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Makes sense - I do know that typically development projects have to secure 70% purchase before going up (as required by the financing from the banks). I also heard that that number drops a bit with more reputable builders and goes up with smaller builders. I guess Pinnacle have secured enough buyers for both Lakeside and One Yonge.Nope, nothing that has gone in is necessarily final. That's not to say that it's a guarantee that none of the trees will stay, for example, but the final design is not dependent of keeping anything from what is being transferred to the City, including the drains.
Pinnacle's tower was sold during the period prior to the current slowdown. Pretty much anything going up now represents sales from three or four or more years ago. The development industry takes a while to respond to demand, as so much has to be lined up — financing, equipment, materials, workers — to put a big building up. Cranes are basically a delayed economic indicator.
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This is a pretty big project - and it seems like the rendering is not even final. Since there are more than usual unsold inventories in market, I guess they will wait a bit.
I am genuinely surprised that Pinnacle is so aggressive.
Most likely the reasoning for this is that larger developers can make up the difference of lack of sales whereas smaller developers can't I imagine that pinnacle and Concord have a lot more disposable profit to work with then for example skydevMakes sense - I do know that typically development projects have to secure 70% purchase before going up (as required by the financing from the banks). I also heard that that number drops a bit with more reputable builders and goes up with smaller builders. I guess Pinnacle have secured enough buyers for both Lakeside and One Yonge.
I guess they could, but the profit and operational model is completely different.or they pivot to rental
Great commentary on what shifting to rental looks like.I guess they could, but the profit and operational model is completely different.
Rental requires longer term profit model, and the unit will need to be operationally easy to maintain for the long run. I lived in a few rental condos (eg, Concert) before, and in comparison to the non-rental units, there are actually less problems in rental units but the finishes are not as high quality. Rental lobby also tends to be less luxurious as well, and more importantly, you need a rental office and more in-house staffing - rental volume has to justify these resources.
Anyways, all I am saying is that I don't see it being that simple to switch model halfway.
Quality of finishes has more to do with where the builder wants to position a building than it does the tenure (rental or condo). Developers that are determined to build a reputation on the quality of the finished product, whether it be that their name will forever be on a rental (so they can keep rents high for luxury product), or they want to be known as a high-end condo builder, will spend to whatever degree they care about their reputation...I guess they could, but the profit and operational model is completely different.
Rental requires longer term profit model, and the unit will need to be operationally easy to maintain for the long run. I lived in a few rental condos (eg, Concert) before, and in comparison to the non-rental units, there are actually less problems in rental units but the finishes are not as high quality. Rental lobby also tends to be less luxurious as well, and more importantly, you need a rental office and more in-house staffing - rental volume has to justify these resources.
Anyways, all I am saying is that I don't see it being that simple to switch model halfway.
Quality of finishes has more to do with where the builder wants to position a building than it does the tenure (rental or condo). Developers that are determined to build a reputation on the quality of the finished product, whether it be that their name will forever be on a rental (so they can keep rents high for luxury product), or they want to be known as a high-end condo builder, will spend to whatever degree they care about their reputation...
I am being impatient, not bored...so thanks, but no thanks.you could just ignore the discussion if it bores you
I was thinking today about how a long-term trade war would affect the budgeting and realisation of developments which are highly reliant upon use of building materials from American suppliers.Given the lacklustre condo market in GTA right now, I can't see any big projects starting anytime soon. We are in an official lull at the moment, the first since the 1990s and early 2000s. Like interchange mentioned earlier, the cranes and buildings under construction now are reflective of 3-5 years ago. The situation now is pretty crappy. I don't see any major condo or office towers launching in the next year or two, maybe longer. We have been spoiled with such an incredible building boom from 2007-2023.
