It’s been widely talked about around Toronto that the number of residential condos in the city has increased dramatically over the past couple of years; and in fact last year that number surpassed the amount of condos touching the sky in New York. Now, Toronto once again outdoes NYC, or it’s about to anyway. Next year, the City of Toronto will also have more commercial space than The Big Apple.

It’s not because Toronto has so much commercial space available right now. Being the second largest financial centre in North America (this time coming behind New York,) Toronto does presently have a number of commercial property on the market. But last year there was very little change in the number of office spaces available; and this year the city will only add 100,000 square feet. A significant number yes, but not nearly the 916,000 New York is going to add this same year.

But Toronto’s time for commercial real estate is coming. A perfect storm of low interest rates, buyer interest, and a new influx of inventory will have Toronto’s commercial property doing next year, what the residential property market has been doing for some time.

“It’s expensive right now and this kind of office space should command a premium for the next few years until much more supply comes onto the market,” said Pierre Bergevin, chief executive officer of Cushman & Wakefield, when speaking about how the market is just on the cusp of opening up. “The Toronto market, let’s face it, is relatively closed.”

But that’s not going to be case for long. In 2014 the city is predicted to add 1.59 million square feet of triple-A office space alone. That will be more than what can be seen in NYC right now, but is still just behind Mexico City. Currently however, there are more high-rises under construction in Toronto, commercial and residential combined, than any other major city in the entire world.

What do you think about this huge boon in commercial property Toronto’s going to see in the next little while? Do you think it will be helpful to the local economy, or do you think it could predict an oversupply problem that the city is seeing right now within their residential market?

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