Page 1

The complete market perspective for the rental housing industry

2021


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FOREWORD

Produced by RHB Inc – creators of RHB Magazine, RHBTV, RHB Newsreel, BOLD TV and Perpetual Media Group (PMG) – in collaboration with the Canadian Federation of Apartment Association (CFAA), theANNUAL delivers a complete market perspective for the Canadian rental housing industry. Producing a standalone resource guide with vital and practical industry information is an expansive undertaking. That’s why theANNUAL is the only resource of its kind that produces this level of in-depth analysis and forecasting for Canada’s rental housing industry. It takes a great deal of time, resources and industry knowledge to produce this type of comprehensive report that involves regional and national apartment owners and managers, and that also enables them to respond to market need, size and competition. Here is some of what you’ll find in theANNUAL: •  CMHC’s State of the Industry Report, comparing primary and secondary rental stock in 24 centres, while outlining specific market conditions and performance markers. •  We again sourced arguably the top brokerage firm in Canada, David Montressor of CBRE and his National Apartment Group, NAG as he puts it, to give us a look at realty transactions in Canada’s top primary markets, an analysis of 2020 and what to expect in 2021. •  Benjamin Tal’s economic update and forecast. •  Bullpen Research & Consulting and Rentals.ca analyze asking rents and what they mean to you. We also included the 2021 Allowable Rent Increases from across Canada where applicable.

Associate Publisher Nishant Rai

Art Director Scott Clark

Associate Publisher Debbie Dollar-Seldon

Office Manager Geeta Lokhram

Contributing Editor John Dickie, President CFAA

Owner Marc Côté

•  You’ll also find data from the Canadian Tenant Survey compiled by Informa Canada. Here, you can read about what types of amenities and perks Canadian tenants are looking for. •  A vetted report of Canada’s top owner, managers and REITs. Although we shouldn’t be surprised after all these years of reporting on rental housing, we see a shakeup in the rankings and, as always, are please to see the year over year growth of our amazing industry. RHB Inc. is Canada’s National Voice for the apartment industry. We work diligently to deliver the latest news and information that help industry professionals maintain a competitive advantage. That’s why so much effort is placed on ensuring theANNUAL is the best resource guide that it can be to our industry. Our success is based upon the same family principles that define our industry. Therefore, we would like to acknowledge the following people and companies for their help gathering the information and data which enabled us to deliver this comprehensive guide: John Dickie, CFAA; Benjamin Tal, CIBC World Markets; Canada Mortgage and Housing Corporation (CMHC); Sarah Segal and Kim Trimboli, Informa Canada; David Montressor, Tom Weinbaum Schuster and the entire CBRE National Apartment Group; Rentals.ca and Ben Myers, Bullpen Research & Consulting. We accept full responsibility for accurately delivering the news for the apartment industry. Therefore, we want to hear from you, the people who make us the strongest industry in Canada. Let us know what you think about what you’ve read in this edition of theANNUAL. Tell us what you want to read in the 2022 edition of theANNUAL – what matters most to you, what information will help you better in your business and what data and resources are critical to your decision-making. All the best,

Nishant Rai Nishant Rai Associate Publisher

INC.

Welcome to the 2021 national edition of theANNUAL, an industry specific periodical that provides our readership with relevant, timely information and data based on a single-minded approach: “What does the apartment industry need to know?” With this basic philosophy as our focus, we turned to industry experts, association executives, government sources, and apartment owners & managers from coast to coast to provide you with the most complete and thorough industry resource.

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TABLE OF CONTENTS

2…………FOREWORD

8……STATE OF

THE INDUSTRY

11……STATE OF THE INDUSTRY – EASTERN

15……STATE OF THE INDUSTRY – CENTRAL

21……STATE OF THE INDUSTRY – WESTERN

4 – theANNUAL


YOUR ONE STOP

SOURCE FOR QUALITY MAINTENANCE PRODUCTS

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TABLE OF CONTENTS 27…REALTY CHECK

47…DOLLARS & CENTS

53....RENTS – ALLOWABLE & ASKING 32% 24% 19% 14% 7%

57…TENANT SURVEY RESULTS

3% 2%

61….............TOP TEN

83…INDUSTRY EVENTS

6 – theANNUAL


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AVR: 2.4%

AVR: 7.2%

2BR: $1515

2BR: $1247

AVR: 3.8%

AVR: 2.5%

2BR: $1215 AVR: 7.2% 2BR: $1103

2BR: $856 AVR: 3.2% 2BR: $1408

East Coast Statistics New Brunswick: AVR: 3.1%; 2BR: $893 Prince Edward Island: AVR: 2.6%; 2BR: $958 Nova Scotia: AVR: 2.1%; 2BR: $1182 Newfoundland and Labrador: AVR: 7.2%; 2BR: $850

TOP

10

PRIMARY MARKETS

by # of suites

1. MONTREAL

6. OTTAWA

2. TORONTO

7. WINNIPEG

3. VANCOUVER

8. HALIFAX

4. QUEBEC CITY

9. LONDON

5. EDMONTON

10. HAMILTON

AVR = Average Vacancy Rate at October 2020 2BR = Average Rent of 2 Bedroom Suite at October 2020 *In the data that follows, theANNUAL excludes subsidized housing. Secondary figure includes: rented row housing, and the usual secondary rental supply (rented single family homes, doubles, duplexes, accessory suites and rented condos)

8 – theANNUAL


4,474,530 TOTAL RENTAL households in Canada in 2016

31.8%

OF CANADIAN households

RENT 46%

Primary Market Secondary Market

54%

CANADA’S PRIMARY MARKET RENTAL STATISTICS Canada’s Primary Market Rental Statistics Bach

1BR

2BR

3BR

Total

Number of Private Apartment Units

138,496

728,466

1,044,403

184,792

2,096,157

Private Apartment Vacancy Rates

4.6%

3.5%

2.8%

2.6%

3.2%

Private Apartment Average Rents

$865

$1,046

$1,125

$1,206

$1,087

Private Apartment Estimate of Percentage Change of Average Rent

4.5%

3.9%

3.5%

3.9%

3.7%

UNIVERSE OF BUILDINGS IN THE PRIMARY MARKETS BY NUMBER OF UNITS

3-5 Units 42% 6-19 Units 26% 20-49 Units 17% 50-199 Units 9% 200+ Units 5%

*In State of the Industry, the rent and vacancy figures stated reflect apartments within the Primary Rental Market.

theANNUAL – 9


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Eastern Canada

*The vacancy and rent figures are as of October 2020. The year-over-year (YOY) figures shown in green are positive for rental providers, while figures in red are negative, and figures in yellow provide a warning.

Positive Warning Negative

theANNUAL – 11


State of the Industry Market universe of rental units Primary Secondary

0

5000

10000

15000

20000

25000

St. St. John’s, John’sNL

25,485 16% Rate Type

Oct '19

Oct '20

Vacancy Rates

6.9%

Average Rents

$896

$903

0.8%

$731

$823

$974

$937

*% Chg 0.6% Avg Rent

1.4%

0.8%

1.6%

1.0%

1.6%

**

7.5%

YOY

Bach

1BR

0.6%

9.0%

6.6%

2BR 7.9%

TOTAL RENTAL HOUSEHOLDS

3BR+

84%

6.8%

2nd Primary

Largest Market in Eastern Canada

Secondary

Market universe of rental units Primary

Charlottetown

Secondary 0

St. John’s

1000

2000

3000

4000

5000

6000

10,775 Rate Type

Oct '19

Oct '20

YOY

Bach

1BR

2BR

3BR+

Vacancy Rates

1.2%

2.7%

1.5%

**

3.9%

2.3%

0.7%

Average Rents

$891

$927

4.0%

$621

$819

$978

$1,121

*% Chg 2.9% Avg Rent

3.0%

0.1%

**

3.0%

2.7%

4.5%

57% 43%

6th Primary

12 – theANNUAL

TOTAL RENTAL HOUSEHOLDS

Secondary

Largest Market in Eastern Canada


Market universe of rental units Primary

Halifax

Secondary

0

St. John’s

10000 20000 30000 40000 50000 60000

69,180 Rate Type Vacancy Rates

Oct '19 1.0%

Oct '20 1.9%

24% YOY 0.9%

Bach 1.8%

1BR 1.9%

2BR 1.9%

3BR+ 1.8%

Average $1,113 $1,170 5.1% Rents

$865 $1,016 $1,255 $1,454

*% Chg 3.8% Avg Rent

5.3%

4.1%

0.3%

TOTAL RENTAL HOUSEHOLDS

76%

Largest Market in Eastern Canada

1st Primary

4.1%

4.2%

3.4%

Secondary

Market universe of rental units Primary

Moncton

Secondary

St. John’s

0

3000

6000

9000

12000

15000

19,175 30%

Rate Type

Oct '19

Oct '20

YOY

Bach

1BR

2BR

Vacancy Rates

2.2%

2.8%

0.6%

5.3%

2.2%

2.9%

Average Rents

$831

$896

7.8%

$685

$774

$949

$1,045

*% Chg 2.3% Avg Rent

5.1%

2.8%

5.0%

4.3%

4.6%

**

3BR+

70%

TOTAL RENTAL HOUSEHOLDS

2.3%

3rd Primary

* Estimate of Percentage Change of Average Rent for units reported in both 2019 and 2020. ** Indicates data suppressed to protect confidentiality or data not statistically reliable.

Largest Market in Eastern Canada

Secondary

theANNUAL – 13


State of the Industry Market universe of rental units Primary Secondary

0

2000

4000

6000

8000

10000

St. John’s Saint John, NB

15,695 Rate Type

Oct '19

Oct '20

YOY

Bach

1BR

2BR

3BR+

Vacancy Rates

3.3%

3.1%

-0.2%

4.6%

3.1%

2.8%

3.5%

Average Rents

$764

$788

3.1%

$567

$701

$825

$854

*% Chg 3.7% Avg Rent

3.6%

-0.1%

**

3.3%

3.4%

3.3%

63%

37%

TOTAL RENTAL HOUSEHOLDS 4th

Primary

Largest Market in Eastern Canada

Secondary

Market universe of rental units Primary Secondary

0

St. John’s

4000

6000

8000

10000

11,960

Fredericton

29%

Rate Type

Oct '19

Oct '20

YOY

Bach

1BR

2BR

Vacancy Rates

1.4%

2.5%

1.1%

3.5%

2.8%

2.6%

Average Rents

$933

$963

3.2%

$686

$815

$979

$1,217

*% Chg 4.3% Avg Rent

2.6%

-1.7%

2.2%

3.6%

3.2%

2.0%

3BR+

71%

TOTAL RENTAL HOUSEHOLDS

1.1%

5th Primary

14 – theANNUAL

2000

Largest Market in Eastern Canada

Secondary

* Estimate of Percentage Change of Average Rent for units reported in both 2019 and 2020. ** Indicates data suppressed to protect confidentiality or data not statistically reliable.


Central Canada

*The vacancy and rent figures are as of October 2020. The year-over-year (YOY) figures shown in green are positive for rental providers, while figures in red are negative, and figures in yellow provide a warning.

