The Office Space Needs Study was initiated to analyze 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.
The consultant’s final report on the office study was completed on November 18, 2024 and is summarized in the Executive Summary of the Needs Assessment & Policy Options report.
Through CC35.17 in December 2025, City Council authorized City staff to work with applicants to negotiate office replacement on a site-by-site basis using the proposed policy direction endorsed by Planning and Housing Committee through PH14.9 and PH17.13. Those policy directions:
If you have any questions or comments, please contact Rory McNeil.
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 was retained to support the Study which was conducted in three phases.
The City tracks key social and economic indicators including office vacancies reported via Toronto’s Dashboard.
At its meeting on December 16, 2025, City Council authorized the City Solicitor and appropriate City staff to work with applicants to negotiate office replacement on a site-by-site basis using the proposed policy direction endorsed by Planning and Housing Committee through PH14.9 and PH17.13, given that mediation through Official Plan Amendment 231 has been paused. More information can be found in CC35.17.
At its meeting on December 5, 2024, Planning and Housing Committee requested the City Solicitor to report back on implementation through revisions to office replacement policies by way of resolving the outstanding appeals to OPA 231. Planning and Housing Committee also requested staff to hold a meeting with interested stakeholders and conduct an analysis on replacing office space with co-living residential housing. More information can be found in PH17.13.
The Executive Summary of the consultant’s final report, titled “Needs Assessment & Policy Options,” is now available. If you would like to review the full Needs Assessment & Policy Options report, please contact Rory McNeil.
At its meeting on July 11, 2024, Planning and Housing Committee endorsed the proposed policy directions outlined in PH14.9 and requested City Planning to undertake further analysis and consultation on office replacement. A final report is expected in the fourth quarter of 2024.
The Executive Summary of the Background Report is now available. If you would like to review the full Background Report please contact 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.
The City approached OPA 231 appellants and issued the attached notice to owners of office buildings in the Downtown Plan and Yonge-Eglinton Secondary Plan Areas inviting them to express an interest in participating in further discussions regarding revised policies regardless of whether they were an appellant or party in OPA 231 litigation at the OLT. Three days of mediation were held in October 2025 with a resulting City Solicitor Report to City Council in December 2025. More information can be found in CC35.17.
Research interviews with purpose-built-rental and affordable housing industry stakeholders were held to solicit information on the challenges associated with office conversions to rental housing, the potential for affordable housing within purpose-built-rental development, and the set of incentives and funding options available for purpose-built-rental and affordable housing development. A summary of key themes resulting from the interviews can be found in staff’s report to December 5, 2024 Planning and Housing Committee.
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.
Stakeholder Consultation was held on May 14 where the study team met with local property and asset managers, the development community and other groups involved in the commercial real estate sector to discuss the preliminary findings of the Study.
Community Consultation was held on May 15 to discuss the preliminary findings of the Study with the community and solicit feedback. The study team presented:
Please contact Rory McNeil for a copy of the Community Consultation presentation material.
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.