Varing Magazine 2025 - The Start of Something Great by Varing Marketing Group

HOMELIFE ADVANTAGE REALTY (CENTRAL VALLEY) LTD.

EXPERT MORTGAGE SOLUTIONS

Commercial Financing in 2025 - Is it Just the Interest Rates?

HARNESSING AI AND AUGMENTED REALITY IN REAL ESTATE

Transforming Market Insights and Client Experiences.

AFFORDABLE HOMES, REAL SOLUTIONS

Challenges in Affordable Housing: Bridging the Gap Between Need and Reality.

THE HOUSING PUZZLE: WHAT’S DRIVING HIGH PRICES?

Everyone is Concerned About the High Price of Housing.

LANGLEY CITY: BUILDING SMARTER

Langley is Prime for New Residential, Commercial, and Industrial Development Opportunities.

PURSUE GREATNESS

Every day, we take initiative—with integrity and courage— to elevate ourselves for the greater good of those around us.

A Letter From Joe

2024 Year in Review by Joe Varing.

8 Market Review 2025

Four regions to watch in 2025.

10 Expert Mortgage Solutions

Commercial Financing in 2025: Is it just the Interest Rates?

Strategic Planning For The Future Sale Of Your Business

Key areas for you to address as you move forward towards the eventual sale or transition.

Harnessing AI And Augmented Reality In Real Estate Transforming market insights and client experiences.

Understanding And Applying The Trust Provisions of The Builders Lien Act Five things to know.

Affordable Homes, Real Solutions Challenges in affordable housing: Bridging the gap between need and reality.

Fraser Valley’s Real Estate Market And The Growing Need For Infrastructure Investment

Making the need for significant infrastructure development more apparent than ever.

The Housing Puzzle: What’s Driving High Prices? Everyone is concerned about the high price of housing.

Building The Future: Real Estate’s Role In Shaping Vibrant Communities

Real estate is more than constructing buildings—it’s the foundation of thriving communities.

After Three Years, Vancouver’s Industrial Market Has Entered A New Phase

A run of unwinding vacancy is set to stabilize but will remain at a landlordfriendly level of imbalance.

Langley City: Building Smarter Langley is prime for new residential, commercial, and industrial development opportunities.

Mastering Real Estate Development: Process, Challenges, and Success Where do you fit in, and what does it take to succeed?

WE LAND AS ONE!

Aswe step into 2025, we reflect on a year that, while challenging, has been rich with deep lessons of learning and growth. At VARING, we remain humbly committed to our mission of enhancing the communities and landscapes we serve. Your unwavering trust and partnership empower us to continue pursuing excellence in every project and relationship.

In 2024, we navigated through shifting economic landscapes with resilience and a clear focus. Our journey was marked by careful strategic planning and a deep understanding of the unique needs of the communities we engage with. This approach ensured that our projects were viable and visionary, setting new standards in the real estate industry.

As we step into 2025, we reflect on a year that, while challenging, has been rich with deep lessons of learning and growth. At VARING, we remain humbly committed to our mission of enhancing the communities and landscapes we serve. Your unwavering trust and partnership empower us to continue pursuing excellence in every project and relationship.

Looking ahead, we are excited to continue our work, extending our horizons into new markets with abundant potential for growth and development. At VARING, we do what we love and Love what we do therefore we thrive with intention and purpose. This passion is fueled by a deep-seated belief in the enduring the value of land and the transformative impact of thoughtful and smarter development.

A LETTER from joe...

2025 promises to be a year of innovative opportunities and renewed commitments. We are yearning the challenges ahead with the same tenacity and dedication that have defined our past successes for nearly 20 years. Our focus remains on delivering exceptional value and cultivating relationships that extend beyond mere transactions.

As we continue to connect the dots between land and legacy, let’s leverage our collective strengths to build a prosperous future. With VARING, you have a partner committed to mutual success, armed with expertise, passion, and an unwavering determination to deliver outstanding results.

Together, we are better.

Thank you for your ongoing trust and partnership. As we move into 2025, we are ready to seize new opportunities, excel in our endeavors, and uphold our reputation as the Trusted Name in Land.

Here’s to a year brimming with growth, success, and robust partnerships.

Best always,

Joe

WATCH OUT FOR THESE AREAS IN 2025

As we reflect on 2024 from the vantage point of 2025, it becomes clear that the year was marked by dynamic shifts and significant developments in key areas across the Fraser Valley and Metro Vancouver. This retrospective analysis highlights regions that have demonstrated resilience and innovation, continuing to offer promising opportunities for landowners and real estate developers. At VARING, our ongoing focus is on these areas as they have shown not only growth but also potential for future expansion.

2025 MARKET REVIEW

Township of Langley:

The Township of Langley has experienced a 5% increase in housing development this year, driven by strong demand for both single-family homes and multi-unit dwellings. The industrial and agricultural foundations within the Township continue to see growth. The upcoming SkyTrain extension to Langley City, expected to be completed by 2028, is anticipated to enhance connectivity and spur further residential and commercial investments.

Maple Ridge:

Maple Ridge has seen a notable population increase to approximately 102,450 in 2024, up by 13.90% since 2018. The city is undergoing major plans to revitalize its downtown and expand transit access under the Lougheed Transit Corridor Area Plan, aiming to bolster growth and make commuting more efficient.

South Surrey:

Development in South Surrey continues at a brisk pace, with new residential neighborhoods and commercial hubs emerging. The area's median household income is roughly 20% higher than the Metro Vancouver average, highlighting its affluent demographic. Notable projects include Simon Fraser University’s new medical school, which is expected to increase demand for healthcare services. The Grandview Heights neighborhood is expanding to include more parks, schools, and commercial centers, making it an increasingly attractive area for investment and living.

Burke Mountain:

Burke Mountain continues to grow rapidly, with several new developments enhancing its family-friendly and scenic appeal. The Partington Creek Neighborhood Plan proposes over 1,000 new homes, aiming to create a more vibrant community. Recent infrastructure developments, including new educational facilities, further enhance the attractiveness of the area for families and investors alike. Burke Mountain is a growing and expanding community, which benefits Coquitlam in many ways and adds more layers of diversity.

These areas represent a dynamic real estate market across Greater Vancouver. As we move into 2025, the strategic developments and enhanced connectivity in these regions are expected to drive significant investment and development activity, offering promising opportunities for landowners, developers, builders, and city officials.

MORTGAGE SOLUTIONS

Driving Western Canada's Growth

Commercial Financing in 2025: Is It Just the Interest Rates?

With so much of British Columbia’s economy directly or indirectly tied in to real estate, it is no surprise that the province’s financing landscape is dictated so heavily by the real estate market. It is not just the evolving preferences of some asset classes, but also the availability of capital as it moves in and out of real estaterelated financing.

While interest rates continue to drop from an astronomical and unmanageable level, they never reached the peaks of recent decades and remained a fraction of what older generations experienced. Interest rates are still far above the Spring 2020 lows.

In fact, they hopefully don’t get there as that would indicate enormous macroeconomic problems that could negatively everyone.

But rates are not the only variable when it comes to the financing market. As the local real estate market slightly improves, the financing market is also optimistic. There looks to be more financing support this year than in previous years as lenders adapt and move away from the overly conservative approaches of recent times.

