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Annual 2019 / Issue15 realestateforums.com

WHAT IS THE NUMBER ONE AMENITY YOU THINK YOUR TENANTS WOULD LOVE TO SEE IN YOUR PROPERTIES AND WHY? WHAT ARE THE MAJOR DISRUPTERS (GOV’T, INTEREST RATES, TECHNOLOGY) THAT YOU SEE OVER WHAT ARE YOUR THOUGHTS ON THE CO-LIVING CONCEPT?

THE NEXT 12 MONTHS?


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Contents 04 Message from the co-chairs

06 What are the major disrupters (gov’t, interest rates, technology) that you see over the next 12 months?

14 What are your thoughts on the co-living concept?

24 What is the number one amenity you think your tenants would love to see in your properties and why?

Save the Date for the 2020 Apartment Focused Conferences Quebec Apartment Investment Conference February 13, 2020 Palais des congrès de Montréal

Western Canada Apartment Investment Conference April 1, 2020 Vancouver Convention Centre East

Canadian Apartment Investment Conference September 9, 2020 Metro Toronto Convention Centre North Building

to speak to our team about sponsorship or speaking opportunities email events@informacanada.com

About Informa Exhibitions

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2019 Informa Markets Inc. Disclaimer: The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of Informa Canada. ©

Canadian Apartment Investment Report The Report is published annually, and coincides with the September Canadian Apartment Investment Conference in Toronto. An online version is available throughout the year at www.realestateforums.com

September 2019

I3


Message from the co-chairs

Paula Gasparro Vice President, Real Estate Finance CMLS Financial

Recent investments in Canadian multi-residential assets have generally yielded strong returns thanks to cap rate compression, low interest rates and strong net operating income growth. Demand for apartment living is being bolstered by affordability issues in home ownership, a demographic surge in renters and Canada's higher immigration rate. These factors have resulted in an increased supply of new purpose-built rentals and more competition to acquire existing multi-family assets. With potential challenges for the asset class arising in the changing political and economic landscape, can stability in multi-family returns be projected through 2020? The 2019 Canadian Apartment Investment Conference will answer this and many other key questions from owners, managers, developers, lenders and other industry stakeholders. Discussions with The Honorable Doug Ford, Premier of Ontario, a conversation with Moray Tawse and a high-profile economist will provide political and economic updates.

James Wilson Managing Director Realstar Group

The conversation with First National’s Moray Tawse will provide insights on the continued success of his lending platform and other adventures in life. We will also unveil the results of a detailed survey that provides an up-to-date perspective on residents' ever-changing preferences and how much prospective residents value a wide range of differing upgrades. A panel of industry stakeholders will offer expert insight on topics such as: solving rental affordability issues, making the numbers on new development work, new technologies that improve operating efficiencies, financing strategies in a declining interest rate environment and recent experiences in the advanced American multi-family sector. With so many changes in the market, the Canadian Apartment Investment Conference is ideally positioned to provide comprehensive information on a multitude of topics that you can take away and apply to your business practice immediately.

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Canadian Apartment Investment Report


Market insights from... Kris Boyce Chief Executive Officer, Greenwin Inc.

David Boyle Vice President, Commercial Mortgages, MCAP Financial Corporation

Courtney Cooper Principal, Alate Partners

David Hanick Chief Legal Officer, Starlight Investments

Thom Henderson Director Commercial Lending, Community Trust

Paula Gasparro Vice President, Real Estate Finance, CMLS Financial

Joe Hoffer Lawyer & Partner, Cohen Highley LLP

Ali Lakhdari Vice President & Co-Owner, Gestion Immobilière Cogeim

Anthony Lanni Executive Vice President, Residential, QuadReal Property Group

Brent Magnan Managing Director, Canada ICI

Peter McFarlane Senior Vice President, Fiera Real Estate

Todd Nishimura Senior Director, Marketing, Leasing & Communications, GWL Realty Advisors Residential

Rob Pike President/Chief Operating Officer, Minto Apartment REIT

Adrian Rocca Chief Executive Officer, Fitzrovia Real Estate

Greg Romundt President & CEO, Centurion Asset Management Inc., Trustee of Centurion Apartment REIT, Centurion REOT, & Centurion Financial Trust

Dan Sander Owner Managing Director, Hollyburn Properties Ltd.

Peter Senst President, Canadian Capital Markets, CBRE Limited | National Investment Team

Paul Smith Chief Administrative Officer, The DMS Group

Frederic Soucy President, Cogir Management

Justin Taylor Chief Operating Officer, Greenrock Real Estate Advisors

Michael Tsourounis Managing Director - Real Estate Investment Management, Timbercreek Asset Management

Jeremy Wedgbury Senior Vice President Commercial, Mortgages First National Financial Corporation

James Wilson Managing Director, Realstar Group

September 2019

I5


What are the major disrupters (gov’t, interest rates, technology) that you see over the next 12 months?

