Interest Rates Low for Q3 in Vancouver, BC
commercial real estate blog vancouver bc, commercial real estate vancouver bc
Report: Apartment Rental Prices Increasing By Less Than Inflation in Vancouver, B.C.
Tags:
(Posted on Nov 24, 2018 at 02:22AM by Michelle Bogle)
According to a recent report by rental website PadMapper, the average rental prices in Vancouver have increased by less than inflation over the past year. This is in advance of the new, more-stringent rent-hike caps, which have yet to come into effect.
Â
In the November 15th report, the median rent for a Vancouver listing on PadMapper was $2,110 for a one-bedroom – an increase of 1.4 percent year-over-year, and Canada’s second-highest after Toronto. For two-bedroom Vancouver apartments, the median advertised price of $3,160 is the highest in the country by a significant margin, but it is 1.3 percent lower compared to November of last year.
Â
The allowable annual rent hike that B.C. landlords can impose on sitting tenants has been two percent plus inflation, which in 2018 totalled 4 percent. As of 2019, this allowable increase will be reduced to inflation only, which equates to 2.5 percent. However, this does not include any increases to rents on units between tenancies, which can impact average rental price increases. Rental price increases between tenancies are currently at the discretion of the landlord and are not government controlled.
Â
As for other parts of B.C., PadMapper noted that Burnaby was the third most-expensive market in the country for both one-bedroom and two-bedroom rents, at $1,580 and $2,250 respectively. Unlike Vancouver, Burnaby's one-bedroom price was a 5.3 percent increase over November 2017.
Â
To view the report, please click here. To learn more about multi-family investment opportunities in B.C., please contact our Vancouver Marcus & Millichap office to speak with a commercial real estate advisor.
More Affordable Housing Coming to Vancouver, B.C.
Tags:
(Posted on Nov 24, 2018 at 02:16AM by Michelle Bogle)
The B.C. government is funding 4,900 new affordable rental units to be built in the next three years as part of its plans to address the housing crisis across the province. The units will include both non-profit and co-operative housing and are designed to address affordability needs across a range of income levels in 42 communities.
Â
The buildings will contain a mix of units for middle-income individuals and families, heavily subsidized rentals for seniors and others on fixed incomes, as well as homes for low-wage workers. This is the first set of housing projects selected through the B.C. government’s $1.9-billion Building BC: Community Housing Fund. The fund is part of the government’s commitment to build more than 14,000 affordable rental homes over 10 years.
Â
Currently, 10 projects are slated for Vancouver with a total of 1,101 homes:
Â
• $18.1 million to Brightside Homes – 181 homes for individuals, families and seniorsÂ
Â
Â
• $4 million to Lookout Housing and Health Society – 40 homes for individuals (2 projects)Â
Â
Â
• $9.9 million to M. Kopernik Foundation – 99 homes for seniorsÂ
Â
Â
• $10.2 million to New Chelsea Society – 102 homes for individuals, families and seniorsÂ
Â
Â
• $4.6 million to Salvation Army Harbour Light – 46 homes for individualsÂ
Â
Â
• $3 million to the Kettle Society – 30 homes for seniors with mental health challengesÂ
Â
Â
• $7.7 million to Vancouver Affordable Housing Agency – 77 homes for individuals, families and seniorsÂ
Â
Â
• $16.9 million to Vancouver Community Land Trust – 169 homes for people with HIV and AIDS and families and seniorsÂ
Â
Â
• $35.7 million to Vancouver Community Land Trust – 357 homes for individuals, families and seniorsÂ
Â
To view the full list of approved affordable housing projects across B.C., please click here. For more information on how this may impact Vancouver multi-family investment opportunities, please contact our office to speak with a commercial real estate advisor.
BCLC Approves New Gambling and Entertainment Facility in Delta, B.C.
Tags:
(Posted on Nov 24, 2018 at 02:11AM by Michelle Bogle)
Earlier this month, the British Columbia Lottery Corporation (BCLC) announced the approval of a new gambling and entertainment facility in Delta, B.C.
Â
Cascades Casino Delta, which will be operated by Gateway Casinos & Entertainment Limited, will include a hotel, restaurants, meeting space and a casino with approximately 500 slot machines, 24 table games and up to six electronic table games. According to a press release, the BCLC said its approval follows extensive reviews of the market opportunity, business case, health impacts and municipal approval process to ensure that the project meets legislated requirements under the Gaming Control Act.
Â
The design of the casino reflects feedback from the public, which was received through ongoing community engagement. But, not all parties have been on board with the project, including the City of Richmond, which filed an objection with the BCLC, stating crime, traffic and transportation concerns. This prompted the BCLC's legislative requirement to implement a non-binding dispute resolution process and appoint an independent, third-party mediator to address issues raised in the objection. BCLC received Mr. Simon Margolis’ report on October 15, 2018, which concluded that the City of Richmond did not provide supporting documentation to substantiate its concerns. This information led the BCLC to finalize its approval of the project.
