Toronto’s ongoing transit expansion, particularly the Ontario Line, is significantly influencing commercial property values and offering unique investment opportunities. Below are key factors driving this trend:

Ontario Line Overview

• The Ontario Line is a 15.6 km subway project set to connect Exhibition Place to Don Mills Road via downtown Toronto by 2030. It will include 15 new stations and integrate with over 40 transit options, reducing congestion and improving accessibility12.

• Expected to serve 388,000 daily riders and provide access to 47,000 more jobs within a 45-minute commute2.

Impact on Property Values

1. Proximity Premiums:

   • Properties near transit hubs often command higher prices due to accessibility benefits. Rental premiums of 10-15% have been observed near new stations, boosting net operating income (NOI) and overall valuations34.

   • Anticipation of transit projects can also lead to speculative growth in property values before completion3.

2. Commercial and Residential Growth:

   • Developments like East Harbour, initially planned as a commercial hub, are now integrating residential units (4,300 planned), creating a mixed-use, transit-oriented community56.

   • This shift supports inclusive growth with affordable housing commitments and community amenities like childcare centers and recreation spaces6.

3. Transit-Oriented Communities (TOCs):

   • High-density TOCs near Ontario Line stations are transforming low-density areas into vibrant urban environments. These developments are modeled after successful projects in cities like Vancouver and London7.

East Harbour as a Key Driver

• The East Harbour Transit Hub will connect GO Transit lines with the Ontario Line and serve approximately 100,000 daily riders. It is expected to enhance property values in nearby neighborhoods like Leslieville and Riverside by improving accessibility and attracting businesses56.

• Cadillac Fairview’s plans for high-rise towers in East Harbour further position it as a focal point for urban intensification7.

Investment Opportunities

• Investors can capitalize on pre-construction properties near transit hubs like Union Station, Bloor-Yonge Station, and East Harbour for long-term appreciation potential48.

• Areas along the Ontario Line corridor are emerging as hotspots for commercial and residential development due to increased connectivity and economic growth36.

Toronto’s transit expansion is reshaping its real estate landscape, offering substantial value lift for properties near new transit infrastructure while fostering sustainable urban growth.