Toronto has a plethora of condo buildings — with over 1700 either completed or in the works. Buyers crave a variety of different features when seeking a property, but there’s one unit type that casts a much wider net than the others; converted lofts.

In February 2019, we sought to identify the most desirable condo buildings in the GTA (Greater Toronto Area) and were able to come up with a list of 10 buildings: 6 of them were lofts. We’ve featured several articles on loft type units at Strata, including this one, but even we are surprised at times by how desirable these units have become.

Hard lofts can come in many forms — converted churches, hotels, office buildings, factories or warehouses — and yet regardless of their original function, they’re all extremely in demand.

I’ve spent a decent portion of my career specializing in lofts buildings, and it’s always struck me how no two are the same, but also, how these properties seem to break all the rules when it comes to desirability.

The Hard Loft Mystery

When you think of a desirable condo, you might picture a sleek exterior, an abundance of amenities, maybe even valet parking or a concierge — you’ll find none of that in most loft conversions. A very large percentage of hard lofts are converted warehouses or factories, and a part of the charm is that the drab exterior is kept intact.

Take the he Argyle Lofts for example, which is among the most desirable in the city, hidden beneath a faded red brick exterior. Amenities are all but nonexistent, but that doesn’t stop residents from holding on to their units for dear life, resulting in extremely low turn over. The suites within are certainly unique, featuring exposed brick, ductwork, tall ceilings, and mezzanine areas in some. However, lofts can be quite raw — minimalist to the point of being a concrete box — and still attract hordes of buyers. So why are these units so in demand?

A Diamond in the Rough

There’s no doubt that people love to own rare things, and hard loft conversions could be so desirable simply based on their scarcity; for every 10 high-rises, you might encounter one converted loft. And while a high rise might have 200+ units, chance are, a hard loft has fewer than 30.

There’s also a shock value to finding something so beautiful hidden beneath an aged façade — not unlike refinishing an old piece of furniture which suddenly shines again. We recycle in all aspects of life, so it makes sense that people are drawn to finding a new use for something which has been discarded. As this trend continues to gain steam in Toronto, but also in other countries as well, many investors are beginning to realize that lofts could be the best investment of all when it comes to condos.

Reaping the Benefit

If you need any evidence of how great an investment a hard loft can be, you need look no further than this article by TorontoLife from 2018. It highlights a unit in the Candy Factory Lofts, which sold for $710k in 2015, and was listed for $1,199,900 in 2018 — it sold in roughly a week. Condos are a great investment in the GTA right now, but if you want to receive the best return on investment, consider a converted loft.