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| Table of Contents |
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| Welcome As we enter into 2012, changing economic, political and social trends are turning the apartment sector into an exciting place to develop and invest. This has been a long time in coming. Too much of our industry is based on stock built between 1950 and 1975, when rent control severely curtailed new apartment construction. Since then, we've dealt with real-estate speculation, a debt crisis, and a great shift of renters to home-ownership thanks to record breaking low interest rates... more |
| INTRODUTION |
| Ontario Outlook for 2012 In 2012, the Ontario purpose-built rental apartment industry is emerging from four decades of regulation into a far brighter future. The industry defied expectations and weathered the 2008 economic crisis, emerging with lower vacancies, higher average rents, low capitalization rates, and favourable social, economic and political factors... more |
| How to Prepare Your Building for Sale If you are looking to sell your apartment building, it goes without saying that you want to get the best price for it. By and large, the market determines the price of your building. If your building has been properly marketed and exposed long enough with a competent broker, that will net you the best price for your property... more |
| New Apartment Construction Toronto is the fifth largest city in North America, and it and the province of Ontario have approximately 25,000 apartment buildings. By population and market size alone, Ontario is a major player in the North American economy. And yet most of Ontario's apartment stock was built prior to 1975. Toronto has one of the oldest and most run-down rental apartment stock on the continent... more |
| CITY PROFILES - CITY OF TORONTO |
| Toronto (includes Old City and East York) When the five cities and one borough of Metropolitan Toronto were amalgamated into the City of Toronto in 1997, Toronto became not only the largest city in Canada but the fifth largest in North America. Toronto's more than quarter million apartment units are in heavy demand, making the city the centre of the Canadian apartment universe, with vacancy rates below 3% and dropping, and average rents ranging from $778 for bachelor apartments to $1346 for 3 bedrooms... more |
| North York After the Old City of Toronto, the former City of North York is the largest market for rental apartments in the Greater Toronto Area. Despite seeing most of its growth following the Second World War, unlike its surrounding neighbours, or even Etobicoke or Scarborough, the borough-turned-city invested heavily in high rise rental apartments. As a result, a total of 66,835 units can be found in North York's apartment universe as of October 2010, serving its population of 635,220... more |
| Scarborough With only 34,059 apartment units to its 602,575 people, the former City of Scarborough has the lowest concentration of apartments in the amalgamated City of Toronto (5.65 per 100 people). In spite of this, Scarborough has the lowest average rents of the city. Although these rents have been growing by an average of 0.91% per year, the provincial average has been catching up, such that in 2010, the average rent for an apartment in Scarborough was only $4.48 above the weighted provincial average... more |
| Etobicoke and York It's in the neighbourhoods of the old cities of Etobicoke and York where the bulk of the City of Toronto's apartment supply has grown in the past five years. Currently boasting 47,984 units (a concentration of 8.06 units per 100 people), these neighbourhoods have added supply in three of the past five years, with an average growth of 366 units per year... more |
| CITY PROFILES - GREATER TORONTO AREA |
| Oshawa The four regional municipalities surrounding the City of Toronto - Halton, Peel, York and Durham - have seen spectacular growth in the past fifty years. Until the 1960s, these former counties were primarily rural townships surrounding well established small towns. However, development spilled past the boundaries of Metropolitan Toronto, and managing that growth became the great challenge of the Province of Ontario, which created the regional municipalities in response... more |
| Pickering, Ajax, Whitby & Uxbridge With a combined population of 344,050, the cities of Pickering and Whitby, along with the town of Ajax and the township of Uxbridge in the Region of Durham have one of the lowest concentrations of apartments in the province, with only 4,346 units in the universe, or 1.26 apartments per 100 people... more |
| Markham The City of Markham, located at the City of Toronto's border in the southeastern corner of York Region, has seen rapid growth since the 1960s when Toronto's urban sprawl spread across its boundaries. In the past four years, Markham's population has grown by 14.7%, reaching 300,000 people... more |
