Condominium Rental Units versus Purpose-Built Rental-Building Units

By
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

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

Residential and Investment Properties.

Rosalind Nicholas, ACCA,SRS,REALTOR®

e-mail:   Rnicholas@trebnet.com     Tel: 416 918 1972

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

http://www.youtube.com/watch?v=PMuLzqLe72M&feature=youtu.be

 

 

Comments (5)

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com 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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