The City is undertaking a study to analyze current office market conditions, understand the benefits and risks of converting office space to alternative uses, and explore policy options that would balance office needs in the short-term and long-term, while ensuring the City’s economic role remains competitive and resilient.
Phase one of the study is now complete and is summarized in the AODA accessible copy of the Office Space Needs Study Background Report Executive Summary. If you have questions or comments regarding the Background Report Executive Summary please contact Carola Perez-Book or Rory McNeil.
Phase Two of the study includes further stakeholder and public consultation, projections, financial feasibility analysis and policy options.
Increasing office vacancies is a trend impacting large cities across North America as companies adjust to hybrid work following the COVID-19 Pandemic. These challenges have prompted several municipalities to introduce interventions, including financial support for businesses, cultural events, promotion and marketing, infrastructure investments, and enabling office-to-housing conversions.
Concurrently, Toronto is experiencing a prolonged housing crisis that has elevated pressures for residential intensification. In part, this increased pressure has led to development applications that propose to add residential uses above existing office buildings, convert office to residential uses, or demolish office buildings entirely. The loss of office space is typically a permanent outcome that cannot be reversed later if market conditions change. Considering Toronto’s important economic role as Canada’s largest concentration of office employment and corporate headquarters, any resulting policy decision should be informed by comprehensive analysis.
The Office Space Needs Study will include an office market analysis, weigh the benefits and risks of office space conversion, and explore policy options that balance office needs in the short-term and long-term.
A consultant has been retained to support the Study which will be conducted in two phases over an 11-month period.
The Study directions will be summarized with applicable policy and program recommendations by City staff in a report to Council.
The City tracks key social and economic indicators including office vacancies reported via Toronto’s Dashboard.
The Executive Summary of the Background Report is available. If you would like to review the full Background Report please contact Carola Perez-Book or Rory McNeil.
At it’s meeting on February 6, 2024 City Council requested City Planning and Economic Development and Culture to explore opportunities to provide financial incentives, policies and other options to support the conversion or adaptation of vacant office space into other non-residential employment uses, including the potential to utilize as a funding source for such efforts savings from lower than forecast Tax Increment Equivalent Grants payments to office developments covered by an Imagination, Manufacturing, Innovation and Technology (IMIT) Program Financial Incentive Agreement experiencing high vacancy rates. More information can be found in EX11.6.
At it’s meeting on November 8, 2022 City Council requested City Planning and Economic Development and Culture to study potential conversion of office space across the City into new housing, consider what zoning and other regulatory or policy relief may be required to enable economically-viable office conversions and evaluate the feasibility of requiring the provision of affordable housing in lieu of the replacement of office space. More information regarding the motion can be found in PH7.9.
Meeting information, registration details and other engagement opportunities will be posted here when available.
Stakeholder research interviews were held to solicit direct, on-the-ground feedback from local property and asset managers, the development community and other groups involved in the commercial real estate sector. A summary of key themes resulting from the interviews can be found in the Office Space Needs Study Background Report.
Register for our virtual Community Consultation Meeting on May 15 at 6:30 p.m. to hear our plan for office to residential and non-residential conversions and join the conversion conversation. The study team will be presenting:
The Office Space Needs Study will include consultation in a variety of forms over the course of the study. Please contact Rory McNeil with any questions or comments.