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Canadian Apartment Investment Report


The primary potential obstacles are regulatory changes effected at a provincial or even municipal level that impact the multi-unit space, including development plans, rules relating to occupancy and housing, or rent control. Recent examples, including the Berlin rent freeze and New York’s new rent regulation bill, illustrate why government changes are concerning. These changes may cause erosion which could impact the quality of housing over the next few years. Paula Gasparro, Vice President, Real Estate Finance, CMLS

The interest rate environment has certainly seen some movement this year which could continue to create changes over the next 12 months. More specifically I am referring to the shift in demand from five to ten-year mortgages, as Borrowers have sought to take advantage of the flat yield curve by locking in lower rates for longer. The spread between the 5- and 10-year Government of Canada bonds has averaged just 0.13% over the past three months; this significant compression has made 10 year money very attractive. An imbalance in demand (should it continue) would certainly create some disruption. David Boyle, Vice President, Commercial Mortgages, MCAP Financial Corporation

Government continues to be the source of major disruption over the next 12 months. In particular, the planned introduction of legislation and regulation of a wide range of housing models will be positive, however, delegation of powers to municipalities and the cash grab that accompanies municipal legislation of any kind, will create uncertainty for developers for the foreseeable future. Joe Hoffer, Lawyer and Partner, Cohen Highley LLP

Technology will continue to penetrate the real estate industry. Every week I get a call from a new property technology company. Many have new concepts or new slants to existing technology. Since real estate is a slower adapter of technology it seems as though we are just at the beginning of many more property technology solutions. A second disrupter in the Canadian market is demographics and particularly the impact of technology companies effecting migration patterns and driving job growth, lack of office supply and in turn lack of rental house in several markets. This is already disruption the market which seems like it will continue for the next 12 months. Peter McFarlane, Senior Vice President, Fiera Real Estate

September 2019

I7


WHAT ARE THE MAJOR DISRUPTERS (GOV’T, INTEREST RATES, TECHNOLOGY) THAT YOU SEE OVER THE NEXT 12 MONTHS? Governments are the largest potential disruptors in the next year. Clearly, we have a housing crisis in many parts of the country where not only are costs of home ownership and rental out of reach, but supply is insufficient to meet demand. Given governments often want to be seen “doing something”, my concern is that “something” is often the wrong thing in terms of rent controls, trying to restrict demand, or forcing uneconomic “doing something” requirements on developers, like demanding projects contain affordable housing components, while not providing compensatory incentives like increased density, reduced development charges, or deferred property taxes etc. to make projects financially viable. In the absence of these, projects just don’t get built, which will only worsen the crisis. The recent moves in Ontario to spur rental development are positive ones, but the responses across the country have not been consistently positive for supply. Greg Romundt, President and CEO, Centurion Asset Management Inc., Trustee of Centurion Apartment REIT, Centurion REOT, & Centurion Financial Trust

As a company who mostly operates in the Montreal area, the main disrupter comes from the city administration that has decide to impose new quotas on social, affordable and family housing on all new projects starting in 2020. Our plans to develop many rental projects are directly influenced by these new by-laws and we are still not sure how this will affect our capability to develop multi-residential assets. Ali Lakhdari, Vice President and Co-Owner, Gestion Immobilière Cogeim

Clearly to us, the scarcity in human resources is the major challenge. A multi-residential remains a customer service business and human resources are the key to provide excellence in this field. Frederic Soucy, President, Cogir Management

• Government demand side regulations, pricing control regulations, and ineffective supply side initiatives

• Technology evolving uses of spaces. Example WeWork in office, Co-living in residential

• Interest rates and general economy, shift to security and value appreciation for fixed income assets Dan Sander, Owner Managing Director, Hollyburn Properties Ltd.

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Canadian Apartment Investment Report


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WHAT ARE THE MAJOR DISRUPTERS (GOV’T, INTEREST RATES, TECHNOLOGY) THAT YOU SEE OVER THE NEXT 12 MONTHS?

