In a city where access to schools and doctors can be tight, both are the latest amenity being showered on tenants in a competitive multifamily market.

Adrian Rocca, chief executive of Fitzrovia Real Estate, says the pandemic resulted in people wanting to work from home more in larger suites with offices or desks, but his company is also looking to reach the next level of amenities so it's offering medical care as well as schooling.

"Coworking space is tables stakes right now. Everyone is doing it. We have a great partnership with the Cleveland Clinic," Rocca told an audience at the Land and Development Conference in Toronto. "If any of our residents are feeling sick, they can go to the Cleveland Clinic room and see a doctor in two minutes."

In an interview with CoStar News after the panel session, the CEO said the internationally renowned Cleveland Clinic in the United States has virtual sessions with a doctor where residents can access diagnostic equipment on-site throughout the company's apartment buildings in Greater Toronto Area.

"There are cameras that look down your throat. They can write you a virtual prescription," said Rocca. "The patient operates the equipment and is directed by the doctor."

The visits are not covered by public health care in Ontario, but a structured deal with Cleveland Clinic has lowered the price for patients to a point where it is popular.

"About 20% (of residents) have used (the clinic). We have over a hundred uses in the last 12 months," said the chief executive, referring to one location.

Rocco said the company's opening of Bloomsbury Academy is part of the same strategy of targeting a need, in this case, access to preschool, kindergarten and grade one, which is hard to find near new developments.

"We really wanted to target young families. We needed to come up with a strategy that will make them thrive, and that's larger suites but also an on-site school solution," said the chief executive, who said the company is expanding into Montreal next and has taken over an asset in Quebec's largest city.

With housing prices moving back toward record levels seen pre-pandemic and interest costs continuing to rise, Canada's vacancy rate was 1.9% for purpose-built apartments and 1.6% for condominium apartments, according to Canada Mortgage and Housing Corporation survey release in early 2023.

CMHC, the Crown Corporation that advises the federal government on housing, says there is a significant rental supply problem across the country as people are pushed out of home ownership.

Jamie Cooper, a portfolio manager with Dream Impact Fund, which has about 8,000 units in Canada and the United States, said during the panel discussion that market conditions, including rising rental rates and housing prices, are causing people waiting to buy a home to hold off longer.

"The demographic doing pretty well wants to or needs to continue to rent and wants to be in a high-quality place," said Cooper, noting the purpose-built segment of the market in Toronto continues to serve those people.

Kathy Black, senior vice-president of core and opportunistic strategies at Fiera Real Estate, which has 15,000 multifamily units across its platforms, agreed amenity space had become a priority but noted it could be harder to deliver in buildings constructed more than 100 years ago.

"We can see working from home is not just the flavour of the last two years. It is going to be ongoing," she said.

She added when it comes to new builds, party rooms are giving way to being converted into a workspace for coworking or even meeting rooms that can be rented.

"We are being more thoughtful in new builds, and instead of having saying storage space, we will design to fit a desk area even in a smaller unit."