Strength and Opportunity: Taking the Temperature of Southern Ontario Markets

As president of Gorge Holdings Inc., I have been able to accumulate a balanced portfolio of development projects across southern Ontario, including the Niagara region. Along the way, I have learned invaluable lessons that have provided the background necessary to make informed property development decisions, and to anticipate where market trends are leading the GTA economy.

In recent years, St. Catharines, Niagara Falls, Welland, Thorold, Niagara on the Lake, and London, Ontario — communities where Gorge Holdings has residential, commercial, retail and industrial development projects — have all proven to be highly competitive marketplaces.

For some, using the term “competitive” in the current market environment seems counterintuitive. After all, the business pages are filled with articles detailing the new high-interest rate environment, which has resulted in a slowing of sales and increase in delistings in many communities. And yet, the fundamentals in southern Ontario cities are strong.

We’re definitely seeing some cooling in what has been an incredibly red-hot market in the GTA and surrounding markets. The days of bidding wars and huge markups over asking price are probably over, at least for now. But these fundamental facts remain: Long-term, there will always be strong demand for housing in our region, simply because people want to live, work and raise a family here.

With a perspective that is both optimistic and realistic, we continue to actively pursue some exciting projects:

In St. Catharines, we’re trying to meet the city’s need for more residential developments with 150 luxury rental units. The community continues to grow, and a new purpose built residential rental building is needed in this area with very low vacancy rates and little quality inventory in the market. We plan to provide underground and podium parking, storage units, and commercial space on the ground level to accommodate a variety of businesses and services.

Meanwhile, in Welland we’re developing 25 residential building lots. It’s in an ideal location for new people moving into the city. It’s just a block away from Niagara Street, which has many local businesses, restaurants and cafes, and retail stores and services.

Nearby in Welland, we just recently completed a new commercial plaza with several different services and shopping opportunities. Gorge has owned the property for several years and with the growth in the area, the timing was right to build a new plaza that has attracted new local and national tenants including Starbucks, Sleep Country, and national quick serve food stores.

We are also adding a new Industrial complex in Thorold, located just off highway 406.  Phase 1 of the project, currently under construction, will consist of three multi-unit buildings, totalling 80,000 square feet. And in London, we just finished a very special project that features 60 luxury rental suites in a multi-unit residential building.

Although we’ve seen changes in the markets due to increasing interest rates, we anticipate downturns will be modest, and that real estate in the highly-desirable communities of southern Ontario will prove their essential resilience, again and again.