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Kitchener is a city with a rich local history and a thriving economy that has helped it carry itself from its humble days as one of Ontario’s largest German communities to its current status as one of the top cultural and economic cities across the province and the rest of Canada.
While growth has always been a natural part of the economic landscape in Kitchener, recent years have seen newfound levels of growth both in the city and across the province. This has ignited a new need for real estate development and commercial investments that has turned markets such as the Kitchener real estate market into major hubs of opportunity.
So, if you are interested in learning more about the unique investment landscape of Kitchener and how now may be the time to get started with your commercial investments and property developments, continue reading.
If you would like to learn how to properly finance investments in the Kitchener real estate market, click the link below to book a free strategy call with our team at LendCity
Interconnected Investments in the KWC
The Kitchener real estate market. largely characterized by its relationship with the surrounding municipalities of Waterloo and Cambridge. Together these three cities are affectionately referred to as the ‘KWC’ and in the minds of many these cities are inseparable. Fortunately for you as an investor, that mindset holds true for the majority of commercial properties and real estate developments that you would wish to pursue in the city.
Due to the strong dedication to building up infrastructure between these cities, many businesses, schools, and amenities in each city are frequently used by residents of each city. That means that instead of buying commercial properties that strictly service Kitchener residents, your investment may also attract people from Waterloo and Cambridge as well.
As a result, many of the key industries in Kitchener are shared if not explicitly linked to those in the surrounding communities.
Key Business Sectors in Kitchener Real Estate
Kitchener’s economy is largely centered around five key industries that help contribute to the city’s unique economic landscape. These key employment sectors are:
Advanced Manufacturing
The manufacturing industry has always been crucial to the economy in Kitchener and the greater Waterloo Region of Ontario. Currently, the region is home to over 49,000 people who work in the industry in Kitchener and the surrounding municipalities. This makes the region the fourth largest manufacturing hub in Canada.
Aerospace
While not located directly inside of Kitchener, the aerospace industry is a major employer for people in the city. With the Region of Waterloo International Airport – also known as the Kitchener/Waterloo Airport – located in the town of Breslau Ontario, many of the top aerospace jobs in the province are located in this city. In fact, the region is home to more than 85 aerospace businesses which employ more the 3200 residents.
Automotive
Kitchener is home to plenty of jobs in the automotive industry ranging from research and development to manufacturing. Employers in this sector range from independent startups to research institutions, to major automotive companies such as Toyota.
Food Processing in Kitchener
The food processing industry is alive in this region with an estimated 56 per cent more jobs in this sector located within Kitchener and the Waterloo Region than the national average. This equates to over 5700 jobs in this sector since the last study conducted in 2016.
Technology and Digital Media
With over 1500 tech businesses, Kitchener and the Waterloo region are becoming home to some of the largest players in Canada technological future. These businesses are quickly redefining how businesses and infrastructure are created and operated in Canada. The city also sits along the Innovation Corridor which spans to Toronto – a region characterized for its high volume of startups and tech companies.
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Oktoberfest and Beyond – Understanding Kitchener Tourism
On top of the year-round top employment sectors, there is another portion of Kitchener’s economy that plays a strong role in the commercial real estate market that you may want to consider when deciding how you would like to invest in the city – the tourism sector.
Kitchener’s tourism industry is full of a variety of events, festivals and cultural commemorations that take place throughout the year, but one of them stand notably above the rest – Oktoberfest.
This cultural event draws over 700,000 people into the city each year in order to commemorate the nine-day celebration. During the celebration and its festivities, local restaurants, breweries, short-term rentals, and entertainment venues are overflowing with visitors. In fact, Kitchener-Waterloo Oktoberfest is regarded as the largest Bavarian celebration in the world outside of Germany – making this event quite the important occasion for those who attend.
The Demand for New Housing
Much like most major Ontario cities, Kitchener has been going through a period of massive growth in recent years that has put a great deal of stress on the Kitchener real estate market. That means that in order to stay on top of the city’s needs, there is a great deal of new housing required in the coming years.
Currently the city has an estimated vacancy rate of two per cent, which is less than the recommended three to five per cent a city should strive to maintain.
As a result, developers are being incentivized to build large multifamily properties in order to add multiple units to the city’s housing supply while occupying a smaller footprint to discourage sprawl.
Kitchener Real Estate – Manufacturing the Future
Many of Kitchener’s key businesses are built upon the idea of building infrastructure and technology that reflects the future of Canada and moves things in a positive direction. This type of forward thinking is often conducive to successful investments.
So, if you want to take a shot and begin exploring the forward-focused Kitchener real estate market today, get started by getting the financing you need from our dedicated commercial team.
To get started today, simply visit us online at LendCity.ca or give us a call at 519-960-0370.
Kitchener Real Estate Professionals
Here is a list of trusted real estate professionals that serve the Kitchener real estate market.
Mortgage Brokers
LendCity Mortgages
If you want to book a free strategy call with our team at LendCity, click the link below.