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While it’s no secret that renting an apartment in Vancouver is expensive and highly competitive, a new report argues that the cost is reasonable when compared to those living in the world’s top financial centres.
 
The study, conducted by U.S.-based apartment listing service RentCafé, found affordability in Vancouver is reasonable when compared to other global financial cities, determined on the basis of competitiveness and transaction volume.
 
“Vancouver is the 20th most important financial centre in the world, but with [an average one-bedroom rent of] $1,400 per month [in U.S. dollars], it drops to number 24 on our list,” the company said.

As part of the study, RentCafé measured rents across the globe and translated them into U.S. dollars. The $1,400 USD per month listed for Vancouver translates to just under $1,900 CDN, which is consistent with the average rent found by Canadian listing service Padmapper.
 
Here’s Hayley Woodin from Business in Vancouver with more:
 
 
For more information, please see RentCafé’s study in its entirety by clicking here.

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.
 
You can also view our current listings by visiting out Property Search Portal.
https://blog.padmapper.com/2017/03/15/march-2017-canadian-rent-report/It will still cost more to rent an apartment in Vancouver, British Columbia, than in any other major Canadian city, according to a March 2017 Canadian Rent Report by the apartment website PadMapper. But, not by much, as it appears the gap may be closing.
 
This is especially true for two-bedroom units. The average Vancouver rent for this home type remained unchanged in March at $3,130 – the highest in Canada. Trailing close behind was Toronto at $2,160, making the average two-bedroom rent 45% higher in Vancouver. At the beginning of the year, that gap was 60%.
 
For one-bedroom apartments, the average Vancouver rent also remained stable in March at $1,900. This was just under 12% higher than the average of $1,700 in Toronto.
 
Elsewhere in B.C., the average rent for a one-bedroom apartment dropped 3% in March to $1,250, while two-bedroom rents jumped 4.8% to $1,540.
 
To view the March 2017 Canadian Rent Report, please click here.

For all other inquiries related to the Lower Mainland’s multi-family market, including investment opportunities, please contact Marcus & Millichap’s Vancouver office to speak with one of our highly skilled commercial real estate advisors. The time to invest is now!
 
You can also view our current listings by visiting out Property Search Portal.
commercial real estate services local vancouver multi-familyA rezoning application has been submitted for a $200-million rental housing proposal that would be built on a peninsula jutting into the middle of Portage Inlet in View Royal – a town in Greater Victoria. If approved by council, the Christie Point redevelopment would be the largest rental project View Royal has ever seen.
 
The 15.8-acre strip of land, which is home to a bird sanctuary, is also deemed an environmentally sensitive area. Toronto developer, Realstar Management, plans to incorporate features into the project to protect the shoreline and safeguard other natural features.
 
If approved by city hall, it would take three to four years to complete construction and the project will employ 2,000 workers.
 
Currently, Christie Point holds 161 units in apartment buildings constructed in 1963. Realstar bought the property in 2014 and is proposing to replace them with seven buildings. The new structures would stand within the footprints of the existing buildings and be four, five and six storeys tall, holding a total of 473 units.
 
Area residents have expressed concern about increased density on the property, and fear it will bring more noise and traffic to the area. Some Christie Point renters also worry it may be difficult to find new accommodation in the Victoria region, where the vacancy rate is a tight 0.5% and rents have climbed year-over-year.
 
Since construction is to be completed in phases, some existing tenants may have the option of relocating into the new project, but this may not be feasible for all renters. Realstar plans to give tenants six months notice (up from the legislated minimum of two months), plus a moving allowance or assistance, along with disconnection/re-connection of services and covering the cost of mail forwarding for six months.
 
To learn more about this multi-family development and the plans that Realstar Management has put forward, please contact Marcus & Millichap’s Vancouver office to speak with a commercial real estate advisor.
commercial multi-family assets vancouver bcAccording to a recent report from the Canada Mortgage and Housing Corporation, the vacancy rate across the Vancouver Census Metropolitan Area (CMA) has decreased from 0.8% in October 2015 to 0.7% a year later.
 
“Strong demand for rental accommodation in Vancouver outpaced additions to supply, pushing rents higher and vacancies lower for purpose-built and condo rental apartments,” said CMHC Principal of Market Analysis, Robyn Adamache.
 
The report also said that a strong job market is driving rental demand, particularly for younger demographics that tend to start off as renters. According to the report, Vancouver CMA continues to lead employment growth nationally, at a pace of 5.8% year-over-year as of September 2016, based on data from Statistics Canada. This equates to more than 70,000 additional jobs created, compared to the same period last year.
 
Solid employment in the region is also driving demand by increased migration to the province. Vancouver CMA added an estimated 15,773 new households between 2015 and 2016. This population-based demand is one of the main factors contributing to low vacancy rates.
 
