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CACs and Real Estate Investing in Vancouver, BC
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(Posted on Nov 5, 2018 at 01:50AM by Danielle Smyth)
Rezoning in Vancouver is a complex process that involves decisions on a variety of fronts. Anytime the city approves a request for rezoning, it “aims to capture 70 to 80 percent of the uplift in land value created by that rezoning through “Community Amenity Contributions,†or CACs,†according to a recent report. The reason behind this? The city feels (and many residents agree) that developers should have to contribute to the amenities that residents make use of as their way of giving back to the community that brings them business.In many instances, the city has been criticized for approving rezoning requests when they shouldn’t have for reasons solely based on getting more funding for these improvement projects that are essential to residents. However, if you don’t get CACs, the taxes of those who live in a given area will by necessity go up.
What does this mean for developers and investors? They should be prepared for the cost of CACs, as well as for all of the benefits these can have on the neighborhoods they are entering. Vancouver is a booming market and definitely worthwhile for investment, so the cost of helping to build up the community is in most instances well worth it.
If you’re interested in learning more about opportunities for investment, get in touch with Marcus & Millichap's Vancouver office. One of our experienced commercial real estate advisors will be happy to provide all of the information you need.
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