Missing Middle Conference Part Two

While I often prefer to show a lengthy PowerPoint presentation at conferences, at the suggestion of my fellow panelists I restricted my slide show to the following four images.The first slides were intended to highlight how the apparent density of a project is often a function of whether a portion of the FSR/FAR is in a basement or not. The next slide was intended to highlight the opportunities to improve the appearance of multiplex developments. The final slide was intended to send the message to politicians that if the appearance and 'fit' with adjacent buildings isn't improved, some may be looking for work after October 17th. 

The following were my key 'takeaways' from the conference.

1. Approvals are taking a lot more than anticicpated - often 6 to 12 months in Vancouver which is exacerbating the financial feasibility. (In Victoria approvals can be obtained in 6 weeks.)
2. The economics are much more challenging than most people think. While it is not necessary to achieve presales, in many parts of Vancouver a builder needs to sell for $1300 per sq.ft. or more to make any money. Rental projects do not pencil out at all.
3. Given the above, many builders are not buying extra density from Vancouver since the cost is $140 per sq.ft.on larger lots on the Westside. 
4. Another problem is BC Hydro which has a monopoly but often doesn't agree to hookups when required. Also, pad mounted transformers can be expensive.

Another Missing Middle Conference - May 8, 2026

There's no doubt that Missing Middle/Multiplex Housing is the flavour of the month. Or perhaps the year. After all, in Toronto, it was reported that more multi-family homes were started last year in multiplex developments when compared to conventional apartment buildings. That's because the purpose-built rental market is getting saturated, and there is little appetite for presale condos from empty nesters or even first-time buyers now that it is no longer assumed that prices will always go up.

Last Friday's conference was arranged at the elegant Fairmont Pacific Rim and organized by a Toronto-based Sustainable Development Group (SDG). It had organized a very well attended conference in Toronto and thought there might be a good opportunity in Vancouver. The program focussed on scaling up townhomes, multiplexes, and low-rise apartments. The speakers included politicians, industry leaders, policymakers, and developers discussing zoning reform, financing, and even modular construction. 

Key Program Highlights & Speakers (May 8, 2026):

• Speakers: Housing Minister Gregor Robertson was scheduled to speak but was a no-show. Former Vancouver Mayor and BC Premier Mike Harcourt was an excellent fill-in., BC Housing Minister Christine Boyle offered a most engaging talk, sharing with the audience that she and her husband and children live in a half duplex in East Vancouver, and her ex-husband lives in the other half with his new partner and an older child. Other speakers included Victoria Mayor Marianne Alto, who I had never met before; Prince George Mayor Simon Yu who I had met at a modular housing conference, and Vancouver Councillor Sarah Kirby Yung who is always ready to discuss housing.
• Another speaker was CMHC's Nadine Leblanc. She was most impressive in an interview with Vancouver journalist Frances Bula.
• Panels: I participated in a panel titled Making Missing Middle Viable after zoning reform with City of Vancouver Deputy Manager Armin Amrolia and former Vancouver Director of Planning Brent Toderian. Rather than make a typical powerpoint presentation, I restricted it to the following four slides:Networking:  in addition to the speakers and panels, there were numerous networking opportunities including an end of day cocktail reception.I enjoyed meeting the conference organizers from Toronto and other attendees, especially small builders who are getting into the business for the first time.
• A final comment. At the moment, there is a signficant difference between what is being built in Toronto and Vancouver. In TO they are generally building 6-8 rental units on a property, while we are focussing more on 4-6 condominium units. 
• The next conference will be in Toronto and it might be worthwhile attending to tell the Toronto audience about what works, and doesn't work in Vancouver.

Golfing at Victoria's Bear Mountain - it ain't what it used to be!

While I very much enjoyed staying at the Inn at Laurel Point during our recent weekend stay in Victoria, I was very disappointed with a golf experience at Bear Mountain. If you are not familiar with Bear Mountain is is a master planned community with a checkered financial past. But in recent years, a lot of development has occurred and the community is taking shape.

I booked there since there are two golf courses, each with significant changes in elevation. The facility has a reciprocal arrangement with my golf club in Vancouver and I thought my son-in-law's father would enjoy the dramatic scenery. (He lives by the sea in Chester NS.) 

I stayed at the Westin Hotel a few years ago and enjoyed the golf experience that was associated with the hotel. However, it seems that another receivership has impacted the golf course facility and it is no longer associated with the Westin Hotel. The new owner took over in April.

Our poor experience started when we couldn't even find the proshop. Eventually we found it tucked into the corner of a recreation centre. I assumed this was a very temporary arrangement but I was told it has been like this for a couple of years. I couldn't believe it, especially since the regular green fees are in the order of $265 (including cart), unless you are a Vancouver Island resident (or have a reciprocal arrangement) when they are reduced.

