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Showing posts for category Multi-Family Sector (Back to Index)
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Average Vancouver One-Bedroom Rent Reaches All-Time High
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(Posted on Feb 17, 2017 at 02:51PM by Michelle Bogle)
According to a February 2017 Canadian Rent Report by the apartment website PadMapper, the average rent for a one-bedroom apartment in Vancouver, B.C. remains the highest in the country, plus it increased another 1.6% in February, reaching the highest level on record.
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On average, tenants pay $1,900 for a one-bedroom unit in Vancouver, beating out Toronto, which has an average price of $1,620 for this home type.
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Prices for two-bedroom apartments in Vancouver fell 0.6% in the month to $3,130. The city’s rent in this category remains in a class of its own in terms of high cost. The next most expensive city for this home type is Toronto at $2,060, making Vancouver a staggering 52% more expensive.Â
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Elsewhere in B.C., one-bedroom apartments cost 1.6% more in Victoria (as of February), with an average rent of $1,290. On the other hand, two-bedroom rents fell 1.3% to $1,470.
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To view the February 2017 Canadian Rent Report, please click here.
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For all other inquiries related to the Lower Mainland’s multi-family market, please contact Marcus & Millichap’s Vancouver office to speak with one of our highly skilled commercial real estate advisors.
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You can also view our current listings by visiting out Property Search Portal.
Growth in TAMI and Senior Rental Sectors Make Kelowna One of the Best Regions for Multi-Family Investments
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(Posted on Dec 31, 2016 at 02:00PM by Michelle Bogle)
If you’ve been following Vancouver's residential real estate market, you know that Canada’s West Coast is one of the world’s hottest. From local tech enterprises to wealthy foreign investors, demand for properties across British Columbia seems endless. And, it is.Â
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But, even as the residential housing market is going gangbusters, the province’s multi-family sector is equally booming. Property values continue to climb, vacancy rates continue to drop and rental rates are reaching unseen levels – some of the highest in Canada.
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And, as we welcome the new year, certain regions in B.C. are expected to perform better in 2017, especially as growth in the technology and senior rental sectors continues to drive demand.Â
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In today’s post, we take a closer look at Kelowna, which is named one of the best regions for multi-family investments in the coming year.
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Kelowna
Forecast: rental vacancy rate of 1.5% through 2017
Average two-bedroom rental in 2017: $1,050
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With the completion of Kelowna’s Okanagan Centre for Innovation, the Okanagan’s biggest city has emerged as a top spot for the TAMI sector – technology, advertising, media and information – and the hundreds of millennials that it employs. There are now 140 TAMI firms in Kelowna, driving a forecast of employment growth of 2.2% into 2017. The rental vacancy, which is now at 0.5%, is expected to inch up next year, but remain one of the lowest in Canada.Â
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Investors can find older multi-family buildings in the $85,000 - $90,000 per door range with capitalization rates of 6%. Also, Kelowna’s Rental Housing Grants program provides up to $320,000 in annual grants for purpose-built rental housing projects, which adds to the region’s appeal. Â
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Seniors make up another strong rental sector with 20.6% of Kelowna’s population. This figure is well above the national average of 16.1%.Â
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For off-shore investors, Victoria is also exempt from the 15% property transfer tax on foreign buyers in Metro Vancouver, making it a next-best choice for those looking to invest in B.C.’s burgeoning multi-family sector.
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For more information on investment opportunities in Kelowna, please contact Marcus & Millichap’s Vancouver office to speak with one of our highly skilled commercial real estate advisors.
East Vancouver Ranks as a Top Region for Multi-Family Investments
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(Posted on Dec 24, 2016 at 02:00PM by Michelle Bogle)
As we approach the coming of a new year, one of Vancouver’s commercial real estate asset classes is expected to gain continued traction throughout 2017 and that’s the multi-family property market.Â
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Over the last number of quarters, this category has been driven by rising property values, increased rental rates and low vacancies. Demand for multi-family properties is booming across British Columbia’s Lower Mainland with certain regions coming out on top.
