Why are storefronts empty on South Bayview, Mt Pleasant Rd and other attractive midtown business districts? Mayor Tory suspects that many of these vacant shops are just property plays by their owners. Whatever the truth, Tory is campaigning to eliminate the approximately $22 million a year in tax rebates to landlords who control empty storefronts. He requires provincial approval to make the change. Landlords will see the issue differently. Business may be better than it was during the economic crisis of 2008 but things are certainly not back to the palmy days of 2000.
And while some landlords may play the tax loss game for profit it remains true that not every prospective tenant is worth the trouble. Too many stores wash out in 18 months if the business plan is based on a dream. Are rents too high? Sure. It is a fair comment that no one who can’t afford to buy the store should be in retail. In making his decision public, Tory said that from 2001 to 2013, the City handed out $367 million through its property tax rebate for vacant commercial and industrial buildings. Maybe half of that money went to businesses where property values are skyrocketing, he said. “We are subsidizing people to keep space empty that is increasing, almost hourly, in value,” Tory told reporters.