Term/Business Financing

Real estate investment in cash-flowing properties is the most common type of financing in this province. This type of financing focuses notably on the cash flow of the property and/or business being financed over the past two years. The higher interest rates often limited the loan amounts that could be obtained, preventing them from reaching traditional maximum Loan-to-Value (“LTV”) lender ratios. Property owners have been unable to increase their income at the rapid rise of interest rate due to government restrictions on allowable residential rental rate increases and long-term commercial rents. Landlords witnessed substantial financial pressures as their expenses increased at a significantly higher pace than their income. From 2021 to2023, the BC government only allowed residential rents to increase by an average of just over 1.1% each year. Yet in that same time frame, the Consumer Price Index in BC increased by an average of over 4.5% each year. If not for

Land/Construction Financing

There continues to be ample funds available for land and construction financing, but limited requests as the market has been slow to pick up. For the past three years, all of North America has been dealing with inflated prices of materials and labour. We have been told time and again that the increase in capital costs is to get inflation under control.

The cost of borrowing for new builds is very expensive, but the holding costs are eating the most into the already minimal developer profits. These holding costs are at the whim of forces outside of the control of the developer – the municipalities. Policy changes and added municipal costs have made building new homes virtually impossible. We found that our only clients that have

immigration, which the Canadian government has begun to limit, residential vacancies would be much higher.

Commercial tenants are typically responsible for all operating expenses for the property, and they too faced expense pressures that have cut into their cash flow, leaving no money for rent increases. The increased operating costs have affected many businesses that were once able to achieve some of the lowest borrowing costs in the industry, including various types of medical office financing. Lenders’ concerns over further increases to interest rates—and their interest rate sensitivity analysis—had previously resulted in loan amounts restricted to protect from increased, unmanageable loan payments at time of loan renewal. With interest rates now decreasing, we are starting to see term and business loans able to reach traditional maximum LTV restrictions again.

made sense of their projects have been from the CMHC programs—but just last year, CMHC made several changes that made their financing more expensive.

Looking at the end purchasers of residential homes, they have seen a drastic increase to their borrowing costs—not to mention the cost of living—leaving any extra money to be used for living expenses. This affects the homeowner who wants to move to a bigger place as much as it affects those looking for investment properties, limiting residential housing demand. However, decreasing interest rates look to be helping, and demand should start to increase in the coming months. And what has been a land market weighted heavily on the buyers’ side will start to balance. 

We at Axium spend all day speaking with borrowers and the over 120 distinct Canadian lenders we have access to, covering all asset classes, owner users, developers, and investors. We are very optimistic about the near future as interest rates drop and the cost of living comes under control.

Mike Grudman is president and Perry Keung is managing partner at Axium Capital, a top-producing Western Canada-based mortgage brokerage whose team is comprised of former real estate and commercial lenders, having offices in Vancouver, Surrey, and Edmonton.

Mike Grudman Perry Keung

Strategic Planning for the Future Sale of

Written by: Rick Gendemann, CPA, CA

Rick Gendemann, CPA, CA, is a Business Succession Leader with Manning Elliott LLP. Rick can be reached at (604) 557-5760 or rickg@manningelliott.com

As a business owner, there will come a time when you will sell or transition your business. Whether your time frame is a few years away or many years out, it is important to always think about the “end in mind” for your business ownership. This forward thinking will help you prepare and position the business to maximize the value you will receive when that day arrives.

Let’s consider some key areas for you to address as you move forward towards the eventual sale or transition.

HAVE YOU CONSIDERED WHO MAY BE A POTENTIAL PURCHASER?

As you look forward to the time when you will sell your business, start by considering who the buyer might be. Ultimately, who buys your business will depend on what you have to sell.

If you’re the owner of a business with significant investments in assets (inventory, accounts receivable, capital assets), you may realize more value by selling the underlying assets to a potential buyer who will incorporate these into their business. You might well be looking at a nice, clean trade sale of everything – lock, stock, and barrel.

WHAT BUSINESS ASSETS DO YOU HAVE FOR SALE?

There are many parts of a business that can be sold. In some cases, the business assets may fetch a better price and be easier to sell without liabilities.

Have you developed value around intellectual property in your business? Intellectual property, or IP, can be an idea, invention, or creative expression protected by a patent, trade secret, trademark, or copyright. Privately owned businesses often undervalue their IP assets. A valuable IP need not be a long-standing trade secret or a cutting-edge software application. It could simply be your manufacturing processes—the unique way your business makes its products.

Have you considered how your unique customer base could be a valuable asset? The size of your market share could present significant value to a competitor or complementary business. If your business is a market leader or well positioned in your market, your customer base could be a highly negotiable asset. Potential buyers could be looking to access your current customer contacts to expand sales opportunities for their businesses.

Does your business have established distribution channels with solid agreements in place? This could be very attractive to a supplier. Value to a supplier is often based on their potential to access your distribution channels and increase their sales, profit margins, and market share. A supplier may pay a premium to gain access to your distribution network.

IDENTIFYING POTENTIAL BUYERS FOR YOUR BUSINESS

A potential buyer source for your business may be private equity funds or angel investors. This class of buyer is looking for investment opportunities that can provide a high level of return. Their primary objective will be to enhance profits and build business value for a future sale. These buyers can be a great option, especially if they are able to bring experience as well as cash to the table. In return, they will likely want to have some control over their investment, usually through a seat on the board. Often these types of buyers will stage their purchase of your business and structure the purchase to have you stay on in a reduced ownership position to help build the value of the business overall. This may allow you to realize a larger return on final exit. But you’ll need to exercise caution in partnering with private equity funds and angel investors – especially if most of your wealth is locked up in your business. If you decide to not sell your entire business interest at the outset you will want to ensure you have addressed the terms and future timing of your final exit strategy.

Another potential option to consider is a management buyout (MBO) scenario, where the company's managers, often backed by venture capital, buy the business. The owner may stay on as a consultant to ease the transition, and the final sale price may include performance-based earn-outs. Family transitions and passive investors are also options but may not yield as high a value as selling to outside parties. You may be looking to transition the family business to the next generation. Keep in mind that you will most likely not achieve the same value for the business as you would in selling to an outside party. To offset this difference, you could factor in future performance bonuses where the business pays you additional amounts upon achieving predetermined milestones.

Or, you may consider selling to a passive investor, that is, someone who will likely not be involved in the active operations of the business. Passive investors present an opportunity for you to sell some of your shareholdings

– but to still retain control over the management and future direction of the business. You will need, however, to convince your passive investor that your business is secure, has potential to grow in value and can pay a regular rate of return each year in the form of dividends.

All of these potential buyers for your business have one thing in common. They and their advisors are not only looking for current business value, but also potential business value to be obtained post acquisition. Value is also critical to you as a seller, particularly if, like most private business owners, the majority of your wealth is tied up in your business. This is where a formal transition plan with a skilled team of advisors and a documented sales strategy can make all the difference in you attaining maximum value for your business.

THE TRANSITION PROCESS

It is vital that you plan the transition process with care and precision, right from your first thoughts of selling through to moving toward the sale event. After planning this process, you must then meticulously execute on it to ensure that the financial benefits and rewards on the sale are ultimately maximized.

We believe there are three essential steps in transitioning a business to new ownership:

• Strategy for Transition (SFT)

• Managing for Transition (MFT)

• Transaction Management (TM).