Positive Warning Negative

theANNUAL – 15


State of the Industry Market universe of rental units Primary

Quebec City St. John’s

Secondary

0

20000

40000

60000

80000

100000

143,935 Rate Type

Oct '19

Oct '20

YOY

Bach

1BR

2BR

66%

3BR+

Vacancy Rates

2.4%

2.7%

0.3%

3.0%

3.3%

2.3%

2.8%

Average Rents

$837

$874

4.4%

$607

$778

$899

$1,067

*% Chg 1.9% Avg Rent

2.8%

0.9%

3.2%

3.2%

2.7%

3.0%

34%

TOTAL RENTAL HOUSEHOLDS 3rd

Primary

Largest Market in Central Canada

Secondary

Market universe of rental units Primary

Gatineau St. John’s

Secondary

0

5000 10000 15000 20000 25000 30000

44,355 Rate Type

Oct '19

Oct '20

57% YOY

Bach

1BR

2BR

3BR+

Vacancy Rates

1.5%

Average Rents

$847

$906

7.0%

$631

$791

$950

$1,035

*% Chg 4.5% Avg Rent

2.4%

-2.1%

2.4%

2.5%

2.2%

2.2%

1.6%

0.1%

3.4%

2.2%

1.4%

TOTAL RENTAL HOUSEHOLDS

1.0%

9th Primary

16 – theANNUAL

43%

Secondary

Largest Market in Central Canada


800000

Market universe of rental units

700000 600000 500000 400000

Primary

300000 200000

Secondary

Montréal St. John’s

100000 0

765,550 27% Rate Type

Oct '19

Oct '20

YOY

Bach

1BR

2BR

3BR+

Vacancy Rates

1.5%

Average Rents

$841

$891

5.9%

$703

$810

$903 $1,112

*% Chg 3.6% Avg Rent

4.2%

0.6%

5.4%

4.6%

3.6%

2.7%

1.2%

4.8%

3.1%

2.1%

TOTAL RENTAL HOUSEHOLDS

73%

2.6%

1st Primary

2.4%

Secondary

Market universe of rental units

Toronto St. John’s

Largest Market in Central Canada

400000 350000 300000 250000

Primary

200000

Secondary

100000

150000

50000 0

715,545 Rate Type

Oct '19

Vacancy 1.5% Rates

45%

Oct '20

YOY

Bach

1BR

2BR

3.4%

1.9%

5.5%

4.0%

2.7%

3BR+

4.7%

-1.8%

4.4%

4.7%

4.5%

TOTAL RENTAL HOUSEHOLDS

2.2%

Average $1,459 $1,528 4.7% $1,204 $1,421 $1,635 $1,848 Rents *% Chg 6.5% Avg Rent

55%

**

* Estimate of Percentage Change of Average Rent for units reported in both 2019 and 2020. ** Indicates data suppressed to protect confidentiality or data not statistically reliable.

2nd Primary

Largest Market in Central Canada

Secondary

theANNUAL – 17


State of the Industry Market universe of rental units

70000 50000 30000

Primary

Ottawa St. John’s

10000 0

Secondary

128,285 Rate Type

Oct '19

Vacancy 1.8% Rates

Oct '20

YOY

Bach

1BR

2BR

3.9%

2.1%

3.1%

3.9%

3.7%

52%

3BR+ **

4th

Average $1,281 $1,358 6.0% $1,000 $1,244 $1,517 $1,851 Rents *% Chg 8.2% Avg Rent

4.5%

-3.7%

7.2%

5.4%

5.2%

Primary

2.5%

Largest Market in Central Canada

Secondary

50000

Market universe of rental units

London

TOTAL RENTAL HOUSEHOLDS

48%

40000 30000

Primary

20000

Secondary

10000

St. John’s

0

74,275 Rate Type Vacancy Rates Average Rents

Oct '19 1.8%

Oct '20 3.4%

YOY 1.6%

$1,024 $1,118 9.2%

*% Chg 5.0% Avg Rent

Bach 4.7% $774

1BR 3.5%

2BR 3.1%

3BR+

35% 65%

4.9%

6th

$1,001 $1,207 $1,379 Primary

7.0%

18 – theANNUAL

2.0%

8.5%

7.5%

6.8%

TOTAL RENTAL HOUSEHOLDS

4.5%

Secondary

Largest Market in Central Canada


50000

Market universe of rental units

Hamilton St. John’s

40000 30000

Primary

20000

Secondary

10000 0

86,860 Rate Type Vacancy Rates Average Rents

Oct '19 3.9%

Oct '20 3.5%

$1,133 $1,208

*% Chg 5.3% Avg Rent

YOY -0.4%

Bach 5.3%

6.6%

$898

0.1%

4.9%

1BR 3.4%

2BR 3.2%

3BR+

TOTAL RENTAL HOUSEHOLDS

51% 49%

5.7%

5th

$1,096 $1,291 $1,511

Largest Market in Central Canada

Primary 5.4%

5.4%

5.0%

3.5%

Secondary

Market universe of rental units

40000 30000 20000

Primary

10000 0

Secondary

St.K-C-W John’s

64,350 Rate Type Vacancy Rates

Oct '19 2.1%

Oct '20 2.1%

56% YOY -

Bach 3.1%

Average $1,163 $1,221 Rents

5.0%

$863

*% Chg 5.0% Avg Rent

-1.1%

5.1%

3.9%

1BR 1.9%

2BR 2.1%

3BR+

44%

3.0%

7th

$1,076 $1,295 $1,435 Primary 3.9%

4.0%

TOTAL RENTAL HOUSEHOLDS

2.8%

* Estimate of Percentage Change of Average Rent for units reported in both 2019 and 2020. ** Indicates data suppressed to protect confidentiality or data not statistically reliable.

Largest Market in Central Canada

Secondary

theANNUAL – 19


State of the Industry Market universe of rental units Primary Secondary

St. Catharines St. John’s

0

10000

20000

30000

45,735 Rate Type Vacancy Rates Average Rents

Oct '19 2.3%

Oct '20 2.7%

$1,028 $1,075

*% Chg 4.0% Avg Rent

YOY

Bach **

0.4%

1BR 2.5%

4.6%

$774

$958

1.6%

5.7%

5.7%

2BR 2.9%

TOTAL RENTAL HOUSEHOLDS

35%

3BR+

65%

1.9%

8th

$1,137 $1,260 Primary

5.6%

6.1%

7.1%

Secondary

Market universe of rental units

25000 20000 15000 10000

Primary

Windsor St. John’s

Largest Market in Central Canada

5000

Secondary

0

37,675 Rate Type

Oct '19

Oct '20

YOY

Bach

1BR

Vacancy Rates

2.9%

3.6%

0.7%

6.7%

3.9%

Average Rents

$870

$937

7.7%

$699

$896

*% Chg 7.5% Avg Rent

8.4%

0.9%

10.9%

8.3%

2BR 2.5%

3BR+

41% 59%

**

10th

$1,027 $1,214 Primary

20 – theANNUAL

8.7%

5.7%

TOTAL RENTAL HOUSEHOLDS Largest Market in Central Canada

Secondary

* Estimate of Percentage Change of Average Rent for units reported in both 2019 and 2020. ** Indicates data suppressed to protect confidentiality or data not statistically reliable.


Western Canada

*The vacancy and rent figures are as of October 2020. The year-over-year (YOY) figures shown in green are positive for rental providers, while figures in red are negative, and figures in yellow provide a warning.

Positive Warning Negative

theANNUAL – 21


State of the Industry 80000 70000 60000 50000 40000 30000 20000 10000 0

Market universe of rental units Primary

Winnipeg

Secondary

St. John’s

100,150 Rate Type Vacancy Rates Average Rents *% Chg Avg Rent

Oct '19 Oct '20 YOY 3.1%

3.8%

$1,070 $1,107

Bach

1BR

2BR

0.7%

3.9%

4.3%

3.5%

$757

$991

-0.5%

3.5%

3.0%

3BR+

3.4%

62%

38%

2.5%

TOTAL RENTAL HOUSEHOLDS 4th

$1,262 $1,578 Primary

3.5%

3.0%

3.0%

1.5%

Secondary

Market universe of rental units

20000 15000 10000

Primary

Saskatoon St. John’s

Largest Market in Western Canada

5000

Secondary

0

34,305 Rate Type Vacancy Rates Average Rents

Oct '19 Oct '20 YOY 5.7%

5.9%

$1,046 $1,078

*% Chg 2.0% Avg Rent

0.2%

Bach 5.0%

1BR 5.3%

3.1%

$729

$957

-

2.1%

2.1%

2BR 6.5%

3BR+

42%

6th

$1,166 $1,287

22 – theANNUAL

2.0%

TOTAL RENTAL HOUSEHOLDS

3.9%

Primary 2.0%

58%

0.6%

Secondary

Largest Market in Western Canada


15000

Market universe of rental units

Regina

12000 9000

Primary

6000

Secondary

3000

St. John’s

0

28,575 Rate Type Vacancy Rates Average Rents

Oct '19 Oct '20 YOY

Bach

1BR

2BR

49%

3BR+

51% 7.8%

7.5%

$1,035 $1,061

*% Chg -0.5% Avg Rent

9.8%

-0.3%

8.3%

2.5%

$757

$949

1.0%

0.8%

0.5%

7.0%

TOTAL RENTAL HOUSEHOLDS

4.7%

7th

$1,152 $1,332 Primary

0.5%

0.8%

1.3%

Secondary

Market universe of rental units Primary

Edmonton

Largest Market in Western Canada

Secondary

St. John’s

80000 70000 60000 50000 40000 30000 20000 10000 0

151,710 Rate Type Vacancy Rates Average Rents

47% Oct '19 Oct '20 YOY 4.9%

7.2%

$1,144 $1,153

*% Chg 0.9% Avg Rent

2.3%

Bach 8.2%

0.8%

$881

**

-0.7%

1BR 6.9%

2BR 7.4%

53%

3BR+ 5.8%

2nd

$1,031 $1,272 $1,385 Primary

**

**

**

TOTAL RENTAL HOUSEHOLDS

-0.7%

* Estimate of Percentage Change of Average Rent for units reported in both 2019 and 2020. ** Indicates data suppressed to protect confidentiality or data not statistically reliable.

