Quote:
Originally Posted by Migrant_Coconut
Perhaps you've overlooked all the pre-election sales? It seems more like since Broadway is an up-and-coming location - especially with a SkyTrain - developers will pay any price, deal with any regulations or taxes or "no condos" rules, so long as they can build something because it will make money regardless.
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Reality always intrudes. The issue is not just the per square foot of present (or future) FSR. What also impinges on a profitable development are construction costs.
Just a few years ago, concrete was in the 200's per sq foot. (steel was little higher and wood a lot lower). but now, construction is at 400 for concrete - and I have heard some people chatting about 425 per square.
If you don't get the chance for higher density - which lowers the net per square foot price you paid - it is a tight squeeze.
If you have a trade ticket (welder, boilermaker, iron worker, etc) you are on easy street for the next long while. The moment on less building gets built in Vancouver, off you go to the hallowed LNG project.
That means no pressure at all to lower construction costs below 400 per square. That means that any new construction - like Bosa at Oak and Broadway - will be tight.
The demand is there. The Bosa project leased out at one go to basically one client. The buildings may not be.
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