Steve Filiantris

The appellants appealed the current value assessments of two commercial properties on Bloor Street West for the 2017 to 2021 taxation years.

The parties agreed to use the direct income capitalization approach and agreed on most values, leaving only the fair market rent for ground-floor retail space in dispute.

The Assessment Review Board determined the fair market rent to be $305 per square foot, preferring the respondent's methodology for calculating net effective rent without discounting future rents to present value and without deducting the owner's portion of tenant improvement allowances.

The Board also rejected the appellants' argument that net effective rent should be reduced to account for unexpected property tax increases following the 2016 general reassessment.

The assessments were reduced accordingly.