St. Thomas Developments is trying to capitalize on the condo craze in Toronto, by now offering units for sale for commercial activities.
At a project just launched in Toronto’s Yorkville District the developer is actively selling commercial space at an average cost of $830 per square foot, with unit sizes ranging from 600 square feet to 1800 square feet.
The selling pitch is familiar to those in the residential condominium world – it is cheaper to own than to rent.
Will it catch on ? Obviously too soon to tell. Yes, the Toronto commercial vacancy space has been decreasing over the years and companies are now focusing their activities in the core of the City due to the influx into the area of a young, strong, educated labour pool, which is filling the residential condominiums being built.
Just some random thoughts …
So far in Toronto the market for office condos has been very limited. I actually cannot find any real success stories. Interested parties seem to be concerned about the lack of flexibility is the size of the space.
At the prices being quoted a business is tying up a lot of it’s capital in the purchase and drastically limiting the ability to expand if and when needed.
When the premises need to be sold, for whatever reason, the sale period may be quite long due to the lack of significant demand.
Completion of the building is scheduled for the fall of 2014 so time will tell.