Strategy for Transition involves the development of a plan for your transition well before it’s time for your exit. In the STF phase, you will need to address the following key areas and formalize your overall plans. This will allow you to establish a solid platform on which to move through the business transition process.

• Develop an expected time frame for your exit

• Determine the current estimated value range of your business under different scenarios

• Project the desired value of the business you would like to receive at the time of exit

• Identify and formulate the best method of transition

• Begin to identify potential buyers of your business and assess merits of each

Once you have addressed these areas and formalized a strategy, you should be in a position to move into the Managing for Transition phase. The MFT phase is the crucial time period for positioning your business to maximize the return on the sale.

MFT is all about change management in the business prior to sale. Your focus is on evolving the business from its current position to the desired position for a successful transition to occur. This will likely require you to make fundamental changes in a number of areas of the business and implement an integrated plan to achieve your desired outcomes. We often refer to this process as “grooming your business for sale.”

If you owned and were planning to sell a luxury yacht, you would ensure that everything was shipshape, in perfect working order and performing to its design standards. Selling your business is really no different, albeit much more complicated. Given sufficient time and with the right advice, you can improve your business to the point where it will be very attractive to a buyer.

There are four distinct areas of focus during the Managing for Transition phase:

Performance Enhancement

The goal here is to move the financial performance of the business from its current level to a point that will warrant the desired investment by the purchaser and allow maximum realization of business value. This will require the development of a strategic plan, with ongoing monitoring and reporting to ensure strategic performance objectives are being met during the period leading up to sale.

Due Diligence Preparedness

The key objective here is to make the business as attractive as possible and minimize potential risks to the buyer. The buyer and their advisors will carry out a formal due diligence review of your business before the sale contract is signed off. After getting this far in the sale process, you don’t want a prospective purchaser walking away because they have identified a major problem or issue.

Reducing Business Dependency on the Owner

Preparing the business and the team for change is critical to the continuity of the business. Buyers will be assessing how the business will continue to generate earnings and profits into the future without being dependent on the current owner. As owner, your goal here is to create and maximize business goodwill while reducing your personal involvement in the day-to-day operations of the business.

Post-Sale Planning

In this final stage of MFT, you need to prepare a personal financial plan that covers life after the business is sold.

This will include preparation of personal investment strategies, estate planning and expert tax planning advice. With a properly managed plan, you can expect improved revenue benefits through the whole process of Managing for Transition – not just at the time of sale.

Managing for Transition will take time to implement and create value enhancement for the business. Depending on the current position of the business, to implement the desired changes and improve business performance results can often encompass a three to five-year time frame. Handled well, MFT will not only reap you rewards at the time of sale, but also provide benefits from the increased profitability generated by the performance improvements realized during these key transition years.

During the MFT phase, your business will encounter many organizational, people and technical challenges that need to be addressed. This is the time when it pays to invest in the guidance of a team of experienced business transition specialists.

Once you have mapped out and executed the MFT phase, you should be well positioned to begin the process of marketing and selling your business and entering into the final phase of transition, Transaction Management (TM).

TM will involve the “marketing, deal negotiating and final sale” phase of the business. A well-prepared sales plan and process will instill trust and confidence in the potential buyer as they look to assess and negotiate the purchase of your business. For your part, give careful thought to positioning and marketing your business for sale, including determining the value assessment and identification of potential buyers to market to. You will be well advised to align yourself with a dedicated and experienced team of advisors to help negotiate and close the deal to your satisfaction.

These advisors will develop a well-documented sales strategy that will ultimately allow you to maximize the value received – and ensure the smooth transition of your business. 

If you are thinking about or currently working on your business succession plan and are in need of assistance, please contact Rick Gendemann, one of our business succession leaders. We look forward to the opportunity to connect with you to discuss your transition planning issues and address how we may able to work with you and your family on developing and implementing your successful business transition plan.

Understanding And Applying The Trust Provisions Of The Builders Lien Act: FIVE

Things To Know

Douglas J. Conolly is a Partner and Head of the Dispute Resolution & Litigation Group at McQuarrie.

The trust provisions of the Builders Lien Act 1 (“BLA”) are often misunderstood and misapplied by practitioners. Although most of the provisions of the BLA pertain to lien rights (unsurprisingly), the trust relationships created by this statute should not be given short shrift. If understood and applied correctly, breach of trust and related claims arising from the trust provisions of the BLA can be powerful tools for an aggrieved party in a construction dispute.

Two Types

There are two types of trust relationships created under the BLA.

Pursuant to s. 5(2), all funds in the owner’s holdback account are held in trust for the benefit of the contractor from whom the holdback was retained, subject to, inter alia, any lien claims by those engaged below the said contractor.2

Pursuant to s. 10, all funds received by a contractor (or subcontractor) on account of the price of their contract (or subcontract) are held in trust for the benefit of all persons that the contractor (or subcontractor) engaged in connection with the improvement. All beneficiaries of the s. 10 trust must be paid before the trustee can appropriate the trust funds for its own use or uses not authorized by the trust.

By way of an example, suppose that Alpha is the owner of a property. Alpha contracts with Bravo for the construction of a building on that property. In turn, Bravo contracts with Charlie to perform the roofing work and with Delta to perform the painting work. Charlie then contracts with Echo to supply the materials for the roofing work.

In this scenario:

• pursuant to s. 5(2), the funds held back from Bravo in Alpha’s holdback account would be held in trust for Bravo, subject to the lien claims of Charlie, Delta, and Echo; and

• pursuant to s. 10:

¡ Bravo would hold all amounts received from Alpha on account of the price of its contract with Alpha in trust for Charlie and Delta; and

¡ Charlie would hold all amounts received from Bravo on account of the price of its contract with Bravo in trust for Echo.

Flow of Relationships

The scheme of ss. 5(2) and 10 is such that the trust obligations created by these provisions only flow one step down the construction pyramid. This means that the trustee-beneficiary relationship only exists between those directly above or below one another in the construction pyramid and that the trust obligations only flow downward.3

Consequently, owners do not hold s. 5(2) funds in trust for subcontractors 4 and contractors do not hold s. 10 funds in trust for the owner 5 or for those engaged by their subcontractors.

Using the same scenario as above:

• Alpha would only hold the s. 5(2) funds in trust for the contractor from whom the funds were held back, namely Bravo, and not for Charlie, Delta, or Echo; and

• Bravo would only hold the s. 10 trust funds in trust for the parties it directly engaged, namely Charlie and Delta, and not for Alpha or Echo.

Limitation Period

Pursuant to s. 14, all s. 10 trust claims are subject to a one-year limitation period, running from the date that the head contract is completed, abandoned or terminated, or if there is no head contract, then running from the date that the relevant improvement was completed or abandoned.6 Therefore, a party who

1 Builders Lien Act, SBC 1997, c 45 [BLA].

2 Aside from payment to beneficiaries, see s 11(4) of the BLA for other authorized uses of s 10 trust funds.

3 It should be noted that trust relationships flowed differently under the previous scheme of the Builders Lien Act, RSBC 1979, c 40 (and more specifically, s 2) Therefore, one should be mindful of this when relying on case law interpreting the predecessor statute. See also Columere Park Developments Ltd. v Enviro Custom Homes Inc., 2010 BCSC 1248 at paras 61-63 [Columere Park Developments Ltd.].

