Categories
Real Estate

List of Starbucks Imminently in Closing Downtown Toronto

Many of these locations previously had lineups 9-5, Monday to Friday (or at least during the peak times [morning and mid-afternoon]). What does it say about the long-term viability of downtown commercial real estate when dozens of Starbucks locations are willing to abandon prime locations?

Is Starbucks closing all these Toronto locations because it realizes office occupancy won’t recover for at least several months?

Or because it believes office occupancy will never fully recover?

Hard to say.

Still, one could argue that Starbucks had too many locations to begin with. However, the company is not known for being reckless with its real estate footprint. I would think this retreat is not caused by simple redundancy. Rather, I assume Starbucks believes the strategic long-term viability of its downtown presence has changed.

When we’re past Covid-19, life might look very different. And not just because your local coffee joint is gone.

Below is the full list of Toronto Starbucks locations that are closing imminently:

  • Bathurst and Fleet (600 Fleet St.)
  • Bay and Elm (686 Bay St.)
  • Bay and Grosvenor (37 Grosvenor St.)
  • Bloor and Bathurst (494 Bloor St. West)
  • Bloor and Gladstone (1090 Bloor St. West)
  • Church and Gerrard (66 Gerrard St. East)
  • Davisville and Yonge (1909 Yonge St.)
  • Dufferin Mall (900 Dufferin St.)
  • First Canadian Place (Sat)
  • Front and Jarvis (81 Front St. East)
  • Hillcrest Mall (9350 Yonge St.)
  • King and Peter (370 King St. West)
  • King and Sherbourne (251 King Street E.)
  • PATH Concourse, Royal Bank Plaza – closing Sunday
  • PATH Concourse, Richmond Adelaide Centre – Closing Sunday
  • Promenade Mall (1 Promenade Cir.)
  • Queen and Ossington (2 Ossington Ave.)
  • Queens Quay and Lower Jarvis (132 Queens Quay E.)
  • Scotia Plaza (40 King Street West) – closing Saturday
  • St Clair and Bathurst (504 St. Clair Ave. West)
  • Wellington and John (224 Wellington St. West)
  • Wellington and Simcoe, RBC (155 Wellington St. W) – Closing Saturday
  • Wellington and University (55 University Ave.)
  • Yonge and Wellesley (8 Wellesley St. East)
  • Yonge and College (450 Yonge St.) – Closing Sunday
  • Yonge and Queens Quay (1 Yonge St.)
  • York and Bremner (25 York St.)
  • York Mills Centre (16 York Mills Rd.)

List source: Blogto

Categories
Real Estate

12 Charts: Toronto Housing Market

Despite the worst recession since the Great Depression, Toronto real estate is booming.

The boom isn’t occurring because of affordability. The proportion of income used to pay mortgage principal and interest, property taxes and utilities is approaching the 1989 high.

Follow TRREB: @TheReal_TRREB

The Toronto housing market is bifurcated. Condo listings have risen dramatically, as Airbnb hosts abandon ship. Meanwhile, listings of detached homes have plummeted. Prices have reacted accordingly, with condo price appreciation lagging behind. The median detached home in Toronto has appreciated by 28.2% over the past year.

Despite the difference between listings, months of inventory for both condos and detached homes in Toronto remain very low. Toronto remains a tight housing market.

Follow Toronto Real Estate Charts: @hannyelsayed

The state of the Toronto housing is also showing up in average days on market data. At all price points, home sales in Toronto are actually happening faster than in 2019.

Source: ZOLO.ca

As a result, prices have risen across all home sizes for detached homes in Toronto year-over-year.

Source: ZOLO.ca

Similarly, Toronto condo prices have risen across all sizes, but (as previously indicated) to a lesser extent.

Source: ZOLO.ca

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What happened to the real estate crash everyone was predicting?

While the lockdowns did create a dip in prices across Toronto. Prices have recovered from the dip. Note, however, Toronto got a boost from a hot market going into 2020 before the lockdowns occurred (see the February price increase).

Source: Toronto.Listing.ca

Follow Listings.ca: @listingCA

Government benefits are helping to keep the system whole.

48% of the Canadian workforce is currently receiving CERB (Canadian Emergency Relief Benefit). That equates to over 20% of the population for most provinces, with a huge proportion of beneficiaries residing in Ontario alone.

The question remains: are these benefits propping up the Canadian housing market and can they be gradually removed without creating significant housing market disruption?

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Categories
Real Estate

Charts: Real Estate in the Crapper

Businesses are closed or operating at reduced capacity. Millions of people are unemployed. Mortgages are deferred. The need for office space is being questioned.

To put it lightly, both retail and commercial real estate is experiencing one of the most transformative moments in history. While malls and brick-and-mortar retail has been under pressure for years, Covid-19 compressed a decade’s worth of change into a couple months.

The charts below highlight the current state the real estate market.

With the huge surge in unemployment and minuscule savings, Americans are suddenly unable to pay their bills. 32% of Americans missed (either fully or partially) their July mortgage payment.

Delinquency rates vary by property type (overall delinquencies approaching decade highs) but are rising rapidly.

New York is the most stressed area at the moment, likely due to its concentration of people/businesses, real estate valuations and the severity of regional lock-downs.

Toronto-area housing has remained strong through the downturn, with prices actually increasing.

Although Toronto has experienced a resilient housing market, it could face increasing pressure over the next several months as rental supply rises (driving down the price of rent). The decline in condos leased combined with the surge in listings has pushed the condo rental inventory from 1.5 Months of Inventory (MOI) at the end of March to nearly 4 months at the end of April.

How is Canadian real estate holding together? Government handouts. Approximately 20% of the Canadian population is receiving CERB – a $2000/mth support payment from the Federal Government.

If and when CERB benefits are taken away, Canadian real estate will likely face growing pressure. Not only is the supply of rentals growing rapidly, immigration is plummeting. This combination could tip Canadian real estate into negative territory. Of course, there’s always the possibility that immigration once again picks up in the future, but it’s debatable whether this will be enough to absorb the rise in housing supply.

The Coronavirus Economic Depression:

The Covid-19 economic crisis is gripping the world. After 20 years in the asset management business, it looks like we are fighting through unprecedented territory.

This is war. I created a 17 step, 47 page guide to help DumbWealth subscribers get through this.

I originally planned on printing the guide and selling copies for $20+. Instead I’m giving this away free because I think we all need to help each other during these difficult times.