What is also important to note is that this rental vacancy decrease isn’t only occurring in the City of Vancouver – according to the report, vacancy actually increased slightly in Vancouver. In the Downtown/West End area, the rate increased from 0.5% to 0.6%. In the rest of the city, the rate grew from 0.6% to 0.8%.
 
The region’s tightening vacancy rate was driven by declining availability in the suburbs, with the most drastic drop in Surrey. Last October, Surrey had an apartment vacancy rate of 1.9%; this year, the rate plunged to 0.4%. Vacancy also fell in Burnaby (October 2015: 1.2%, October 2016: 0.8%) and New Westminster (October 2015: 0.9%, October 2016: 0.4%).
 
And, as apartment rental vacancies continue to drop, the average rents across the region continue to climb. According to the CMHC:
 
• The average rent in the Vancouver CMA increased from $1,144 in October last year to $1,223 this year – an increase of 6.4%. 
 
• Rents also increased across all regions, with Vancouver’s West End/Downtown area seeing a jump from $1,350 to $1,461. 
 
• In the rest of Vancouver, average rent increased from $1,233 to $1,324. 
 
• Rent increased in Burnaby (October 2015: $1,031, October 2016: $1,105) and New Westminster (October 2015: $933, October 2016: $993).
 
For more information regarding the CMHC’s Fall Rental Market Survey or to learn more about multi-family investment opportunities across the Lower Mainland, please contact our Vancouver office to speak with a commercial real estate associate.
commercial real estate services local vancouverAt first glance, this modest-looking 69-year-old wood frame rental apartment building on West 6th Avenue in Kitsilano may not look like much. But, look again – it just sold in competition for $4.5 million last month and for $50,000 above list price. 
 
Broken down, that equates to $750,000 per unit in the six-unit building. The two-bedroom suites average $1,680 per month in rent and, just one year ago, the property was assessed for $2.9 million with the value of the building at $199,000 and the land at $2.7 million. 
 
If this isn’t any indication of just how stratospheric prices are in Vancouver’s booming multi-family sector, then we don’t know what is! In the last year alone, sales volumes have soared 47% to above $1.1 billion and industry experts are anticipating that number to reach a record $2 billion by the end of 2016.
 
If investing in Vancouver’s multi-family market is on your radar, we urge you to call our office immediately to speak with our team of advisors, who can provide you with a thorough market evaluation and sound investment advice.

The time to act is now! 
Don’t miss your chance – contact us today.
commercial real estate service office vancouver bcDemand for purpose-built rental construction continues to intensify as affluent renters face near zero vacancies in Vancouver and as housing prices in the region continue to skyrocket.
 
Much of the rental stock that is available is often outdated construction and apartment buildings – many of which are approaching the end of their function and life span, thus increasing the call for new builds.
 
For investors, purpose-built rental construction is very appealing, especially those looking to capitalize on the rise in rents in a populous city of renters willing to pay for modern condo-style accommodations.
 
Add in the City of Vancouver’s incentive programs in support of purpose-built rental construction and we have an equation for steady growth and rejuvenation of the city’s dated rental stock.
 
There are a number of approved purpose-built rental buildings in Vancouver including:
 
Townline Homes, a 389 unit building on 1335 Howe Street 
Westbank Corp., a 236 unit building on 5050 Joyce Street 
Austeville Properties, a 171 unit building on 1754-1772 Pendrell Street 
G6 Venutures Ltd., a 95 unit building on 7350 Fraser Street 
 
BlueSky Properties, a 191 unit building located in Vancouver’s Chinatown, was recently completed and is actively leasing to renters.  The list of proposed purpose-built rental buildings is also growing. 
 
For more information on multi-family assets in the Lower Mainland, please contact our Vancouver office to speak with our team of skilled commercial real estate advisors.

You can also view our current listings by clicking here.
multi-family commercial real estate vancouverVancouver’s commercial real estate market, especially the multi-family category, is sizzling right now with unprecedented sales numbers across the Lower Mainland. Industry professionals and investors are experiencing a surge in prices to unseen levels.
 
According to the Goodman Report’s 2015 Year-End Review, Vancouver’s multi-family rental building sales saw a huge lift in 2015. In fact, sales rose by 47% to 181 transactions and the dollar volume increased by 99% to $1.55 billion last year compared to 2014.
 
There are a number of factors that contributed to this major uptick, including Vancouver’s worldwide appeal and climbing immigration levels. The weakened Canadian dollar and historically low interest rates have also played a key role in the hot market. With a low inventory of affordable accommodations, difficulties in developing new rental stock and undersupplied rental suites, bidding wars have become the new normal.
 
The outlook for 2016 looks to be much of the same – if not more. Industry professionals are anticipating dollar volumes to hover around the $2 billion range by the end of the year. The demand is very high with no let-up in sight.
 
To learn more about Vancouver’s booming multi-family market, please contact our office to speak with one of our commercial real estate advisors.




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