The worst city in Canada for business?

[Canuck E Stan]

Canadian Business magazine unveils its fourth annual ranking of the best

"It's a wake-up call for upper-level politicians and business leaders,"

says senior writer Andy Holloway. "Because what really turns the tables

against Canada's largest city is that business activity appears to have

stopped growing."

Second last city on the list is Montreal.

Two very Liberal cities that need an infusion of Liberal $$$$ to perk them up.

Paul may have some problems here if he doesn't come through.

Your thoughts on Toronto's poor business ratings.

[Riverwind]

Your thoughts on Toronto's poor business ratings.

As with most surveys of this type the actual data does not support the conclusions that people like to draw. The full survey does not appear to be only but the fragment in the link indicates that annual operating cost of a business in Toronto is 18% higher than the annual operating cost in St. John's. Differences between Toronto and other cities on the list are much smaller.

The article's writers want you to believe that the difference can be explained with something other than real estate prices, however, 18% is a pretty small difference that can be easily explained by real estate prices.

[Canuck E Stan]

The article's writers want you to believe that the difference can be explained with something other than real estate prices, however, 18% is a pretty small difference that can be easily explained by real estate prices.

Although I would agree that real estate prices might be part of it,I think there is more to it than real estate prices. If real estate prices were the sole cause, Vancouver, who's prices have risen about 5.7 per cent annually during the last 18 years would be at the bottom of the list instead of Toronto.

[Riverwind]

Although I would agree that real estate prices might be part of it,I think there is more to it than real estate prices. If real estate prices were the sole cause, Vancouver, who's  prices have risen about 5.7 per cent annually during the last 18 years would be at the bottom of the list instead of Toronto.

There is a difference between commercial and residential real estate although both tend to go up and down in tandem there can be subtle differences. When you look at the Vancouver commercial real estate market you will find the that immediate suburbs like Burnaby are actually more expensive than Vancouver proper because there is more demand (companies choose avoid the downtown core because of parking and lack of selection when it comes to office space). If you look back at the original list you will notice Burnaby is #38, however, the dollar value quoted is actually higher than Toronto so there must be an error somewhere.

40      Toronto                         $28,456,544

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39     Montreal                        $27,328,935

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38     Burnaby, B.C.                $28,906,511

In any case, I suspect you would see all of the Vancouver suburbs in the bottom 30 because the cost of real estate is likely the dominant factor in that 'study'.

[theloniusfleabag]

Dear Canuck E Stan,

neighbouring communities, which have been happily siphoning off jobs. If this

migration of jobs continues, the city, and by extension the rest of the

country, will suffer.

This sentence made me cringe (and laugh at the same time). The article itself is a bit jaded, since St. John's NFLD might indeed be favourable for business strictly on paper, I don't think you'll see a lot of corporate migration there. I live in Calgary, and have seen first hand the dynamics of growth. The growth rate is phenomenal, and with it property values (almost exclusively residential) are skyrocketing. The neighbourhood I live in is zoned 'inner city', even though we are 5-10 min from the edge of the city, and I have heard (both from an appraiser and a realtor) that the property values in this particular neighbourhood are going up at rates of 1,000-10,000/month. (the appraiser told me 1, the realtor 10, I suspect it is somewhere between the two)