Continuing our ongoing investigation of commercial real estate in Toronto, we look at what the future holds for the former MAC Cosmetics store in Yorkville.
Location: 89 Bloor St. W.
Formerly: MAC Cosmetics
Vacant Since: Early 2011
Size: 1,685 sq. ft., and the second floor is a much smaller 385 sq. ft., with windows looking on to Bloor Street.
Price: The price for the main floor is $300 net per sq. ft. There is a blended rate for the second floor.
Length of Lease: Due to location and price, the landlord is looking for someone who can commit to a relatively long lease of at least 5–10 years.
Renovations (required?): Though small renovations would be permitted to suit a future tenant’s needs, MAC kept the store in very good condition and it could easily be transformed into a high-end fashion boutique. A new retailer will likely want to put in new flooring.
False starts: According to Cushman & Wakefield realtor Arlin Markowitz, there has been considerable interest in the property over the last year. However, the landlord is not interested in putting a food or drink retailer into the space, so the search for a tenant continues.
Why vacant for so long?: A combination of reasons. MAC, the tenant for nearly a decade, moved into a bigger space next door to expand its empire. Indeed, being just 2,000 square feet, 89 Bloor is a rarity for this stretch of Yorkville, where most retail properties are significantly larger. Combine this with the rent, which at $300 per square foot is among the highest in Canada, and the property is too rich for the likes of many retailers. Moreover, the landlord is being selective over potential tenants, and wants a high-end fashion or jewellery retailer that would fit in with neighbours like Tiffany’s, Hugo Boss, Prada and Cartier. However, given the increasing influx of U.S. retailers into Canada, and the high demand for Toronto real estate, Markowitz suspects this property won’t be on the market for much longer.
