Vancouver purpose-built rental: are the returns high enough to warrant the risk in today's environment?

Our presenters

ON-DEMAND WEBINAR

In this webinar, our expert team gave their assessment on where Vancouver's purpose-built rental market may be headed. You'll gain the insight you need to understand if this is an asset class that will give you your desired returns.

You will learn about:

• Today's rental landscape in Vancouver - including a look at product recently completed and under construction, as well as potential new supply in the planning phase 
• Recent project profiles, including: suite mix, suite features, building amenities, average rental rates; and, indicative operating expenses per suite 
• Potential short- and medium-term impacts of COVID-19 on the rental market 
• Land sales and building transactions (recently indicated land values, cap. rates, and sale prices per suite) 
• The typical buyers of newly constructed purpose-built rental buildings 
• Construction costs & timelines associated with different rental products, and a forecast for these costs over the next few years 
• The impact of COVID-19 on building design and building operations in future 
• Potential profit margins and yield on cost associated with purpose-built rental projects 
  

David Eger
Vice President, Research, Valuation & Advisory, Altus Group

Nat Chenery
Associate Director, Research, Valuation & Advisory, Altus Group 

Royal Centre, Suite 2500, 1055 West Georgia Street, P.O. Box 11106 
Vancouver, British Columbia V6E 3P3

David has been providing professional services since 1989. He specializes in providing land appraisals, development consulting services (using the Argus Developer Software), as well as the valuation of complex and larger sized income producing real estate assets. 

David’s real estate experience also includes; accredited Appraiser of the Appraisal Institute of Canada (AACI), a professional member of the Real Estate Institute of BC (RI), and a member of the Royal Institution of Chartered Surveyors (MRICS).

Christopher Mullins
Senior Director, Cost & Project Management,  Altus Group

For over 25 years, Christopher has provided strategic advice and creative solutions for commercial real estate developments. As the leader of Vancouver’s Cost & Project Management team, he blends industry experience and expertise with data and insight on current market trends to drive successful results using tactical approaches for developments across the Lower Mainland.

Nat Chenery has been providing professional services since 2012, after commencing in real estate in 2008. Nat works with the National Economic Advisory practice at Altus Group and specializes in residential development consulting, market studies and economic analysis. 

What is the current rental landscape and outlook for new development in Vancouver?  

In addition to the COVID-19 crisis, what factors may threaten demand in the foreseeable future?

Originally recorded 
Thursday, May 21, 2020