| Vaughan/King/Richmond Hill Located north of the City of Toronto, the City of Vaughan, the Town of Richmond Hill and the Township of King have seen explosive growth from urban sprawl spilling across Toronto's boundaries. Vaughan's population has doubled in the past 20 years, to 239,000 people, making it the fastest growing municipality of Canada. Richmond Hill boasts 191,000 residents, a 17% increase in the past five years. Although the population of King Township is one-tenth that of Vaughan, it has been growing rapidly as well, with much of that growth concentrated in the urban centres of King City, Nobleton and Schomberg. The township expects the population of King City to double, reaching 12,000 by 2021... more |
| Northeast York Region (Newmarket & Aurora) The towns of Newmarket and Aurora are old settlements that were established over a century ago as development crept north from Toronto along Yonge Street. These centres became the core of post-war development as urban sprawl spread beyond Toronto's boundaries. Most of this development followed Yonge Street, although the arrival of Highway 404 and two northern GO trains have increased growth. As of 2010, Newmarket had a population of 74,295 and Aurora a population of 42,629... more |
| Barrie The City of Barrie, an established centre at the edge of the Greater Toronto Area. It is a regional centre for health, education, commerce, government and policing. Barrie has seen explosive growth since 1991. The city's population doubled between 1991 and 2006, where it now boasts 128,430. Between 2001 and 2006, the Barrie census metropolitan area was the fastest growing in Canada, outpacing Calgary, Edmonton, Toronto and Kitchener-Waterloo... more |
| Mississauga Located west of the amalgamated City of Toronto, the City of Mississauga is a mature suburban market of 734,000 residents and 26,997 apartment units (3.68 units per 100 people). This is below the provincial median, but above younger suburban municipalities like Brampton or Vaughan... more |
| Brampton Located north of Mississauga, the City of Brampton resembles its larger southern neighbour as it was ten years ago. Amalgamated by the province in 1974, it saw its rush of development come later, after more of Mississauga was developed. Its growth since 1990 has been rapid, however; between 2006 and 2011, Brampton has grown 16.4%. It is estimated that Brampton's population in 2011 is 504,900. Unlike Mississauga, it still has room to sprawl, but developable land is running out, and the city is planning to intensify... more |
| Oakville Oakville is one of the most exciting areas in Ontario in terms of development potential. After two decades of rapid growth, the city is consolidating its gains with a diversifying economy and a new regional development plan. Incomes in the city are already among the highest in Canada, unemployment is below the provincial average, and these trends are expected to continue for the foreseeable future... more |
| Milton/Halton Hills Located west of Mississauga and north of Oakville, the towns of Milton and Halton Hills have been primarily rural communities at the edge of Toronto's urban sprawl. This past decade, however, thanks to their strong transportation connections with the rest of the Greater Toronto Area, these two communities - Milton especially - have seen explosive growth. Milton's population in 2006 was set at 53,939, a 71.4% increase from 2001... more |
| CITY PROFILES - HAMILTON-NIAGARA |
| Hamilton The Hamilton-Niagara region contains the census metropolitan areas of Hamilton, St. Catharines-Niagara and Brantford. Lying at the western edge of the Greater Toronto Area, these CMAs contain well-established industrial and agricultural towns and cities. The area's natural beauty, particularly the Niagara Escarpment, have also helped to foster tourism. The age of these cities have served to increase their apartment stock, giving the whole area a good sized market of 57,285 units. It has also raised vacancies and kept rents low... more |
| St. Catharines The Region of Niagara, containing the cities of St. Catharines and Niagara Falls, have ridden a roller coaster ride of job growth and losses. Gains made in four out of the last six years have been offset by two particularly bad years in 2006 and 2009. Overall, the region has lost 300 jobs since 2005, but has seen employment grow by as much as 7,300 jobs in a year, and shrink by as much as 15,300... more |