Largest Market in Western Canada

Secondary

theANNUAL – 23


State of the Industry Market universe of rental units

Calgary

100000 80000 60000

Primary

40000

Secondary

20000

St. John’s

0

140,370 Rate Type Vacancy Rates Average Rents *% Chg Avg Rent

30% Oct '19 Oct '20 YOY 3.9%

6.6%

$1,181 $1,195

Bach

2.7%

5.9%

1.2%

$883

**

**

1BR 6.8%

2BR 6.3%

TOTAL RENTAL HOUSEHOLDS

70%

3BR+ 7.3%

3rd

$1,087 $1,323 $1,296 Primary

1.7%

**

**

**

**

Secondary

Market universe of rental units

250000 200000 150000

Primary

100000 50000

Secondary

Vancouver St. John’s

Largest Market in Western Canada

0

348,700 Rate Type Vacancy Rates Average Rents *% Chg Avg Rent

Oct '19 Oct '20 YOY 1.1%

2.6%

$1,469 $1,508

1.5% 2.7%

Bach 2.9%

1BR 2.5%

2BR 2.7%

3BR+

32% 68%

3.6%

1st

$1,258 $1,415 $1,792 $2,206 Primary

4.7%

24 – theANNUAL

2.0%

-2.7%

3.3%

2.0%

1.5%

TOTAL RENTAL HOUSEHOLDS

**

Secondary

Largest Market in Western Canada


Market universe of rental units

Victoria

Primary 0

Secondary

5000

10000

15000

20000

25000

30000

35000

60,745 45% Rate Type Vacancy Rates Average Rents *% Chg Avg Rent

Oct '19 Oct '20 YOY 1.0%

2.2%

$1,221 $1,275

1.2% 4.4%

Bach 2.1%

1BR 2.1%

2BR 2.4%

TOTAL RENTAL HOUSEHOLDS

55%

3BR+ 0.9%

Largest Market in Western Canada

5th

$1,015 $1,185 $1,507 $1,758 Primary

3.4%

3.3%

-0.1%

5.3%

3.7%

3.3%

4.2%

Secondary

Market universe of rental units Primary

Kelowna St. John’s

Secondary

0

3000

6000

9000

12000

15000

21,700 32% Rate Type

Oct '19 Oct '20 YOY

Bach

1BR

2BR

Vacancy Rates

2.7%

Average Rents

$1,222

$1,255

2.7%

$1,038

$1,144

$1,391

$1,596

2.4%

3.4%

1.0%

4.9%

2.2%

3.1%

3.9%

*% Chg Avg Rent

2.1%

-0.6%

6.4%

1.5%

1.3%

68%

3BR+

TOTAL RENTAL HOUSEHOLDS

1.3%

8th Primary

* Estimate of Percentage Change of Average Rent for units reported in both 2019 and 2020. ** Indicates data suppressed to protect confidentiality or data not statistically reliable.

Largest Market in Western Canada

Secondary

theANNUAL – 25


NATIONAL APARTMENT GROUP Sales Representative * Broker ** Personal Real Estate Corporation ***

ONTARIO

TORONTO David Montressor* Executive Vice President david.montressor@cbre.com 416. 815. 2332

BRITISH COLUMBIA ALBERTA VANCOUVER Lance Coulson*** Executive Vice President lance.coulson@cbre.com 604. 662. 5141

EDMONTON David Young* Executive Vice President dave.young@cbre.com 780. 917. 4625

VANCOUVER Greg Ambrose* Associate Vice President greg.ambrose@cbre.com 604. 662. 5178

OTTAWA Nico Zentil* Senior Vice President nico.zentil@cbre.com 613. 788. 2708

EDMONTON Thomas Chibri* Associate Vice President thomas.chibri@cbre.com 780. 424. 5475

VANCOUVER Kevin Murray* Senior Sales Associate kevin.murray4@cbre.com 604. 662. 5171

LONDON Kevin MacDougall** Associate Vice President kevin.macdougall@cbre.com 519. 286. 2013

CALGARY Richie Bhamra* Vice President richie.bhamra@cbre.com 403. 303. 4569

WATERLOO REGION James Craig* Senior Sales Associate james.craig2@cbre.com 519. 340. 2330

BRITISH COLUMBIA ALBERTA

QUEBEC MONTREAL Benoit Poulin* Senior Vice President benoit.poulin@cbre.com 514. 905. 2142 MONTREAL Marc Hetu* Senior Vice President marc.hetu@cbre.com 514. 906. 0891

SASKATCHEWAN MANITOBA

ONTARIO

QUEBEC

NOVA SCOTIA NEWFOUNDLAND HALIFAX

Robert Mussett* Executive Vice President robert.mussett@cbre.com 902. 492. 2065 HALIFAX

Chris Carter* Vice President chris.carter@cbre.com 902. 492. 2085 NEW BRUNSWICK NOVA SCOTIA

9

14

$18.0B+

OFFICES ACROSS CANADA

SALES PROFESSIONALS

SOLD SINCE 2000

To join our distribution list, please email: tom.schuster@cbre.com


Realty Check

theANNUAL – 27


ONE CALL. INFINITE SOLUTIONS.

Dependable Service. Turn-Key Solutions.

www.acegroupgta.ca


CBRE Foreword David Montressor, Executive Vice President Midway through 2021 we reflect on the previous

As multifamily occupancy and rents recover from their

18 months, Canada’s evolving multifamily market

short-term lows, we have a strong sense that values will

conditions, and CBRE’s current outlook for each major

increase proportionately throughout 2021 and into 2022.

market in the country. Multifamily remains one of the most positive Canadian commercial real estate stories, but the sector has not been without its challenges. Certainly, the most dramatic shift we’ve observed is the erosion of market fundamentals in major urban centres: vacancy increased in every province and urban multifamily rents struggled in cities across the country.

Active investors share an unwavering resolve in their Canadian multifamily investment thesis and a strong conviction that the current market softness is transient. Recent data supports this and reinforces a major theme of 2021: the pending recovery of urban multifamily assets. As of Q2 2021, the path to recovery is more apparent south of the Canadian border where restrictions

However, underneath the surface and beyond the often-negative headlines, the multi-residential sector demonstrated impressive strength and resiliency in several ways. First and foremost, the industry continued to provide safe and affordable shelter to millions of Canadians while absorbing new cost-pressures and adopting higher standards of operations. Meanwhile, the relative affordability of Canadian rental housing translated into superior stability for the asset class at a

have subsided and select submarkets have even surpassed their pre-COVID rent levels. Positive indicators are also emerging in Canada. Rents in Toronto have grown month-over-month every month since February while rents in Vancouver are nearing full recovery. It’s important to note how recent rental growth has largely coincided with higher vaccination rates, as well as the crucial reopening of our economies over the summer.

time of widespread volatility in broader capital markets.

The continued vaccine rollout, the easing of economic

With Multifamily reestablished as commercial real

and travel restrictions, as well as the return of

estate’s defensive safe haven, capital formation (debt

immigration and student demand for the Fall semester

and equity) has solidified for the sector, translating

will underpin a near-term recovery in Canada’s multi-

into increased multifamily allocations and tailwinds in

residential sector. The next stage of the recovery will

pricing.

include the unwinding of leasing incentives, which will

Following an abrupt slowdown in transactions in Q2 2020, the pandemic-induced inertia subsided in Q3 and has since given way to a fervent pace and volume of investment activity that has continued to accelerate well into 2021. This has arguably been the distinguishing factor of 2021: a tremendous spike in sales volume across the country. Major dispositions are occurring in all major

be closely tied to improvement in occupancy levels for stabilized buildings. Post-recovery, demand-side momentum will be led by the federal government’s well-publicized immigration targets (400,000 people annually) and compounded by policy-based barriers to supply in major markets. We continue to monitor active capital sources and are positioned to assist and advise as

markets from coast-to-coast. Year-to-date investment

market conditions evolve.

puts Canada on track to match totals from 2019 and 2020,

For additional market intel, you can contact any member

which is significant considering the record year leading into COVID and the sale of Northview REIT in 2020. Investors are absorbing the surge in product for sale, and values continue to appreciate, notwithstanding the

of the National Apartment Group across the country to discuss the current state of the Canadian MultiResidential market.

increase in borrowing costs since the start of the year. In Realty Check, the rent and vacancy figures stated are for the purpose-built rental apartment stock. The figures do not include rental rows (townhouses) or rented condominiums. The rented condos make up a significant part of the secondary market, especially in larger centres; there are other components to the secondary market (including rented duplexes, rented doubles and rented single family homes.)

theANNUAL – 29


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Realty Check

Atlantic-Halifax

Chris Carter, Vice President Apartments were the main focus for investment real estate in Atlantic Canada in 2020, as the asset class accounted for 66% of the region’s $1.3B in investment sales volume for the year. Development land was second at 7.3% and industrial was third for 4.1%. In terms of investment sales volume, the region had never seen one asset class be so dominant and it was the largest investment volume ever seen regionally for the apartment sector. 2020 sales statistics included 28 transactions, 3,028 units, amounting to $635,000,000 and representing a 239% YoY increase. In terms of pricing, sales averaged $209,700 per suite which was a 31% increase over 2019. Q1 2020 saw the largest apartment transaction in Halifax’s history, with CAPREIT acquiring QuadReal’s entire portfolio of 1,503 units across 14 buildings for $391M (CBRE Transaction). Pricing continues to increase, as rents rise, and higher construction costs make new projects more expensive on a relative basis. Cap rates edged down in 2020 from 2019, especially for top quality product. The buyer profile changed over the course of the year. In the first quarter there was substantial institutional and REIT activity while in the second half of the year, sales activity skewed towards smaller assets and was dominated by local private buyers. Travel restrictions hampered the ability of out-of-province buyers to tour and inspect assets. However there were examples of Toronto-based buyers acquiring in Halifax in Q3 and Q4 2020. Halifax added 2,050 rental units in 2020, bringing the rental universe total to 52,244. Condo development makes up a very small percentage of new unit starts in Halifax. There continues to be a push for urban units on

the peninsula; however, after a few years of slowing, suburban development is still strong with multiple projects underway. even with travel restrictions in place for most of the year, Halifax saw positive population growth and was the second fast growing city in Canada in 2020. With Halifax recently being ranked by Maclean’s Magazine as the best city in the country to live, we anticipate this will fuel additional population growth in the coming years pushing rental demand higher. Vacancy rates in Halifax increased from 1.0% in 2019 to 1.9% in 2020. Being a university town, this was primarily driven by loss of student demand with no in-class learning. In fact, the majority of vacancy increase was in the urban area, with suburban nodes holding steady or even seeing vacancy rates decreasing. Halifax’s average apartment rents increased YoY by 4.1% to $1,170. With lower vacancy and increasing rents we are seeing less unit turnover in the market, with most landlords indicating that turnover had been in the 20-30% range in previous years but is now closer to 10-15%. With the continued demand for multifamily investment, coupled with construction cost pressures, we anticipate strong pricing to continue into the second half of 2021 and 2022. As prices increase across major markets, we expect to see more out-of-province buyers, especially with the potential for travel restrictions being eased in the second half of 2021. Investor demand is holding steady and resulted in a deep buyer pool for a major portfolio sale in the first half of 2021 with over 1,000 suites across Atlantic Canada. Demand going forward will continue to focus on core urban product, as well as newer, high-quality suburban product.

