City of Toronto
Vacancies: 1.4% ↓
Rents: $1,360 ↑
If You Can Buy Here, You Can Buy Anywhere
(except perhaps Vancouver)
When the five cities and one borough of Metropolitan Toronto were amalgamated into the City of Toronto in 1997, Toronto became not only the largest city in Canada but the fifth largest in North America.
The city’s apartment market is concentrated in the neighbourhoods that make up the old City of Toronto, the Borough of East York and the City of North York. While the cities of Etobicoke, Scarborough and York are below the city’s average apartment-to-person ratio, they too have a good base of over 82,000 units between them. Average rents remain above the provincial average, but the differences of the pre-amalgamated city remain. With sixty-two daily language papers, Toronto has to be seen as a city of neighbourhoods and ethnic diversity. Investments require careful segmentation of the city’s various communities.
The amalgamated City of Toronto is in the midst of a building boom and a heated housing market. New condominium towers are rising throughout the downtown and the rest of the city, with housing prices increasing sharply. The city is in the midst of building major new transportation infrastructure in the form of the Spadina subway extension and the Eglinton-Crosstown LRT. These factors should drive further intensification and the construction of additional rental apartment supply and an increase in demand.Old Toronto Market Still the Biggest, With Biggest Opportunities for Growth
The neighbourhoods comprising the pre-amalgamation City of Toronto and the Borough of East York represent the largest established market of rental apartments in the province of Ontario, second only to the Island of Montreal as the largest market in Canada.
In the early 1990s, the old City of Toronto faced problems of job losses and increased poverty as the city’s manufacturing base shut down. However, these losses have been replaced by the service sector and high-tech jobs, and depressed neighbourhoods around the city’s downtown core have revitalised from the influx of workers and new residents. The amalgamated City of Toronto has identified thirteen priority neighbourhoods where poverty and urban decay are a concern, but only one of those (Crescent Town, in southeast East York) is found in the old City of Toronto or the Borough of East York. Once undesirable neighbourhoods like Liberty Village and West Queen West are now fashionable places to live and work.
The increase in jobs and development in and around the core has raised housing prices such that renters have found it uneconomical to buy a mortgage. The factors that have drawn people to these neighbourhoods have increased demand for rental units, which will push down vacancy rates and push up rents. New supply may materialise in the Portlands and the east Waterfront, but they’ll likely be snapped up as quickly as they’re put on the market.
- The best market in Toronto is midtown (Yonge-Eglinton and Yonge-St. Clair), but you’ll pay for it.
- Deep pockets required throughout the whole district.
- Given prices, it may be best to reposition current buildings rather than buying new ones.
- Underlying land values could exceed buildings’ revenues.
- Excess density is extremely valuable, allowing possibly tearing down stock and building larger in the same footprint.
- Co-op and condominium status highly sought after.
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Global Director Buildings
Mansoor Kazerouni is an Architect with over 27 years of experience and a significant portfolio of projects completed or underway across Canada, the United States, the UAE, Jordan and India. These include high density high-rise residential buildings, hotels, office, retail, institutional, and complex urban mixed-use developments. A number of these projects have been nominated for and received Urban Design and Architectural Design awards.
Mr. Kazerouni is the Global Director of Architecture at IBI Group, leading a team of over 1,400 Architects, designers and Engineers located in 60 offices worldwide.
Mr. Kazerouni has been a guest lecturer on the subject of architecture and mixed-use design at universities, conferences and various panels. He has also been interviewed on the subject by newspapers, architectural publications, television and other media.
Mr. Kazerouni's abilities and expertise in his field have been recognized by his appointment to the City of Mississauga's Urban Design Advisory Panel, the City of Markham’s Urban Design Advisory Panel and the City of Vaughan's Urban Design Advisory Panel. He is also a past Advisory Board Member of the Urban Land Institute, a member of the Ontario Association of Architects, the Alberta Association of Architects, the Nova Scotia Association of Architects, the Architects Licensing Board of Newfoundland and Labrador, and a member of the Royal Architectural Institute of Canada. He has testified as an expert witness at the Ontario Municipal Board and at Arbitration Hearings related to development sites.
Darryl McCullough CCIM SEC
Broker - Royal LePage Lakes of Muskoka Realty Inc., Brokerage
President - Crescent Equity Management Inc.
Since 1972, I have been given the opportunity to interact with seasoned partners and clients in structuring and organizing both simple and complex real estate transactions involving acquisition, disposition, finance, and consulting in Canada and throughout the United States. It has trained me to bring a unique, personal client-centered approach to each assignment, from simple to complex transactions and the diverse clientele who own them.
In 1984 I received the Certified Commercial Investment Member, CCIM, designation (www.ccim.com); an internationally recognized identity confirming amortized knowledge in the disciplines of investment, development etc.
Another prominent membership I thankfully am able to continue holding is with the U.S. based Society of Exchanges Counselors (www.secounselors.com). This organization shares my belief in pursuing and demonstrating problem solving techniques in the real estate industry based on proven principles of integrity, professionalism, and accountability. Through this organization I continue to dedicate myself to what is true in the discipline of real estate problem solving.
Technology coupled with a learned research and analytical skill set now allows me to carry out these functions with selected projects from my adopted Muskoka home.
I continue to maintain an ever changing “student” learning status not only related to the physical asset, but equal or more importantly, drawing out corporate/personal situations and objectives and then knitting together ultimate benefit packages based on creative solutions via time honoured formulas.