This article was written and published in the 2016 Year-End Goodman Report.
For the record, the Goodman Report is very supportive of responsible efforts by various levels of government to provide assisted or social housing for those in need. It’s clear to us, however, that the program put forward recently by the City of Vancouver for providing temporary modular housing is a reactive, poorly conceived solution to a deeply rooted problem.
Here’s what’s happening. To address the chronic non-market rental shortfall, Vancouver is currently installing on valuable City-owned land 40 temporary modular housing units of 250 SF each. While our politicians congratulate themselves on finding an approach to housing shortages and unaffordability, the manner in which they’re executing this program represents a misguided, wasteful use of high-density land and taxpayer money.
Presentation by Cynthia Jagger, Goodman Report
What are the drivers and impediments for constructing purpose-built rental? What are the opportunities? How do we get there? Cynthia reviews the existing purpose-built investment market and its opportunities, rental rates, new policy areas and the process of “forward sales” using current case studies.
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By Clark Wilson’s Commercial Real Estate Group, Clark Wilson LLP
Republished with permission from BCRELinks.com
At this year’s Annual Industry Forecast Luncheon of the Urban Development Institute – Pacific Region, 1100 guests heard moderator Diana McMeekin of Artemis Marketing coax a largely optimistic outlook from the panel of industry leaders, punctuated by some entertaining rants on world economic conditions, hysterical media and the prospect of political change.
Before moving onto more specific questions for individual panelists, the proceedings started with each being asked to answer the question “What’s in store in 2013?” for their respective areas:
Sarah Jones, Shauna Towriss & Kyle Wilson, Clark Wilson LLP
Republished with permission from BCRELinks.com
UDI kicked off its 40th year with yet another sold-out Annual Industry Forecast Luncheon. Don Forsgren, UDI President and President of Intracorp Projects Ltd., launched UDI’s “More Homes for More People” initiative, explaining that lack of “affordable” housing, particularly in the lower mainland, is damaging to individuals, families, and business.
David & Mark Goodman
The question has come up from time to time from our readership as to how they can increase and/or unlock their property values. Many rental buildings are now between 40 and 60 years old and growing increasingly inefficient and costly to maintain. Often they are located in prime urban areas resulting in grossly underutilized land. In these situations, the underlying properties may have greater value than present day value based on the Income Approach. Value may be increased by improving density on the property. Many local municipalities, at times unbeknownst to owners, have implemented policies of densification in respect to multi-family housing. A timely review of your property may help to increase your ultimate asset value not currently reflected under the Income Approach.
Sarah Ripplinger, North Shore News
Plans to densify parts of the District of North Vancouver could be undercut by a policy shift designed to place more money in district pockets, according to David Goodman, a commercial Realtor with HQ Real Estate Services.
District council reviewed a draft community amenity contributions policy during a workshop on Monday that Goodman worries could result in a further shortfall in market housing.
Michael Geller, Michael Geller & Associates
This came to mind as I read the forecast for the coming year in the January issue of The Goodman Report. It is going to be a more challenging year. But as someone who was weaned on Edward de Bono, the British thinker who coined the term ‘lateral thinking’, I believe the next few years could also be a period of opportunity for those of us willing to be creative and seek out innovative ideas.
Ask anyone of late who has tried to rent an apartment in Vancouver’s Lower Mainland of their frustrating and at times harrowing experiences. We are in the midst of another housing crises which has seen demand for rental suites far outstripping supply. All levels of government—municipal, provincial and federal—while decrying the situation, have ironically engineered this increasingly alarming problem.
The definition of RM-3, the zoning designation for some 650 rental apartment buildings in Kerrisdale, South Granville, and Marpole has not significantly changed in over 35 years. The prescribed density generally allows for a maximum 1.45 FSR (Floor Space Ratio) for frame and 1.85 FSR for high-rises. In most instances, apartment buildings in these areas are 40-65 years old and many are well beyond their economic life as rental apartments. They have become increasingly expensive for owners to maintain and do not provide the amenities more affluent tenants seek. As a result, many apartment owners are typically caught in the dilemma of hold or sell.