Market Data Total

Year over Year

Investment Volume (Units)

3,028

Up

Investment Volume (Price)

$634,658,500

Up

Price per Unit

-

Reported Cap Rate

Average

Low

High

12

1,503

$22,666,375

$860,000

$391,000,000

Up

$209,597

$58,800

$358,193

-

Down

4.8%

4.0%

6.0%

New Rental Supply

2,050

Up

-

-

-

Vacancy Rate

1.9%

Up

-

-

-

Source: RealNet, CBRE Research

theANNUAL – 31


Realty Check

Atlantic-Halifax

Quadreal Portfolio Location:

Halifax (downtown assets and suburban node – Clayton Park)

Suites:

1,503 suites (14 buildings)

Price per Suite:

$260,146

Date Closed:

February 2020

Buyer Type:

REIT

The Junction (3075 Devonshire) Location:

Halifax (Peninsula)

Suites:

119 suites

Price per Suite:

$358,193

Date Closed:

September 2020

Buyer Type:

Institution

Location:

Bedford

Suites:

88 suites

Price per Suite:

$254,545

Date Closed:

August 2020

Buyer Type:

REIT

32 – theANNUAL

$391,000,000

Price

$42,625,000

The Ashton (79 Holtwood Court)

451 Broad Street

Price

Location:

Dartmouth

Suites:

86 suites

Price per Suite:

$297,674

Date Closed:

November 2020

Buyer Type:

REIT

Price

$22,400,000

Price

$25,600,000


Realty Check Québec Montreal Marc Hetu, Senior Vice President Investment in the Greater Montreal Area was healthy in 2020, recording over 750 transactions totaling $2.5 billion in deal volume. The 2020 total is in line with the 2019 benchmark sales volume of $2.4 billion, an impressive performance given the difficult economic conditions due to the ongoing health crisis. Although the number of high-profile transactions decreased in 2020, activity involving smaller assets under 60 units was unprecedented, a great outcome during an otherwise challenging year for commercial real estate. Much like the period following the 2008/2009 financial crisis, pricing for multi-family assets was in line with 2019 throughout the 2020 Covid-19 pandemic. Montreal’s tremendous economic momentum prior to the health crisis sustained pricing and trumped the negative effects of Covid-19. Pricing was particularly strong for larger assets (60+ units), including Class A properties that fit the investment criteria for Institutions and REITs, with cap rates ranging between 3.0% and 4.25%. On a per suite and per square foot basis, prices varied between $290,000 and $525,000 per unit, working out to $335 to $560 per square foot. Capitalization rates for the most desirable 1960s vintage concrete apartment buildings were recorded in a similar range, between 3.50% and 4.25% in 2020, with the average sale price per suite falling between $175,000 and $200,000. One outlier in this category should be highlighted, a trophy downtown apartment building known as Le Cartier, which traded for $588,000 per unit.

2020

For the second consecutive year, new purpose-built rentals accounted for nearly two-thirds of all new supply. Forward looking indicators of supply including construction starts and units under construction indicate a robust rental pipeline with little signs of slowing down. In 2020, the City’s average vacancy rate edged higher to 2.70%, only slightly lower than the average vacancy rate 3 years prior in 2017. Demand is expected to be led by the city’s burgeoning tech scene, a sector that has performed spectacularly during the health crisis. Tech jobs in Montreal have surpassed the 140,000 mark, representing a 14% increase over the past 5 years, and generally offer salaries that are 80% above Montreal’s median income. 2021 investment activity has fully rebounded and is on pace to exceed 2020’s total by the end of Q3. Pricing is consistent with last year, reflecting the sector’s strength as shutdowns persist. Institutional investors will continue to favor new construction while being highly selective. REITs are expected to continue their acquisition programs, targeting a mix of value-add deals and new builds as their stock values gradually recover. However, private investors are once again expected to capture the greatest market share as they make opportunistic acquisitions while interest rates are at record lows and their institutional competitors take a more cautious approach to their acquisitions.

Market Data Total

Year over Year

Average

Low

High

Investment Volume (Units)

14,562

Up

22

3

400

Investment Volume (Price)

2,521,413,000

Up

$2,918,000

$1,000,000

$107,000,000

Price per Unit

-

Unchanged

$173,000

$31,624

$1,685,000

Reported Cap Rate

-

Unchanged

4.39%

3.00%

5.50%

New Rental Supply

12,708

Up

-

-

-

2.7%

Up 270bps

-

-

-

Vacancy Rate

Source: RealNet, CBRE Research

theANNUAL – 33


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Realty Check Québec Le Art, 1437-1441 Rene-Levesque West Location:

Ville-Marie

Suites:

138 Suites + 8,675 Sq. Ft. Commercial Space

Price

$72,750,000

Price per Suite: $527,174 Date Closed:

November 2020

Buyer Type:

REIT

EQ8 LaSalle, 6790-6890 Newman Blvd Location:

LaSalle

Suites:

300 Suites + 10,179 Sq. Ft. Commercial Space

Price

$105,000,000

Price per Suite: $350,000 Date Closed:

January 2020

Buyer Type:

Institutional

Le Cartier, 1115 Sherbrooke Street West Location:

Ville-Marie

Suites:

182 Suites + 19,963 Sq. Ft. Commercial Space

Price

$107,000,000

Price per Suite: $587,912 Date Closed:

December 2020

Buyer Type:

Private Investor

Havre-des-Iles, 2525 Havre-des-Iles Avenue Location:

Laval

Suites:

400 Suites + 4,565 Sq. Ft.

Price

$71,000,000

Price per Suite: $177,500 Date Closed:

November 2020

Buyer Type:

Private

theANNUAL – 35


Realty Check Ontario (GTA) Greater Toronto Area David Montressor, Executive Vice President The last year was characterized by extreme highs and lows for the GTA apartment market. After two consecutive years of tremendous investment and appreciation in values, including a record year in 2019, the GTA market recalibrated in response to shifting demand, softening fundamentals, and macro uncertainty. Investment activity troughed in 2020, ending the year at $1.9 Billion, a marked departure from the previous year’s $3.9 Billion record total. GTA vacancy rates lifted off historical lows to 3.4% on average and downtown multifamily assets battled mid- to upper single-digit vacancy rates, levels not seen in well over a decade. GTA average market rents are still yet to recover to pre-Covid levels and are not likely to do so before 2022. While fundamentals have softened, investor conviction has not. Factoring out the major acquisition of Continuum REIT in Q4 2019, and the abrupt pause in deal flow during Q2 2020, transaction activity was actually unchanged from 2019. Since then, investors have resumed purchasing activity with a firm view towards a market recovery and a conviction in multifamily which is flowing through to pricing. The GTA’s average price per suite now exceeds $300,000 with the largest price increases attributed to deals over 100 suites (average price per suite of $325,000)

2020

and further premiums observed for deals over 250 suites (average price per suite of $335,000). Cap rates compressed in 2020, trending below 3.2% on average and breaking below 3% on several transactions. Cap rate compression was primarily driven by forwardlooking rent expectations and a year-over-year nosedive in bond rates: the 5-year GoC opened 2019 at 185bps and closed 2020 at 39bps. A recovery in GTA market fundamentals will be led by immigration and supported by the City’s high-quality employment landscape. Toronto is slated to receive ~30% of the Federal government’s 400,000-person annual immigration target for the next 3 years. The corresponding demand far exceeds 5-year average annual housing completions of less than 35,000 homes per year. In addition to producing 20% of Canada’s GDP, Toronto’s economy is ranked 1st in North America by a massive margin for the most tech-related jobs created in the last 5 years. The City’s shortage of trade labor and legislative barriers to supply will be exacerbated by rampant cost escalations for building materials. Since 2017, the housing industry estimates Toronto’s supply shortfall has averaged 10,000 housing units annually. This is a structural long-term trend that is not going away

Market Data Total

Year over Year

Average

Low

High

Investment Volume (Units)

6,468

Down

55

10

331

Investment Volume (Price)

$1,965,000,000

Down

$16,791,000

$1,052,000

$157,975,000

Price per Unit

-

Up

$304,000

$122,000

$630,000

Reported Cap Rate

-

Down

3.18%

2.49%

4.90%

New Rental Supply

2,949

Up

-

-

-

Vacancy Rate

3.4%

Up

-

-

-

* Source: RealNet, CBRE Research, CMHC

36 – theANNUAL


Realty Check Ontario (GTA) 500 Duplex Ave Location:

Toronto

Suites:

330

Price

$157,975,000

Price per Suite: $478,712 Date Closed:

December 2020

Buyer Type:

Private Equity

165 La Rose Avenue Location:

Etobicoke

Suites:

211

Price

$83,600,000

Price per Suite: $396,209 Date Closed:

November 2020

Buyer Type:

Private Equity

301 Dixon Road Location:

Etobicoke

Suites:

225

Price

$78,500,000

Price per Suite: $348,889 Date Closed:

October 2020

Buyer Type:

Institutional Investor

2801 Jane Street Location:

North York

Suites:

234

Price

$64,000,000

Price per Suite: $273,504 Date Closed:

February 2020

Buyer Type:

Institutional Investor

theANNUAL – 37


Realty Check Ontario (GGH) Greater Golden Horseshoe David Montressor, Executive Vice President After considerable momentum in 2018 and 2019, the Greater Golden Horseshoe (GGH) saw another increase in annual sales activity in 2020, despite a pause in listings during Spring. 2020 investment activity totaled $1.070 Billion*, mostly attributed to deals in the latter half of the year. It’s important to note this figure does not include activity from the sale of Northview REIT, whose Ontario suite count on its own would represent over two years’ worth of typical deal volume. Investment in the GGH continues to be shaped by large portfolio transactions: the 8 largest transactions represented a greater portion of annual sale volume than all remaining trades combined. REITs, Institutions, and private equity groups have reaffirmed their interest in Ontario’s secondary markets, motivated by attractive yields and stable growth prospects for multiresidential investments in the region. Buy- and sellside activity was primarily driven by investors entering and exiting long-term investments rather than shifting geographic priorities. In terms of pricing, Ontario’s secondary markets have experienced meaningful cap rate compression amid similar demand pressures and supply constraints facing the rest of Ontario. Cap rates range between high-3% and mid-4% yields for higherquality, large-scale offerings. Pricing varies according

2020

to location and quality but premiums for scale and renovated product have proven to impact values significantly based on investor demand. The development of newly constructed purpose-built rentals continues to play an important role within Southwestern Ontario’s market dynamics. Attractive land prices and lower development costs support the ongoing business case for development, but despite increased supply, Ontario still has a shortage of housing. In terms of current fundamentals, Ontario’s average vacancy rate increased to 3.2% in 2020 with denser, urban markets being outperformed by smaller suburban markets. Average vacancy rates range from low-1% to high-3% across the province. Fundamentals are expected to rebound by 2022 with professionally managed, mid-market rentals positioned to lead a recovery in occupancy levels. The relative strength of Ontario’s secondary markets is a testament to the overall resiliency of the province’s multi-residential sector. As of Q2 2021, GGH investment activity is on pace to match last year’s total by the end of September. Purchase activity is still led by REITs and institutional funds seeking valueadd returns and we expect this segment of Ontario’s multifamily market to outperform through to the end of 2021 and into 2022.