One of those regions in East Vancouver, which is bordered to the north by Burrard Inlet, to the south by the Fraser River and to the east by the city of Burnaby.Â
One of those regions in East Vancouver, which is bordered to the north by Burrard Inlet, to the south by the Fraser River and to the east by the city of Burnaby.Â
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In today’s post, we take a closer look at East Vancouver’s multi-family market to uncover why it is considered one of the top regions to invest in next year.
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East Vancouver
Forecast: rental vacancy rate of 0.8% through 2017
Average two-bedroom rental in 2017: $1,460
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East Vancouver is a multi-family investor’s dream, despite the initial high cost of entry.
Government intervention has driven condominium sales down by 40% from the peak that took place this past spring, which is causing many tenants to remain within the renter pool.Â
Government intervention has driven condominium sales down by 40% from the peak that took place this past spring, which is causing many tenants to remain within the renter pool.Â
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The new Emily Carr University of Art and Design (opening fall 2017), the new hospital and a rapidly expanding technology sector are also putting pressure on East Vancouver’s multi-family market, creating higher demand for quality rental units in the region. There is an influx of students, professionals and millennials currently in search of housing.
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In terms of property sales, even older rental apartment buildings in East Vancouver are fetching more than $250,000 per door. Cap rates are in the 2.5% range, but that could be offset by price appreciation.Â
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Having said that, East Vancouver remains a promising multi-family market as we move into 2017 – one that many investors have their eyes on, especially with the anticipated growth in the area.
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For more information or insight into multi-family investment opportunities across the Lower Mainland, please contact Marcus & Millichap’s Vancouver office to speak with one of our advisors. You can also stay abreast of commercial real estate news and other hot topics by liking our Facebook page.
Victoria, B.C. Named One of the Best Regions for Multi-Family Investors
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(Posted on Dec 20, 2016 at 04:13PM by Michelle Bogle)
The multi-family sector in British Columbia is booming and property investors are revelling as values continue to rise, vacancy rates are near record low levels and rental rates are the highest across Canada.Â
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But, even though the multi-family sector is strong across the province, there are certain regional markets that are expected to do better in 2017, especially as growth in the technology field continues to drive rental demand.Â
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In today’s post, we take a closer look at Victoria, which is named one of the top five regions for investing in the multi-family sector in 2017.
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Victoria
Forecast: rental vacancy rate of 0.8% through 2017
Average two-bedroom rental in 2017: $1,200
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British Columbia’s capital represents one of the best multi-family markets in the province, if not in all of Canada. The rental vacancy rate is resting at a super low 0.7% and is expected to remain below 1% for the next two years, according to a forecast from Canada Mortgage and Housing Corporation (CMHC).
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As for the rental demand, it is being driven by three tenant pools: students, employees in the high-tech sector and seniors. Net migration for people aged 16 to 25 has added 18,000 residents to the population since 2006 – the largest single cohort of migrants to the region. Many of these are post-secondary students or employees in the city’s burgeoning tech sector, which now employs 23,000 people. Layered on this is the growing demand from seniors, who are choosing Victoria as their retirement destination.Â
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The downside of investing in this region is the high cost of rental apartment buildings, currently in the $185,000-per-door range and up. Also, capitalization rates for multi-family properties average 4%, which is the lowest across B.C.
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Having said that, investing in Victoria’s multi-family sector is still a solid choice. For more information on the region, please contact Marcus & Millichap’s Vancouver office to speak with one of our highly skilled commercial real estate advisors.
Top Five Metro Vancouver Neighbourhoods for Condo Investors
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(Posted on Aug 17, 2016 at 01:00PM by Michelle Bogle)
We all know how the saying goes: when you are buying real estate, it’s all about location, location location. For investors looking to play in Metro Vancouver’s competitive condo market, this saying rings true, both from a steady rental income perspective and a return on investment perspective.