Population growth in our major centres coupled with infrastructure deficits will continue to push rapid urbanization of our metropolitan areas. Renter demand, and ability to pay, for high quality product will keep the industry blurring the lines between purpose built rental and condominium product. Furthermore, I believe that the marketplace will start to view service as an amenity, which is not typically available outside of the purpose-built rental landscape. Government will continue to play a major role in our markets over the next 12 months, whether it is in the form of new rental specific policies, taxation levels or additional spending promised in the federal election. Anthony Lanni, Executive Vice President, Residential, QuadReal Property Group

The major disrupter in our industry is technology – so many firms are entering the multi-residential space with tools and services to make operations more efficient and resident-friendly. The apartment rental industry has a history of either not embracing technology or being slow to adopt it. While I think many innovative property managers and developers are trying to lead the charge, the real change is coming because the industry is being forced to. Technology is a part of our day-to-day lives to the point that consumers expect a seamless, interactive experience with all the services in their lives that apartment living has to follow suit or be left behind. So while I’d love to say that we in multi-res are ahead of the curve in terms of the embracing of technology, the truth is that it is a matter of necessity – those that don’t use technology will be left behind in the coming years. Todd Nishimura, Senior Director, Marketing, Leasing & Communications, GWL Realty Advisors Residential

Building Technology, AI and the IOT are disrupters and will increase organizational capacity, improve operating performance, and Resident / Employee satisfaction. As vacancy continues to tighten and rents increase in rent controlled markets, tighter rent controls are a major concern. From a landlord perspective, turnover will continue to diminish. From an investor perspective, foreign capital will continue to descend on Canada making acquisitions increasingly difficult. Rob Pike, President/Chief Operating Officer, Minto Apartment REIT

Technology and Airbnb type rentals - both beyond 12 months. Thom Henderson, Director Commercial Lending, Community Trust

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Canadian Apartment Investment Report

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WHAT ARE THE MAJOR DISRUPTERS (GOV’T, INTEREST RATES, TECHNOLOGY) THAT YOU SEE OVER THE NEXT 12 MONTHS?

The most concerning potential disrupter has remained constant for a number of years. We closely monitor but cannot control rent control policy. David Hanick, Chief Legal Officer, Starlight Investments

Economic downturn due to global headwinds. A weaker jobs market and slowdown in housing sales could dampen demand for new apartments (at a time with lots of new supply) and negatively impact new financing available for apartment investments. James Wilson, Managing Director, Realstar Group

Our Governments, over the past 5 years, have made it difficult to predict and therefore prudently plan for future costs and business plans. Reductions and increases in hydro and natural gas have been made by in large for the purpose of re-election. Locally our city council must deal with many issues and look for the best outcome for its residents, however, unlimited terms of office can often result in keeping the current voter base happy rather than looking for the best interests for the city going forward. The loss of the OMB and increased development fees make it increasingly difficult to create a supply of housing in concert with the demand. With the upcoming Federal election we can only wait and see what transpires. Justin Taylor, CEO, Greenrock Real Estate Advisors

I believe interest rates will be the biggest disrupter within the next 12 months. Timing around the pending federal election will limit its potential impact and the provincial government's recent sweeping changes seem finished. Given the inverted yield curve, I believe cap rates will continue to compress in a declining interest rate environment. Adrian Rocca, CEO, Fitzrovia Real Estate

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Canadian Apartment Investment Report


I think continued pressure on housing affordability and a lack of affordable supply will continue to cause political pressure to address housing needs, particularly in the GTA and Vancouver. Governments will need to work with private sector to develop a collaborate approach to help instigate new supply through various programs. As construction costs continue to escalate, yields (especially on affordable components) will compress to levels where capital will choose to do other investments. Michael Tsourounis, Managing Director - Real Estate Investment Management, Timbercreek Asset Management

The biggest challenges currently are getting zoning in Toronto, construction costs, and then the cost of living. The cost of living is making it tough for people to afford rent after the heavy tax load and other costs encountered, construction costs make projects less viable and the zoning is drawing out time lines considerably. Peter Senst, President, Canadian Capital Markets, CBRE Limited | National Investment Team

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What are your thoughts on the co-living concept?

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Canadian Apartment Investment Report


“

Co-living is not a new concept. To provide a more affordable, convenient, and community-oriented housing option, the leading co-living brands are embracing traditional ways of living and combining it with modern hospitality and software. As more people live in cities than ever before, we need to be creative to find desirable, sustainable, and profitable ways to meet housing demand. It's early days for co-living, but the model is already gaining traction and evolving quickly. I think we'll find that co-living, or elements of it, are ultimately attractive to a broad audience - from young professionals and newcomers to families and seniors. Courtney Cooper, Principal, Alate Partners

Co-living comes in various forms, from shared houses to luxurious miniapartments, but the basic premise is the same: Renters can save money and expand their social circle if they’re comfortable with smaller spaces and shared common areas. While this may not be the ideal living situation for everyone, it can offer an affordable rental option for many people, including students, young urban professionals, and seniors. This type of housing is particularly attractive in areas such as Toronto, where an expensive housing market makes renting less accessible for many people. Paula Gasparro, Vice President, Real Estate Finance, CMLS