Market Data Total

Year over Year

Average

Low

High

Investment Volume (Units)

125 Deals 4,788 Suites

Up

39

10

321

Investment Volume (Price)

$1,067,601,000

Up

$8,541,000

$590,000

$142,366,000

Price per Unit

-

Up

$223,000

$36,765

$443,508

Reported Cap Rate

-

Down

4.25%

3.29%

6.20%

New Rental Supply

-

Varies

-

-

-

Vacancy Rate

-

Varies

-

-

-

38 – theANNUAL


Realty Check Ontario (GGH) 8 & 16 Wilsonview Ave Location:

Guelph

Suites:

112

Price

$33,000,000

Price per Suite: $294,643 Date Closed:

July 2020

Buyer Type:

REIT

140 Main Street West Location:

Hamilton

Suites:

321

Price

$142,366,000

Price per Suite: $443,508 Date Closed:

April 2020

Buyer Type:

Institution

1505 Ottawa Street North Location:

Kitchener

Suites:

147

Price

$58,922,000

Price per Suite: $400,830

150 Sanford Avenue North Location:

Hamilton

Suites:

149

Date Closed:

April 2020

Buyer Type:

Institution

Price

$26,000,000

Price per Suite: $174,497 Date Closed:

July 2020

Buyer Type:

Private

theANNUAL – 39


Realty Check

Edmonton

Thomas Chibri, Associate Vice President Coming into 2020, multifamily was arguably the most sought-after asset class in Edmonton. While COVID-19 affected the entire real estate market, multifamily has seemed to fair better than most. The availability of government subsidies propped up the sector throughout 2020 as many landlords did not experience any material decline in rent collections. However, as the year progressed there was an uptick in vacancy and slowing of new product absorption. This was compounded by a shrinking rental pool from university closures and the effect of numerous lockdowns on employment. Surprisingly, average rental rates held steady throughout the year, but this was largely offset by the increased incentives landlords had to offer, especially in new generation product. This trend has continued through the first half of 2021. For many institutional investors, the outlook is shrouded by cautiousness as groups take a “wait and see” approach with respect to our near-term growth prospects. Many groups prefer to sit on the sidelines until employment, wage and immigration growth

2020

have a more defined line of sight in our city. This has created an opportunity for private capital to fill the void and secure real estate that they would otherwise be priced out of. The availability of historically low rate financing has fueled recent acquisitions. With the ability to secure CMHC insured 5-year financing at sub 2.0%, groups are taking the calculated risk that our economy will improve over the medium-term and thus build their way into rental growth. As we progress through 2021, there still remains demand for multifamily product, but pricing must reflect the current reality. Most investors have abandoned the traditional stabilized income approach and instead focused their underwriting on in-place rent and incentives. While cap rates have remained stable, this has caused values to decrease due to a shrinking NOI. At the same time as revenue is down, significant insurance premium and property tax increases are having a major effect on multifamily NOI. The City must take note of the undue burden placed on the rental sector and work with groups to help find some middle ground.

Market Data Total

Year over Year

Average

Low

High

Investment Volume (Units)

50 Buildings – 2,709 Units

Down 13 Buildings - Up 303 Units

55

4

306

Investment Volume (Price)

$569,618,600

Up $135,324,515

$11,593,645

$393,700

$100,000,000

Price per Unit

-

-

$138,426

$50,000

$420,168

Reported Cap Rate

-

-

5.38%

3.50%

7.10%

New Rental Supply

2,905 Units

Up 1,162 Units

-

-

-

8.00%

Up 220bps

-

-

-

Vacancy Rate

Devonshire Portfolio Location:

Downtown Edmonton

Suites:

832

Price per Suite:

$246,394

Date Closed:

February 2020

Buyer Type:

REIT

40 – theANNUAL

Price

$205,000,000


Realty Check

Edmonton

Mayfair North

Price

Location:

10803 Jasper Avenue

Suites:

238

Price per Suite:

$420,168

Date Closed:

January 2020

Buyer Type:

REIT

Level at Upper Windermere

Price

Location:

1104 Windermere Way SW

Suites:

171

Price per Suite:

$238,596

Date Closed:

February 2020

Buyer Type:

Private

$40,800,000

Wellington Park Townhomes

Infiniti on 105

$100,000,000

Location:

13220 140 Street

Suites:

220

Price per Suite:

$154,545

Date Closed:

March 2020

Buyer Type:

REOC

Price

$34,000,000

Price

Location:

11703 105 Avenue

Suites:

109

Price per Suite:

$259,633

Date Closed:

March 2020

Buyer Type:

REIT

$28,300,000

theANNUAL – 41


Realty Check

Calgary

Richie Bhamra, Senior Vice President Calgary’s multi-family investment volume contracted for the second consecutive year, as COVID-19 created additional uncertainty for the local economy already hamstrung by the previous collapse in energy markets. We are seeing relatively less liquidity in Calgary’s multi-family marketplace, as there continues to be a bid-ask spread between vendors and purchasers. As a result, Calgary experienced fewer trades with an average deal size more than 30% lower yearover-year. The majority of purchasers were private investors, chasing higher yields and lower price per doors, relative to historical averages. REITs/REOCs and institutional capital largely remained dormant, as they take a wait-and-see approach on the near-term fundamentals. Over the past year, a multitude of headwinds resulted in weakened market fundamentals. The average vacancy increased from 3.8% to 6.3%, largely due to a combination of factors, including interprovincial and international migration coming to a halt, students

2020

returning home as post-secondary institutions shifted classes online and a record 3,200 newly-constructed units added to the purpose-built rental inventory. The majority of the buildings that experienced higher vacancy are situated around the downtown core as tenants move to the suburban neighborhoods, seeking larger unit sizes and lower rental rates. Asking rents remain flat, with downward pressure on net rents as owners continue to offer incentives, in order to maintain occupancy or achieve projected absorption timelines. Through the first half of 2021, investment volume has remained in line with the previous year although generally muted as the pandemic places limitations on the ability to transact, in addition to uncertainty around energy markets. However, as the economy begins to open in the second of the half the year and midterm fundamentals begin to improve, investment demand for multi-family is expected to normalize to historic levels.

Market Data Total

Year over Year

Average

Low

High

Investment Volume (Units)

1,353

Up

26

4

228

Investment Volume (Price)

$244,960,000

Down

$4,710,000

$600,000

$36,000,000

Price per Unit

-

Down

$181,050

$62,500

$442,160

Reported Cap Rate

-

Up

4.71%

4.15%

5.54%

New Rental Supply

3,273

Up

-

-

-

Vacancy Rate

6.3%

Up 250bps

-

-

-

Hays Farm Apartments Location:

Haysboro

Suites:

228

Price per Suite:

$157,895

Date Closed:

Dec 2020

Buyer Type:

Private

42 – theANNUAL

Price

$36,000,000


Realty Check

Calgary

Varsity Estates Village Location:

Varsity

Suites:

39

Price per Suite:

$435,128

Date Closed:

Nov 2020

Buyer Type:

Private

Queens Park Village Location:

Queens Park

Suites:

187

Price per Suite:

$163,102

Date Closed:

Jul 2020

Buyer Type:

REIT/REOC

$16,970,000

Price

$30,500,000

1309 Cameron Avenue SW & 604 14th Avenue SW

King’s Alley

Price

Location:

Beltline

Suites:

55

Price per Suite:

$209,091

Date Closed:

Mar 2020

Buyer Type:

Private

Price

$11,500,000

Price

Location:

Braeside

Suites:

156

Price per Suite:

$174,199

Date Closed:

Feb 2020

Buyer Type:

Private

$27,175,000

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Realty Check British Columbia Lance Coulson, Executive Vice President The beginning of 2020 started strong throughout Metro Vancouver and Greater Victoria as momentum and investor demand for multi-family assets carried over from the previous year. Between January 1 and March 30, 2020, 20 rental apartment properties transacted, accounting for more than $481 million in total sales volume. Among these transactions, 2 of the 20 sales were large-scale concrete rental properties that accounted for a large percentage of the total sales volume in Q1, as both high net-worth private and large institutional buyers were attracted by strong market fundamentals and low interest rates. In Q2, sellers put a pause on bringing new listings to market, but the general uncertainty around multifamily assets dissipated in Q3 and Q4. By the end of 2020, as market activity resumed, the challenge for most asset classes was where new cap rates would trend and how property values would be affected. For multifamily, the

2020

year concluded with a total of 84 sales and over $1.12B in total sales volume in Greater Vancouver and Victoria combined. Given the resiliency of multi-family properties throughout 2020, price expectations have not differed greatly from pre-pandemic levels. In several cases, pricing is now even higher for core locations in Metro Vancouver. Pent-up demand and sell-side momentum have translated into a tremendous 1st half of 2021 where sales volume has eclipsed $1 Billion between January and June. This includes a historic $292.5 Million, 15-property, 614-suite apartment portfolio sale completed by CBRE which closed in Q1. Major portfolio sales of high-quality concrete assets continue to make-up the bulk of total transaction activity in 2021. As fundamentals improve, we expect pricing and investor demand to resume an aggressive growth pattern that will extend beyond the last half of the year and into 2022.

Market Data Total

Year over Year

Average

Low

High

Investment Volume (Units)

2,509

Down

38

4

230

Investment Volume (Price)

$899,896,788

Down

$14,060,887

$1,160,000

$120,000,000

$340,745

Up

-

-

-

Reported Cap Rate

2.50% - 3.50%

Unchanged

-

-

-

New Rental Supply

1,357

Down

-

-

-

Vacancy Rate

2.6%

Up

-

-

-

Price per Unit*

*Includes only traditional concrete and wood-frame apartment sales and was not included new purpose-built rental sales and any re-development sites

Source: RealNet, CBRE Research, CMHC

West Urban Vancouver Island & Kelowna Portfolio Location:

$300,000/Suite

Suites:

Nanaimo, BC; Campbell River, BC; Parksville, BC; Kelowna, BC

Price per Suite: 394 Units (Combined 5 buildings) Date Closed:

December 2020/February 2021

Buyer Type:

Institution

44 – theANNUAL

Price

$118,200,000


Realty Check British Columbia South Granville Apartment Portfolio Location:

1245 & 1255 West 10th Ave, Vancouver, BC

Suites:

22 Units (Combined 2 Buildings)

Price

$7,375,000

Price per Suite: $335,277 Date Closed:

July 2020

Buyer Type:

Private Investor

Birchwood Manor Apartments Location:

Abbotsford, BC

Suites:

31 Units

Price

$7,118,000

Price per Suite: $229,613/Suite Date Closed:

December 2020

Buyer Type:

Private Investor

St. James Apartments Location:

New Westminster, BC

Suites:

14 Units

Price

$2,350,000

Price per Suite: $167,857/Suite

The Henrietta Apartments Location:

Vancouver, BC

Suites:

11 Units

Date Closed:

September 2020

Buyer Type:

Private Investor

Price

$4,800,000

Price per Suite: $436,364/Suite Date Closed:

September 2020

Buyer Type:

Private Investor

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Dollars & Cents

theANNUAL – 47


Dollars & Cents

Content provided by Benjamin Tal, Deputy Chief Economist, CIBC World Markets

What is likely to happen in Canada regarding the economy, taxes and interest rates? What about the demand for owner-occupied housing and rental housing?

