Last week we talked about not only residential vacancy rates but office vacancy rates being at an all-time low in Toronto as well, currently being at 2.6%. As promised, this week we are diving deeper into non-residential space developments in the downtown core of Toronto, including commercial and office spaces, hospital developments, etc. Though these massive developments can seem a bit overwhelming, it’s important to remember that the companies building and moving into to the downtown core are represents high-paying jobs which will be filled by the people who are going to live in your investment condos and pay the high rents.
The City of Toronto website, www.toronto.ca, provides a detailed list of all non-residential projects currently under construction and that are proposed in all of Toronto. Here are some examples of office spaces in pre-construction:
- Think Research (healthcare platform) : 460,000 square feet, 24 floors, 25 Ontario Street
- Shopify & Index Exchange : 1 million square feet, 38 floors, corner of Front and Spadina
- Scotiabank : 900,000 square feet, Bay and Adelaide
- Universal Music : 80,000 square feet, 5 floors, 80 Atlantic Avenue
- CIBC Square : 2.9 million square feet, 2 buildings, 49 floors & 50 floors, 81 & 141 Bay Street
- Ontario Teacher’s Pension Plan : 1.2 million square feet, 160 Front Street
- HSBC : 870,000 square feet, 33 floors, 16 York Street
- LCBO : 865,000 square feet, 25 floors, 55 Lake Shore Boulevard
There is currently 7.8 million square feet of office space under construction, 13 total projects, with a total of 15.9 million square feet of office space in the pre-construction phase, adding another 29 projects. $681 million going into retail construction in the city and another $180 million being spend on creative spaces which includes the revitalization of Massey Hall, and over $2 billion being invested in the expansion of current and new hospital facilities. It may seem overwhelming and like these millions of square feet being built and added to the community will flood the market. There will probably be a softness of lease rates 4 to 5 years in the future as these buildings get completed but we’re also going to be going towards a healthier, more stable and sustainable non-residential vacancy rate.
Invest In The Core
All of this happening in Toronto’s core, the centre of its universe. Where ever you decide to invest, it’s important to make sure it has easy access to downtown Toronto. Need help finding the right investment opportunity for you in Toronto? Send me an email at email@example.com or you can give me a call/text me at (416) 996-5181.We’ll work together to make your real estate dreams come true in helping you build generational wealth and financial freedom.