It is certainly an interesting concept (particularly given the constraints placed on new buyers trying to enter the home ownership market, and the continuing demand for rental), but I feel that we are a long way away from seeing this concept being implemented. I can only foresee high demand for quality apartment buildings in prime locations continuing in the long term. David Boyle, Vice President, Commercial Mortgages, MCAP Financial Corporation

Co-living across young and old demographics is becoming a necessity for some and an attractive option for others. There is clearly a strong market for co-living in dense urban settings where rent levels and lack of supply create the necessity for co-living arrangements, particularly for youth. For seniors, there is a growing market for shared/co-living arrangement in urban settings throughout the province, primarily for single, same sex seniors who live active lifestyles but enjoy the fellowship of peers in their down time. Joe Hoffer, Lawyer and Partner, Cohen Highley LLP

September 2019

� I 15


-1/

WHAT ARE YOUR THOUGHTS ON THE CO-LIVING CONCEPT?

Co-living is alive and well in the purpose built student housing market where residents enter into leases “by the bed” and share the common living room and kitchen area – so why not extend the concept into the non-student demographic? For tenants this form of accommodation can provide significant benefits and a lower monthly cost. Some challenges managing this type of accommodation include: matching of roommates based on preferences; mediating disputes about use of the shared common area; sub-metering of utilities; and unit prep on turnover. Landlords and managers with student housing experience will have a big head start in this segment. Paul Smith, Chief Administrative Officer, The DMS Group

This is something that we’re starting to experiment with on a limited basis given our experience in student housing. We’re not sure that it will really work as well as micro suites will, given that residents can get more personal privacy in a micro suite than a shared co-living space. Shared living space in student housing is accepted as a lifestyle. Co-living, in student-type buildings could be a natural extension in urban areas, as a transition for students that want to stay after graduation and for young urban professionals. I’m not sure that it would work in regular apartment buildings due to the management intensity. Greg Romundt, President and CEO, Centurion Asset Management Inc., Trustee of Centurion Apartment REIT, Centurion REOT, & Centurion Financial Trust

I think the co-living concept is very interesting and in touch with the younger generation of people who will prefer to rent than to buy. A very good example of how to do this thing right is a London UK based company called Node, which has developed co-living properties in Europe and North America. Ali Lakhdari, Vice President and Co-Owner, Gestion Immobilière Cogeim

From a Commercial sense we are ok with this as it would really be more viewed as an investment (perhaps to rent out) but ultimately as an investment. All parties would likely be on title, guaranteeing the loan as well. Thom Henderson, Director Commercial Lending, Community Trust

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Canadian Apartment Investment Report


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WHAT ARE YOUR THOUGHTS ON THE CO-LIVING CONCEPT?

Co-living is an interesting concept that provides several benefits to a niche of potential clients. I believe the concept has the potential to boom in core cities. This way of living will attract mainly millennials in our opinion but there are other segments where we should see it becoming more popular. Frederic Soucy, President, COGIR Management

Co-living is appealing to some but not to all renters. Like many new concepts, time will tell. David Hanick, Chief Legal Officer, Starlight Investments

Co-living seems to be a viable option for dense, urban cities with inflationary pressures on rent. Relative to the commercial real estate universe, those interested in co-living still represent a relatively small market -  and demand drives future development. There are not enough examples of co-living at a scale we can study. As an example, WeLive had initially planned numerous locations but still only has two operating years later. We'd question its profitability in comparison to other asset classes. How do the risk-adjusted returns compare? What about operational complexity and overhead? Our sense is that co-living asset classes require more hands-on management and investors would want to see a higher return and a higher cap rate. Brent Magnan, Managing Director, Canada ICI

Co-living delivers the location amenity that renters desire, while minimizing the absolute cost spent to obtain a specific address. This extension of the purposebuilt rental landscape has merit, but only in hyper dense markets where access to core locations is priced at an absolute premium. Substantial rent premiums can be obtained for renting out bedrooms as opposed to full suites, however this is offset by a more substantial operating burden — a greater focus on amenitization and programming of events is required, as one would find in student housing environments. As rapid urbanization increases in core Canadian markets, conditions should improve for delivering this type of product. Anthony Lanni, Executive Vice President, Residential, QuadReal Property Group

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Interesting idea, but untested. Unlike co-working, co-living introduces many more challenges such as cleanliness of co-habitants, safety, etc. Rob Pike, President and Chief Operating Officer, Minto Apartment REIT

In simplest form, it is a platform for matching room-mates in highly amenitized new product where premium rents can be charged by the landlord on a price per square foot basis. There is potential to disrupt the new purpose-built coliving space with a platform that links these same renters up in less expensive urban apartments that are not purpose-built for apartment sharing. If particular co-living platforms can establish brand recognition and a unique culture perhaps the co-living rent premiums can be protected long term. James Wilson, Managing Director, Realstar Group

Can't ignore it. It's a trend that is coming. Dan Sander, Owner Managing Director, Hollyburn Properties Ltd.

