by C21 Atria
on Monday, January 22nd, 2018 at 1:25pm.
The fact that Toronto was Short Listed from 238 proposals throughout the U.S., Mexico, and Canada, is wonderful news for Torontonians! We are the only Canadian city that remains in this very exciting race to the finish. As exciting as all of this is, what does it mean for the city itself? We know that 50,000 high paying jobs will be coming our way if we win the bid, but have we really thought about what that would mean for us? What will it do to the economy? What will it mean for the housing market?
We have some time to think and review what this means for our great city as the announcement won't take place until later this year. However, before we get too ahead of ourselves, let's take a step back and review what Amazon's plans are, what advantages Toronto has in the bid, and what it means for the housing market itself.
What Are The Plans For Amazon's HQ2?
Amazon is looking for a new home for a second headquarters known as Amazon HQ2. They are planning to invest over $5 billion to set up a new office building that will house many of the 50,000 employees it plans to hire to fill all the expected high-level jobs. Not only will the move to Toronto create jobs with Amazon, but it will employ many local contractors and require the support of the surrounding businesses in the area, which could equate to tens of thousands of additional jobs. It will also create additional retail and commercial space that is sure to be constructed around Amazon HQ2.
What Makes Toronto A Viable Option For Amazon?
Amazon has not been too forthcoming with what they consider more important incentives and what they are willing to compromise on. They know that it's going to be very lucrative for whichever city wins the bid. We do know that they are looking for at least 100 acres of land on which to build their new eight million square feet of office space. There are several locations that the headquarters could be located in, which includes the east harbor region of the city. This 100-acre plot of land is east of the downtown core near the new Google Sidewalk Lab. There were nine other locations considered just outside of the downtown including the Square One Shopping Centre area in Mississauga.
Regardless of the location, it's great for the city in general. Many have been wondering what will make Amazon choose Toronto over the other remaining 19 cities in the running. There are many reasons why it should win the bid, but some of the main advantages Toronto has over many of the U. S. cities include:
Exceptional technology talent from the top-rated universities in the area
Government medical coverage & lower corporate tax rates
Canada's openness to immigration that attracts global workers more easily
What Will This Do For The Toronto Real Estate Market?
Some economists have taken a pessimistic stance on Toronto winning the bid as they say the real estate market is one of the most expensive in Canada and will make it worse for people to enter the market. However, Amazon entering Canada will attract top technology talent to their organization forcing other employers to pay more to retain their employees and attract new ones to their company. As for the housing market, it is sure to see exceptional growth. As Amazon continued to grow and expand in Seattle, WA, the real estate market there almost doubled. Now, this is also due to a combination of factors, but the main point being that the market will get hotter and prices are sure to rise if this corporation decides Toronto is the future home of Amazon HQ2.
The next question you maybe thinking is should you rush out an buy a home before it's too late? The answer is that you should never extend yourself financially unless you can handle the risks involved. If you are on the fence about buying a house or condo, the potential for Amazon could tip the scales for you. Another point to consider is the fact that if a giant like Amazon has put Toronto on the top 20 list, then what other companies also see the potential in our great city? It could be a great time for U. S. companies to buy Toronto Real Estate, especially considering the value of the Canadian dollar to the US dollar.
The best thing for you to do as a home buyer or a person looking to work and live in Toronto is to stay informed. The Amazon Website has more information for you to review and make up your own mind as to the chances that Toronto has to win this profitable bid. Either way, Toronto is a great city to live and work in regardless of what Amazon decides to do. As far as we are concerned, it's always a good time to invest in Toronto real estate on a personal or commercial level!