Real GDP (Billions Chained $, SAAR)

21,000

Jan Consensus Latest Consensus Pre-Pandemic Trend

20,500 20,000 19,500 19,000 18,500 18,000 17,500

23:2F

23:1F

22:4F

22:3F

22:2F

22:1F

21:4F

21:3F

21:2F

21:1A

20:4A

20:3A

20:2A

20:1A

19:4A

19:3A

17,000 19:2A

Canada’s GDP is expected to recover to the pre-COVID-19 level by the end of quarter 2 (Q2) 2021 (that is by June). GDP is expected to recover to the pre-COVID-19 trend line of growth by Q4 2021. (This is a different result from the recovery from the 2008 recession, during which the economy did not recover to the previous trend line.)

21,500

19:1A

To predict the path of the economy, economists generally look at four main drivers of economic growth, namely government stimulus, exports, consumer spending and business investment. These four drivers still apply to a situation like the COVID-19 pandemic.

In 2021, the US economic stimulus is expected to top Canada’s government stimulus, which is itself high. Subject to the extent of protectionist measures, a strong American economy bodes well for Canadian exports, which are largely driven by the state of the American economy.

Year-Over-Year Growth in Federal Debt (%) 60

Is the level of Canadian government debt a concern? Will it drive tax increases? Probably not, because governments never pay down much of their debt. The chart below shows the Government of Canada’s use and payment of debt since Confederation. Governments simply roll over their debt until it becomes insignificant due to economic growth and inflation.

48 – theANNUAL

50 40 30 20 10 0 -10 -20 1867

Years Debt Paid Down 1886

1905

1924

1943

1962

1981

2000

2019


However, in response to the Liberal government’s inclination, Canada appears to be increasing social spending, so that total federal government spending will be about 18% of GDP on a go-forward basis, up from its recent 20-year trend line of 15% (and well down from the pandemic bump to 35%). The main increase in structural spending is forecast in childcare, and then later, possibly in pharmacare. Those increases will require some tax increases, such as an increased inclusion rate for capital gains on stocks, taking some carbon tax revenue into general revenue, and possibly an increase in the GST. (One per cent in the GST would generate $7B of revenue per year, or about half a percent of GDP.)

Dec-20

Oct-20

Aug-20

Jun-20

Total Personal Deposits

$100Bn excess cash

Apr-20

Feb-20

Dec-19

Oct-19

Aug-19

Jun-19

Feb-19

1,300 1,250 1,200 1,150 1,100 1,050 1,000 950

Apr-19

Personal Deposits $Bn

Trend Growth

40% 35% 30% 25% 20% 15% 10% 1991 1996 2001 2006 2011 2016 2021

What about consumer spending? A huge proportion of the population was untouched financially by the pandemic. Almost all highincome and middle-income earners did not lose their jobs. They also saved money due to less commuting, less travel and less eating out. In some cases, households received CERB when they did not need it. As a result of that, households are sitting on excess cash; and so, consumer spending should be strong. Consumers just need to believe we are past the pandemic, and they will spend. Non-Personal Deposits ($Bn.)

1,200

What about business investment? Buying new equipment and new software? Opening new lines of business? Business investment should be strong too, since businesses also have excess cash, which makes it easy for them to invest. Businesses just need to believe we are past the pandemic, and they will invest.

What is the likely path of interest rates? Central Bank action on interest rates will be critical to making inflation a one-time jolt rather than a new condition, and to avoiding an oversharp increase in interest rates that triggers a recession. To avoid on-going inflation, action on interest rates needs to be taken early enough, when people and business start to spend their excess cash, but slowly enough so that there is no overreaction resulting in a recession with job losses and business failures. Due to the recent history of low interest rates, the economy is more sensitive to increases in interest rates than it was.

9.0%

1,000 900 800 Feb-19

Effective Interest Rate on Household Debt

8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 00

$130 bn Excess

1,100

05

10

15

20

Total Non-Personal Deposits Trend Growth Jan-20

Dec-20

Impact of 100-bp Increase in Effective Interest Rate as 2.4% % of consumer spending 2.2% 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 00 05 10 15 20

Content provided by CIBC World Markets

theANNUAL – 49


Dollars & Cents 0.9

Market Implied BoC Rate (%)

0.9 0.8

Marked Implied Fed Rate (%)

0.7 0.6

Chief Economist, CIBC World Markets

The financial markets see the Bank of Canada raising interest rates earlier than the Federal Reserve Board in the US does, but slowly, which may successfully thread the needle between allowing on-going inflation and causing a recession. The financial market is not anticipating such action from the Federal Reserve in US, but the Fed may surprize.

Marked Implied Implied BoC Fed Rate (%) Market

0.8 0.7

Content provided by Benjamin Tal, Deputy

0.6 0.5 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0.1 0.1 0 0

20

21

20

21

Year Ends Year Ends

22

23

22

23

What impact has COVID-19 had on house prices? The increase in house prices has been most pronounced in the areas around major urban centres, increasing with the distance from the city centre. See especially Ottawa and Toronto in the chart. (Those markets may retrench when employers’ expectations about a return to work are clear. Market rents in purpose-built rental housing have seen a similar geographic effect, with the suburban rental markets staying strong while urban centres retrenched.) What impact has COVID-19 had on the desire to work from home? Or at least, what is the desire to work from home now? That varies only slightly by age, but more largely by industry sector. Teachers, at all levels, want to see their students in person.

50 – theANNUAL


Percentage of Workforce By Amount of Work Done at Home (%)

50 40

Many employees expect to go back to their offices full time, and their employers certainly expect them to do so.

30

Many Will Go From Working Completely At Home to Completely Back in the Office

20 10 0% -1 % 1% -1 0 10 % %20 20 % %30 30 % %40 40 % %50 50 % %60 60 % %70 70 % %80 80 % %9 90 0% %10 0% 10 0%

0

Current

Expected to Continue After COVID-19

Another factor driving rental demand is immigration. Due to COVID-19, immigration fell off, but that reduction in the annual population increase (and in rental demand) was cushioned by Canadian citizens returning to Canada and by non-permanent residents already in Canada, who were allowed to over-stay their visas, and are now being fast-tracked for permanent residency and citizenship. There is also an enormous potential inflow of Canadian citizens who currently live in Hong Kong, a total of half a million people with the right to live in Canada, and the inclination to do so when changes imposed in Hong Kong by the Communist Chinese government of the mainland make a move to Canada the desirable thing to do.

Also relevant to the rental market is the supply of rental condos. Here is the cash flow position of newly closing condos which are offered for rent. Investment in condos for rental occupancy remains strong. About 30 to 35 per cent of investors are in negative cash flow comparing their carrying costs with market rents for condo units. However, investors with negative cash flow see that cost as the price to pay for an investment which will appreciate in price by more than their negative cash flow. They still believe price appreciation will be strong. Despite that investor interest, governments should encourage purpose-built rental development, as a better long-term solution to housing affordability; and in fact, as the only viable longterm solution to housing affordability.

Prepared by Benjamin Tal and CFAA with graphics from Benjamin Tal’s presentation for CFAA on April 22, 2021, and some updated information. ABOUT THE AUTHOR Benjamin Tal is the Deputy Chief Economist at CIBC World Markets. Well-known for his ground-breaking research on all major sectors of the real estate market, on credit markets, and on business economic conditions, Benjamin frequently sets key elements of the public policy agenda. He is also a big believer in the value of a strong residential rental sector. As well, Benjamin has been the keynote speaker at many CFAA conferences over the years. CFAA thanks Benjamin for his support. Content provided by CIBC World Markets

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Rents – Allowable & Asking Allowable Guideline Increases 2021 BRITISH COLUMBIA Residential Tenancies – 0% Manufactured Home Tenancies (Mobile Home Parks) – 0% plus a proportional amount for the change in local government levies and regulated utility fees. Some increases above the guideline are available.

BC brought in a “rent freeze” because of the pandemic, and extended the freeze to the end of 2021. It is not a complete rent freeze, because a few situations allow an increase above the guideline of 0%, but qualifying is extremely difficult.

ONTARIO Residential Tenancies – 0% Manufactured Home Tenancies (Mobile Home Parks) – 0%

MANITOBA Residential Tenancies – 1.6%

PRINCE EDWARD ISLAND Residential Tenancies Oil heat – 1.0% Tenant pays for heat – 1.0% Manufactured Home Tenancies (Mobile Home Parks) – 1.0%

Some increases above the guideline are available for both residential tenancies and mobile home sites.

ONTARIO brought in a “rent freeze” because of the pandemic, but the rules allow application for above guideline (rent) increases --- AGIs, for major repairs. Subject to media pushback from tenants, such applications can proceed normally, and may apply to 10 to 15% of rental units, as they usually do, providing up to 3% to pay for major repairs over time.

NOVA SCOTIA Residential Tenancies - 2.0% Manufactured Home Tenancies (Mobile Home Parks) – 2.0%

In Quebec, there is no exact equivalent to the guideline as it is used in BC, Ontario, Manitoba and PEI. The government does not set a rent increase that a landlord can charge without any specific approval. Instead, if tenants challenge the rent increase notice that the landlord gives them, the Régie du Logement (the Quebec Rental Board) applies a set of standard cost increases to the specifics of each rental building. The calculation is based on actual increases in municipal taxes and insurance, and inflationary percentage increases applied to other costs such as heating and services. The other provinces do not limit rent increases.

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Rents – Allowable & Asking National Rental Rates The average rent for all Canadian properties listed for rent on Rentals.ca in April 2021 was $1,675 per month, an annual decline of 9% and a monthly decline of 1%. The median rental rate was $1,600 per month in April, a 13% decrease from a year earlier, and a monthly decline of 2%.

54 – theANNUAL


Rents – Allowable & Asking

Conclusion The average rent in Canada declined month over month, but because of the shifting composition of national listings, this doesn’t tell the full story. Average rental rates increased month over month in British Columbia, Ontario, Alberta and Quebec, suggesting the market might have turned a corner with increased tenant demand. House prices have risen across the country despite the pandemic, and some prospective buyers have given up their search due to the frothy market conditions. The third wave of COVID-19 continues to wreak havoc in certain areas of the country, but that has not stopped tenants from trying to get into the rental market before rents move back to pre-COVID levels. Rental rates might be increasing in several provinces and municipalities, but rental incentives are still prevalent at the top of the market, as the luxury apartment market has yet to recover.

theANNUAL – 55


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Tenant Survey Results Each year, 20+ senior executives in the multi-family sector gather to advise, consult and educate Informa Connect, the producers of Canadian Apartment Investment Conference, on major trends, opportunities and challenges that are facing the market. Back in 2016, the Canadian Apartment Investment Conference’s advisory panel strongly recommended showcasing tenant preferences at that year’s conference. Discovering that there was a lack of data and deliverables in this area, we developed the Canadian Multi-Res Tenant Rental Survey. In that inaugural year, we produced, distributed and analyzed a survey which had just under 2,000 respondents. Five years later, with over 20,000 annual respondents, the survey has grown to be one of the most prolific in the industry. The breadth of data that we have collected over these last five years enables us to take a deep dive into the shifting preferences of Canadian renters in every age group, major city and income group across the country. In 2020, questions focused on preferences, amenities, programming, lifestyle choices, technology and operations. We also looked at forward looking questions and price indexing. COVID-19 was prioritized with questions that ask specifically how tenants felt pre, during and think they will feel post pandemic. Satisfaction levels are also explored in depth. Once the results are in, we tabulate them based on income, age, position in life, dependents, etc. The information is then cross referenced to enable in-depth findings. We have just launched the 2021 edition of the survey. We’re curious to learn more about how COVID-19 has caused tenants to rethink their ideas around necessary amenities and the accommodation of e-commerce deliveries. We anticipate that the trends we observed emerging in 2020 will continue to take shape in 2021. Full results of the 2021 survey will be released shortly after the 2021 Virtual Canadian Apartment Investment Conference, on September 22 & 23. To virtually attend visit https://www.realestateforums.com/caic/en/overview/overview.html For more information or if you wish to discuss this survey or corresponding excel data dashboard access please contact: Sarah Segal, Director, Informa Connect sarah.segal@informa.com

The 6th Annual Multi-Residential Tenant Rental Survey has just launched Informa Connect, the producers of the Canadian Real Estate Forums, is currently surveying renters across the country. The results will be used to provide essential information to owners, managers and operators about what tenants really care about and want in their homes. Last year over 24,000 tenants responded to this survey. If you rent your place, take this survey to help shape the future of rental housing in Canada. Complete the survey for a chance to win one of three cash prizes.