Co-living is an excellent idea and we see the concept increasing in hot markets. We have not seen this product provide much greater affordability in larger developments. We believe co-living will continue to evolve and increase in market share. Justin Taylor, Chief Operating Officer, Greenrock Real Estate Advisors

I think co-living is here to stay and the sector will be an important player in combating the affordability issue. Like other similar residential segments, institutions will be key to achieving scale. Adrian Rocca, CEO, Fitzrovia Real Estate

Too early to tell - I think it will become a more relevant topic and all landlords need to embrace change in because it is coming. Michael Tsourounis, Managing Director - Real Estate Investment Management, Timbercreek Asset Management

Co-living is starting like co working where many doubted it. The cost of living again will make this viable-taxes and other costs are too high. New renters like the excitement of this kind of environment. I expect this trend to slowly but surely grow given capital’s interest in this. Peter Senst, President, Canadian Capital Markets, CBRE Limited | National Investment Team

September 2019

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APARTMENT SECTOR INDICATORS These results are released by Altus Group, powered by our proprietary Data Solutions platform. Our independent and comprehensive data, analyses and insights on the commercial real estate investment and residential development markets are collected and compiled using nationally consistent research processes established in 1995.

High Rise Units Under Construction & Completed Greater Toronto Area – June 30, 2019

High Rise Units Under Construcon & Completed Greater Toronto Area

June 30, 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Units Under Construcon/Completed

Yearly Compleons 80,000

71,172

Units Under Construcon

70,000 60,000 50,000 40,000 30,000 20,000

24,481

19,534

14,360

20,933

18,739

10,634

10,000 2011

2012

2013

2014

2015

15,391

15,822

2017

2018

2016

10,759*

2019

*Includes January – June 2019

Source: Altus Group

New Condominium Apartment Sales 12 Months Ending Q1

New Condominium Apartment Sales 12 Months Ending Q1

Vancouver Calgary Edmonton Greater Toronto Area

2018

9,835

2019

6,898

2018

2,127

2019

1,497

2018

1,112

2019

493

2018

30,006

2019

20,164

Other Greater 2018 Golden 2019 Horseshoe Montreal

9,270 8,781

2018

7,364

2019

7,607 0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Source: Altus Group

altusgroup.com/datasolutions

DataSolutions_ApartmentMonitor_Ad_Aug2019_6625x11.indd 2

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Data


5 PM

2019 FEATURED APARTMENT TRANSACTIONS Vancouver Market Area

Edmonton Market Area

Calgary Market Area

Address:

510 9th Street

Address:

5145 Windermere Boulevard S.W.

Address:

11611 Oakfield Drive S.W. 11621 Oakfield Drive S.W.

Price:

$6,925,000

Price:

$35,610,000

Price:

$18,221,000

Price/unit:

$192,361

Price/unit:

$284,880

Price/unit:

$144,611

Purchaser:

Private Investor Canadian

Purchaser:

Boardwalk REIT

Purchaser:

Mainstreet Equity Corp.

Montreal Market Area

Greater Toronto Area

Greater Golden Horseshoe

Address:

4850, 4854, 4858, 4862, 4866, 4870, and 4874 de la Côte-des-Neiges Road

Address:

460 Mayfair Road 500 Mayfair Road 512 Canonberry Court 516 Canonberry Court 520 Rossland Road East 777 Terrace Drive 555 Mayfair Avenue 455 Mayfair Avenue 510 Rossland Road East

Price:

$268,000,000

Price:

$220,000,000

Price:

$52,700,000

Price/unit:

$266,932

Price/unit:

$241,493

Price/unit:

$327,329

Purchaser:

Investors Group; Minto Apartment REIT

Purchaser:

Q Residential

Purchaser:

Northview Apartment REIT

Address:

