construction Downtown Office Space Under Construction Across Canada 8,000,000 6% 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,911, % 3.9% 3.7% 2.7% 2.7% 3,392, % 1.0% 1,001, , , , , % 0 Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada 5% 4% 3% 2% 1% 0% Percentage of Inventory Construction Represents Downtown Office Under Construction Percentage of Downtown Inventory Construction Represents Source: CBRE Limited, Q

114 Square Feet Under Construction Suburban Office Space Under Construction Across Canada 4,000,000 5% 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , ,435, % 1,420, % 1.6% 1.9% 1.3% 956, % 319, , % 0 0.0% 0 176,440 Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada 4% 3% 2% 1% 0% Percentage of Inventory Construction Represents Suburban Office Under Construction Percentage of Suburban Inventory Construction Represents Source: CBRE Limited, Q

115 Square Feet Under Construction Industrial Space Under Construction Across Canada 14,000, % 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, % 11,706,744 4,577,694 4,186, % 0.7% 0.5% 0.3% 0.3% 0.3% 469, , ,455 96, % Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Percentage of Inventory Construction Represents Industrial Under Construction Percentage of Industrial Inventory Construction Represents Source: CBRE Limited, Q

116 $12.00 $10.00 Estimated Residential Property Taxes per $1,000 of Assessment FIGURES IN THIS CHART ARE CALCULATED BY MULTIPLYING THE RESIDENTIAL TAX RATE BY 1000 TO GIVE THE TAXES PAID PER $1,000 OF ASSESSMENT. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO. $9.29 $10.52 $9.89 Lower residential property taxes than other markets in Canada $8.00 $8.00 $6.88 $6.17 $6.00 $4.00 $3.17 $2.00 $0.00 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Source: REALpac,

117 Number of Housing Starts Year-to-Date Housing Starts Across Canada and their Five-Year Averages 30,000 27,093 25,000 20,000 18,987 18,834 15,000 10,000 5,000 4,509 4,616 6,102 6,777 9,405 6,025 4,074 1, ,395 2,539 0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Source: Canada Mortgage and Housing Corporation, November

118 $394,000 $332,500 $222,000 $302,500 $257,400 $311,900 $227,900 $189,000 $342,250 $296,700 $243,900 $270,700 $482,100 $403,500 $347,700 $270,800 $430,700 $393,000 $544,400 $464,000 $369,400 $330,500 $461,700 $420,900 Benchmark Resale Price $648,200 $662,900 $600,000 $805,200 $861,400 $744,700 $1,046,900 $1,608,500 Current Benchmark Resale Housing Prices $1,800,000 Across Canada Affordable housing prices $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Single Detached Townhouse Apartment All Housing Types Source: Canadian Real Estate Association, November

119 Growth Rate Year-Over-Year Growth in Benchmark Resale 30% 72.4% Housing Prices Across Canada Balanced housing market 25% 20.7% 22.6% 20.4% 20.4% 20% 15% 14.2% 11.9% 10% 5% 0% -5% 6.3% 15.3% 3.3% 0.0% -0.6% 0.5% -1.4% -1.9% -0.4% -2.3% 4.6% -1.6% 11.6% 8.3% 10.3% 8.1% 8.3% 5.9% 5.9% 3.2% -0.2% -1.9% -10% -15% -4.6% -6.7% -11.2% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Single Detached Townhouse Apartment All Housing Types Source: Canadian Real Estate Association, November

120 Average Price / Qualifying Income $251,600 $299,100 $439,000 $313,000 $546,000 $475,800 $450,600 $392,400 $324,900 $608,000 $561,600 $439,000 $1,081,300 $1,545,200 Housing Affordability Across Canada $1,800,000 $1,600,000 $1,400,000 Average Price - Single-Family Detached Average Price - Standard Condominium Single-Family Detached Affordability Measure Standard Condominium Affordability Measure 140% 120% 100% $1,200,000 $1,000,000 $800,000 $600,000 80% 60% Affordability Measure 40% $400,000 $200,000 20% $0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Canada 0% Source: RBC Economics, Q

121 Average Rental Rate Average Two-Bedroom Apartment Rent & $1,800 $1,600 $1,400 $1,552 Vacancy Rates Across Canada 9.6% $1, % 10.0% Affordable and higher vacancy rates than other CMAs $1,200 $1,000 $800 $1, % $1, % $1,082 $1,232 $782 $1, % 6.0% Vacancy Rate $ % 2.8% 2.7% $ % 2.0% $ % 1.0% $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada CMAs 0.0% Average Two-Bedroom Apartment Rental Rate Overall Apartment Vacancy Rate Source: Canada Mortgage and Housing Corporation, Fall 2017 (Updated Annually) 121

122 Average Rental Rate $2,500 $2,000 Average Two-Bedroom Condo Rent & Vacancy Rates Across Canada $2,301 $2, % $1, % 7.0% 6.0% More affordable and higher vacancy rates than most other CMAs $1,500 $1,000 $1,346 $1, % $1, % $1,180 $1, % 4.0% 3.0% Vacancy Rate $ % 1.6% 2.0% 0.6% 0.7% 0.7% 1.0% $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada CMAs 0.0% Average Two-Bedroom Condominium Rental Rate Overall Condominium Vacancy Rate Source: Canada Mortgage and Housing Corporation, Fall 2017 (Updated Annually) 122

123 Calgary Major Projects December 2017 Developer Project Description Project Cost $ Millions Timing Status City of Calgary Green Line LRT $4, Proposed WAM Development Group / AIMCo StoneGate Landing $3, Under Construction Calgary Sport and Entertainment Corp. CalgaryNEXT Multisport Fieldhouse Stadium $1,800.0 Commencing 2021 Proposed City of Calgary Crowchild Trail Project $1,550.0 Commencing 2017 Under Construction Government of Alberta / Alberta Cancer Foundation Calgary Cancer Centre $1, Under Construction Maple Projects Inc. Highland Park Redevelopment $1,000.0 Proposed Oxford Properties Oxford Airport Business Park $ Under Construction Shepard Development Corp. Shepard Suburban Office Campus $ Under Construction ATCO Pipelines Calgary Urban Pipeline Replacement Project $450.0 Completion by 2018 Proposed Telus / Westbank / Allied Properties Telus Sky Mixed-Use Tower $ Under Construction Source: Alberta Major Projects, Government of Alberta 123

124 Alberta Major Projects December 2017 Sector Number of Projects Total Value of Projects $ Millions Agriculture and Related 11 $767.8 Biofuels 5 $2,192.8 Chemical 2 $7,300.0 Commercial 38 $2,231.9 Forestry and Related 1 $85.0 Industrial 10 $1,392.6 Infrastructure 158 $18,614.8 Institutional 146 $7,057.2 Metals 3 $475.0 Mixed-Use 20 $8,019.2 Oil and Gas 7 $13,998.5 Oil Sands 19 $69,475.0 Pipelines 9 $35,220.0 Power 13 $8,520.0 Residential 57 $3,777.9 Retail 8 $632.0 Telecommunications 7 $1,258.1 Tourism / Recreation 99 $6,290.3 Total 613 $187,308.1 Source: Alberta Major Projects, Government of Alberta 124

125 Why Calgary Built-in Incentives, Favourable High Enviable Competitive Real Estate Quality Lifestyle Tax Rates Market Talent 125

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