Lack of Tenants Halts London Skyscraper Boom

While Everyone Waits for The Toronto Boom to Fizzle......

Looks Like London is doing a dandy job popping it's own bubble. The Construction boom, in London may come to a halt, as there has been a lack for Office Towers, and I mean Landmark Office Towers which were built on spec. Built on spec means, that the developers failed to secure tenants for their buildings before construction began. And that means, that these Landmark Office towers will sit empty until some business in London's stagnant economy can pick up the pace and pick up the bill for the AAA rent which will be demanded for the heart of London's oldtown financial district.

Let me tell you this, here in Toronto, we have no such problem, the vacancy rate in Toronto is just a mere 5% or less, and it seems to be dropping at the same time available space is not being made at an adequate rate to keep up with the demand. While Toronto is currently set to see the rise of Bay Adelaide 2 (BAC2) The mega skyscraper twin of BAC - 1, London has been building, like there is no tomorrow, while they sit a the crosshairs of the Euro-Crisis and the Financial Crisis. No such Crisis here in Toronto yet, we have yet to see landmark developments take hold into the construction stages. Mind you we do have many fin proposals which look set to blast Jolly London England right out of the bloody water....

Toronto, the worlds most important, most passed over, and ignored city.....

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London Office Skyscraper Market Fizzles

When Boris Johnson inaugurated The Shard, the Mayor hailed Britain’s tallest skyscraper as “a symbol of how London is powering its way out of the global recession”.
But The Shard has yet to secure its first tenant whilst six other landmark additions to London’s skyline may now never be built, developers have warned, as a mania for ever-taller buildings comes crashing to earth.

A sluggish property investment market has brought plans to build six ambitious new testaments to the capital’s supposed economic self-confidence juddering to a halt. Construction of 100 Bishopsgate, a 172 metre skyscraper, planned to be the tallest in the City of London, is among those which have been postponed or cancelled, a BBC investigation found. A lack of advance tenants has frustrated the builders.

The £1 billion Pinnacle - nicknamed the Helter Skelter – would have been the second tallest skyscraper in the UK, towering over Canary Wharf’s One Canada Square. Although construction began in 2009, the work has been repeatedly delayed with no completion date currently in sight. A 10-storey concrete pillar, nicknamed “the Stump”, may be its only legacy.
Plans for a “futuristic office block” called One Trinity have also been quashed and the existing building will now become a hotel

The Can of Ham, so-called because of its distinctive shape situated near to the Gherkin on St Mary’s Axe, was given approval in 2008 but the building on its planned site has not been demolished yet.The £450 million, 310 metre-high Shard did not have a single financial tenant to occupy its 600,000 sq ft of office space when it launched with a glitzy completion celebration in July. The Gherkin, by comparison, could boast that all of its floors had been leased when it opened in 2004.

Getting a Mortgage and Mortgage Insurance through Empire Life for financing a loan to purchase at FIVE Condos is actually a relatively easy process, and new rules from the federal government has required that company include new regulations, which have made the home loan and mortgage process a bit more difficult. Those changes at Empire Life include shortening the amortization period for which the loan can be held by the consumer, and the degree to which the property is financed by the mortgage. They have also increased deposit requirements to lift the loan insurance amount. Mortgage insurance from Empire Life is actually one of the major financing costs on home loans.

Investment Trusts have no taken to looking to purchase rental properties and acquiring mortgages through financing auctions by the banks looking to shore up their balances sheets in light of stricter government regulation. These regulations have actually made holding residential mortgages by the large financial institutions harder to hold. Currently investors are looking to increase their position in rental properties in Toronto, at the same time the federal government in co-operation with the financial institutions are making getting and qualifying for loans and mortgages more difficult

Empire Life : What is Condo Insurance?
Condo Insurance is required to protect your personal contents from theft or fire damage in your condo if these unforeseen events should happen you should make sure that you have adequate protection. Some items in your condo are will also be protected by your condo association insurance policy which covers the general building. The events that are covered by condo insurance include Fire, as well as Lighting. Other weather related causes such as Windstorms, and Hail are also covered. The major one that most people worry about is theft which is covered by condo contents insurance policies.

Toronto Condo Market Report – February 26, 2014

Toronto Condo Prices continue to trend upwards, as sales also move up with general improvement not only in the Toronto economy, but the nation as a whole. Condo sale prices have not increased to the same degree as detached family housing, due to new supply coming onstream. However fears of a condo bubble, have not proved accurate, as trends move to the upside. Average Home prices are still up in Toronto, and look like they will continue to rise for the remainder of 2014. Year over year, detached housing prices increased by over 14%. Just amazing.

What to Expect for Home and Condo Prices in 2015 in Toronto and the Greater Toronto Area

The latest reports on the Toronto Real Estate market predict that the condo prices if left unsupported will fall, due to oversupply. However, this prediction has been the case for over 10 years now, and nothing has come to pass with regard to any major price drop even with predictions of a correction coming from the world’s largest and most respected financial institutions.

Toronto is on the verge of becoming a high end retailing mecca, and this will force up home prices as well as condo prices in the central core. Word that big US retailers like Saks, Nordstorms and Target are moving into the Canadian Space, and primarily within the downtown Toronto core is likely to increase the desirability of those areas with the best access to high end shopping experiences.