772 Paisley Road 4 Ryde Avenue 3 Candlewood Drive

altusgroup.com/datasolutions

DataSolutions_ApartmentMonitor_Ad_Aug2019_6625x11.indd 4

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TRANSACTIONS BY MARKET AREA

Rental Apartment Transactions by Market Area 12 Months Ending Q1

Rental Apartment Transacons by Market Area 12 Months Ending Q1

Vancouver

Calgary

Edmonton Greater Toronto Area

2018

105*

2019

76

2018

50*

2019

71*

2018

38*

2019

65*

2018

156*

2019

202*

Other Greater 2018 Golden 2019 Horseshoe

171* 126*

$0

$500 M

Source: Altus Group

$1.0 B

$1.5 B

$2.0 B

$2.5 B

$3.0 B

*Number of transacons

High Density Residential Land Transactions by Market Area 12 Months Ending Q1

High Density Residenal Land Transacons by Market Area 12 Months Ending Q1

Vancouver

Calgary

Edmonton Greater Toronto Area

2018

218*

2019

123*

2018

9*

2019

13*

2018

6*

2019

12*

2018

256*

2019

174*

Other Greater 2018 Golden 2019 Horseshoe $0

254* 173* $500 M

$1.0 B

$1.5 B

$2.0 B

$2.5 B

$3.0 B

$3.5 B

$4.0 B

Source: Altus Group *Number of transacons

altusgroup.com/datasolutions

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Data


6 PM

SUBSCRIPTION REPORT

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A multi-page digest featuring key market tracking material.

Top-of-the-Line Analysis & Insights on:

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What is the number one amenity you think your tenants would love to see in your properties and why?

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Canadian Apartment Investment Report


“

The number one amenity that our residents would love to see is value-added retail as part of their communities. Specifically, food – either in the form of a fast casual or quick service restaurant or a grocer (preferably organic). Unlike a bank or nail salon, food appeals to everyone. Having access to basics within your building is a huge benefit, especially in the winter. And depending on the grocery brand you partner with, it can add to the overall experience your consumer can have at your property. Todd Nishimura, Senior Director, Marketing, Leasing & Communications, GWL Realty Advisors Residential

Safety features, such as a 24-hour security and concierge services, are hugely important. All tenants want to feel protected and at ease in their homes. However, in-suite laundry and pet-friendly buildings are also very high on the list of priorities for renters. These features are appealing because they provide tenants with more flexibility and convenience. Paula Gasparro, Vice President, Real Estate Finance, CMLS

Secure parcel delivery and storage facility to accommodate on-line deliveries to the building. Joe Hoffer, Lawyer and Partner, Cohen Highley LLP

I think the rental apartment survey likely has an answer that is better than I do, however amenity space or lockers for Amazon or online package delivery is probably one of them. Peter McFarlane, Senior Vice President, Fiera Real Estate

Pet friendly amenities. More young people are choosing to delay or forego marriage and/or parenthood than previously. It is natural that pets as companions are increasing in popularity in this demographic. Further, more people, due to lifestyle or affordability concerns, are choosing rental over ownership in the urban core which means more pets staying in apartments that may have gone to the suburbs before. As well, empty nesters are cashing in their houses for rental accommodations and naturally want to bring their pets with them. Greg Romundt, President, CEO and Founder, Centurion Asset Management Inc.

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September 2019

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WHAT IS THE NUMBER ONE AMENITY YOU THINK YOUR TENANTS WOULD LOVE TO SEE IN YOUR PROPERTIES AND WHY?

The younger generation is eating better, has healthier habits, and therefore work out more, therefore any building targeting a younger demographic should try to prioritize having a gym when it comes to amenities. At the other end of the spectrum, people over 60 still seem to prefer having a pool. Ali Lakhdari, Vice President and Co-Owner, Gestion Immobilière Cogeim

We are not an owner, but increasingly we are hearing of a parcel delivery spot, or a secure area where parcel deliveries can be left. New buildings must accommodate such or they are missing the boat - so to speak. Thom Henderson, Director Commercial Lending, Community Trust

Amenities is also a key benefit of the multi residential way of living. We cannot name only one amenity. The important thing is to listen to our customers and find out the one that will make a difference for them today and in the future. Any rooms which contribute to develop a strong community spirit will contribute to differentiate the property from a real estate and lifestyle stand point. Frederic Soucy, President, COGIR Management

As technology has improved, communication with tenants has improved. While not a traditional amenity, user friendly portals with clear and easy to follow prompts and communication are always appreciated by tenants. David Hanick, Chief Legal Officer, Starlight Investments

We have found that this varies by demographic, but as unit sizes continue to shrink, common space and amenities have become more desirable. Rooftop pools have a lot of cache, well-appointed amenity spaces like gyms/yoga and common areas with WiFi. Pet amenities and areas will continue to increase as cities go increasingly vertical. As well, more automation, technology plays a key role in our daily lives, and tenants are increasingly asking for more. Rob Pike, President/Chief Operating Officer, Minto Apartment REIT

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Canadian Apartment Investment Report


Recognized Leader in North American Multi-Family and Commercial Real Estate Institutional Asset Manager • Disciplined Visionaries • Exceptional Returns

$11B

Assets Under Management

500

Properties Across Canada and the U.S.