Â
Construction at the Delta Town & Country Inn site near the Massey Tunnel will begin in early 2019, and the casino is expected to open in mid-2020.
Â
Low Vacancies in Vancouver, BC, are Great for Investors
Tags:
(Posted on Nov 18, 2018 at 07:46PM by Danielle Smyth)
In Vancouver, low vacancies are leading to great opportunities for commercial real estate investors. In fact, if you choose to invest now, you might find that there is a potential for strong pre-leasing from companies who are hoping to secure space early. Since available space is in such a short supply, vacancies are now 30.5 percent pre-leased. An additional 14.6 percent is under option.According to recent reports, absorption was positive for the sixth straight quarter, and vacancy rates dropped from 5.4 percent in quarter two of this year to 5.0 percent in quarter three. In addition, it’s been asserted that technology demand dropped from in 33.5 percent earlier in the year to just 22.4 percent by the end of the third quarter, thanks in part to pre-leasing deals.
Investments have been strong this year, and some major assets have been sold throughout the area this past quarter. These include the Telus Garden property for an undisclosed sum, the 800 Burrard property, which sold for $225 million, and the 1155 West Pender property, which sold for $80 million.
If you’re interested in learning more about opportunities for investment throughout Canada, get in touch with Marcus & Millichap's Vancouver office. One of our experienced commercial real estate advisors will be happy to provide additional information.
Â
It's a Great Time to Invest in Hotels in Vancouver, BC
Tags:
(Posted on Nov 18, 2018 at 07:34PM by Danielle Smyth)
According to a recent report, things are going well for the hotel industry throughout Canada. This is good news for commercial investors who are thinking about breaking into the lodging market. Though the first half of 2018 was about 10 percent behind a comparable period in 2017, it still saw $800 million in hotel transactions throughout the nation. In particular, there was a strengthening in Western Canada.In addition, Quebec has now overtaken Ontario as the top province when it comes to investment volume in this market. This is due in part to the sale of several full-service properties. Estimates suggest that the full year of 2018 should be somewhere in the $2 to $2.5 billion range in the hotel industry.
Sales like that of the Sheraton Centre Hotel in Toronto were impressive--in fact, at $335 million, it was the largest-ever single hotel transaction in Canada. Furthermore, Hong Kong’s Leadon Investment Inc. acquired bcIMC’s SilverBirch Hotels & Resorts portfolio for $1.1 billion. Over the course of the last year, Canada’s hospitality industry has benefited from things like low interest rates, the lower Canadian dollar, and overall economic growth.
If you’re interested in learning more about opportunities for investment throughout Canada in the hospitality industry, get in touch with Marcus & Millichap's Vancouver office. One of our experienced commercial real estate advisors will be happy to provide additional information.
Â
Vancouver, BC, Vacancy Rates Drop and Real Estate Transactions Soar
Tags:
(Posted on Nov 18, 2018 at 10:33AM by Danielle Smyth)
According to recent statistics, now is a fantastic time to be an investor in the commercial real estate market in Canada. For instance, especially in the office building sector in Vancouver, BC, record prices were reached in the first half of 2018. The number of sales in this category is up, too, very significantly from the same time last year.What’s more, vacancy rates have reached historic lows across all classes of real estate. This puts pressure on owner-occupiers to purchase strata units. Because of overall growth of the economy and the perceived potential for future earnings, many investors are taking this opportunity to purchase additional properties. In a lot of cases, these decisions are made more for the long-term redevelopment potential of a location than its immediate capacity to generate income for the investor.
There were $16.5 billion recorded in commercial real estate transactions throughout the nation as of September year to date, and those numbers have continued to soar. Toronto and Vancouver remain the primary buying locations, with Toronto attracting $5.7 billion and Vancouver accounting for $3.2 billion of the deals mentioned.
This means now is a great time to invest! If you’re interested in learning more, get in touch with Marcus & Millichap's Vancouver office. One of our experienced commercial real estate advisors will be happy to help!
