Real estate developers say regulations are holding back efforts to convert empty Toronto office buildings into much-needed housing – but some candidates in the ongoing mayoral election, as well as the city itself, appear open to discussing policy changes.
The idea of converting office spaces into residential units picked up steam since the pandemic-induced shift to hybrid work. Recent reports suggest office occupancy rates in Canada may not bounce back to pre-2020 levels given the rise of hybrid work, andBut as it stands, office space in downtown Toronto neighbourhoods must be replaced if it is removed, creating a major barrier for such projects to move ahead in Canada’s largest city.
Hullmark already has several office properties, themselves conversions from old industrial buildings, which Hull said might work as residential buildings. The company has also looked at buying some other office properties to convert, Hull said, but regulations such as the office replacement rule have stopped them from taking the plunge.
Market dynamics can also help make the economic case for conversions, Render noted. In Toronto, where rents are particularly high, he said the math might work out for more developers to jump in to the space.Still, rules barring the removal of commercial office space are a major barrier, Render noted. But with housing a major mayoral election issue and growing developer interest, he predicts conversions will eventually take off in the city.
Matthew Kingston, executive vice-president of development and construction at H&R REIT, the company behind the proposed project, said talks are ongoing with the city to “find common ground” when it comes to the office retention policy. . If elected, Bradford said he would eliminate the rule requiring office spaces be replaced foot-for-foot if the proposed development includes 20 per cent affordable housing.
Olivia Chow’s campaign said she is “open to exploring how we can animate unused office buildings, including converting some to housing and other uses, but it should be part of the broader conversation on how best the city can support recovery in Toronto’s downtown core,” among other models.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CNN CEO Chris Licht steps down after tumultuous tenure - BNN BloombergCNN Chief Executive Officer Chris Licht has stepped down from the cable news channel after a brief and tumultuous year at the company.
Read more »
Freeland tries to calm 'anxious' Canadians after fresh rate hike - BNN BloombergFinance Minister Chrystia Freeland tried to reassure Canadians that the economy is still headed for calmer times after the central bank unexpectedly resumed raising interest rates.
Read more »
Statistics Canada reports merchandise trade surplus rose to $1.9B in April - BNN BloombergStatistics Canada say the country's merchandise trade surplus increased to $1.9 billion in April, helped by higher exports of gold, oil and cars and light trucks.
Read more »
Governments should be bracing for a recession with interest rates elevated: John Manley - BNN BloombergAs the Bank of Canada resumed its cycle of interest rate hikes, a former federal finance minister said governments should be looking for policy options to help guide Canada to a “soft landing” with the possibility of a downturn ahead.
Read more »
Canada's surprise hike exposes global struggle to find endpoint for rates - BNN BloombergThe Bank of Canada’s decision to resume raising interest rates shook global bond markets and underscored the difficult task faced by central banks as they try to slow economic activity and tamp down inflation.
Read more »
What mortgage owners need to know about the Bank of Canada's rate hike - BNN BloombergThe Bank of Canada’s surprise decision to raise interest rates will bring about higher mortgage costs, according to experts.
Read more »