Toronto office buildings ‘obsolete’ and more Canadian real estate news for September 30

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Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.

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Nearly one-third of Toronto office buildings ‘obsolete,’ Dream CEO says

A major Canadian office landlord says about 30 per cent of downtown Toronto’s buildings are obsolete as tenants reduced their office footprint to deal with the shift to remote work, writes Rachelle Younglai. Michael Cooper, chief executive of Dream Office REIT, says a wide swath of downtown office towers are becoming obsolete due to high operating costs, and prospective tenants have a lot more decision power in this market.

Influx of new buyers driving older renters from Calgary city centre

Owners of Kensington Gate, a mixed-use, multifamily building in Calgary are planning to transform it into a luxury condo building, and existing tenants say they’re being pushed out, writes Ximena Gonzalez. Sable Gate, the company that owns and operates the building, submitted a development application to transform Kensington Gate into the Kenten, a luxury condo building with units starting at $1-million. They say the decision was influenced by the aging building’s rising costs, and the demand for high-end units in the area. Current tenants will have to leave by next July.

This week’s lowest available mortgage rates

Predicting mortgage rates can be a hard and messy process – you’d have a better chance predicting the weather, writes Robert McLister in his weekly column. But there are two notable exceptions: short-term trends and rate cycle predictions. A popular indicator for the short-term direction of mortgage rates is the five-year Government of Canada bond yield. Usually, when the five-year yield moves 20-plus basis points and stays there, most fixed mortgage rates will follow.

Residents of historic Toronto building at centre of acclaimed documentary fear development will prompt renovictions

The documentary Charlotte’s Castle made its debut on Sunday, featuring an eclectic cast of tenants in Toronto’s Annex neighbourhood and their successful fight to defend their nearly 120-year-old boutique rental building from a property developer with plans to renovate away the heritage charm. But now, just a few years later, the tenants worry a redevelopment could prompt renovictions, writes Shane Dingman. While existing policies enshrine rights of return for tenants evicted for construction and renovations, the practical reality is that such disruption means many tenants will never get their apartments back.

Home of the week: Prince Edward County retreat pays its way with summer rentals

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3286 County Road 8, Prince Edward County, Ont.

The 33-acre beachfront cottage compound in Ontario’s Prince Edward County features a main building with a peaked barn-like structure, a massive six-door garage, a large open-concept kitchen overlooking the lake, and a two-bedroom winterized beach house on the lake.

But the standout feature of the property is the eponymous Two Sisters Beach. The wide sandy strip stretches across the mouth of the inlet, and the previous owner built a huge covered outdoor kitchen and dining area. For those looking to spend time in Prince Edward County, it’s both private and well-appointed. There’s even a tiki-themed lounge area with thatched shade.