A 1,684 square foot former film studio on Wallace Avenue in Toronto sat empty. It wasn't a typical commercial space — dark walls, an industrial ceiling grid, and a layout built for production, not retail or office. Finding the right tenant for a space like this takes more than just listing it and waiting for calls.
Here's the story of how we leased 258 Wallace Ave, Studio 2 to Spacestation Rehearsals on a 5-year lease with escalations — and what landlords with unique properties can learn from it.
The Challenge: A Unique Space That Needed the Right Tenant
Not every commercial property fits neatly into a category. This studio wasn't suited for a typical retail tenant, a standard office user, or a warehouse operation. It was a purpose-built creative space — and it needed a tenant who could see the potential in that.
The landlord had the space listed and vacant. The longer a commercial property sits empty, the more it costs the owner — not just in lost rent, but in maintenance, taxes, and the perception that something might be wrong with the space.
The key challenge wasn't filling the space with any tenant. It was finding the right one — someone whose business actually needed what this space offered.
Our Approach: Relationships Over Listings
We didn't find this tenant on a listing portal. The connection came through another commercial real estate agent. In commercial leasing, agent-to-agent relationships are one of the most powerful tools in the business. When agents know what you're looking for and trust that you'll close deals professionally, they bring you opportunities that never hit the open market.
This is a principle that applies across commercial real estate in Toronto: the best deals often happen through networks, not through online searches alone. If you're a landlord relying only on a listing and hoping the right tenant finds you — you're leaving deals on the table.
The Match: Spacestation Rehearsals
Through our agent network, we connected with Spacestation Rehearsals — a music rehearsal studio serving Toronto's creative community. They needed a space with specific characteristics: high ceilings for sound, a layout that could accommodate rehearsal rooms, and a location accessible to musicians across the city.
258 Wallace Ave, Studio 2 checked every box. The former film studio's industrial build-out, sound-friendly construction, and open layout made it an ideal fit for a rehearsal space. What looked like a liability in a traditional leasing search — the unconventional design — became the property's biggest selling point.
This is one of the most important lessons in commercial leasing: a space's weakness for one tenant type is often its strength for another. The key is knowing enough about different business types to make those connections.
The Deal: 5-Year Lease with Escalations
After multiple meetings and negotiations, we closed on a 5-year lease with built-in rent escalations. Here's why this structure worked well for both sides:
For the landlord:
- Long-term income stability with a committed tenant
- Annual escalations that keep pace with the market
- A tenant whose business model (rehearsal studios require build-out and client loyalty) makes them likely to stay beyond the initial term
For the tenant:
- A space uniquely suited to their needs at a competitive rate
- Long-term security to invest in build-out and equipment
- A location in a vibrant Toronto neighbourhood with strong transit access
Win-win lease structures like this are what we aim for in every deal. When both the landlord and tenant walk away feeling like they got a good deal, the lease lasts — and that's better for everyone.
What Landlords with Unique Properties Can Learn
If you own a commercial property in Toronto that doesn't fit the standard retail, office, or industrial mold, here are the takeaways from this deal:
1. Don't Panic-Price a Unique Space
When a property sits vacant, the temptation is to drop the price until someone — anyone — bites. But for unique spaces, the issue usually isn't price. It's finding the right tenant type. A rehearsal studio, art gallery, podcast studio, co-working space, or specialty fitness facility might be willing to pay market rate or above for the right layout.
2. Work with an Agent Who Understands Creative Tenants
Not every commercial real estate agent thinks beyond the standard categories. If your space is unusual, you need an agent who understands the range of businesses that might need it — and has the network to find them.
3. Agent Relationships Close Deals Listings Can't
This deal happened because of an agent-to-agent connection. The tenant wasn't browsing listing sites. They were working with their own agent, who knew we had this space. Building those relationships takes time, but it's how the best commercial deals get done in Toronto.
4. Patience Pays — But Only with the Right Strategy
Patience alone doesn't fill vacant spaces. Patience combined with active networking, creative marketing, and an understanding of who your ideal tenant is — that's what produces results.
Looking to Lease Your Commercial Property in Toronto?
If you own a commercial property in the Greater Toronto Area — whether it's a standard retail unit, an industrial warehouse, or a unique creative space like this one — we can help you find the right tenant.
We specialize in commercial leasing across Toronto, Scarborough, North York, Etobicoke, Mississauga, Vaughan, Markham, and the broader GTA. Every property is different, and we tailor our approach to match the space with the right business.
Ready to talk? Contact Aidan Holt at RE/MAX Metropolis Brokerage:
- Phone: (647) 557-5358
- Website: aidanholt.ca
- Email: aidan@tirupopalgroup.com
Aidan Holt is a commercial real estate agent at RE/MAX Metropolis Brokerage, independently owned and operated, serving the Greater Toronto Area. He specializes in commercial leasing, tenant representation, and landlord advisory services.