$3,500 • $1,000 • $500 To access the survery: Visit https://www.surveymonkey.com/r/hma21 or scan the QR code to access the survey

theANNUAL – 57


Tenant Survey Results CHARACTERISTICS OF THE RESPONDENTS Age of Respondents 25 and under

15.2%

26-30

19.1%

31-40

27.0%

41-50

14.5%

51-54

4.7%

55-60

6.5%

61-70

8.0%

71+

5.2%

Marital Status

Age of Respondents 71+ 61-70 55-60 51-54 41-50 31-40 26-30

Single

40.7%

Married

28.0%

Common-law

13.7%

Divorced

7.5%

Separated

4.4%

Widowed

2.9%

Other

2.8%

0%

Current work/life/school scenario 46.1%

Temporary work interruption due to COVID-19

19.5%

Retired

9.3%

Other

7.6%

Student

7.3%

Employed part time

6.3%

On medical leave

1.7%

Stay at home parent

1.5%

On maternity leave

0.9%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Single Married Common-law Divorced Separated Widowed

25 and under

Employed full time

Marital Status 0%

5%

10%

Life/Work/School Scenerio

15%

25%

What type of rental do you live in?

2%

7% 8%

46%

9%

19% Employed full time Retired Student full time On medical leave On maternity leave

Other

30%

1%

2% 6%

20%

Temporary work interruption due to COVID-19 Other Employed part time Stay at home parent

Legacy Purpose Built Rental building

45.7%

Other

13.9%

New generation Purpose Built Rental building

7.9%

Legacy Condominium building

7.7%

New generation Condominium building

6.4%

Brand new Purpose Built Rental building

5.3%

Townhouse

4.6%

Apartment in a house Brand new Condominium building

4.9% 3.7%

What type of rental do you live in?

4%

5% 4%

5% 6%

46%

8% 8% 14% Legacy Purpose Built Rental building

Other

New generation Purpose Built Rental building

Legacy Condominium building

New generation Condominium building

Brand new Purpose Built Rental building

Townhouse

Apartment in a house

Brand new Condominium building

IMPORTANCE OF OUTDOOR SPACE Before Covid-19

How did your feelings change about outdoor space?

During Covid-19

I wanted a private balcony but was fine with premium shared outdoor space

34.5%

36.4%

I did not want luxury shared space and only wanted a private balcony

28.4%

32.1%

I did not care either way / Outdoor space at my building was not important to me

26.4%

23.1%

I wanted shared luxury outdoor space over my own small private balcony

10.7%

8.5%

How did your feelings change about outdoor space? 40% 35% 30%

Desire for private outdoord space grew during the pandemic.

25% 20% 15% 10% 5% 0%

I wanted a private I did not want luxury I did not care either way I wanted shared luxury balcony but was fine with shared space and only / Outdoor space at my outdoor space over my premium shared outdoor wanted a private balcony building was not own small private space important to me balcony Before Covid-19

At your rental, do you have access to outdoor space? Yes

57.1%

No

42.9%

Do you have access to outdoor space?

42.9% 57.1%

Yes

No

Would you rent a unit that does not have access to private outdoor space in the future? No - I would never rent a unit that does not have private outdoor space

45.1%

Yes - I would consider renting a place without access to private outdoor space if it meant I had other benefits.

37.3%

Yes - Private outdoor space is not important to me

17.6%

Although almost half responded that they would not rent a place without access to outdoor space, over a third said that they'd trade outdoor space for other benefits or amenities.

During Covid-19

Would you rent a place without outdoor space?

17.6% 45.1% 37.3%

No - I would never rent a unit that does not have private outdoor space Yes - I would consider renting a place without access to private outdoor space if it meant I had other benefits. Yes - Private outdoor space is not important to me

58 – theANNUAL


Tenant Survey Results APPS OVER KEYS How do you currently enter your rental suite? Traditional key

61.9%

Fob

32.0%

Other

6.1%

If you could choose how to enter your rental suite how would you like to enter?

How do you CURRENTLY access your unit? Other

Fob

0%

10%

20%

30%

40%

50%

60%

70%

Other

Fob

31.2%

Smart phone

Traditional key

30.2%

Mobile phone app

Number pass code

13.1%

Finger print scan

10.3%

Number pass code

Finger print scan Traditional key

How would you PREFER to access your unit?

Mobile phone app

7.0%

Smart phone

5.5%

Other

2.7%

12.5% would prefer to use their phone to access their

Traditional key Fob 0%

5%

10%

15%

20%

25%

30%

35%

INCREASE USE OF VIRTUAL TOURS BUT MOST WON’T MAKE A DECISION BASED ON ONE WITHOUT A VISIT How do you feel about virtual property tours?

Open*

Do not Like*

25 and under

65.2%

20.5%

14.4%

26-30

68.2%

19.9%

11.9%

31-40

67.7%

22.8%

9.5%

20%

I like virtual property tours and could make a decision based on one

41-50

65.6%

25.3%

9.0%

10%

51-54

70.9%

21.5%

7.6%

0%

I do not like virtual property tours and will only rent a property if I can see it in person

55-60

65.2%

26.2%

8.5%

66.5%

I do not like virtual property tours and will only rent a property if I can see it in person

23.7%

I like virtual property tours and could make a decision based on one

9.9%

What do you think of virtual property tours?

I am open to virtual property tours but I would need to visit in person before making a decision 0%

10%

20%

30%

40%

50%

60%

Younger cohorts more comfortable making a rental decision based on a virtual tour

Broken down by Age

I am open to virtual property tours but I would need to visit in person before making a decision

Like*

80% 70%

61-70

66.1%

27.3%

6.7%

71+

58.4%

39.7%

1.9%

60% 50% 40% 30%

25 and under

26-30

31-40

41-50

51-54

55-60

61-70

71+

I am open to virtual property tours but I would need to visit in person before making a decision I do not like virtual property tours and will only rent a property if I can see it in person I like virtual property tours and could make a decision based on one

*I am open to virtual property tours but I would need to visit in person before making a decision *I do not like virtual property tours and will only rent a property if I can see it in person *I like virtual property tours and could make a decision based on one

70%

PACKAGE MANAGEMENT A CHALLENGE DURING THE PANDEMIC Does your building have an automated package locker system?

Pre and during COVID-19 e-commerce usage

Before Covid-19

During Covid-19

No - and I would like to have it offered

66.4%

Yes I purchased goods but not groceries

62.9%

56.7%

Yes - and I use it

18.1%

Yes I purchased goods and groceries

21.4%

28.3%

No - and I do not want it

13.4%

I did not shop online

14.7%

13.6%

Yes - but I prefer not to use it

2.1%

Yes I purchased groceries but not goods

1.0%

1.3%

Do you have an automated package locker system?

70%

How did online shopping trends change among renters?

60%

80%

50%

60%

40%

40%

30%

20%

20%

Before Covid-19

10%

0% No - and I would like to have it offered

Yes - and I use it

No - and I do not want it

Yes - but I prefer not to use it

During Covid-19 0% Yes I purchased goods but not groceries

Yes I purchased goods and groceries

I did not shop online

Yes I purchased groceries but not goods

THE 2021 EDITION OF THE MULTI RESIDENTIAL TENANT RENTAL SURVEY DELVES INTO MANY IMPORTANT TOPICS SUCH AS: 1.

Do renters prefer more living space or more amenities?

8.

How do renters feel about smoking cannabis in or around their rental unit?

2.

How much do amenities matter to prospective tenants?

3.

What are the amenities that renters value the most? What are they willing to pay for them?

9.

What is the premium renters place on an extra bedroom? An extra bathroom?

4.

How have amenity preferences shifted during the pandemic?

10.

Did renters move during the pandemic? Are they planning to move in the next 12 months? What kind of a home are renters planning to move into next?

5.

How do most renters go to work / school?

6.

Do they own cars? Is there enough parking at their rental? What about for their guests?

11.

Which locational factors play the biggest role in deciding where to live?

7.

Why do people choose renting over buying their home?

12.

How satisfied have renters been with communication from their landlord / manager during COVID-19?

theANNUAL – 59


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Top 10

theANNUAL – 61


Top 10

Owners Starlight Investments Self-Managed:

NO - asset managed

Number of Employees: Operates in: Website:

Number of suites owned

325 ON, BC, AB, SK, QC, NB, NS, NL, NWT,

60,000

www.starlightinvest.com

Realstar Management Self-Managed:

YES

Number of Employees:

900

Operates in: Website:

ON, QC, BC, AB, SK, NS, NB

Number of suites owned

28,320

www.realstar.ca

Homestead Land Holdings Self-Managed:

YES

Number of Employees:

882

Operates in: Website:

62 – theANNUAL

ON, AB www.homestead.ca

Number of suites owned

27,471

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


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Top 10

Owners

QuadReal Property Group Self-Managed:

YES

Number of Employees:

231 ON, BC, AB, SK, QC, NB, NS,

Operates in: Website: **Apt: 11,136

Number of suites owned

24,875

www.quadreal.com |

TH: 583

|

Mfg: 13,156

The Minto Group Inc. Self-Managed:

YES

Number of Employees:

415

Operates in:

ON, AB, QC www.minto.com www.mintoapartments.com

Website: **Apt: 13,015

|

TH: 1,510

|

Number of suites owned

*14,730

Sr: 205

*includes 7,275 rental units in the Minto REIT

Mainstreet Equity Corp.

