You do not owe me an apology. I am pleased you read our research publication and consider it “good research”. I think I found it humorous because you offered to send out the publication rather than just link people to the same public site which you downloaded the publication from yourself. In hindsight, I am sure this was nothing more than you providing good service to your clients and readership.

We had an unprecedented amount of feedback with regard to this report and a number of our colleagues were less diplomatic than you regarding our findings. We also had a number of media inquiries which you were part of and it sparked a big exchange of information between Colliers and our clients. This sort of exchange is important and I will happily discuss our findings with anybody interest in listening. For me and Colliers as a whole, it is all about providing the highest quality research and uncommon knowledge, not anecdotal evidence.

Thanks again for your comments and your ongoing support.

-Ben

1. New buildings that were leased earlier this year are still not occupied.
2. Agfa and Open Text’s new buildings are adding vacant space to the market.
3. The space Agfa and Open Text are leaving will be vacant.
4. 609 Kumpf will be coming on line although this space counts as both vacant and available.

Good question.

Municipalities have the option to adopt separate tax rates for properties qualifying for New Construction. This optional tax class offers a lower tax rate compared to its Commercial or Industrial counterparts as its composite rate includes the education tax rate reductions set out by the Province. What seems unfair is fully renovated properties, such as brick and beam, are not eligible for this tax class.

The significant increases we’re seeing in Brick and Bream buildings are interpreted as mere market value increases by assessment and tax authorities. What’s not taken into account is the full transformation of the properties, often times from derelict end of life industrial product to chic open concept office and retail space – Virtual New Construction. The reason for this is the lack of a legislative mechanism by which the affected property can qualify as “New Construction”.

While the above may serve as an tax impediment to some properties, others may benefit by NOT qualifying New Construction as properties with incrased assessed values following renovation can continue to benefit from its original “Tax Capping” position.

Suffice it to say, affected property owners are well advised to consult a tax professional to evaluate the tax position and circumstances of each property and project in order to ensure taxes are minimized.

Have a great long weekend!

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