Metrotown continues to be an active market for major mixed-use developments for a number of reasons, although the economic situation is starting to slow things down, Mark Goodman, principal with Goodman Commercial Inc. in Vancouver, said. "Metrotown is a well-established neighbourhood and offers all the conveniences developers look for in an urban market: excellent transit connections, a large concentration of amenities in the form of retail and services, and close proximity to large employment hubs both within the neighbourhood and nearby in Vancouver and other parts of Burnaby," Goodman told RENX in an email. "It also has a relatively clear and consistent community plan so developers can acquire sites and move forward with confidence. The City of Burnaby in general has done a better job than most in trying to incentivize developers," Goodman said. Market conditions now eating into transactions However, most development projects moving forward now are sites acquired prior to the spring of 2022, Goodman said. "There has certainly been a slowdown in new acquisitions given the headwinds facing the development community: significant increases in interest rates, ongoing construction cost inflation, more and higher charges levied on new development from all levels of government, lengthy approvals processes and increasingly complex building codes and design criteria." Citing his firm’s 2023 Mid-Year Review, Goodman said not a single multifamily property transaction was recorded in all of Burnaby in the first six months of this year. In 2022, there were 20 transactions, 12 in the first half of the year. Most of those sales would be purpose-built rental apartments, but some of them could eventually be redeveloped. "While sales have slowed and prices adjusted to the new reality, there is still strong demand from developers who are forward-looking and recognize we are in the midst of a severe supply shortage with record-high population growth,” Goodman said. Read the article: https://lnkd.in/g_CE-SBt Ian Brackett Cynthia Jagger
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Despite a choppy market over the past two and a half years, Mark Goodman, principal of Goodman Commercial Inc. said the worst is over for the apartment sector as investors seek opportunities in the region’s perpetually tight multi-family market. “In the first eight months of 2024, we have already surpassed the full 12 months of sales volume in 2023 with over $1.1 billion in sales,” he said. The multi-family sector is supported by long-term fundamentals like a growing population, a chronic shortage of apartments and rents that have been rising for decades. Read the article:
Tech holds the course but education and multi-family are worth watching
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𝗙𝗢𝗥 𝗦𝗔𝗟𝗘: 𝟰𝟳-𝗦𝗨𝗜𝗧𝗘 𝗔𝗣𝗔𝗥𝗧𝗠𝗘𝗡𝗧 𝗕𝗨𝗜𝗟𝗗𝗜𝗡𝗚 𝗜𝗡 𝗡𝗘𝗪 𝗪𝗘𝗦𝗧𝗠𝗜𝗡𝗦𝗧𝗘𝗥 • Asking $13,900,000 ($296,000 per unit) • Located in the historic Sapperton neighbourhood of New Westminster • Constructed in 1971 on a large 26,997 SF lot with 195 feet of frontage • Unit mix of 8 bachelors, 36 one-bedrooms and 3 two-bedrooms • Well maintained with around half the suites renovated on turnover • All offers considered
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Founder of SEOBRO Agency
1ySpot on, Mark! Metrotown is like a goldmine for developers thanks to its top-notch transit and amenities. But yeah, the financial bumps are a bit of a downer. High interest rates and rising building costs aren’t exactly party starters. But hey, where there’s a will, there’s a way, right? Developers just need to get creative and stay positive. Let's roll with the punches and keep moving forward!