A Trophy Asset With Redevelopment Potential In The Heart of Vancouver
REDEVELOPMENT POTENTIAL
Plaza 500 is uniquely positioned to capitalize on the attractive multi-family investment market by introducing new rental supply through redevelopment, in the event of successful rezoning. With extremely robust demand, a chronic supply shortage, a Municipality supportive of densification, and an outstanding location, Plaza 500 is well-positioned for a successful redevelopment project. More specifically, the Property benefits from:
Overwhelming demand for rental apartments in Metro Vancouver, particularly in core areas within close proximity to rapid transit and major bus routes.
Near-zero vacancy rates for rental apartments in the immediate area, with very limited supply coming to market.
Expressed desire from the newly-elected City of Vancouver governing body to increase housing, with 25,000 new purpose-built market rental homes being developed over the next 10 years.
A location in the heart of the focus area identified in the Broadway Plan that is currently under review, with an expected completion date of December 2020.
Nearby rental development projects have experienced success and scale through the Rental 100 Program with future potential densification/up-zoning guidelines that may result from the Broadway Plan.
High quality rental apartments in this unparalleled location are optimized for a wide rental demographic: young professionals, students, medical professionals (VGH is minutes away), and government employees (City Hall is across the street).
Exceptional accessibility to the Broadway Corridor (a major employment and commercial hub), a destination frequented by the rental demographic (UBC, Downtown Vancouver, Olympic Village, and Mount Pleasant Tech Hub), and two SkyTrain lines (Canada Line and future Broadway Subway) makes the site an ideal location for rental development.
VANCOUVER MARKET
MULTI-FAMILY RENTAL MARKET
Vancouver’s Fairview neighbourhood is located within the South Granville/Oak rental market and is long regarded as one of the strongest rental markets in Canada. Market conditions have remained tight according to a 2017 CMHC Rental Market Report, with overall vacancy across Vancouver standing around 0.9%. Over the last few years, demand for rental housing has increased due to consistent employment growth and increasing migration, with net migration accounting for almost 90% of total population growth during 2016. In addition to migration, population growth among 20-34 and 65+ age groups have contributed to increased demand for rental housing, as these groups are more likely to rent than own.
Furthermore, as housing prices continue to rise and supply remains tight, in combination with higher effective mortgage interest rates, more households are renting for longer periods of time while they save for a larger down payment on their first home. We’re seeing similar trends in the secondary rental market as well, as the condominium rental market recorded higher rents than the primary purpose-built rentals in the Rental Market Survey, primarily due to these units being in new buildings with more amenities that are not typically found in older purpose-built rental apartments. When the 2017 survey was conducted, vacancy rates for rented condominiums were low, with less than 1% of units vacant in Metro Vancouver.
