Proposed Transit Revenue Tool Would Impact
Speaking of an uptick in development charges, a new CBRE study says Metrolinx's proposed 15% hike in charges to help fund transit in the GTA would negatively impact the industrial market, according to a new CBRE study. This would come at a time when municipalities already are raising development charges, all making the cost of industrial construction higher. For example, in Richmond Hill, the most expensive municipality for industrial construction (charges of $23.89 psf), with new industrial buildings in the GTA averaging over 241k SF, a building that size would result in $4.7M in development charges in Richmond Hill--$6.6M if the Metrolinx plan goes through. That could give other municipalities a competitive edge, including those just outside the GTA, says CBRE EMD Andrew Wright.