Planning officials at the City of Toronto are looking into whether municipal policies should be changed to make it easier to convert office buildings into mixed-use or residential buildings.
Jason Thorne, the city’s chief planner and executive director, city planning, has been directed to meet with stakeholders for feedback on proposed adjustments.
Thorne and other city officials will prepare an analysis of the policies, standards and regulations related to replacing office space with co-living residential uses and housing and the results will be brought back by the April 10 meeting of the planning and housing committee.
The city’s current policy, which was adopted in 2013, states if office space is removed it must be replaced with an equivalent amount of office space, either on the site it was removed or from nearby. The requirement has been under appeal at the Ontario Land Tribunal.
An earlier analysis indicated reducing the replacement requirement from 100 to 25 per cent to allow other uses would still meet building objectives in light of projected office demand.
Last November, a report to the planning committee noted the City of Toronto is experiencing a prolonged housing crisis that has elevated pressures to add residential uses above existing office buildings, convert existing offices to residential, or demolish office buildings entirely.
The upcoming report will be timely as many developers are proposing to convert or demolish and rebuild office space into other uses such as affordable or senior’s housing, or purpose-built rental units. While the city is not expected to require new office space for the next decade, if not longer, an analysis forecasts demand will rise steadily between 2034 and 2050.
The analysis was prepared by Parcel Economics and Gladki Planning Associates in collaboration with the City of Toronto. The project consulting team included a range of external industry professionals active in the development and commercial real estate industries.
The result was a comprehensive needs assessment that looked at the anticipated short- and long-term needs for office space. The results are intended to inform future changes to the city’s Official Plan.
“In the face of what many continue to deem a housing crisis and simultaneously facing a major softening of the office market in Toronto, it is time for bold action,” the report authors stated. “The city should avoid indecision — or analysis paralysis — in an attempt to satisfy all stakeholders.”
In a letter to the planning and housing committee, Robert Barnard of a group called Toboggan Living Inc., which proposes repurposing office space into co-living communities, noted at least six vacant office buildings located in commercial residential zones could be converted.
“Converting these buildings would create affordable housing quickly; specifically 800 affordable co-living units with an expected move-in date of fall 2028 or earlier,” he stated.
Co-living can take many forms but generally refers to housing with independent, secure, furnished bedrooms and a range of shared facilities. They are widespread internationally but not in Canada.
The group says it is encouraged that the city may provide more flexibility in supporting innovative office conversion projects as they would increase housing supply and bring more people downtown.
Leigh McGrath, partner at Urban Strategies Inc., said in a letter to the planning committee that the office vacancy rate in Toronto is nearly 19 per cent yet potential housing units which could help alleviate the crisis are being deferred until office leasing justifies new construction containing replacement office space.
“We are encouraged by the increased flexibility that the city is contemplating,” he states. “This flexibility will be key in encouraging the supply of more housing units in desirable, high-density areas, helping to address the city’s acute housing crisis and managing the current vacancy issue.”
However, McGrath notes the design and planning consultancy has some concerns with a recommendation by city staff that obliges applicants seeking to redevelop sites that meet certain criteria and have existing office uses, to provide onsite replacement of any office space lost.
“This policy has been under appeal to the Ontario Land Tribunal by a number of landowners since its adoption,” he states, and mediation would occur with appellants in early 2025, resulting in a settlement that would result in new city-wide office replacement policies, but there has been no consultation with interested parties outside of the Official Plan Amendment (OPA) appeals process.
According to McGrath, the approach does not benefit from consultation with landowners who aren’t part of the appeal process but have an interest in more flexibility for office replacement policies.
He says a more appropriate solution would be to implement a new OPA through the usual council process, which would allow for appropriate consultation of all affected landowners and stakeholders.
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