Not if it is modestly sized and finished. I think there is a move towards smaller footprints in Toronto. I think there are enough people who have decided their 2500 sf house in Barrie, Miss, etc is not worth the daily grind of the commute. After all, we hardly use many of the rooms we have in those houses.
Anyways, the market will determine the mix of bedrooms and I think the 1-2 bedrooms are coming to their saturation point. The point I was making was that the best use of this particular site woudl be a high density residential condo with attached retail and office on the lower floors. This nostalgia about some energy hog 1980's sign and the shit hole store Honest Ed's is now, and parks etc is ridiculous.