Quote:
Originally Posted by mhays
Those factors are true in many cities though, even if transit is a disproportionately-large factor in Toronto. Young talent strongly prefers a good urban core, the best transit heads Downtown, etc.
If Colliers' Q2 inventory data is an indication (always with a grain of salt), less than half of the area office space was in Downtown and Midtown. That's also common.
So over half is in non-core locations. And it doesn't see to cluster around train stations like residential does. I'm sure your reasons are factors, but it seems like there might be something further.
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I don't think anything you said contradicts my post. We're looking at two different periods of office development in the city. The majority of the non-core inventory is in the old suburban parks around the airport, Meadowvale, Scarborough, etc. which were all designed with car commuting in mind. TOD was barely a concept when they were being built, and so it wasn't like they were intentionally avoiding transit clusters.
In the time that TOD has become a widely publicized policy goal, the focus has dramatically shifted towards working downtown. The attraction of TOD for end users in Toronto is being able to walk to a train that takes them to their downtown office. The idea that a company will move next to a GO train station in Brampton and they will be able to take transit to work there isn't even a consideration.
We had an asset in Mississauga we were trying to pitch as a suburban TOD office redevelopment play and got no traction for 4 months. Ended up having to convert it to a small-bay industrial site given how insane the industrial market is here. The problem is that the exodus from the burbs has left massive vacancies in all the aforementioned submarkets, and there's a lot of landlords with decent quality space that will undercut the rents you need to make a new, high-quality office development feasible. TOD sounds nice, but not an additional $20 per SF nice.