4 Bear Creek Contracting Ltd. v Pretium Exploration Inc., 2020 BCSC 1523 at paras 61, 66-68.

5 Columere Park Developments Ltd., supra note 3 at para 63. Although the court in this case confirmed that the owner was not the beneficiary of a

has failed to file a lien within the 45-day time period stipulated by s. 20 may still be at liberty to advance a trust claim under s. 10.

Architects, Engineers, and Material Suppliers

Although architects, engineers, and material suppliers can be beneficiaries of a s. 10 trust, pursuant to s. 10(4), they are not trustees of a s. 10 trust. Given that the funds received by architects, engineers, and material suppliers on account of the contract or subcontract price are not impressed with a s. 10 trust, these parties are free to appropriate these funds without risking a breach of the statutory trust.

That said however, when an architect, engineer, or material supplier is providing services or materials to one party on account of multiple improvements, they are required to make inquiries to the party from whom they are receiving the funds in order to determine which improvement the funds are being advanced on account of 7 and to credit the funds against the debt in respect of the improvement.8 Failure to do so will not constitute a breach of trust but may impact an architect, engineer, or material supplier’s BLA rights.9

Breach of Trust

Section 11 of the BLA specifies the statutory consequences of a breach of a s. 10 trust, for both trustees and, in cases where the trustee is a corporation, its directors or officers. The statutory penalties include fines and imprisonment; however, these provisions are not exhaustive with respect to the claims, liabilities, and remedies which may flow from a breach of a s. 10 trust.

A trustee’s directors, officers, and other “strangers to the trust” may also be liable in tort for, inter alia, knowing assistance in breach of trust and/or knowing receipt of trust funds.10 Therefore, whenever a breach of trust claim is being advanced under the BLA, whether the relevant facts give rise to these tort claims should also be considered as such claims, if proven, may entitle a wronged beneficiary to restitutionary remedies which are not expressly set out under s. 11. 

statutory trust under the BLA, it did find a wrongful conduct constructive trust in favour of the owner over the monies advanced by the owner to the contractor for the construction project. See paras 85-89.

6 For further discussion regarding the implications of s 14 and the issues arising with respect to same, see British Columbia Law Institute, “Report on the Builders Lien Act” (2020) BCLI Report No 89 at 155.

7 Ross Gibson Industries Ltd. v Greater Vancouver Housing Corp., 1985 Carswell BC 293, [1985] BCWLD 3469 [Ross Gibson Industries Ltd.].

8 BLA, supra note 1 s 12.

9 See Ross Gibson Industries Ltd., supra note 7.

10 For a detailed discussion regarding these torts, see DBDC Spadina Ltd. v Walton, 2018 ONCA 60.

Harnessing AI and Augmented Reality in Real Estate:

Transforming Market Insights and Client Experiences

Written by:

The UBC Vancouver Housing Market Club Research Team

Ishan Batra, Ashwat Sriram, Arven Gill, Anikha Khan, Krish Zaveri, Ruth Leene

Artificial Intelligence (AI) and augmented reality (AR) are revolutionizing the real estate industry, redefining how properties are bought, sold, and experienced. AI is the ability of a computer to perform human-like tasks such as making predictions and decisions based on data or generating content like text, images, and videos. AR adds computer-generated virtual content and information to existing real-world environments.

AI and AR are important to the real estate sector, benefitting prospective buyers, customers, developers, investors, and agents. These technologies are streamlining the home-buying process, improving property marketing, predicting market trends,

Enhancing Market Insights through AI

Machine learning (ML) enables systems to analyze data, identify patterns, and make decisions without explicit programming. A subset of ML, deep learning, mimics neural networks to perform complex tasks. Both are key components of AI whose impact is amplified with access to vast data sets.

facilitating the production and assessment of transactions, appraisals, and other documents, and assisting clients. They significantly improve productivity and efficiency, client experience, and investor and agent decision-making.

By exploring the production of market insights by AI, the enhancement of property viewing and marketing by AR, and the challenges and future of these technologies, we can gain a comprehensive understanding of the impactful role artificial intelligence and augmented reality play in the real estate sector and how it can be incorporated into day-to-day operations.

Traditionally, the real estate market has relied on intuition and conventional methods for decision-making. AI is now revolutionizing the industry by analyzing market trends with unprecedented speed, leading to predicted efficiency improvements of up to 50%. AI can quickly process property databases, historical transaction records, and market trends, enabling accurate property valuations and investment analyses. For example, AI can predict property demand in specific locations, helping developers and investors plan strategically.

Real estate companies are increasingly adopting AI. Zillow’s “Zestimate” feature, trained on millions of home photos and values, estimates property prices with a 2.4% median error rate. Similarly, JLL has introduced its AI tool, JLL GPT, which generates insights and could eventually provide price modeling and leasing transaction matchmaking.

Overall, AI is becoming a catalyst for real estate companies, streamlining repetitive tasks and enabling employees to focus on value-driven projects.

Improving Client Experiences with Augmented Reality

In an increasingly digital era, Augmented Reality overlays digital elements in real-world environments, thus allowing prospective buyers to interact with property features without needing to be physically present. This is increasingly beneficial in allowing buyers to visualize finished homes in real-time.

A prime example of the application of AR is Sotheby's International Realty’s Curate App. Curate allows users to furnish spaces using AR. Buyers can envision and apply different design styles, allowing them to customize their layouts before committing to a purchase. Curate also facilitates seamless interaction with properties, off-plan or under construction enhancing the emotional connection buyers feel with properties they are interested in.

Curate is an example of how AR can significantly boost client engagement. Buyers have increased interaction with properties, spending more time with AR features. The biggest asset that AR apps like Curate produce is reducing the uncertainty of purchasing underconstruction homes. This, in turn, also accelerates the decision-making process, leading to faster sales.

As the real estate industry evolves, the use of AR is starting to redefine how buyers experience real estate, making the process interactive and satisfying. Tools like AR are on their way to becoming commonplace in the real estate field, as the industry slowly embraces innovation to achieve market success.

Future Trends and Challenges

A significant emerging trend with AR and AI in real estate is AI-powered chatbots on firms' websites to enhance tenant support and streamline property management operations. Creativity has increased as development projects and home design offer customizable solutions for developers and stakeholders.

The potential ethical considerations surrounding AI and AR in real estate revolve around privacy and data issues. AI heavily relies on large datasets; thus, there will be increased risks around protecting personal and sensitive information. Another challenge with AI is that it is contingent on whether industry professionals can effectively utilize it, thus leading to a slow adoption process. A potential challenge of AR is the high cost of adoption. AR may cause firms to purchase additional technological equipment, which can become a barrier to many smaller companies, and these expenses may be offset onto consumers through higher service fees.

Incorporating AI and AR boosts customer satisfaction as it provides rapid responses and enhances creativity for land developers. These innovations are essential for remaining competitive as the industry shifts towards more tech-driven property management and customer engagement solutions.

In conclusion, the transformative effects of AI and AR on the real estate sector are profound. AI has revolutionized market insights, delivering faster, more accurate predictions for investors and developers, while AR enhances client experiences through immersive property viewings, making home-buying more engaging and efficient. Together, these technologies are reshaping how the real estate industry operates.

Embracing AI and AR is essential for staying competitive. By integrating these tools, professionals can streamline operations, elevate client satisfaction, and adapt to a rapidly evolving market. Though challenges like data privacy and the need for skill development persist, the benefits clearly outweigh the risks.

