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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.
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