36,000 6.2M Multi-Family Units

Commercial Square Feet

StarlightInvestments

www.starlightinvest.com


“

WHAT IS THE NUMBER ONE AMENITY YOU THINK YOUR TENANTS WOULD LOVE TO SEE IN YOUR PROPERTIES AND WHY?

Our involvement in new rental development from coast to coast has given us a great opportunity to see the best of the best when it comes to amenity spaces. With the shrinking of suite sizes in the major markets, we are seeing the importance of entertainment areas such as roof top terraces as a major drawing factor. It is our view that buildings with high quality amenity spaces will see greater rental rate growth over time, even in the face of additional supply. Jeremy Wedgbury, Senior Vice President, Commercial Mortgages, First National Financial Corporation

Fibre and/or ultra high speed internet. The world is moving that way - soon to be more important than a second washroom. Dan Sander, Owner Managing Director, Hollyburn Properties Ltd.

We believe our residents would want to see high speed wifi throughout our properties. Justin Taylor, Chief Operating Officer, Greenrock Real Estate Advisors

A commercial grade gym - one that actually replaces a gym membership. Adrian Rocca, CEO, Fitzrovia Real Estate

Community spaces and common/social areas. People want to feel as part of a community - not everyone gets excited by a Peloton. Michael Tsourounis, Managing Director - Real Estate Investment Management, Timbercreek Asset Management

Amenities that are in favor are the lounge/meeting spaces where people can gather. These spaces will be tuned up to be more like a business class lounge! Peter Senst, President, Canadian Capital Markets, CBRE Limited | National Investment Team

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Canadian Apartment Investment Report


Tenants are looking for many amenities within their buildings to really create a "one stop shop". They are willing to pay more to receive more in return. In saying this, the biggest amenity would be 24/7 property management services inclusive of concierge as they are looking for someone to be there on demand to support/answer all questions, concerns, etc., it's that level of service they are truly looking for in an amenity. Aside from this, the below are other amenities that are really making a difference now and leading the way for all new developments. • 24/7 Concierge • Resident Lounge - Private Dining Room with Gourmet Kitchen Rooftop Terrace

• In-house Pet Spa • Parcel Management System Kris Boyce, CEO, Greenwin Inc.

Our landlord clients have mentioned parcel rooms more than enough times to make it a trend. We know that retail delivery through online retailers is going to grow in the future especially if you consider grocery delivery services. Those parcel rooms might even need to be refrigerated! In fact, auto manufacturers are trying to solve this same problem by allowing online deliveries to be placed in the trunk of your car while you are at work or away. Look for the demand for this amenity to grow in the future. Brent Magnan, Managing Director, Canada ICI

We are seeing a much greater demand for effective working spaces in our portfolio, as residents are choosing to work from home more frequently. I believe that our residents would love to see a more coordinated approach to the design, provision and access of these work spaces in their community. Anthony Lanni, Executive Vice President, Residential, QuadReal Property Group

Clean air. Non-smoking buildings are increasingly a draw across all communities and demographics where we operate. James Wilson, Managing Director, Realstar Group

September 2019

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! CREF SPRING 2019.qxp 2019-03-22 2:44 PM Page 33

Appointment Notice

To book your appointment notice, contact Frank Scalisi, Director of Sales at 416-512-3815, fscalisi@mmart.com

First National is delighted to announce the appointment of Michael Yeung to the newly created position of Vice President, Commercial Financing, British Columbia. With 25 years of financial services experience in the B.C. market, and a unique customer-centred approach to lending, Michael is ideally positioned to drive the expansion and performance of this important business operation. Prior to joining First National, Michael served in leadership positions at Laurentian Bank, HSBC and Canadian Western Bank. He is recognized for his expertise in real estate financing including high-value commercial construction lending. Michael is a graduate

of Simon Fraser (Business Administration), Dalhousie (MBA, Financial Services) and is a registered Financial Planner and Specialist, Trust and Estate Management. He is a long-time supporter of the Richmond Chamber of Commerce and the Richmond Community Foundation. First National is Canada's largest commercial mortgage lender and largest non-bank mortgage lender with over $106 billion in commercial and residential mortgages.

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Please contact us for more details on our services 1 866 671-6381 | Cogir.net

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2019 Canadian Multi-Res Tenant Rental Survey The 2019 Canadian Multi-Res Tenant Rental Survey has asked Canadian tenants to answer questions regarding preferences, lifestyle choices, operation issues, technology opportunities and satisfaction levels in their rental units. A detailed Dashboard and Trend Report are being produced that offers the market a detailed and/or summary level information.