Looking ahead, the continued advancement of AI and AR will unlock even greater opportunities in real estate. These technologies will become more refined and accessible, delivering sharper market insights and further enriching client experiences. To shape the future of real estate, it is critical for industry stakeholders to proactively adopt these innovations and embrace the possibilities they bring. 

Surrey Quick Facts

At 317.2 km, Surrey is the largest city in Metro Vancouver

Surrey grows by 1,200-1,400 people a month, on track to be BC's largest city by population by 2030

It is projected that by 2044, Surrey will be the first BC city to reach 1 million residents

Home to the Health and Technology District

37% of Surrey's population is under the age of 30

1/3 of Surrey's land base is agricultural

46% of Metro Vancouver's mixed employment land is in Surrey

18% of industrial land in Metro Vancouver is in Surrey

170 different languages are spoken in Surrey

Affordable Homes

Challenges in Affordable Housing: Bridging the Gap Between Need and Reality

Affordable housing has become one of the most pressing challenges in today's real estate landscape. Particularly, in high-demand regions like Vancouver and the Fraser Valley, the struggle to create accessible and affordable homes continues to grow. Rising construction costs, restrictive zoning policies, economic inequality, and interest rate pressures have all converged, making it increasingly difficult to address the housing affordability crisis effectively.

Rising Construction Costs: A Significant Hurdle

One of the most formidable barriers to affordable housing is the escalating cost of construction. Prices for essential materials like lumber, steel, and concrete have surged in recent years, driven by global supply chain disruptions and local demand. These increased costs make it difficult for developers to produce housing that meets the price points accessible to low- and middleincome families.

The financial strain is compounded by the challenge of balancing affordability with financial feasibility. Developers often face a stark trade-off between

profitability and the inclusion of affordable units, leading to a persistent gap between supply and demand. Without targeted interventions, these rising costs will continue to hinder efforts to expand the availability of affordable housing.

Zoning and Land Use Regulations

Zoning and land use policies, while designed to maintain neighborhood character and safety, often inadvertently contribute to the affordability crisis. Restrictions on density, lengthy approval processes, and limitations on the types of housing allowed in specific areas create bottlenecks that slow down development.

For example, policies that restrict multi-family housing in favor of single-family zones limit the ability to increase housing supply. In regions like the Fraser Valley, rethinking these regulations to encourage higher-density and mixed-use developments could significantly alleviate pressure on the housing market while maintaining community integrity.

Economic Inequality and Wage Stagnation

Housing affordability is not just a supply issue—it’s also deeply tied to economic inequality. Over the past

Written By: VARING

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decade, housing prices have soared while wage growth has stagnated for many Canadians. This disparity forces families to allocate disproportionate portions of their income to housing costs or settle for substandard living conditions.

The 2024 job market has further exacerbated the issue, leaving many unable to keep up with rising housing expenses. Without meaningful increases in income or innovative affordability measures, the gap between housing costs and household earnings will continue to widen.

The Impact of Rising Interest Rates

Interest rate hikes have added yet another layer of complexity to the housing market. Higher borrowing costs make it more challenging for families to secure mortgages and for developers to finance new projects. This dynamic creates a bottleneck, reducing the supply of affordable homes and increasing competition for existing properties.

For many aspiring homeowners, the dream of homeownership feels increasingly out of reach. Addressing this issue will require policies and programs aimed at reducing the financial burden on both buyers and developers.

A Path Forward: Collaboration and Innovation

Despite these challenges, the need for affordable housing remains urgent. Addressing this crisis requires bold, collaborative efforts that prioritize longterm solutions over temporary fixes. Policymakers, developers, and community stakeholders must work together to:

• Revise zoning policies to support higher-density housing and streamline approval processes.

• Invest in infrastructure that enables sustainable, transit-oriented developments.

• Explore public-private partnerships to incentivize the development of affordable units.

• Promote financial assistance programs for firsttime buyers and renters.

In regions like the Fraser Valley, where growth and affordability are inextricably linked, innovative solutions will be key to ensuring that everyone has a place to call home. By addressing systemic barriers and embracing forward-thinking strategies, the real estate industry can help bridge the gap between need and reality, fostering communities where affordability and growth coexist. 

REL ENT LESS

Fraser Valley’s Real Estate Market and the growing need for Infrastructure Investment

While migration to the Fraser Valley and its ongoing development are not new, the effects of COVID-19 have accelerated this transformation, making the need for significant infrastructure development more apparent than ever. This surge in growth has heightened the region's appeal for real estate investment. Cities like Langley, and Abbotsford are at the forefront of regional investment, spearheading the development of improved transportation networks, including highway expansions and the extension of public transit, such as the upcoming SkyTrain extension to Langley City. These advances in regional mobility are fueling development opportunities and driving up property values across the region.

Fraser Valley’s Real Estate Market and the growing need for Infrastructure Investment

While migration to the Fraser Valley and its ongoing development are not new, the e7ects of COVID-19 have accelerated this transformation, making the need for signiﬁcant infrastructure development more apparent than ever. This surge in growth has heightened the region's appeal for real estate investment. Cities like Langley, and Abbotsford are at the forefront of regional investment, spearheading the development of improved transportation networks, including highway expansions and the extension of public transit, such as the upcoming SkyTrain extension to Langley City. These advances in regional mobility are fueling development opportunities and driving up property values across the region.

Langley: A Rising Star in the Fraser Valley

Jeff Tisdale Chief Executive Officer Landcor Data Corportation

Langley has also experienced a surge in development, spurred by the aforementioned SkyTrain extension. This infrastructure project is set to transform Langley from a suburban community into a bustling urban center. The anticipation of improved transit accessibility has already led to a spike in real estate activity, with mixed-use developments and residential projects on the rise.

Langley’s appeal lies in its balance between urban amenities and a more relaxed, suburban lifestyle. The inﬂux of new residents, attracted by the promise of better transit options, has driven up property prices and created a seller’s market. The city's proactive approach to urban planning, coupled with its expanding infrastructure, positions it as a key player in the Fraser Valley’s real estate landscape.

Langley (City & Muni)

Langley: A Rising Star in the Fraser Valley

Langley’s appeal lies in its balance between urban amenities and a more relaxed, suburban lifestyle. The influx of new residents, attracted by the promise of better transit options, has driven up property prices and created a seller’s market. The city's proactive approach to urban planning, coupled with its expanding infrastructure, positions it as a key player in the Fraser Valley’s real estate landscape.

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With lowering interest rates and increased population growth, the residential property market in Langley is likely to experience renewed demand, potentially pushing property values upward again:

Lower Interest Rates: A decrease in interest rates generally makes mortgages more affordable, encouraging more buyers to enter the market. This can create upward pressure on property prices as demand increases, especially for entry-level options like condos and townhomes.

Lower Interest Rates: A decrease in interest rates generally makes mortgages more a7ordable, encouraging more buyers to enter the market. This can create upward pressure on property prices as demand increases, especially for entry-level options like condos and townhomes.

Increased Population Growth: As more people move into the area, demand for housing is likely to rise. This demand will affect all property types, but the impact might be strongest in categories that appeal to first-time buyers or families, like condos/apartments and attached homes.

Price Stability with Upside Potential: Although the graph shows a slight dip in prices for all property types in 2023, the overall trend over the past decade has been positive. Lower interest rates and population growth can stabilize or reverse the recent price decline, bringing prices back on an upward trajectory.

