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Toronto is by far one of the most populated and fast-moving markets in Canada, and as a result, investors who are willing to work quickly and adapt their plans to the ever-shifting market are more likely to get the edge over their less-competitive counterparts who find themselves caught up trying to force another city’s strategies into this unique real estate environment.
However, this only creates room for creative investors to come in and make their strategies thrive in this unique and fast-paced environment.
So, if you are interested in learning how you can build you wealth using Toronto real estate, click the link below to book a free strategy call with our team at LendCity and we will help you connect to the best available Toronto real estate lenders.
Investing in Canada’s Largest City
Toronto Ontario is the largest city in Ontario as well as the rest of Canada by population. With a total municipal population of approximately 2,800,000 people, the city houses more than 7 per cent of the Canadian population within its limits.
Naturally, the massive population within the city of Toronto has created a level of housing demand that remains consistently high throughout the year. Thus making the Toronto real estate market one to be envied by investors who have not begun to explore it.
This massive population has created a natural need for countless businesses, commercial properties, and development opportunities in order to properly accommodate everyone.
As well, with the population of Toronto constantly growing, this demand is not expected to slow down any time soon – leaving plenty of room for new investments to enter the market.
A Business Hub
Due to its massive size and centralized location, Toronto real estate is a hub for businesses in Ontario. So, that makes it a natural choice for investors who want to invest in commercial and business real estate.
As the heart of both the Greater Toronto Area (GTA) and the Greater Golden Horseshoe (GGH), as well as the largest city in the country, many companies strive to establish their main office or satellite locations within the city in order to keep themselves at the heart of modern business. However, instead of buying their own buildings, it is incredibly common for these companies to rent floors in some of the larger office structures in the city in order to suit their needs.
So, by buying these properties or developing new ones with enough room to accommodate the companies who need them, investors can find great success through these commercial investments.
Ideally, to make these investments more reliable, you should make an agreement with an existing company to serve as an ‘anchor tenant’ – the company which both pays the largest rent for the best part of the property and attracts other renters to the property who want to benefit off of the close proximity to the anchor.
Discover How To Buy Commercial Real Estate With This Step By Step Guide
Key International Infrastructure
Toronto is home to the Toronto Pearson International Airport – the largest international airport in the country. This provides easy access to both international travel and international trade to businesses and investors in the region.
As a result, commercial tenants who need access to that international infrastructure will often be willing to pay a premium in order to be close to the airport in order to cut down on travel and transportation costs prior to paying for airport services.
Large-Scale Multifamily Investments
While cities with large and growing populations are naturally going to need large multifamily properties in order to properly accommodate the city’s residents without being forced into massive amounts of urban sprawl. However, more than any other Canadian city, the Toronto real estate market is in desperate need of new multifamily housing developments to suit its ever-growing domestic population.
In summer of 2022, Toronto’s vacancy rate hit a low of 1.4 per cent. While this meant that investors were not struggling for tenants, it did mean that the amount of room for people to move and for new residents to come into the city was significantly lower.
By 2030, it is estimated that Toronto will grow into a city of approximately 3.5 million people. However, the city does not currently have nearly enough housing to accommodate 700,000 new residents within the next seven years. So, the city is in need of developers who want to make large apartment complexes, condominiums, and housing developments so that the population growth is not stunted, nor does it force the local housing market beyond anyone’s affordability.
Finding Commercial Success in Toronto Real Estate and the Tourism Sector
Toronto is a hotspot for tourism in Ontario with a variety of things for people to do and see each year.
Not only is the city home to year-round attractions such as Ripley’s Aquarium, the CN Tower, and the Toronto Eaton Centre, but there are also seasonal attractions such as the Mirvish Theatre Season, local festivals, and events, as well as sporting attractions such as the Toronto Maple Leafs and the Toronto Blue Jays.
Toronto Real Estate – Succeeding in The Six
Since Toronto real estate is so unique, that also means that you will need to provide creative and unique solutions in order to achieve meaningful wealth and growth within the city. To do that, you will need to start with creative and adaptable financing solutions that accommodate not only to your investment strategy and the market as a whole, but also your existing portfolio in order to deliver the best results for your real estate investments.
That is why at LendCity our commercial lending team is dedicated to matching you up with the best lenders for your existing projects as well as upcoming investments all at once so that you can maintain the flexibility and reliability needed in order to thrive in complicated markets.
To book a consultation or apply online today, simply visit us at LendCity.ca or give our office a call at 519-960-0370
Toronto Real Estate Professionals
This is a list of trusted real estate professionals that service the Toronto real estate market.
Mortgage Brokers
LendCity Mortgages
If you are ready to learn how to finance and invest in Toronto real estate, click the link below for a free strategy call with our team at LendCity.