Condominium Rental Units versus Purpose-Built Rental-Building Units

Real Estate Agent with RE/MAX Condos Plus Corporation, Brokerage

Condominium Rental Units  versus  Purpose-Built Rental-Building Units


Recently, Urbanation has been engaged in consulting work, for the market in new purpose-built rental buildings.


In their research they found that some new purpose-built apartment rental projects have been achieving higher per sq. ft. rents than comparable condo project units.


They chose 5 recently completed rental apartment buildings, and compared them to condo projects that were of a comparable scale as the rental buildings.


With 4 of the projects, the average rent for purpose-built units was 4.4% higher or $0.12 more psf; but when the 5th  project was included the average rent across the five projects fell to 1.7% higher or $0.05 more psf. 


The end results indicate that currently there is some premium achieved by purpose-built rentals over competing condo supply. However, the rental operators may face competition from a higher volume of investor-owned condos coming on to the market in the next few years.


Posted by


Real Estate Agent serving clients for the Toronto Downtown and Toronto Waterfront Area.

Residential and Investment Properties.

Rosalind Nicholas, ACCA,SRS,REALTOR®

e-mail:     Tel: 416 918 1972

RE/MAX Condos Plus Corporation, Brokerage, Toronto, ON, Canada.



Comments (5)

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Rosalind Nicholas - It was interesting to see that stats when condo projects are involved.

Feb 06, 2015 12:42 PM
Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

Yes Tom, recently purpose-built rental buildings are in the news here.

Feb 06, 2015 12:46 PM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

OK I agree the stats are interesting but to avoid sounding foolish I admit I have no clue what the difference is between a purpose built place or a condo... Never even heard of "purpose built" is that a Canada only thing?

Clarification please

Feb 06, 2015 12:48 PM
Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

David, briefly .......

Each unit in a condo building is privately owned by individuals. They can live in it or rent it out as an investor.

A purpose-built rental building is usually owned by a company; no individual ownership of units. All the residents are renters.

Feb 06, 2015 01:00 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Rosalind, great explanation of these two terms, and nice to see more income from purpose-built units.

Feb 07, 2015 08:22 AM

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