A building boom in Toronto is fuelling optimism for a strong 2013 in construction, says an annual survey conducted by the Ontario Construction Secretariat (OCS).

Downtown Toronto has been a hot spot for construction activity in recent years and every indication is that the trend will continue for the foreseeable future. According to the annual contractors’ survey conducted by Ipsos-Reid for the OCS, feelings of optimism were strongest among those who work in the Greater Toronto Area (GTA).

“Toronto is most certainly the hot spot for a strong economic outlook,” says Katherine Jacobs, director of research and operations with the OCS. “We are seeing a definite trend of companies that a decade ago were moving to the suburbs coming back to the downtown core. Why? Because that is what their workers are looking for. The up-and-coming generation of workers want to live and work in downtown Toronto.”

Jacobs presented the findings of the OCS survey at the 13th annual State of the Industry and Outlook Conference. The results of the survey are summarized in the Construction Barometer, which gauges contractors’ perceptions of business conditions over the next 12 months. Measured on a scale of zero to 100, a reading above 50 indicates the amount contractors who expect to conduct more business in the coming year is greater than those who do not. The larger the gap above 50, the greater the level of optimism.

This year’s barometer checked in at 60, up three points from 2012. In the GTA, the barometer reading was 64.

Downtown Toronto has recently seen the completion of six new office buildings, all of which are at capacity. Eight more are under construction and have seen significant leasing interest, and at least 15 more are actively marketing pre-lease opportunities. This is on top of developments related to the Pan-Am Games, the potential for a new casino, regular infrastructure upgrades and the possibility of a bid for Expo 2025.

“The City of Toronto is certainly the centre of activity,” says Jacobs. “In addition to the commercial activity, there has also been a significant amount of hospital construction that will continue for the next few years. There is also a huge emphasis on transit. If we are building all of these offices in downtown Toronto, we have to make sure we are also building ways for people to get to them.”