Although it is never easy to predict the future, what we can safely predict is that its direction – especially when it comes to development trends — will be strongly influenced by the younger generation. As we find a little more direction in our careers and are starting to put down roots, many of us are starting to buy our first places, and accessibility to the vibrancy of the city centre where most of us work and play is a key issue. As such, questions regarding this newly realized power of influence and how it will play out in the context of development in the GTA were tackled by a panel of five experts at a Young Leaders Workshop, where topics such as workplace, transportation, sustainability and others drove the discussion.

Workplace drivers
“Employers are going to look where their workforce are living. This is why we have and continue to see opportunities for office development,” explained Steven Diamond, president of Diamond Corp., stressing the importance of mixed use as the answer to making the downtown core healthier than it’s been. This sentiment was echoed by Robert Glover, partner at Bousfields Inc., who pointed out that Toronto has been incredibly successful with mixed use developments. “Older neighbourhoods are based on a system of monoculture and now we see them struggling to thrive,” he said. From a planning perspective, Lorna Day, Urban Design Manager with the City of Toronto Planning department, explained that there exists a strong policy context to create a full range of living experiences in each neighbourhood.

Get a move on
As we all know, getting around a city can be a challenge that involves balancing public transit and driving. Stephen Wong, chairman and CEO of Living Group of Companies,
said that we are seeing the city relax on underground parking ratios, partly because young homeowners are already facing high mortgage payments and can’t afford parking, but mostly because many just don’t need it. Greater reliance on public transit, however, means the city’s current public transportation system needs a step up in service. Glover was quick to point out that currently, the GTA does not have enough transit and is struggling in its efforts to maintain a transit system capable of serving the infrastructure of the city. “The Official Plan was progressive for its time, but hasn’t been as supportive of concurrent transit expansion and intensification,” he said. “There is still a lot of space in the city for supportive transit that hasn’t been taken advantage of. If the city builds new transit lines, they need to be serious about new development with appropriate intensification.”

Diamond agreed, saying that it’s frustrating that in the 1950s Toronto had one of the first subway systems in the world, but since then has lost its way and been left with a disconnected transit system. However, with subway construction costing $1 billion per kilometre, where does the money come from? According to Wong, what we need is private money acquired by selling off city-owned land above potential subway lines to fund expansion. Adding a caveat to this point, Brennan Carroll, partner at BLG LLP, stressed it’s not only about the money, but the process too. Having been involved in a failed LRT project with the City of Ottawa, he believes politicians need to be aware of all of the players involved in transit planning and they need to bring a bit of certainty to a project.

Getting to green
Although still an oft-debated development topic, it seems the years of speculation as to whether or not issues of sustainability would persist as it relates to development have ended and we’re ready to agree it’s here to stay. Yet Wong cautioned the audience to take heed when it comes to what qualifies as ‘green.’ “A lot of development claims to be green and sustainable, but we are still in the early stages of defining what is and is not,” he said, adding that in this respect, better governmental guidelines and policies are needed for clarification. Carroll said that to get a truly green building, “a one-tenant building is required and one that cares more about the image of being sustainable than the associated costs. Even today, a landlord can anticipate a considerable amount of pushback if a tenant hears that green program will add ten cents to operating costs.”

The pink elephant
The million dollar question that has already been answered a million different ways by analysts, politicians and industry experts still hung in the air: is there a bubble? Wong recommends looking at the residential rental market as a simple indicator — if the rent can’t support the mortgage we’re in a bubble. As it stands currently, he does not believe we have a problem. Glover believes the boom has been transformational for Toronto and that we now live in a much more interesting and richer city than we used to. He finds it particularly positive that twentysomethings want to live downtown and that this attitude will carry on. “As long as we believe in the city there will be a bounce back,” he says. Conveying his feeling of optimism, Diamond explained that a lot of new residential units coming to market are being purchased by investors. “There simply comes a time when prices are too high and investors stop buying,” he believes.

Global neighbours
When asked how real estate has been affected by international involvement, Carroll shared an experience of culture clash during a contract negotiation between a vendor in Texas and a buyer in China. “Since a consultant was necessary to facilitate the negotiation process, it was clear that there is still a lot to be learned from our international peers,” he says. Day agreed, saying that as the world gets smaller the GTA needs to learn from other cities and that the younger generation will be charged with imparting these lessons.

ULI Young Leaders have a great deal of influence over workplace location, the demands on public transit and our skills are needed in facilitating dialogue with our international business partners. While we will have to cross our fingers and wait out the so-called bubble like everyone else, perhaps one of us will be brave enough to put sustainability before cost concerns and take on a green lease when we’re at the helm of our own company.

Adrienne Smith
ULI Communications Committee
Oxford Properties Group