Why the Conservatory Group Sell-Off Matters for Markham‘s Growth

Why the Conservatory Group Sell-Off Matters for Markham‘s Growth

The Conservatory Group's massive portfolio sale has sparked plenty of speculation, especially among those who assume it reflects weakness in today's softer real estate market. In reality, the sale has nothing to do with market conditions. It stems from a years-long internal dispute among the Libfeld brothers, which resulted in a 2021 court order requiring the full wind-up and sale of the company's assets. This is an obligation-driven divestment rather than a market-driven retreat.

The sale materials present the offering as a "once-in-a-generation opportunity" to gain major footholds in high-growth GTA municipalities highlighting the strategic importance of these properties. For Markham specifically, the sale moves critical development lands and commercial spaces out of a single family's control and into the hands of new, well-capitalized buyers who see long-term value in the city's growth, its employment base, and its strong demand for housing. Rather than signaling any decline, the transition sets the stage for renewed investment and future development momentum in Markham. 

One of the most significant outcomes of this transition is how development potential will finally be unlocked across Markham. For decades, a single group held large, shovel-ready parcels that were zoned but not always advanced. Now, those sites can be redistributed among multiple well-funded developers, each with their own architectural approach, project sequencing, and marketing strategy. Many of these lands are already deep into the approvals process, allowing new owners to bypass years of planning delays and move directly toward construction. With approximately 16,000 high-rise units already zoned across The Conservatory Group's GTA development lands, this redistribution could accelerate Markham's growth far more effectively than if the sites remained concentrated under one operator. 

This change also introduces more diversity in what will actually be built. Instead of one developer's vision shaping vast areas of Markham, the city may see a broader mix of luxury condos, mid-market homes, and purpose-built rental towers that better reflect current demand. Government incentives are further amplifying this effect. With the removal of GST on rental construction, enhanced CMHC financing, and reduced development charges for rental projects, new owners have every reason to consider purpose-built rentals as a central part of their redevelopment plans. The timing of these incentives aligns perfectly with the release of these lands, making rental development financially viable on a scale not seen in years. 

Commercial assets in the portfolio, particularly the Markham Costco plaza at 1 Yorktech Drive and the multi-tenant Woodbine retail plaza near Highway 7, are equally important pieces of the puzzle. These properties are strong "covered land plays": stable, income-producing sites with large surface parking lots and significant redevelopment potential. Costco has already renewed its lease, guaranteeing long-term income stability for the new owner. Over time, these sites could evolve into mixed-use hubs where retail anchors remain while residential density is added above or behind the existing plaza, an increasingly common model across the GTA. 

The office buildings at 80 and 90 Tiverton Court require special attention due to their location beside the Buttonville Airport lands, an area undergoing a major shift in planning direction. The Buttonville redevelopment has recently leaned toward becoming a large-scale employment and industrial district rather than a residential community. This evolution could reshape the long-term highest-and-best use of the Tiverton lands. A new owner may consider industrial, logistics, technology, or hybrid employment uses, depending on how zoning and surrounding infrastructure evolve. As employment density grows, it often increases demand for nearby housing, retail, and mixed-use developments, indirectly strengthening the surrounding residential market. 

Together, these changes inject new energy, investment, and urgency into Markham's real estate landscape. Projects that had been delayed due to legal disputes can now move forward under motivated new ownership. Commercial hubs anchored by Costco, No Frills, and Dollarama remain stable today but could transform into higher-density mixed-use communities over the next decade. The growing employment concentration around Buttonville enhances the city's economic foundation, attracting more businesses, residents, and long-term investment.



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