I’m not talking 10% above the next market, or even 100% above the next market. Toronto is more than 500% above the closest market (Seattle), and now accounts for more cranes than all of the USA combined! Not only that, we have one of the worst development environments ever, in terms of approval times, financing costs and availability of construction labour.
It’s a blessing and a curse. As anyone who works at our downtown office knows, construction of new office towers in the Core (e.g., CIBC Square 2) has put tremendous strain on traffic and commuting. And more high rises create pressure on aging infrastructure in terms of transit, electricity, water and power. At the same time, it’s a problem most cities would like to have – too much development.