With demand for Toronto’s assets showing no signs of slowing down, the city’s real estate sector must learn to explore the multiple possibilities in construction, especially in the realms of co-working space and higher-density housing.
Developers should also work to manage the multiple factors influencing tenant expectations, PwC stated earlier this month.
Among the most prominent of these forces is e-commerce. This is especially because an emerging expectation for same-day delivery among consumers is driving demand for large spaces situated near major habitation and transportation hubs.
According to PwC’s Emerging Trends in Real Estate published last month in collaboration with the Urban Land Institute, this trend will magnify the already strong demand for commercial spaces in the country’s hottest metropolitan markets.
Fortunately, “the rise of e-commerce doesn’t necessarily mean the end of the brick-and-mortar presence, and in fact retail remains an important solution to last-mile delivery,” PwC Canada national real estate leader Frank Magliocco stated.
PwC director of real estate research Andrew Warren noted that as a result, mixed developments will see a much increased presence in Toronto, largely due to the needs of those residing and working in the city.
Any new developments are likely to include amenities such as dedicated short-term rental space and package receiving rooms.
Population growth should convince developers to integrate co-living space and other alternative housing models, Warren added.
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