| Niagara Falls In spite of its striking natural amenities (not just including the falls), in spite of its importance as a major power generator, and in spite of the government services that come from being a major crossing point between Canada and the United States, the City of Niagara Falls has not escaped the malaise that appears to have struck other border towns like Windsor or Cornwall... more |
| Burlington While much of the rental picture within the Hamilton CMA is cool, the City of Burlington - located northeast of Hamilton at the west end of the Greater Toronto Area - strongly bucks that trend. On every metric, Burlington outperforms its neighbours. Vacancy rates are half of what are to be found in Hamilton, and average rents are over $400 higher, well above the provincial average. Best of all, Burlington's apartment market is large and growing, boasting a respectable 7,960 units (4.68 units per 100 people, and an increase of 318 units over the past five years), well above the heated market available in neighbouring Oakville... more |
| Brantford The City of Brantford has come a long way from its troubled period in the 1990s when a severe downturn in the economy closed plants, raised unemployment, and caused a significant amount of decay within its downtown core. Although the 2008 recession raised unemployment again (employment has risen and fallen but overall remained static since 2009), investments in the education and services sector have breathed new life into Brantford's inner city. Its population in 2006 of 90,192 is an encouraging increase from its population in 1991 (81,997)... more |
| CITY PROFILES - EASTERN ONTARIO |
| Ottawa Eastern Ontario, stretching from Port Hope in the west to Algonquin Park in the north and the Quebec border in the east is, along with the Niagara region, the oldest settled area of Ontario. In spite of this, eastern Ontario is a very rural part of the province, featuring mostly small towns with small apartment markets... more |
| Kingston Located in eastern Ontario where Lake Ontario meets the St. Lawrence River, the City of Kingston isn't a large centre (city population of 117,207 in 2006; CMA population of 152,358). Its centuries' long history, including a period as the capital of the colony of Canada, gives it a downtown core steeped in heritage, and the challenge of re-inventing itself as economies change over time. Currently, the economy is heavily based on the education and government sectors, including a military base and training centre (Royal Military College), a major university, and a large corrections centre... more |
| Belleville Located halfway between Toronto and Kingston, the City of Belleville is a small urban centre of 48,821. An established centre with significant industrial development, especially in food processing, the town is able to boast strong household incomes ($61,100). Its history and early growth have built a moderate sized apartment market with 5,706 units in its universe, a high concentration of 11.68 apartments per 100 people. Although the majority of these units are in buildings of 20 units or smaller, there are at least 20 buildings of 50 units or more... more |
| Peterborough Located northeast of the Greater Toronto Area, the city of Peterborough has thus far avoided becoming a bedroom community serving Toronto's urban sprawl. However, its distance may have isolated it economically... more |
| CITY PROFILES - SOUTHWESTERN ONTARIO |
| Waterloo While southwestern Ontario is not as large an apartment market as the City of Toronto, nor does it have the runaway growth of the rest of the Greater Toronto Area, exciting things are happening here. Southwestern Ontario has emerged into the 21st century with a vibrant economy based on high-tech, biotech and other high-skill, high-return industries... more |
| Kitchener With 17,946 units in its universe (a concentration of 8.77 units per 100 people), the city of Kitchener's apartment market is larger and more concentrated than all of the other cites and townships in the region combined... more |
| Cambridge The City of Cambridge, with its 4,761 units in its apartment universe (3.96 units per 100 people, the lowest concentration in southwestern Ontario), has not had the benefits the City of Waterloo has had in heating up its apartment market. The city's nearest post-secondary institution, Conestoga College, is far from its three downtown cores. Cambridge's economy is heavily based on manufacturing, with carmaker Toyota being a major employer. As a result, the city has had to cope with the resulting economic downturn following the 2008 recession. Vacancy rates have reflected this trend. Starting at a region high of 3.3% in 2006, vacancy rates hit 5.6% in 2009, before falling back to 4.3%... more |
| Guelph The City of Guelph is a small urban centre located at the northwestern edge of the Greater Toronto Area. In 2006, its census metropolitan area had a population of 114,943, an increase of 8.26% over 2001. While it is far from jobs in the GTA, the city is seeing a growing number of commuters, and transportation connections are improving between the city and the GTA... more |