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Here are five Vancouver-area neighbourhoods, compiled by Western Investor, that offer the best bang for their buck in the resale condominium apartment market. The selection is based on key factors, such as transit, livability, price appreciation, foreign investment, selection and more:
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Hastings, East Vancouver
Benchmark condo prices in this gentrifying area have risen 25% from a year ago, but are holding strong at $345,000. This community benefits from strong rental demand, picturesque water and mountain views, modern condos and transit service to Simon Fraser University.
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Grandview, East Vancouver
Benchmark condo prices are up 31% from mid-2015 at $384,000. SkyTrain links at VCC-Clark and Commercial-Broadway, plus increased long-term housing demand from Vancouver Community College, Emily Carr Campus and St. Paul’s Hospital, make this a prime investment location in East Vancouver.
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Marpole, Vancouver
Benchmark prices are $404,900 for a typical condo, up 16% from a year ago. Two Canada Line stations (with one more on the way), eager foreign buyers and the redevelopment of the Oakridge Transit Station make this neighbourhood a long-term play with the lowest entry price point on Vancouver’s West Side.
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Uptown New Westminster
Benchmark prices jumped 19% from a year ago to $285,900. This area is up and coming with good SkyTrain bus links, great shopping and a steady rental demand.
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Steveston, Richmond
Benchmark prices are up about 20% from mid-2015 and holding at $325,000. The trendy beach area, strong foreign buyer influence, Canada Line links and the new Fraser River bridge offer investors prime potential for long-term investment.
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Want to learn more? At Marcus & Millichap Vancouver, our multi-family specialist, Charlie Hughes, is keeping a close eye on the market. For more information or insights regarding condo investment opportunities, please feel free to contact him directly at 604-675-5259 or follow along on his blog by clicking here.
Vancouver Apartment Rental Market: Mid-Year Results
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(Posted on Jul 31, 2016 at 01:00PM by Michelle Bogle)
As we descend into the second-half of 2016, the outlook for Vancouver’s multi-family market is looking very strong – both in transaction numbers and in sales values – thanks to the great momentum generated in the first six months of the year.
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Here’s an overview of the numbers:
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• The average per-suite purchase cost of a typically older-style Vancouver rental apartment building is now $498,000 – an increase of 47% from mid-2015.
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• Across Metro Vancouver, the per-door price for a multi-family rental is now $380,000 – up 60% from a year ago.
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• The total number of rental suites sold in Vancouver is up 123% from the first half of 2015 – that equals 1,443 units in 124 buildings.
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Commercial real estate experts anticipate that these trends will continue throughout the remainder of 2016. It is forecasted that approximately 250 buildings will sell this calendar year, with volume in excess of a record $2 billion – an increase from last year’s 181 buildings totaling in at $1.55 million.Â
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At Marcus & Millichap Vancouver, our multi-family specialist, Charlie Hughes, is keeping a close eye on the market. For more information or insights regarding multi-family investment opportunities, please feel free to contact him directly at 604-675-5259 or follow along with his blog by clicking here.Â
Investor interest for multi-family assets in British Columbia was exceptionally high in 2015 with no signs of slowing in 2016.
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According to new industry stats, multi-family investment activity achieved record levels last year with 80 transactions valued at $1.41 billion – a figure that far surpasses the 43 transactions valued at $582M in 2014.
Even more impressive is that 54 transactions, valued at more than $1 billion, occurred in the second half of 2015 compared to the 26 deals, worth $370 million, in the first half of the year.Â
Even more impressive is that 54 transactions, valued at more than $1 billion, occurred in the second half of 2015 compared to the 26 deals, worth $370 million, in the first half of the year.Â
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This change marks a reversal in sales patterns for multi-family assets, which typically slow in the later months of the year. With pricing so attractive in late-2015, many vendors, who typically would never conceive of selling, decided to dispose of assets.Â
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Vendors were virtually all private owners, with a handful being institutions and real estate investment trusts. Foreign investors, especially those with ties to Mainland China, continue to proliferate the multi-family market and other commercial real estate asset classes.Â
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This trend is expected to continue as more foreign investors arrive in the Greater Vancouver Area over the next year and a half.Â
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For more information on Vancouver’s mutli-family asset class, please contact our office for details.