After the disappointment of not finding the proshop, our next disappointment was that there was no where to buy something to eat. But we were told there would be a beer cart out on the course where we could purchase some lunch. (in fact, when it did arrive it didn't have any sandwiches!)

As we were about to tee off we were confronted by a sign that said 'golf paths only' which meant these two old men would have to walk up and down the steep terrain. It was nuts, since the course was bone dry.(The starter explained the owner didn't want to allow carts on the fairway until later in the month.)

While the course was dry, it was too dry. The tee boxes looked awful and while the layout is dramatic, the overall experience wasn't very good. 

While I may go back later in the summer to see if the new ownership makes a difference, it may take a while before the wonderful experience I enjoyed in the past will be repeated.

Don't be fooled by the website. This is no longer an Ecoasis Resort. There isn't a fancy proshop, at least I couldn't find it.  

If you want to play golf in Victoria, there are many better choices. If the situation improves later in the summer, I'll let you know.

An early May Weekend at Victoria's Inn at Laurel Point

My daughter, son-in-law, and grandchildren live in Victoria and we like to visit as regularly as we can. While my wife often stays in a suite in their Fairfield home, I prefer to stay in hotels. (I would consider buying a pied a terre but refuse to pay the provincial Speculation and Vacancy Tax!). 

My favourite hotels are Oak Bay Beach Hotel, Abigails, The Magnolia Hotel and Spa, and Inn at Laurel Point. Ocassionally, I also stay at The Empress and The Union Club. For some reason on the May 1st weekend, hotel prices were signficantly more than we are used to paying - well over $700 at Oak Bay and Magnolia. But the Inn at Laurel Point was under $400 so we booked in. I have a fondness for this property since it was designed and developed by Stanley Kwok and John D'Eathe in the 70s. 

Arthur Erickson was commissioned to design the new wing of the Inn at Laurel Point in Victoria, B.C., in 1987. Known as the Erickson Wing (initially the South Wing), this 64-suite addition was completed in 1989 and it is very nice. However, the rooms in the original wing are exceptionally large and many (if not most) have been renovated. Just book a room with a view over the harbour with its ever changing scene of float planes, boats, and the Seattle ferry.

When you stay, I highly recommend the restaurant. While it was too early for the outdoor patio, we did enjoy fresh shucked oysters and a creative version of oysters rockefeller and some interesting happy hour cocktails at the bar where we met an English couple who have visited from Lancashire (my home county) six times. 

Breakfast was a special treat with many unusual items.Just check out this menu and let me know what you would choose. We had the Benny and Avocado Toast (Yes, even though we do own a house.)

There is also a small, but attractively designed indoor pool.

The hotel is easy to get to and there is a secure covered parking garage for $30 per night. They continue to offer mid-week deals and I highly recommend it for a stay. The Inn at Laurel Point will be the new hotel provider for the Lieutenant-Governor's Ball this November and all being well I'll be back. If not before. Check it out!

EXPO 86 - Forty Years On

May 2 marked the fortieth anniversary of the start of EXPO86, an event that changed Vancouver forever. Like most Vancouverites, I have vivid memories of the fair and its impact on the character of our city. At the time I was working as a real estate consultant and developer on several projects, most notably The Lagoons, on the South Shore of False Creek, directly across from the World Fair Site. I was also a consultant to BC Place, helping to get the first new projects underway. In this role, I also attended some of the EXPO planning sessions led by Jimmy Pattison. I remember this well since he was very obsessed with punctuality, and I got into a car accident trying to get to an early morning meeting on time.

At one of the meetings it was noted that during site preparation, a train locomotive had been discovered buried under the site. Mr. Pattison was most concerned that we keep this a secret to avoid people fearing that the site was contaminated and EXPO visitors might claim to have got cancer from visiting the fair. As we now all know, the site was very contaminated, but as the city's Health Officer John Blatherwick later told me, you would have to eat a lot of contaminated soil before you would get sick!

Yesterday there were numerous radio programs and newspaper articles setting out people's recollections of the fair and how it changed Vancouver and the Region. Fortunately, few, if any, will see the interview I did with Radio Canada journalist Dominique Levesque, since at her urging, I tried to do some of the interview in French. While there was a time I was quite comfortable speaking French, those days are long gone.

That said, I tried to tell Dominique that we were told to invite the world to EXPO, and they came. Not only to the Fair, but also to the region. Prior to EXPO, Metro's population increased about 1.5% to 1.7%  annually. Immediately following the fair, it doubled to over 3.0%.

The other major consequence was the decision by the provincial government to sell the site to Li Ka-Shing, rather than a consortium led by Jack Poole. This dramatically increased international interest in the city, especially from Asia, and the rest is history.

