11th + 11th | 138.07m | 44s | Intergulf | Ramsay Worden

General Rating of the project

  • Great

    Votes: 20 24.1%

  • Very good

    Votes: 40 48.2%

  • Good

    Votes: 13 15.7%

  • So so

    Votes: 5 6.0%

  • Not very good

    Votes: 5 6.0%

  • Terrible

    Votes: 0 0.0%
  • Total voters
    83
I had heard that the vacancy rate on new purpose built rentals in the inner city is around the university is ~3%, that is pretty damn good for Calgary considering the amount of units coming online. Good to see that rental is stable investment in Calgary, good place for REITs and office landlords to diversify their Calgary portfolios (out of office), keeping commercial tradesmen working, and the vacancy rate is stable due to decades of no new PBR being built and addressing pent up demand. This is a great little building cycle for the city, glad purpose built rental has made a resurgence and is well received.
 
Calgcouver said:
I had heard that the vacancy rate on new purpose built rentals in the inner city is around the university is ~3%, that is pretty damn good for Calgary considering the amount of units coming online. Good to see that rental is stable investment in Calgary, good place for REITs and office landlords to diversify their Calgary portfolios (out of office), keeping commercial tradesmen working, and the vacancy rate is stable due to decades of no new PBR being built and addressing pent up demand. This is a great little building cycle for the city, glad purpose built rental has made a resurgence and is well received.
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The rental vacancy rate for for new generation buildings (2000 or later) in the Beltline is at 2.5% and even though new units keep coming on-line, they keep getting rented.
 
I'm trying my hand at taking construction pics.

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Calgcouver said:
I had heard that the vacancy rate on new purpose built rentals in the inner city is around the university is ~3%, that is pretty damn good for Calgary considering the amount of units coming online. Good to see that rental is stable investment in Calgary, good place for REITs and office landlords to diversify their Calgary portfolios (out of office), keeping commercial tradesmen working, and the vacancy rate is stable due to decades of no new PBR being built and addressing pent up demand. This is a great little building cycle for the city, glad purpose built rental has made a resurgence and is well received.
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No. A $30 million rental project that is projected to be worth $30 million in 10 years time won't be built. It doesn't matter if vacancy is 0%, rents are good and, demand is high. The rental boom extends all across North America. The vacancy rate and economy in Calgary has very little to do with anything.
 
maestro said:
No. A $30 million rental project that is projected to be worth $30 million in 10 years time won't be built. It doesn't matter if vacancy is 0%, rents are good and, demand is high. The rental boom extends all across North America. The vacancy rate and economy in Calgary has very little to do with anything.
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You don't think a building that has low vacancy rate over a period of time wouldn't be worth more?
 
Investment into new rental towers isn't necessarily driven by vacancy rates, but are somewhat related. If the vacancy rate in Calgary is high for an extended period or as some would call it, a 'trend' there's less chance of investors putting their money into Calgary. Building values could increase regardless of the vacancy rate, but a high vacancy rate (or trend) over an extended period isn't going to help building values.
 
If the rental market slows down, the other option these fund investors may take is to convert the new purpose rental buildings into condominiums for sale, when (and if) the market picks up. That could be another way of getting a return on investment. Timing (for this course of action) is everything.
 
Cowtown said:
You don't think a building that has low vacancy rate over a period of time wouldn't be worth more?
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Not by a significant amount. The investment is in the value of the property. The rental income is not worth the investment in new construction. Another way to look at it is that rents are at an all time high but, so too is the cost per unit to build or to buy. Some properties that sold for 100k a unit 5 to 10 years ago are now selling for 200k a unit with the most basic cosmetic improvements made. This has become more investor driven than condos by larger, richer international funds and corporations.
 
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Hi,
Some Items I DON'T Quite Understand and I Should. After All I did 4 Yrs Appraisel back home (Mtl). Back Then Condos Were NOT the Big Thing they are Now.
OK the Dvlprs are Claiming "Rental Units". That's Fine. Questions? What is the Difference Between "Comdos" and "Rental Units" that Could B "For Sale" or "Long
Term Lease" at a Set Cost as Such, These Units WON'T Come Cheap and as I See It, It Won't B Month to Month Like Regular Apts (?). .Anyone in Real Estate
Who Can Answer My Questions as Such. Hope this Is NOT Asking to Much.
Tnx,
Operater.
 
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