64 – theANNUAL

Self-Managed:

YES

Number of Employees:

424

Operates in:

BC, AB, SK, MB

Website:

www.mainst.biz

Number of suites owned

14,245

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


Yes, we can! Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more effectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, fnance and accounting, to actual physical, on-site management, we oversee everything. We concentrate on revenue growth, controlling expenses, and strategic capital investment in your property to maximize your profitability over the long term — when you’re ready to discuss a better option; we’ll be there. You can count on it. Kazi Shahnewaz Director, Business Development Office. 416.340.1600 x504 Cell. 647.887.5676 k.m.shahnewaz@metcap.com

www.metcap.com


Top 10

Owners Effort Trust Self-Managed:

YES

Number of Employees:

N/A

Operates in:

ON

Website:

Number of suites owned

10,481

www.effortrentals.com

Medallion Corp. Self-Managed:

YES

Number of Employees:

125

Operates in:

ON

Website: **Apt: 10,325

Number of suites owned

10,459

www.medallioncorp.com |

TH: 134

Drewlo Holdings Self-Managed:

YES

Number of Employees:

250

Operates in:

ON

Website:

Number of suites owned

www.drewloholdings.com

9,615

Park Property Management Self-Managed:

YES

Number of Employees:

229

Operates in:

ON

Website:

66 – theANNUAL

www.parkproperty.ca

Number of suites owned

9,138

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


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Top 10

Managers Cogir Number of Suites Managed

Number of Employees:

4,100*

Operates in:

ON, QC, NS

Website: **Apt: 14,044

26,889

Number of Suites Owned

10,813

www.cogir.net |

Sr: 12,345

|

STD: 500

*includes senior residences staff

Gateway Property Management Number of Employees:

523

Operates in:

BC, AB, ON,

Website:

www.gatewaypm.com

**Apt: 10,403

|

Number of Suites Managed

Number of Suites Owned

26,462

200

Number of Suites Managed

Number of Suites Owned

Condo: 16,059

Greenwin Inc. Number of Employees:

500

Operates in:

ON, QC

Website:

68 – theANNUAL

22,735

3,395

www.greenwin.ca

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


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Long term solutions and reduced maintenance costs

5 year warranty + amazing paybacks

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Top 10

Managers

MetCap Living Management Inc. Number of Suites Managed

Number of Employees:

515

Operates in:

BC, ON, QC, NS, NB

Website:

Number of Suites Owned

21,000

0

Number of Suites Managed

Number of Suites Owned

www.metcap.com

The DMS Group Number of Employees:

400

Operates in:

ON

Website: **Apt: 15,356

19,422

0

www.dmsproperty.com |

TH: 1,548

|

Sr: 654

|

STD: 1,864

Sterling Karamar Number of Employees:

294

Operates in:

ON

Website:

70 – theANNUAL

Number of Suites Managed

14,600

Number of Suites Owned

0

www.sterlingkaramar.com

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


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Willy Gnat Phone: 416-635-4832 Email: wgnat@midnorthern.com


Top 10

Managers Briarlane Number of Employees:

200

Operates in:

ON

Website:

Number of Suites Managed

14,380

Number of Suites Owned

0

www.briarlane.ca

Shelter Canadian Properties Ltd. Number of Suites Managed

Number of Employees:

400

Operates in:

AB, SK, MB, ON, NWT

Website: **Apt: 6,452

11,284

Number of Suites Owned

0

www.scpl.com |

Condo: 4,327

|

Sr: 505

GWL Realty Advisors Residential Number of Employees:

200

Operates in:

AB, ON, QC, NS

Website:

www.gwlraresidential.com

Number of Suites Managed

10,490

Number of Suites Owned

0

Berkley Property Management Number of Employees:

27

Operates in:

ON

Website: **Apt: 7,125

72 – theANNUAL

www.berkleypm.com |

Condo: 2,950

Number of Suites Managed

10,075

Number of Suites Owned

200


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Top 10

REITs

CAPREIT Self-Managed:

YES

Number of Employees:

999

Operates in:

ON, BC, QC, AB, SK, NS, NB, PEI

Website:

www.caprent.com

**Apt: 51,833

|

TH: 2,878

|

Number of suites owned

68,100

Mfg: 13,389

Boardwalk REIT Self-Managed:

YES

Number of Employees:

1,600

Operates in:

ON, QC, AB, SK

Website:

www.bwalk.com

**Apt: 28,858

|

Number of suites owned

33,657

TH: 4,799

Killam Apartment REIT Self-Managed:

YES

Number of Employees:

700 ON, AB, NS, NB, PEI, NL, BC

Operates in: Website: **Apt: 17,377

74 – theANNUAL

Number of suites owned

23,234

www.killamreit.com |

Mfg: 5,857

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


My Business For Real Estate

The easy way to find your next tenants With 170 million* unique searches in the For Rent category, Kijiji My Business helps you find renters for your managed and owned properties with tools that make it easy to: Create and edit listings for multiple units on Kijiji Measure performance with self-serve reports Make your listings stand out with Kijiji features

Get started at business.kijiji.ca/findtenants

*

Kijiji Internal Data: Total unique searches in the year 2020 in Kijiji’s ‘For Rent’ category


Top 10

REITs

Hazelview Investments Self-Managed:

YES

Number of Employees:

676

Operates in: Website:

ON, AB, SK, MB, QC, NS

Number of suites owned

23,100

www.hazelview.com

Skyline Apartment REIT Self-Managed:

YES

Number of Employees:

814

Operates in: Website:

BC, AB, SK, MB, ON, QC, NB, NS

Number of suites owned

20,427

www.skylineapartmentreit.ca

Centurion Asset Management Inc. Self-Managed:

YES

Number of Employees:

269

Operates in: Website:

76 – theANNUAL

BC, AB, SK, MB, ON, QC, NS

Number of suites owned

11,921

www.centurion.ca

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


As an industry leader in utility submetering, utility billing, and utility expense management, Wyse proudly serves Canadians living

in more than 200,000 suites under contract

across the country. We look forward to creating a brighter future through the latest innovation in sustainable, energy-efficient solutions:

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Top 10

REITs Northview Canadian High Yield Residential Fund Self-Managed:

*YES

Number of Employees:

BC, AB, SK, QC, NB, NL, NWT, NU

Operates in: Website: **Apt: 10,621

Number of suites owned

300

11,121

www.northviewfund.com |

TH: 500

*2,146 units managed for other owners

InterRent REIT Self-Managed:

YES

Number of Employees:

N/A

Operates in:

Number of suites owned

ON, QC

Website:

www.interrentreit.com

9,300

Morguard North American Residential REIT Self-Managed:

YES

Number of Employees:

173

Operates in:

Number of suites owned

ON, AB

Website:

www.morguard.com

5,281

Lanesborough REIT Self-Managed:

NO

Number of Employees: Operates in:

AB, SK, MB

Website: **Apt: 1,170

78 – theANNUAL

0

www.lreit.com |

Number of suites owned

1,263

Sr: 93

** Further breakdown of portfolio by Units - Apartment - Condominium - Town Homes - Student - Senior/Retirement - Manufactured Homes


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80 – theANNUAL

MANAGERS Devon Properties

OWNERS Hollyburn Properties Concert GWL Oxford Properties

OWNERS Concert Hollyburn Properties Oxford Properties MANAGERS Towers Realty Group

OWNERS Edison Properties Globe

OWNERS Oxford Properties Akelius Hollyburn Properties Q Residential H&R Concert The Brown Group Preston Group

MANAGERS Paramount Properties Bentall Kennedy M&R CLV Group Cherishome Living Gold Seal Management

Honourable Mentions

OWNERS GWL

MANAGERS CLV Group

OWNERS GWL Oxford Akelius

Cherishome Living

CLV Group

M&R

Bentall Kennedy

Paramount Properties

Managers

H&R

Q Residential

Hollyburn Properties

Akelius

Oxford Properties

Owners


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Automated LTB Forms

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Canadian Federation of Apartment Associations Canada’s voice for the rental housing industry at the federal level.

Join Canada’s leading rental housing providers, suppliers and industry associations. Become a direct member of CFAA today!

Your support will help ensure our industry

can achieve a better tax and regulatory environment, can increase in professionalism, and can continue to grow for years to come!

Find out more about the benefits and costs of a CFAA membership. www.CFAA-FCAPI.org | admin@cfaa-fcapi.org


Industry Events Tradeshow & Expo Name of Event

Date(s)

Location

Website

Buildex Vancouver

Sept 29 & 30, 2021

Vancouver, BC

www.buildexvancouver.com

The Buildings Show

Dec 1-3, 2021

Toronto, ON

www.thebuildingsshow.com

PM Springfest

April 28, 2022

Toronto, ON

www.pmspringfest.com

Conference & Symposium Name of Event

Date(s)

Location

Website

Canadian Apartment Investment Conference

Sept 22 & 23, 2021

Online

www.realestateforums.com/caic

RealREIT Conference

Sept 29 & 30, 2021

Online

www.realestateforums.com/realreit

CFAA Presentations

Various Dates

Oct & Nov 2021Online

www.cfaa-fcapi.org

The Real Estate Forum

Various Dates

Coast to Coast

www.realestateforums.com

CFAA Rental Housing Conference

May 9-11, 2022

Toronto, ON

www.cfaa-fcapi.org

Rental Housing Golf Tournaments Name of Event

Date(s)

Location

Website

Greenwin Cares Annual Golf Classic

August 25, 2021

Markham, ON

www.greenwincharitygolf.com

theANNUAL – 83


Industry Events Association AGM, Tradeshow & Conference Name of Event

Date(s)

Location

Website

EOLO Fall Event

TBD

Ottawa, ON

www.eolo.ca

FRPO MAC Awards

December 2, 2021

Toronto, ON

www.frpo.org

MHPOABC AGM & Conference

April 29 & 30, 2022

Victoria, BC

www.mhpo.com

CFAA Rental Housing Conference

May 9-11, 2022

Toronto, ON

www.cfaa-rhc.ca

LandlordBC AGM & Trade Expo

TBD

Vancouver, BC

www.landlordbc.ca

GTAA AGM & Dinner

TBD

Toronto, ON

www.gtaaonline.com

WRAMA Tradeshow

TBD

Waterloo, ON

www.wrama.com

LPMA Tradeshow

TBD

London, ON

www.lpma.ca

HDAA Tradeshow

TBD

Hamilton, ON

www.hamiltonapartmentassociation.ca

EOLO Spring Event

TBD

Ottawa, ON

www.eolo.ca

Association AGM & Golf Name of Event

Date(s)

Location

Website

FRPO Charity Golf Classic

September 13, 2021

Woodbridge, ON

www.frpo.org

GTAA Annual Charity Golf Tournament

TBD

Woodbridge, ON

www.gtaaonline.com

HDAA Golf Tournament

TBD

Hamilton, ON

www.hdaa.com

LandlordBC Charity Golf Tournament

TBD

Vancouver, BC

www.landlordbc.ca

IPOANS Annual Golf Tournament

TBD

Chester, NS

www.ipoans.ca

LPMA Charity Golf Tournament

TBD

Komoka, ON

www.lpma.ca

More events may well be scheduled as we all adjust to the rules and to people’s tastes for live group events while Canada re-opens from the COVID-19 shut downs.

84 – theANNUAL


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INC. Canada’s One-Stop Source for the Rental Housing Industry

Profile for Marc Cote

theANNUAL National 2021  

theANNUAL, theANNUAL National

theANNUAL National 2021  

theANNUAL, theANNUAL National

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