The operative word Hines Interests Ltd. Partnership is using to describe its new office project in Toronto’s Junction Triangle neighbourhood is “authentic,” but observers say it’s also a good example of a rapidly proliferating trend in commercial real estate – a move toward what is becoming known as the “fringe.”
The Junction and its environs – which includes the Junction Triangle – certainly fits that description. In its early history, the area thrived thanks to its numerous foundries, mills, meat packers and other industrial operations. But as manufacturing dried up in the 20th century, it went into decline.
Aside from the character of the neighbourhood, Mr. Apps says the Junction lives up to its name through a wealth of public-transit options. Two subway stops, three streetcar routes, a GO Transit station and the UP Express train to the airport and Union Station downtown are nearby, as is the West Toronto Railpath bicycle trail.
“Anything that is going to be located on or near transit is not going to be a trend, it’s going to be a sustainable long-term solution for landlords, occupiers and everyone in between,” says Daniel Holmes, senior managing director of the Toronto region office practice group for Colliers International.
Montreal, for example, has seen similar developments in neighbourhoods such as Mile End and, more recently, in nearby Mile Ex. In the south part of the city, Pointe-Saint-Charles has also been seeing gentrification in recent years, especially since Allied Properties REIT in 2016 acquired Le Nordelec, an older building that was turned into condos, retail space and offices.