You can also view our commercial real estate listings by clicking here.
You can also view our commercial real estate listings by clicking here.
Revamping New Westminster’s Rental Apartment Market
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(Posted on May 25, 2016 at 03:22PM by Michelle Bogle)
The number of new market rental apartment buildings in New Westminster, B.C. is set to increase thanks to policies at City Hall that aim to improve the current rental vacancy rate of 0.9%.
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These policies came into place in the spring of 2013 and offer developers incentives to build more rental apartment buildings in New Westminster’s downtown core. They include a reduction in some building permit fees, as well as a reduction in the parking requirements for each development.
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Now, developers can reduce the number of parking spaces in their rental buildings – 0.6 spaces for every bachelor suite, 0.8 spaces for two- and three-bedroom units, and 0.1 spaces for visitors. This is a welcomed change, as parking spaces are expensive to build.
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The city is also allowing developers to construct apartments to a minimum unit size of 350 sq. ft.
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The first development to break ground is a 26-storey, 282-unit mixed-use rental apartment tower on 527 Carnarvon Street by Vancouver-based South Street Development Group. The project, called Novare, will be completed in August 2017 and will include over 5,000 sq. ft. of commercial space.
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Eight other buildings are also in development, with six currently under construction.
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These policies have led to a revamped New West – a place where residents, developers and investors want to call home. With a long-term urban renewal plan already taking shape, the area is poised for growth with a projected 104,000 people over the next 25 years.
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To learn about commercial real estate investment opportunities in New Westminster, please contact our Vancouver office to speak with an advisor.
CMHC Study Shows Condo Investors are Here for the Long Haul
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(Posted on Apr 10, 2016 at 01:00PM by Michelle Bogle)
A recent study by the Canada Mortgage and Housing Corporation (CMHC) shows that condominium investors in Vancouver are here to stay.
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Who are these investors?Â
According to the 2015 Condominium Owners Survey, most are small-scale investors who own a secondary unit as a way to generate rental income.Â
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Many of these investors are expected to retain ownership of their investment properties for some time – about 60% plan to hold on to their units for more than five years, compared to the 8% who are planning to sell in less than two years.
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Of these investors, 56% expect that their units will appreciate, 35% do not expect a significant change and 5% anticipate a decrease in value.Â
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Overall, the survey results point to a very stable condo market.
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You can view the Condominium Owners Report in its entirety by clicking here.
To learn more about available condo investment opportunities in the Lower Mainland, please contact our Vancouver office to speak with one of our multi-family asset specialists.
To learn more about available condo investment opportunities in the Lower Mainland, please contact our Vancouver office to speak with one of our multi-family asset specialists.
According to Statistics Canada, British Columbia has become the second largest provincial contributor in new housing construction in January 2016, as spending rose 14.3% year-over-year.Â
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A total of $695 million was spent on the construction of new homes in the province in January 2016, compared to the $608 million in January 2015.Â
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This increase was mainly driven by investments made to new apartment and condominium builds that are taking shape across the province – especially within Metro Vancouver.Â
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This trend isn’t surprising, especially since the Vancouver multi-family market has been in overdrive for quite some time. According to the Goodman Report’s 2015 Year-End Review, Vancouver’s multi-family rental building sales saw a huge increase in 2015 – sales rose by 47% to 181 transactions and the dollar volume increased by 99% to $1.55 billion last year compared to 2014.
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The outlook for the remainder of 2016 appears to be favourable for multi-family sales. Industry watchers are predicting dollar volumes to hover around the $2 billion range by the end of the year.Â
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To learn more about investment opportunities within Vancouver’s multi-family market, please contact our office to speak with one of our commercial real estate advisors.
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