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The land value appreciates over time regardless of use. Why worry about setting up a business and trying to make money when you could do nothing and make a lot of money 10 years down the line when you sell?

The value of commercial real estate is also tied directly to what it can rent for so you’re encouraged to wait to maximize rent which may mean leaving it abandoned or vacant.

That's the ironic part. The more valuable the local market is, the more incentive there is for some people to sit on their asses.

That tells me that taxes are too low. Not necessarily taxes for used property, but vacant/unused property could be taxed more effectively to promote development.

Would love to see a gradually increasing tax on unused/underused property - so small time landlords who lose a lease aren't screwed over but no one should be leaving storefronts empty for years

It's terrible in Toronto, you'll see complete sections of the street literally empty since there's so many tax benefits for empty commercial-retail space

Where in Toronto? I don't really notice this phenomenon.

You could also rent it out and make money in the 10 years you're waiting for it to appreciate.

Yeah, but you can’t sell it at moments notice any more when the value crashes for some reason.

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