Hopefully, there will be significant increase to the current office space. It is disappointing that with the current raft of development proposals, there is a projected net loss of commercial office space at Y&E in 2020. Another forum member stated that the economics of office development north of Bloor currently does not add up.
Condo development alone at Y&E surely does not maximize the return on the LRT investment. What percentage of the future condo dwellers at Y&E will use the LRT on a regular basis? Surely the vast majority will get on the already crowded subway downtown, or drive to their offices in the 905.
It seems to me that the LRT investment has been used to push through changes to the planning code to allow otherwise unacceptable density levels at Y&E. The planning code could have been changed, and condos sold, without spending $5.3 billion on the Crosstown.
Has the time come to intervene? How about a temporary freeze on residential development within, say, 200 meters of the new Y&E crosstown station, and tax incentives for commercial development?
I think demand just isn't that high for new office space in the area, over the last few years the direct vacancy rate has crept upwards, with some mid-size tenants relocating to downtown, Thomas Cook vacated 75 Eglinton east all together (leaving about 80K worth of space left behind, or over 70% of the building), and the other buildings are all somewhere in the 5-20% vacancy range. Its now the worst downtown'ish office node in terms of total space available (12% 'ish I believe) ... do keep in mind when you hear quotes about the sub 5% vacancy rates downtown, that's the direct space available i.e. from the building's landlord, it doesn't count when a firm has left and is attempting to sub-lease a space.
I think this will only get worse going forward, a lot of forecasts show rents downtown can't keep climbing up with all the new space coming online, this makes downtown even more attractive for the mid-size clients around Y&E.
Its easy to have policies that force office development but its another matter entirely to fill them up (though policies can help here).
But I think that's fine, existing office stalk should be protected and if not, replaced, Menkes should be forced to do that ... 161 Eglinton Avenue East, which they'll demolish (~ 60K class B office building) ... but they develops have tricks, I'm sure they'll quote that building is now about 50% empty, that's true, but its been well known there's been development application on this lot for the last 7-8 years .. (a failed one at that earlier) ..
But yes, replace any space (and ideally upgrade) you remove, at a minimum, should be a policy ! The city generally pushes for this too ... I'd hope they'd do this at the much higher quality 1 Eglinoton East.
