Office occupancy rates in the downtown core are still 50% below pre-pandemic levels
Toronto city councillor Brad Bradford has put forward a motion requesting the city government to devise possible ways to convert unused office space into residential housing as soon as possible.
In his motion submitted to city council last week, Bradford said that it’s high time for policy makers to consider the necessary regulatory changes to accelerate the pace of conversion, especially since office occupancy rates in Toronto’s downtown core remain roughly 50% below pre-pandemic levels.
“While some employers are mandating a return to work, others are embracing hybrid and work from home policies,” Bradford said in his motion. “Given the changing nature of work and the ongoing housing crisis, it is time to reevaluate the need for office space.
“This will require that we ensure relief from guidelines and other rules that make it difficult to convert office floor plates into housing. This will also mean modernizing office replacement policies to unlock new housing supply and identify opportunities to secure affordable housing.”
Bradford said that while this might not be a one-size-fits-all solution, policy adoption of office conversions could work as “one of many tools we need to put in our housing tool kit.”
“I don't think, given the housing challenges that are in front of us today, we as a council or local government should be writing off any opportunities to deliver more housing supply in a market that desperately needs it,” he said in an interview with BNN Bloomberg.
Up to 34% of office buildings in 14 major North American markets could be potential candidates for office-to-residential conversions, according to Avison Young.https://t.co/17XVZuqJct#mortgagenews #alternativehousing #propertyinsights #housing
— Canadian Mortgage Professional Magazine (@CMPmagazine) April 28, 2023
Conversions are vital to any effective housing solution, says former deputy PM
Former deputy prime minister Sheila Copps recently said that the conversion of unused office spaces into housing units would be a vital component of any solution aiming to address the ongoing affordability and supply crisis.
“If you’re looking at high-density opportunities in downtown cores, it can’t just be new builds on new lots; it should also be for restorations and renovations,” Copps told BNN Bloomberg.
“All of the office space that is sitting vacant in malls and downtown cores across the country, why not have an office conversion attached to that, so you’re actually thinking outside the box [and] you’re fixing two problems for the price of one.”
The removal of the GST from rental builds should also be applied to other types of housing developments, Copps suggested.
“I think it needs to go further, and not just no GST for new builds – for rentals – but also for conversions and including conversion renovations,” she said.