EXPO 86 also ignited my interest in World Fairs. Since then I have attended many, in Portugal, China, Korea, Kazakhstan, and most recently Dubai and Japan. World Fairs offer a glimpse into the future. And there's no doubt EXPO86 changed our future. While some think it was for the worse, I think it was most definitely for the better.

Unlocking Multiplexes - Organized by Canadian Real Estate Investor Podcast - April 8, 2026

Given my interest in multiplex developments, I was attracted by a recent advertisement for an event titled Unlocking Multiplexes scheduled for April 8th at the Roundhouse Community Centre. I was intrigued by the title, the choice of venue and the fee being charged to attend. Usually, these events are free since they hope to attract potential investors. Nonetheless, I decided to attend. 

When I arrived, I found a parking spot right in front of the venue and assumed it would not be well attended. Boy was I wrong. Once inside, I discovered hundreds of predominantly 30 and 40-something men and women waiting for the program to begin. I was told there was broad mix of builders, developers, investors, finance and design professionals, and homeowners. 

The event was organized by the Toronto-based Canadian Real Estate Investor Podcast hosted by Daniel Foch, a real estate broker and analyst, and Nick Hill, a real estate investor, which has over 100,000 monthly listeners. This was their first Vancouver event although similar events had been organized in Toronto. 

The program featured three panels: a Finance Panel that included representatives of CMHC, a mortgage broker, and Vancity; 

a Contemplation Panel including a realtor specializes in multiplexes, an architect, and representative of Small Housing BC; and an Execution Panel that included a multiplex developer and property manager. All the speakers were men, but I subsequently learned a lady scheduled to participate on the final panel cancelled at the last minute and so the moderators filled in. 

The following are some of my key highlights and takeaways 

In Toronto, multiplex developments now make up half of all multi-unit starts. This is because they are generally exempt from development cost charges and most condominium and rental apartment developments are no longer financially viable. 

While most projects in Vancouver are four units and strata-titled, in Toronto most projects are five units or more rental units. As a result, CMHC is insuring many of the loans. Vancity is actively involved in financing projects in Vancouver for both small builder/developers and multi-generational families, also referred to as ‘citizen developers’. 

Too many people appear to be seduced by misleading social media reports on how investors can get involved in these projects with as little as 5% down. In fact, upfront costs can easily top $100,000 for plans, studies and reports, permits, etc. before a loan can be arranged. 

Projects catering to families with adult children are popular since some units may be kept and lived in and others sold. However, these projects can be complicated because you’re dealing with families with adult children! 

It is important to carefully consider all the site features, not just location and size. Many ignore soil and environmental conditions, until it is too late. It is also important to begin the project with a team approach including the designer, the builder, the environmental consultant…. and a yes, a realtor. 

Don’t always try to maximize the amount of floor area. Try to find the 'sweet spots and include a mix of unit types and sizes. If the units are too big and expensive they may be difficult to sell, especially if they cost more than conventional nearby houses. Larger units also need at least one parking space which can not always be accommodated on site. 

The final session explored some of the real problems that can be encountered once projects get underway. For example, while Vancouver claims that approval times have been improved, the builder said it can still take 6 to 10 months to obtain approvals. 

Also, a major problem often arises when third party utility companies cannot perform on time. Special mention was made of BC Hydro since many projects require substantial upgrades including pad mounted transformers. It is not uncommon for a project to complete construction but still not have permanent power. 

It is important not to ignore property management considerations especially if the project includes a mix of ownership and rental units. Many small landlords do not appreciate the importance of properly screening potential tenants to ensure they have sufficient income or are not going to operate illegal activities in the unit. 

Interestingly, the property manager suggested that in his opinion the ‘sweet spot’ for rental units is often a two-bedroom, one bathroom unit which is not that typical today. With Luxury Vinyl Plank (LVP) flooring in case a dishwasher or washing machine break down.

It was suggested that as more ownership multiplex projects come on stream, there may be a need to revise the Strata Property Act to better accommodate smaller projects such as these. 

I encountered this issue when I developed three small developments in West Vancouver. These projects are bound by the same comprehensive legislation, regulations, and bylaws as a 100-unit high-rise. This creates a high administrative burden for owners who must manage insurance, contingency funds, and repairs informally or risk legal non-compliance. 

Small multiplexes can rarely afford to hire professional property managers, meaning owners must manage building operations together. The Act requires formal meetings and strict financial management, which is often impractical for a small group of neighbours. 

In summary, while there was literally no discussion about neighbourhood concerns towards multiplex projects and how these might be addressed, the session offered a lot of down-to-earth practical advice. I suspect those in attendance left with a much more realistic understanding of both the pitfalls and opportunities offered by multiplex developments. I am glad I attended. I'm also going to check out this podcast. 

Is it now time to rethink Lenders' Requirements for Condominium Presales?