Detached Homes Likely to Lead in Appreciation:

With their higher price point and continued desirability, detached homes might experience the strongest price appreciation. However, attached and condo properties could also see significant gains due to increased affordability compared to detached homes.

Overall, Langley's residential property market may see renewed price growth in the near term, driven by increased demand from population growth and improved affordability due to lower interest rates. As more people move into the region, the demand for housing will naturally increase, potentially leading to upward pressure on property prices across all categories—detached, attached, and condos/apartments.

The population growth will also increase the pressure on existing transportation systems—roads, public transit, and key routes like Highway 1. Congestion on major thoroughfares is likely to increase, potentially making commutes longer and impacting quality of life.

To keep pace with both current and projected population growth, investments in transportation infrastructure will be essential, underscoring an urgent need for increased transportation infrastructure investment in the region.

Langley (City & Muni)

The population growth will also increase the pressure on existing transportation systems roads, public transit, and key routes like Highway 1. Congestion on major thoroughfares is likely to increase, potentially making commutes longer and impacting quality of life.

Abbotsford: The Agricultural Heartland Embraces Urbanization

Abbotsford, traditionally known for its agricultural roots, is embracing urbanization as infrastructure improvements make the city more accessible. The expansion of Highway 1 and the development of new transit routes have made commuting to and from Abbotsford more convenient, attracting a wave of new residents and investors.

The city’s real estate market has responded with increased development, particularly in the residential sector. Abbotsford's property values have risen steadily, supported by the city’s growing population and the demand for housing. As infrastructure continues to improve, Abbotsford is likely to see further growth, particularly in areas that were previously considered too remote for significant development.

Number of New Housing Units Developed Per Year: This bar chart displays the number of new housing units developed annually with multi family units consistently being the more popular housing choice.

The creation of new housing units in recent years have been stalled by rising interest rates, increased construction costs, and supply chain disruptions. Looking forward in the near term, the uncompromising cycle of Bank of Canada rate hikes has run its course, and the prospect for equally aggressive rate cuts appear to be ahead. With the rate decreases now underway, the real estate market has responded with more activity, and we should see the return of growing new developments in Abbotsford.

Like all communities in the Fraser Valley, Abbotsford is surrounded by agricultural land (the Agricultural Land Reserve), which limits the space available for new housing development. This can restrict the number of new single-family units that can be built, which will place more of an emphasis towards further multi family developments.

In conclusion, the cities of Langley, and Abbotsford are experiencing a real estate boom driven by significant infrastructure investments. These developments are not only enhancing connectivity within the Fraser Valley but are also creating new opportunities for real estate growth across the region.

For developers and investors, these cities represent a promising landscape where the benefits of infrastructure improvements are beginning to materialize in the form of increased property values, new housing developments, and rising demand.

As these trends continue, the Fraser Valley is poised to become one of British Columbia’s most dynamic real estate markets. 

Abbotsford -Number of Units Built

The Housing Puzzle: What’s Driving High Prices?

Everyone is concerned about the high price of housing. Many politicians and pundits argue that if housing prices are too high, the root cause must be barriers to building new housing. This explanation is often linked to the law of supply and demand. They claim that something must be hindering the free market’s ability to supply homes at affordable prices and often point to local area planning —sometimes referred to as local democracy or NIMBYism—as the culprit.

While NIMBY (Not In My Back Yard) is a widelyrecognized term, it’s often used to generalize groups advocating for thoughtful urban planning. However, if local democracy were indeed the primary reason housing costs so much, why does Vancouver—one of the most housing-dense cities in North America—still have the highest home prices on the continent?

Between 1970 and today, Vancouver tripled its housing stock within its existing urban boundaries, outpacing major North American cities like New York and Los Angeles. Despite this remarkable growth, housing costs in Vancouver remain the highest in North America. This raises an important question: why hasn’t significantly increasing housing supply led to more affordable prices? Recent legislative changes in British Columbia have further centralized planning authority, reducing local control. Similar debates are happening across Canada—in

Alberta, Ontario, and beyond—and even in the U.S., where state-level policies aim to reduce local planning powers. Evidence suggests, however, that these measures alone have not significantly lowered housing costs.

Why not? It’s because the primary cost driver in urban real estate is land, not buildings. Urban land, much like gold, is inherently limited and therefore subject to price increases in competitive markets. Moreover, increasing allowed density often has the unintended effect of raising land prices. This benefits landowners but doesn’t necessarily reduce costs for renters or buyers. Developable urban land isn’t valued by the square foot of dirt, but by how much floor space that land can support, which drives up its cost.

What can be done? Lessons from Vancouver's planning history may hold answers. During significant housing construction in the 1980s and 1990s, the city implemented policies that captured a portion of the value increase from rezoned properties. By redirecting 80% of this value to public goods such as parks, schools, and affordable housing, the city struck a balance between private profit and public benefit. Landowners still benefited significantly, receiving 20% of the value increase, while the broader community gained critical infrastructure.

This approach offers a model for addressing affordability challenges, particularly in Canada’s most vibrant but least affordable cities. Redirecting a portion of land value increases toward public uses could help build muchneeded affordable housing while supporting community growth.

While there is no one-size-fits-all solution, aligning private and public interests through innovative policies could help create more balanced outcomes in housing markets.

For further insights, my book Broken City delves deeper into these dynamics and provides additional data and case studies. 

Professor Patrick M. Condon University of British Columbia

James Taylor Chair in Landscape and Liveable Environments

Patrick has over 25 years of experience in sustainable urban design, first as a professional city planner and later as a teacher and researcher. In his capacity as the James Taylor Chair in Landscape and Liveable Environments, he has worked to advance sustainable urban design in numerous jurisdictions across the US, Canada, and Australia. Patrick has also led the Sustainability by Design project at the Design Centre for Sustainability.

Building the Future: Real Estate’s Role in Shaping Vibrant Communities

Written By: VARING

Real estate is more than constructing buildings—it’s the foundation of thriving communities. In regions like the Fraser Valley, its influence on sustainability, inclusivity, and connectivity transforms both physical landscapes and social dynamics, shaping how people live, work, and connect.

Technology: Transforming the Real Estate Landscape

Advancements in technology have revolutionized the real estate industry. From virtual property tours to smart home innovations, technology has redefined convenience and accessibility for buyers and sellers. Potential buyers can explore properties remotely, while developers leverage data-driven insights to design spaces that meet modern needs.

For real estate professionals, digital tools and paperless transactions streamline operations and enhance client experiences. These technologies have not only improved efficiency but also set new expectations for the future of the industry.

Driving Economic Growth

Real estate is a cornerstone of economic development, creating jobs, supporting businesses, and enhancing infrastructure. In the Fraser Valley, strategic developments attract businesses and entrepreneurs, driving local growth.

Mixed-use projects, which integrate residential, retail, and commercial spaces, exemplify how real estate promotes sustainability and community cohesion. Transit-oriented developments, for example, connect residents to employment hubs and reduce commute times, making neighborhoods more desirable and accessible.

Building Community and Connection

Real estate connects people—not just through homes, but by creating spaces where communities thrive. Projects like transportation hubs, parks, and mixed-use developments bring neighborhoods together, fostering a sense of belonging.

Thoughtfully designed spaces enhance quality of life by integrating amenities, reducing travel time, and creating walkable environments. Such developments are not just investments—they are opportunities to build vibrant, inclusive communities.