| London London is a significant urban centre in southwestern Ontario, the largest city between Hamilton and Detroit. Although recently overshadowed by the growth of Waterloo Region, London's population of 352,395 continues to grow at a rate of around 1% of year. It boasts a diverse economy based on skilled trades, health care, manufacturing and education. Its location at the junction of Highways 401 and 402 enhance the importance of the transportation sector on its economy... more |
| Article: Cherryhill Village Cherryhill Village is a large apartment community containing 13 high rise buildings and 2326 rental units, along with a medical building and a mall. On March 1, 2011, this community was purchased by the Minto Group from the locally founded ESAM Group in one of the largest single transactions in apartments in Canadian history. ROCK Advisors Inc., were brokers on the deal, bringing ESAM and Minto together... more |
| Windsor Windsor, an industrial city of 216,473 has had a difficult decade, losing over 12,000 jobs since 2006. The well-established apartment market of 14,651 units (6.77 units per 100 people) went into the 2008 recession with some of the highest vacancy rates in the province, and the downturn pushed vacancies to astonishing levels. By 2008, the vacancy rate for the whole census metropolitan area was 14.6%. Although very much a buyer's market, the high vacancy rates and dropping rents meant low rates of return for individuals who took the risk... more |
| Sarnia Like Windsor, Sarnia is a moderate-sized urban centre located on Canada's border with Michigan. A well-established town that still depends heavily on the petrochemical industry, Sarnia has had its problems in the past, but has managed to avoid the economic doldrums that has afflicted its larger sister city. It boasts a sizable apartment market of 5,434 units - mostly in small buildings of 50 units or less - which translates to a concentration of 7.6 units per 100 people... more |
| CITY PROFILES - NORTHERN ONTARIO |
| Sudbury Northern Ontario is often forgotten when investors outside the resource sector look at Ontario. The cities are small, and the area has a reputation for volatility that comes with resource-based economies. The apartment industry is no different, with more attention paid to the heated centres in the south than the cold prospects of the north... more |
| North Bay The city of North Bay, in the southeastern corner of northern Ontario, may be a surprising location for a hot apartment market. This city of 53,966, established in 1895, has grown up on the shores of Lake Nippissing, initially in service of northerly expanding railways and growing rich from the mining of silver in Cobalt... more |
| Sault Ste. Marie Located where Lake Superior meets Lake Huron, Sault Ste. Marie is a city of 74,948 people and the third largest city in northern Ontario. Since its incorporation in 1888, the city has grown around transportation, trade and steel making, thanks to its place on the St. Lawrence Seaway and its border crossing with Sault Ste. Marie, Michigan... more |
| Thunder Bay A well-established industrial city on the shores of Lake Ontario, Thunder Bay boasts a population of 109,140 (122,907 in its CMA), making it the second largest city in northern Ontario. Since the 1850s, the city has grown as a transportation centre, a vital link between the St. Lawrence Seaway and western Canada, and a major industrial centre in its own right, manufacturing subway cars and forest products. Thunder Bay boomed up to the 1960s, but then a shift in shipping from rail to roads diminished the city's importance as a port... more |
| EPILOGUE |
| Student Housing There has never been a better time to invest in student rental housing in Ontario. The market is booming in many centres in this province, resulting in big transactions and new construction... more |
| How to minimize your income taxes Taxes are a critical issue when it comes to selling your property, but it is one that most building owners rarely consider until it comes time to sell. This can cause some difficulties when trying to make a deal and agree on a fair price, so owners should consider the tax implications of a sale of their real estate long before they decide its time to sell... more |
| Buy-side Brokerage In the apartment marketplace, a brokerage method popular in Europe is gaining traction in Canada, connecting interested investors with willing owners. Buy-Side Brokerage is changing the way apartments are sold in Canada and easing the difficult process of buying and selling properties for both the buyer and seller alike... more |
