The Value of Investing in Canadian Downtowns - International ...

Office Development
Downtown Toronto has had a stable portion of the City of Toronto’s office space over the past decade at just over
50%. The 1995 decision to “deregulate” zoning in the industrial areas adjacent to the financial core (“The Kings”) has
had a dramatic impact, adding 18,000 square feet of office space. Moreover, the current office and commercial
market in downtown Toronto has continued to be relatively strong with 977,000m 2 of non-residential development
proposed between June 2006 and December 2010. 9
More specifically, in 2011 the downtown attracted 18% of
non - residential construction value across the City. While
the core did not attract any significant non-residential
projects during that year, it did receive significant
investments in building additions and alterations (21% of
construction value citywide) (refer to graph ‘Portion of
Downtown Development 2011 - % Construction Value’).
This re-investment is critical, as it reflects commitment to
upgrading existing office space downtown to increase
availability of Class A or AAA stock.
Approximately ten office proposals for downtown Toronto are in the works. Interviewees linked this proposed surge
in office growth to the talented labour force that is moving downtown (a young, multicultural and well educated
demographic). Interviewees also discussed the benefits stemming from dramatic increase in 5 star hotels in the core,
which was also seen as a very positive economic sign for downtown.
New Towers in Downtown Toronto – 2005-2010
Left: Downtown Toronto is attracting many new high rise
towers, particularly in the south western quadrant of the
core.
Data provided by David Topping from
http://www.thegridto.com/life/real-estate/toronto-highriseconstruction-map/
Right: Downtown Toronto is attracting a high portion of
citywide growth. More specifically between 2001 and 2011
the core (on average) attracted a quarter (24%) of citywide
construction value.
9
Ibid.
88