Looking Ahead: A Commitment to Better Places

As the Fraser Valley grows, real estate professionals must design properties that are resilient, sustainable, and forward thinking. This responsibility goes beyond investment returns—it’s about creating spaces that support people’s lives and build stronger communities.

Real estate is more than a business—it’s a promise to create better places for everyone. By embracing innovation, fostering economic growth, and promoting connectivity, the industry continues to be a driving force for positive change. 

AFTER THREE YEARS, VANCOUVER’S INDUSTRIAL MARKET HAS ENTERED A NEW PHASE.

A run of unwinding vacancy is set to stabilize but will remain at a landlord-friendly level of imbalance.

The Vancouver market has now reached its third consecutive year of climbing vacancy. While this does not set the market apart from its Canadian peers, it does still make it the most stable and predictable industrial market over the past decade, with a sustained vacancy of approximately 3% for the next 18 months, still well below equilibrium.

Vancouver’s vacancy rate crested 3% at the start of 2025 after climbing from 2.0% a year ago. The last time the market saw a 3% vacancy rate was in late 2017, on its way to sub 1% by early 2022. Availability rates have climbed rapidly and are, as of the first quarter, just north of 5.25%. No segment of the local industrial market has been unaffected by the overall slowdown. However, big bays that have been vacated in favour of those newly built are struggling to achieve backfill, while new distribution projects started on a speculative basis in the past year are making the greatest contribution to current space availability. Just two years ago, no existing spaces of over 100,000 square feet for lease existed. Today, that number sits at a 16, with another six under construction started without tenants.

The total space under construction remains above pre-pandemic levels but below what was seen in 2022 and much of 2023. Even as vacancy climbs, it remains low relative to other major North American markets. Vancouver’s market has long been affected by supply constraints due to its geographic location as well as land-use issues related to the Agricultural Land Reserve as well as encroaching mixed-use developments.

Availability within the space under construction ranges from 45% to 60% for strata and non-strata buildings. This level of space availability in the soon-to-becompleted inventory will have a minor effect on overall vacancy and availability rates, even if all this space comes to market without achieving any further lease-up or presale activity between now and completion. Net absorption next year is anticipated to return to the long-term annual average of 3.5 million square feet before slowing again in 2026 due to this year’s construction slowdown.

Vancouver’s current industrial space availability will take a year or two to work out

Source: CoStar, January 2025

Potential disruptors to a forecast vacancy rate of 2.5% to 3% over the foreseeable future include the current spike in sublet availabilities, as well as ongoing labour disruptions and the heating up of the local residential homebuyer’s market.

The end of 2024 marked the six consecutive period with over one million square feet of available sublet space. The third quarter wrapped at 1.5 million square feet. The fourth spiked to 1.9 million square feet or 0.7% of the existing inventory.

Current sublet availabilities could result in upward pressure on vacancy

Source: CoStar, January 2025

Sublet availability could be a solution for the second potential obstacle, labour disruptions. Back-to-back disruptions at the Port of Vancouver in 2023 and 2024 and the simultaneous action at the ports of Vancouver, Montreal and Prince Rupert in November 2024, are likely leaving distribution firms nervous regarding supply chain disruptions. It is understood that interest in adding space amongst logistics users still exists. Still, with the level of space availability in the market, tenants can afford to be cautious and press for lease inducements or lower rents. This could result in increased deal velocity and space absorption should landlords accept the change in market dynamics.

And third, the residential housing market in Vancouver is starting to show signs of life. Property sales began to improve at the end of 2024, with October up 31.9% relative to a year prior, and November up 28.1%, suggesting buyers are increasingly ready to act given that a collection of rate cuts has materialized. With

Paul Richter | Director Market Analytics

price moderation slowing, the back-to-back months of increased residential sales could become a trend, given that the five-year fixed mortgage rate has remained stable over the last year. The knock-on effect is a potential uptick in retail sales, supporting an increase in industrial space demand related to the distribution of bulky items like appliances and household goods associated with home purchases and subsequent space updating.

The current sublet availabilities are the likeliest of nearterm potential disruptions and could eventually push vacancy upward if sublet terms time out. The others aren’t likely to significantly affect the market over the next year.

Provided the market doesn’t experience another ‘black swan’ event, an unexpected and unpredictable event resulting in a negative impact, the Vancouver industrial market is likely entering a window of time over the next 18 to 24 months that will present its best state of balance or as close to it as it’ll get. 

He is the Director of Market Analytics at CoStar - the leading provider of commercial real estate information, analytics and online marketplaces. Paul has worked with teams of dedicated analysts, across the country, to help clients make more informed decisions related to their commercial real estate businesses.

Langley City: Building Smarter

Langley City is recognized for having one of the most streamlined and efficient development approval processes in the BC area, resulting in faster approval times and lower developer costs, thanks in large part to Mayor Nathan Pachal. Now, with Pachal’s vision for creating a sustainable, walkable community – combined with the extension of the SkyTrain – Langley is prime for new residential, commercial, and industrial development opportunities.

SkyTrain Will Deliver More People and Prospects

Following approximately a decade’s worth of talks, SkyTrain’s extension to Langley City is coming to fruition, bringing a variety of new development possibilities with it.

“What you’re probably going to see is a lot more interest in people wanting to build here,” Pachal explains. More specifically, the transit line will draw new types of developers as the community shifts from traditional woodframed construction to taller buildings of concrete and steel, creating a “different design and feel to the community.”

It’s all part of the mayor’s goal to transform Langley into a sustainable, walkable community where people can more easily connect with those around them. “It’s housing driven, environmentally driven, walkable-communities driven, and mixeduse driven,” Pachal adds when asked how he’d describe his vision for the town.

EnhancingLangleyLifestylesthrough New Development Policies

Cutting through the Development Bureaucracy

The Langley city government is working on an Innovation District Plan and Economic Development Strategy to attract and guide future business investments and innovative industries into Langley’s strong local economy and well-established industrial land base.

But as more industry comes in, Pachal’s mission is also to keep the “human scale” of the community. This means ensuring there are still plenty of green spaces, schools, and recreational amenities. “We really want to promote sort of that walkable Main Street type of feel,” he adds. “You can see some of the design guides for that in our official community plan (OCP) and what that means the area.”

Such a vision involves building compact communities

“You can see some of the design guides for that in our official community plan (OCP) and what that means the area.”

– which he stresses have many added benefits, like saving people money on transportation and improving both mental and physical health outcomes. “That’s well proven – better social outcomes, better happiness,” Pachal adds.

As someone who hasn’t owned a car in 15 years, it’s a lifestyle that first brought him to Langley, and one that he practices in his daily life. In fact, he starts most mornings with a run, then walks or bikes to and from work.

By providing a walkable community, combined with SkyTrain’s high-quality transit added into the mix, people will soon not only be able to easily commute throughout the city, but also affordably connect anywhere within the region. And building for growth offers developers new opportunities.

To help grow the dream, Langley has created an efficient, streamlined two-step process that helps builders cut through much of the dreaded red tape. Applications are first reviewed by the Advisory Design Panel (ADP) and then by the council, a process that typically involves fewer steps than other municipalities, resulting in faster approval times and lower carrying costs for developers.

The key, Pachal explains, is to help confirm the reviewers receive appropriate submissions from the beginning by making sure the people creating the designs are qualified and the designs meet code. As a result, Langley is known for its efficiency, providing some of the fastest turnaround times in the region.