This year marks the 55th year during which I have been involved with the development of condominium projects. I started as an architect designing a project in Ottawa while working for Irving Grossman in Toronto . I then joined CMHC where I helped obtain approval for the first condominiums on leased land in Canada (South Shore False Creek). I was subsequently involved with dozens of condominium projects, first with Narod Developments, and then as a developer and planning/development consultant. 

Presale condominiums really didn't become popular until the mid-80s. When I first started in this business, there was no such thing as condominium presale programs. Developers would design a project, undertake market studies, fina a lender to finance the project, and start building. They would start selling three or four months before completion from a model suite on a lower floor of the building.

I can remember when presale programs first became popular. They were the creation of a brilliant Toronto advertising/marketing executive named Stan Kates who started with a project by Tridel on Bay Street in Toronto. He came up with the concept of 'priority marketing' which invited buyers to get on a list so that they would be allowed to purchase a unit in the project. It was a high-pressured approach that included a sales trailer with no door handle, announcements over a loudspeaker each time a unit was sold, and so on. 

What is the definition of Selling? After witnessing condominium presale programs I often quibbed that selling something you have to somebody who needs it is not selling. But selling something you don't have, to somebody who doesn't need it, that's selling!  And that's what presale condominiums are all about. Selling something that doesn't exist to somebody who didn't even know he needed it!

I wrote about this ten years ago when the provincial government was considering the introduction of the SVT and I was writing a weekly column for the Vancouver Courier. 

https://www.vancouverisawesome.com/courier-archive/opinion/speculating-on-a-speculation-tax-3012291

Last year, I elaborated on this history in a blogpost following a CBC radio interview during which I questioned the need for lenders to require presales given that so few projects were proceeding.

https://gellersworldtravel.blogspot.com/2025/08/cbc-early-edition-ways-to-advance.html

The investor presale market is dead. Recently it was reported that presale condominiums are down 95% in Toronto, and the situation is not much better here. According to realtor Steve Saretsky, "there have only been 121 condo units sold in Metro Vancouver this quarter. Down from a peak of nearly 6000 quarterly sales back in the bull market."

Builders are being increasingly cautious about launching new projects and are now focusing on homes for end-users - people who plan to live in them - rather than investors. This is because the investor market is dead. Yes dead.

Why? Because of a plethora of government taxes and initiatives intended to get 'speculators' out of the market. These included the Foreign Buyers Tax (and subsequent ban), Empty Home Tax (in Vancouver), Speculation and Vacancy Tax (SVT), restrictions on short term rentals, an anti-flipping tax, etc.

Furthermore, potential investors had to compete with a surge of 'purpose-built' rental projects encouraged by municipalities through density bonuses and reduced development charges and funding programs offered by senior levels of government.

'End-users don't want to buy years before completion. The other reason projects are not proceeding is that most 'end-users' no longer want to buy a presale unit years in advance of completion. For one thing, most buyers want to see what they are getting. For another, they need to time the purchase of a new home with the sale of their existing home. And given what has happened to prices over the past years, buyers are no longer confident prices will go up. 

So what's the solution? I think it is time for lenders to go back to the future and reconsider the need for insisting on presale requirements. After all, 50 years ago most condominium projects proceeded without any requirement for presales. 

What about GST, DCCs? While eliminating the GST on new units (I was president of UDI Canada when the GST was first introduced in 1991) as well as the HST in Ontario will definitely help the condo markets, as would reducing DCCs and taxes that discourage investors, until lenders start doing their own proper underwriting, rather than rely on presale performance, I don't think we are going to see many new projects launched in the year(s) ahead.

I recently discussed this Jami Makin at Business in Vancouver 

https://www.biv.com/news/bc-experts-weigh-in-whether-the-condo-presale-model-is-obsolete-12069541

And Monte Stewart. https://www.connectcre.ca/stories/condo-project-lenders-must-relax-presale-requirements-geller/?_hsenc=p2ANqtz-8MaqfQnVQoTKxCSx7_IM46FVAnJFG4aFKJEa3Bgkv605jaIVyVaWnR8C2tHifzMpYQvwipslNkuSK1FmWRt0-C5VgOyQ&_hsmi=411870911&utm_campaign=Connect%20CRE%20News%3A%20Canada&utm_content=411870911&utm_medium=email&utm_source=hs_email

To conclude, while eliminating presale requirements would mean developers and lenders would have greater difficulty testing the market, and more units would likely be unsold upon completion, this would allow many projects that are currently stalled to proceed. It would mean more jobs for those in the construction industry, more tax revenues for the province and municipalities, and over the long term a healthier, less distorted condominium market. I say less distortion since the reason we have seen so many small units in new projects is not simply due to shrinkflation. It is because those were the units that appealed to investors. And now they are gone.

I look forward to hearing what others have to say.