Oxford Properties bets really big on Toronto/GTA market’s potential for future growth

Toronto is one of the biggest and most developed real estate markets in Canada and in fact, the Greater Toronto Area (GTA) is one of the few zones which have successfully defied the overall slump in the housing market.

A key reason behind this is the growth of the industrial, commercial and office space segments due to renewed demand, particularly from tech giants and mega corporations. Oxford Properties is one of the leading real estate developers in this zone and is betting really big on the GTA/Toronto to fuel future growth prospects. OMERS (Ontario Municipal Employees Retirement System), one of the biggest pension plans in the country, already has 27 projects in the GTA which will be adding value of an added $10 billion as per reports. The portfolio for Oxford Properties has already witnessed a whopping 110% of growth in the GTA over the last 10 years and the value has touched close to $17 billion as per company officials.

Oxford Properties bets hugely on the entire GTA and Toronto stretch for future growth

The company has 7 projects being built while another 20 projects are in the pipeline as per senior officials. The company’s biggest portfolio is housed in the Greater Toronto Area (GTA) and it has plans to scale up even further.

The company believes in the excellent growth opportunities created by Toronto over the years and is also firm on the fact that this should continue in the near future.

Mega projects to transform Toronto

Union Park will be the biggest mixed-use development in the history of Toronto once it is finished. This project has four towers spanning 4.3 million sq. ft. of saleable area including 3.3 million sq. ft. of office space and 800 residential housing units as per estimates in tandem with retail space of 200,000 sq. ft. and food and beverage outlets. 3 acres will be earmarked for public space and the entire development is valued at roughly $3.5 billion. Oxford Properties is of the opinion that Union Park will spur swifter evolution of Toronto.

The office space portion of this development will have towers of 48 and 58 storeys. These two towers will be accompanied by two residential towers of 44 and 54 storeys respectively. Post the receipt of all key approvals, construction will start from sometime in 2023 as per reports.

The Hub is another major project at 30 Bay Street in the prime downtown Toronto stretch. This project will go up to 60 storeys, offering a whopping 1.4 million sq. ft. of office space as per reports. The building will be named after the location’s closeness to the Toronto Harbour and the Union Station transport hub along with Bay Street. Oxford Properties has already confirmed that the design of this mega tower will have aspects of the famous Historic Commission Building integrated (this is already located at the project site).

Other expansions

Oxford Properties has diversified into several segments from initially focusing more on office spaces and commercial project. 37% of its overall assets in the Greater Toronto Area (GTA) comprise of office space projects while 48% covers retail projects. 7% involves residential projects while 6% covers industrial offerings. The office space portfolio has witnessed steady growth of 54% over a period of 5 years and the retail space tally has seen an increase of close to 60% as per the company’s official statements and records.

The company is investing in the industrial sector in the region as well, buoyed by new demand coming from e-commerce and retail sectors. Additionally, multi-family is another category where the company is considering several projects. The company already has the TD Canada Trust Tower (161 Bay Street), Richmond-Adelaide Center, Royal Bank Plaza (200 Bay Street), Yorkdale Shopping Center and RBC WaterPark Place under its belt.

It is building the Park Hyatt mixed-use redevelopment project at the moment along with the 85 Richmond project for redevelopment and the expansion of the Square One shopping center in Mississauga, one of the GTA’s most important cities. All in all, Toronto remains one of the country’s biggest economic growth drivers and Oxford Properties forecasts steady demand for residential and commercial segments alike over the next few years, driven by higher employment, economic growth and development of better infrastructure. The company is increasing its portfolio in the city and surrounding regions of the GTA and the population growth and high levels of migration will keep demand at higher levels as per its experts. The company functions as a fiduciary on the behalf of OMERS.