“We’re very supportive of development,” Pachal stresses. “We’re up front and transparent and we've worked with the development community to set rates that are reasonable.”

Starting sometime in 2025, the application process should become even smoother. New development permit applications for plex-homes and other smallertype applications, such as minor development variance permits, will soon be able to be reviewed and approved by city staff, removing the council approval requirement altogether.

The council has also applied for a federal grant to help simplify the process even more by creating a sort of “Langley City accepted designs” that could easily be approved. While these would allow for some customization, areas like the framing and plumbing would be pre-approved for efficiency.

Building with the Community in Mind

These are just some ways that the city government’s new OCP is preparing for growth. The OCP includes new land use and urban design – which are largely designed around SkyTrain – building upon the existing walkable street grid to support the SkyTrain investment.

Another benefit of building such a community is reducing the city’s environmental footprint. The OCP is designed for more sustainable land use that increases multimodal opportunities and access to transit, reducing reliance on cars for the long term. This will help reduce emissions and heat island effects, among other important climate influencers.

The OCP also calls for building-code updates by creating design plans that are more energy efficient and that help enhance the city’s tree lines over time. For example, the OCP allows builders to increase densities and housing types – such as adding more townhomes, plexhomes, and apartments, including in single detached-home neighborhoods.

For rentals, the city government is maintaining its historical 40% to 60% split between rental and ownership housing, which is one of the highest rental splits in the region. “The city is also working on new zoning bylaws to include ways to incentivize affordable rentals. “I think good quality rentals is such an important thing,” Pachal adds.

Of course, new housing is only effective if people can afford it, and Langley is working on programs to help residents. For example, the City is working with senior governments to expand affordable senior housing on the Langley Lions site, and working with BC Builds to bring forward a new mixed-use project that will feature a significant amount of below- market rental units.

Building a Safer Community

Like any community, though, Langley is about much more than buildings; it’s about people.

The city government also recently updated its Tenant Relocation Policy to ensure that tenants living in buildings considered for redevelopment are relocated to suitable housing and compensated fairly. This is part of the zoning bylaw update for incentivizing, and in some cases requiring the inclusion of new below-market rental units with new developments, particularly near SkyTrain.

Pachal says he is committed to helping community members several facets of life – including tackling difficult issues like mental health outcomes and homelessness. A big part of that effort involves new ways to ensure people don’t fall through the cracks.

One idea Pachal shared was to create a citizens’ assembly on community safety to help determine what citizens need to feel safe both at home and on streets. This would include not just policing the streets, but topics like financial and food security.

This project is an example of Pachal’s belief in direct citizen democracy, giving citizens the opportunity to not only discuss issues, but to present their solutions directly back to the council. “I think the antidote is including people in government. The only way you can create a system change is when you bring people together, hold people accountable, have metrics, and move forward,” he explains. “That's the solution.”

Pachal’s passion, at least in part, is the result of learning from his dad, who was an activist. It taught him the importance of doing something about the things you care about. “That's the value,” he says. “It's that I want people to feel happy and I want us to have a really thriving society because that uplifts our economy. It uplifts our life.”

Finally, Pachal stresses he also wants quality building experts to be a part of the exciting opportunities for growth happening in his area. “If you want to be part of building a walkable community that improves the quality of life of people and make sure that businesses can thrive, come to Langley City.”

MASTERING Real Estate Development: Process, Challenges, and Success

In an uncertain world, real estate development offers the opportunity to create something lasting. But where do you fit in, and what does it take to succeed?

What Do Developers Do?

A real estate developer is more than a property seller. Developers envision and create projects, managing everything from land acquisition to construction, and possibly holding properties for long-term income. They work with architects, consultants, contractors, and sales teams, often facing complex challenges like navigating municipal approval processes.

Are You Ready for Real Estate Development?

Do you enjoy taking on complex challenges, managing stress, and envisioning long-term projects? If so, real estate development may be for you. But it’s not just about technical skills—it’s about determination, resilience, and

managing risk, especially in volatile markets. Successful developers have strong negotiation skills, social acumen, and a good grasp of numbers.

Learning From Experience

Real estate development is a high-risk, high-reward business, and those who learn from past mistakes tend to thrive. History teaches us the importance of financial prudence, especially in times of market instability, such as the early 1980s when over-leveraged developers were crushed by soaring interest rates. Companies that survived, like Cadillac Fairview and Brookfield, learned how to balance risk and reward—a lesson still applicable today.

The Development Process

Once you’ve decided to pursue real estate development, it’s time to understand the development process. It’s far more than just acquiring land and building; it’s about navigating each step meticulously to ensure success. Here are the nine key steps:

1. Idea Generation: Every development starts with an idea, which drives the entire project. This idea will evolve over time based on market research, financial feasibility, and community needs.

2. Site Selection: Understanding the site’s unique characteristics is crucial for ensuring the project’s financial viability and design feasibility.

3. Review and Feasibility: Developers must meticulously review the site and the project’s feasibility, including financial, legal, and logistical aspects.

4. Refinement: Conduct cash flow analyses and explore different development scenarios. Prepare for bestcase, worst-case, and realistic outcomes.

5. Partner Engagement: Building a strong team of investors, banks, and other partners is crucial. These stakeholders help provide the capital and expertise needed to move the project forward.

6. Testing: Consult with construction experts and test your strategies to ensure that the project meets regulatory requirements and market demands.

7. Elevate the Project: Developers should always strive to push the envelope, refining the project to meet or exceed market expectations.

8. Approvals: Securing permits and approvals is often the most challenging step. Developers must navigate a maze of regulations and community concerns.

9. Execution: Finally, construction begins. Throughout the execution phase, developers must ensure that the project aligns with the original vision while adapting to changes as needed.

VISUAL REAL ESTATE DEVELOPMENT PROCESS GUIDE

Figure 1: A simplified real estate development guide that illustrates the core processes beyond the simplified process of acquisition, approvals, and construction.

Agility, Connections, and Commitment:

The ABCs of Development

To succeed in real estate development, you need more than just a plan. You need agility, connections, and commitment:

• Agility allows developers to adapt to changing market conditions.

• Connections with local government and industry professionals help smooth the approval process.

• Commitment ensures developers stay focused even when faced with obstacles.

New Thinking, Conservative Foundation

Today’s real estate developers must be both bold and conservative. Successful developers seize the right opportunities while maintaining a strong financial foundation. They balance risk and reward, ensuring they have cash reserves and diversified portfolios to protect against market downturns.

The Role of Learning and Adaptation

Developers who survive economic cycles are those who continually learn from experience and adapt. In the volatile real estate market, agility and connections become the cornerstone of success. These professionals are conservative yet entrepreneurial, ready to capitalize on the next opportunity while protecting themselves against the next downturn.

Conclusion

Real estate development is both an art and a science. It requires creativity, strategy, and an understanding of complex processes. By learning from seasoned professionals, staying agile in the face of uncertainty, and building strong connections, you can carve out a successful career in this dynamic industry.

Whether you’re just starting or looking to advance, remember that development is a journey of vision, determination, and the creation of lasting communities. 

Michael von Hausen FCIP, RPP, CSLA, BCSLA, LEED AP

President, MVH Urban Design & Planning Inc. Adjunct Professor SFU and VIU

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