Interested in Purchasing? The Trend Report and Dashboard are tools that allows you and your team to conduct simple and complex analysis of the 2019 survey findings.

More Information For more information on purchasing the Trend Report, gaining access to the Dashboard or participating in the 2020 survey, please contact Sarah Segal, Director, Informa Canada at sarah.segal@informa.com.

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Thank You to our Sponsors of Canadian Apartment Investment Conference Platinum

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TAKE ADVANTAGE OF OUR UPCOMING EVENTS Canada’s Leading Real Estate Conferences Listen to Industry Leaders – Learn About the Latest Trends & Strategies – Build Your Network

OTTAWA REAL ESTATE FORUM October 17, 2019 – Ottawa Conference & Event Centre

CALGARY REAL ESTATE FORUM November 6, 2019 – TELUS Convention Centre

TORONTO REAL ESTATE FORUM December 4 - 5, 2019 Metro Toronto Convention Centre, South Building

VANCOUVER REAL ESTATE FORUM March 31, 2020 – Vancouver Convention Centre West

EDMONTON REAL ESTATE FORUM April 15, 2020 – Edmonton Convention Centre

QUÉBEC CITY REAL ESTATE FORUM April 29, 2020 – Centre des congrès de Québec (Biennial)

WINNIPEG REAL ESTATE FORUM

May 5, 2020 – RBC Convention Centre (Biennial)

MONTRÉAL REAL ESTATE FORUM May 28, 2020 – Palais des congrès de Montréal

SASK ATCHEWAN REAL ESTATE FORUM April 2021 – Queensbury Convention Centre, Regina (Biennial)

RealTrends

September 17, 2019 – Metro Toronto Convention Centre, North Building

Montréal Real Estate Strategy & Leasing Conference

October 2, 2019 – Palais des congrès de Montréal

Vancouver Real Estate Strategy & Leasing Conference

October 29, 2019 – Vancouver Conference Centre

Global Property Market

December 3, 2019 – Metro Toronto Convention Centre, South Building

Québec Apartment Investment Conference

February 13, 2020 – Palais des congrès de Montréal

RealCapital

February 25, 2020 – Metro Toronto Convention Centre, North Building

Western Canada Apartment Investment Conference

April 1, 2020 – Vancouver Convention Centre East

Land & Development

June 2, 2020 – Metro Toronto Convention Centre, North Building

Canadian Apartment Investment Conference

September 9, 2020 – Metro Toronto Convention Centre, North Building

ATLANTIC REAL ESTATE FORUM May - June 2021 – TBD

RealREIT

September 10, 2020 – Metro Toronto Convention Centre, North Building

For details on these conferences and to register online visit realestateforums.com Sponsorship and advertising opportunities available. Mike Pelsoci  michael.pelsoci@informa.com  604.730.2034 (Calgary, Edmonton & Vancouver events) Frank Scalisi  frank.scalisi@informa.com  416.512.3815 (all other events and advertising)

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CML


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Canada’s Real Estate Finance Experts Founded in 1974, CMLS Financial is one of Canada’s largest independently owned mortgage services companies with offices across the country. Some of Canada’s most respected banks, investment managers, insurance companies and pension funds rely on CMLS Financial for a variety of critically important mortgage services. Consult with a CMLS Financial Real Estate Finance Expert and see how our competitive rates and range of solutions can be put to work to meet your commercial financing needs.

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Empowered lenders make powerful borrowers It’s about getting to know you, your business and your goals so that our advice is grounded and specific. It’s about freely sharing our predictive tools and market insights to add another dimension to your planning. It’s about employing experienced experts who have the authority to innovate and act quickly. It’s about developing financing strategies – conventional and insured – that give you the best ROI. It’s about actively lending with confidence in all market conditions and across a range of property assets. Most important, it’s about empowering you with smart risk solutions so that your future is more lucrative than your past.

1.800.465.0039 | www.firstnational.ca

Jeremy Wedgbury Senior Vice President, Commercial Mortgages Michael Williams Regional Vice President, Commercial Financing, Quebec Michael Yeung Regional Vice President, Commercial Financing, British Columbia

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Profile for Real Estate Forums

Canadian Apartment Investment Report Issue 15  

Recent investments in Canadian multi-residential assets have generally yielded strong returns thanks to cap rate compression, low interest r...

Canadian Apartment Investment Report Issue 15  

Recent investments in Canadian multi-residential assets have generally yielded strong returns thanks to cap rate compression, low interest r...