Â
National Industrial Statistics for Vancouver, BC
Tags:
(Posted on Nov 18, 2018 at 10:20AM by Danielle Smyth)
According to recent reports, things are going very well for Canada when it comes to commercial real estate, particularly in the industrial sector. In fact, Ottawa and Vancouver each have fewer than two years’ supply of vacant and under construction industrial space. This is a bit below the national average, because the nation’s six largest cities have 2.6 years of supply. All markets are seeing growth, with annualized occupancy increases of 1.77 percent overall this year so far.It’s a great time to be an investor. When it comes to commercial real estate absorption, this year has seen 6,877,000 square feet, representing an increase in absorption of 4,168,000 square feet over this year’s second quarter numbers. Specifically, there has been absorption of between 2.9 million  and 3.8 million square feet so far this year in Toronto, Edmonton and Vancouver. Even better, the national average vacancy rate for markets that have over one million residents has dropped significantly, falling to 2 percent. This is a new record for the category.
If you’re interested in learning more about opportunities for investment throughout Canada, get in touch with Marcus & Millichap's Vancouver office. One of our experienced commercial real estate advisors will be happy to provide additional information.
Â
Affordable Housing Programs Impact Investors in Vancouver, BC
Tags:
(Posted on Nov 16, 2018 at 11:37AM by Danielle Smyth)
Keep an eye on the housing market in Vancouver, BC. According to a recent report, big changes are on the horizon, especially in the Burnaby area. Thanks to several recent political shifts, affordable housing may grow more and more possible for large portions of the population.According to The Globe and Mail, since 2002, many residents of Burnaby have been forced to relocate to neighboring cities and towns due to a lack of affordable housing. Apartments that would have been within reach for many families were replaced with higher-end properties that they could ill afford.
As a result, the recent election brought to light many candidates with a vision for change in the Burnaby housing market. Vancouver, for instance, is looking to build 600 temporary modular units housing for those who are homeless. In addition, affordable housing endowments could be used to collect land for building projects. According to the article, “If Burnaby develops strong policies to protect rentals and develop non-market and social housing...it will help ease the stress on Vancouver and New Westminster.â€
Would you like to learn more about how this could impact you as a commercial investor? Get in touch with Marcus & Millichap's Vancouver office today! One of our experienced commercial real estate advisors will be happy to provide additional information.
2018 Housing Market Outlook for the Vancouver, BC, Area
Tags:
(Posted on Nov 16, 2018 at 11:21AM by Danielle Smyth)
Good news for investors in the Vancouver, BC, area! According to the Canada Mortgage and Housing Corporation's 2018 Housing Market Outlook, markets throughout the country “should see a moderation in both housing starts and sales in 2019 and 2020, while home prices are expected to reach levels that are more in line with economic fundamentals such as income, job and population growth.â€They expect that trends will begin to move downward, from 193,700 to 204,500 sales in both the single and multi-unit markets. In addition, MLS sales should be somewhere between 478,400 and 497,400 units, with prices between $501,400 and $521,600.
This means now is a great time to invest, if you’re planning on breaking in to the multi-unit housing market. Income, job, and population growth are leveling off, which could indicate an increased need for apartments and two-family homes that would make for a solid investment.
Curious how trends like these might ultimately affect the market in BC? Get in touch with Marcus & Millichap's Vancouver office. Ask to speak with one of our experienced commercial real estate advisors, who will be happy to help!
Two Downtown Vancouver Office Buildings Bought By Toronto’s Allied Properties REIT
Tags:
(Posted on Nov 14, 2018 at 08:11PM by Michelle Bogle)
Earlier this month, Allied Properties Real Estate Investment Trust announced that the Toronto-based firm acquired Two Class I office buildings in downtown Vancouver for $57.5 million. The properties are located at 151 West Hastings in Gastown and 1220 Homer Street in Yaletown.Â
Â
“These are strategic acquisitions for Allied, in that we’re increasing our penetration in urban Vancouver just as it’s transitioning to a primary Canadian office market,†said Michael Emory, President and CEO, in a press release. “1220 Homer augments our concentration of Class I properties in Yaletown. 151 West Hastings will be our first acquisition in Gastown.â€
Â
Located on the east side of Homer, one building in from Davie Street, 1220 Homer is a tier-one Class I building. It is comprised of 21,708 square feet of GLA and is fully leased to Perkins + Will Canada Architects for a term expiring in March of 2023. The workspace was designed by the current user and achieved LEED Existing Buildings: Operations and Maintenance 2009 Platinum Certification in September of 2014.
Â
Located on the north side of West Hastings, one building in from Cambie Street, 151 West Hastings is a tier-one Class I building. While the façade has been preserved, the interior was completely rebuilt to current workspace standards. It is comprised of 38,511 square feet of GLA and is fully leased to Spaces for a term expiring in July of 2033 with four rent escalations over the term.
Â
The Yaletown sale has already closed and the Gastown sale is expected to close by the end of this month.
Â
To learn more about this recent acquisition or office investment opportunities in downtown Vancouver, please contact our team to speak with a Marcus & Millichap commercial real estate advisor.
Â
Error getting status updates from Twitter.
Powered by Webstager