APTCON HOPES TO REPLACE CONDOMINIUM SURGE WITH APARTMENTS
The attendees of AptCon hope to end Toronto’s condominium boom and replace it with a boom for new rental apartments.
The AptCon conference, to be held on May 27-28, 2019, is a gathering place for developers of high-rise condominiums and rental apartments. Attendees with mingle with movers and shakers in the industry and will learn about the new and growing opportunities of rental apartments. Here, condominium developers can learn more about how to build, lease-up, operate or sell purpose-built rental apartments, and the advantages the form has over traditional condominium development.
“This truly is a game changer,” says Derek Lobo, CEO for SVN Canada, and one of the organizers behind AptCon “We are gathering new and prospective rental apartment developers and giving them the information, they need to be successful.”
The eighth annual conference will feature many speakers, including experts in how to develop a multifamily rental community, architects, experts in the unique aspects of marketing rental apartments. Attendees will learn about how to finance their developments, and how to ensure a quick lease-up.
“Everything is on the table, from deep-dive financial statements, to designing a floor plan, to how to price a development on a unit-by-unit basis,” says Lobo. “They will discover all of the tools they need to thrive in the rental resurgence that’s getting underway in Canada.”
Toronto’s Apartment Demand Outstrips Supply
While Toronto’s development industry is as hot as ever, for the past few years most of that development has been in high-rise condominiums, so much so that some experts worry the condominium market is oversaturating. However, demand for rental apartments has risen rapidly.
Toronto’s vacancy rate is very low and average rents are extremely high. The unregulated rentals of individual condominium units have been the primary source of new rental supply, so the time is ripe for dedicated rental developments. Condominium developers have been slow to make the switch.
“Toronto’s rental industry is still feeling the effects of rent controls and over-regulation,” says Lobo. “Apartment development basically stopped in 1975 in Ontario because of it, and a generation of developers moved to housing subdivisions and condominiums. Today, however, rental apartments make so much more sense. Millennials are increasingly choosing apartments in centre cities over houses in the suburbs. Baby boomers are looking to downsize now that they’re getting to retirement age. Rent controls and regulations have been significantly reduced and interest and cap rate changes have made apartment construction very feasible.”
“Unfortunately, developers don’t like to change what’s worked for them in the past,” Lobo goes on. “And developing an apartment has a different set of challenges compared to developing a condominium. There are different opportunities as well. A condominium is a one-time sale, a quick buck. An apartment is an investment opportunity, offering a long-term steady income. This conference will educate many on the need to alter their approach, and the benefits that will come to them if they do.
Changing the Game
Toronto’s eighth annual AptCon conference on May 27-28, 2019 is being hosted by SVN Rock Advisors Inc., Brokerage. It will take place in the Provincial Ballroom of the Sheraton Hotel in downtown Toronto There will be a deal room where potential apartment developers can sit down one-on-one with members of the SVN Rock team to discuss possible projects in depth.
“This service will help to jump start developers by providing custom-tailored information that will help determine exactly what is needed for a project to move forward,” says Lobo. “The Deal Room and the general tone of the conference will dovetail nicely with SVN’s role in advising on land development. We can guide developers through the questions we explore through our feasibility studies: should you build? What should you build? How much can you charge? What is the depth of the market? And how much money will you make?”
“Ultimately, we have one goal, one purpose,” he says. “And that’s to help you maximize the value of your asset, and that starts from the day you buy the land.”
Tickets for the conference can be purchased on the AptCon website