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PostPosted: Wed Oct 28, 2009 2:55 pm 
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Joined: Wed Feb 22, 2006 10:41 pm
Posts: 631
Zhamid,

It is an interesting idea, but the reality is Office developments are far more able to pay higher DC's then Industrial users. Buildings are by the most part built by developers who lease the space out. Therefore the decision to build is based on what rental rates they will achieve for their investment (a simple rate of return question). In the 2008 DC update process the region had an independent group do an impact study on DC's and the competitiveness of Halton Region to attract new development. The study showed that at the previous rates it was economically unfeasible to develop industrial space in Halton, and they didn't understand how anyone was building for the rental rates they would achieve (this study was based on rental rates BEFORE the current economic downturn)... The DC was raised non-the-less, making it even more unattractive to develop in Halton.

This may seem like a win-win solution.... lower DC's for office buildings, and we will have mostly office development in the area!

The reality is, you don't develop an office node without there being a critical mass of industrial jobs and development in an area. Look around the GTA where there are office clusters... Downtown Toronto, Mississauga, Markham... these are all areas that started and grew based on industrial businesses that needed the "offices" to support their operations.

There should be a different DC charged for Office / Industrial / Retail in an area, but you will see that in most areas of Ontario that have this beak down the Industrial rate is lower then the others.


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PostPosted: Wed Oct 28, 2009 3:30 pm 
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Joined: Thu Nov 15, 2007 3:55 pm
Posts: 5278
Location: 4th line / St Laurent
Industrial vs commercial is very different in many areas - land prices, cost to build, acceptable uses...

My question to you is why do you care how many people are physically inside each building? This is no indication of what benefit the companies bring to the area.

Also, Dream is right - Office Complexes don't 'employ' anybody.

I see where you're trying to go here, but I'm not sure it's the best angle...

Also, if your angle is # of people inside, then really, that means more toilet flushes per day, more people driving on and off premesis using roads, etc etc, more need for the infrastructure that surrounds it.
The argument could go either way


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