From Vacant Offices to Vibrant Living Spaces

A striking transformation is underway in Toronto as a notable office tower is set to become a flourishing rental community. Amexon Development Corporation is spearheading the conversion of a 15-storey commercial tower at 250 Ferrand Drive, strategically located near the bustling intersection of Eglinton Avenue East and Don Mills Road.

Dubbed the e-lofts project, this initiative promises modern loft-style living that prioritizes sustainability and connectivity, aiming to meet the evolving demands of urban residents.

Why Condos Aren't Cutting It Anymore

According to Murtaza Haider, Director of Research at the Urban Analytics Institute, the math behind condominiums just isn't adding up in Toronto. "The condo math isn’t working right now, but purpose-built rentals are still in demand," he asserts. Retrofits like this serve a dual purpose: tackling the high vacancy rates of older office spaces while alleviating the ongoing housing crisis driven by insufficient affordable options.

Haider notes that about 20% of the workforce is now working remotely, leading to decreased commercial demand for older office buildings, particularly those that aren't top-tier. However, he cautions that not every vacant office is suitable for residential conversion.

The Perfect Candidate for Conversion

"The floor plan is crucial, alongside the elevator locations, when determining if an office building can be converted," Haider explains. While a windowless office might be acceptable for daytime work, the same cannot be said for an apartment.

Fortunately for this project, the building at 250 Ferrand Drive has been deemed an excellent candidate for conversion. Designer Dan Menchions from II by IV Design highlights that they can create living spaces that leverage the building’s impressive structural features—like high ceilings and exposed concrete.

Learning from Calgary's Success

As Toronto embarks on this innovative project, there are lessons to be learned from Calgary, where office vacancies surged beyond 30% in 2023. Thanks to city incentives for conversions, this figure plummeted to approximately 23% in just a year.

Haider emphasizes that vacant office buildings are not just an eyesore; they represent a loss for landlords, municipalities, and residents alike, as they fail to generate revenue or taxes.

What’s Next for Toronto's e-Lofts?

While Amexon hasn’t released an official completion date for the e-lofts project, the ambitious plan is projected to yield over 300 rental units, breathing new life into a space previously reserved for corporate offices. Stay tuned—Toronto’s skyline is about to get a vibrant new addition!