Our Industry Insights


Covalent Advisory Group reports the latest news and exclusive insights in commercial real estate. The purposes are to provide meaningful information and build knowledge to help our reader understand the current market trend. Our team of professional real estate editorial will update articles on a weekly basis to keep our reader up to date.

Conservative Leader Promise to Review Mortgage ‘stress test’ and allow for Longer Mortgages


Posted on October 3 2019

Real Estate, Rental

Amidst the 2019 federal election, Andrew Scheer of the Conservative Party is promising to review the existing ‘stress test’ that has been the hardest hurdle for Canadians to get a mortgage to purchase a home. This is especially true for first time home buyer because they do not have a large down payment and their salary limit how much money they can borrow.
 
The ‘stress test’ is a financial assessment that Canadian must pass to take out a mortgage. Introduced by the Office of the Superintendent of Financial Institutions, the stress test is one of many factors that caused home prices to fall in Vancouver. Last year, prospective homeowner cannot afford a home and now, they cannot get a mortgage to purchase a home when it is more affordable. CIBC reports an estimated $6.5-7.5 billion mortgage value drop due to the stress test. Under the ‘stress test’ borrowers are tested at two percentage points above the actual mortgage rate or an average five-year posted rate. The ‘stress test’ was originally for borrowers with less than 20 percent down, it is now for everyone.
 
If the Conservative government is elected, it will allow people to take out 30-year mortgage. A 5-year increase from the existing 25-year limit for first-time home buyers. This will reduce their burden during their early career days. As we’re approaching election day, we’re expecting more parties to provide their input about us real estate issues.

More Detail on Apple’s New Vancouver Office in Westbank’s Japanese Cube Lamp Inspired Development.


Posted on September 3 2019

Community, Real Estate, Rental

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Apple’s is waiting for the completion of the 24-storey building located on 400 West Georgia Street to open a what is believed to be a corporate office in Vancouver. Deloitte LLP and IWG Plc will be the other main tenants.
 
The futuristic building comprised of multiple glass-cube is scheduled to complete by the middle of Spring 2020 developed and owned by Westbank Corp. and Allied Properties REIT. The 301-ft tall 24-storey building with 375,000-sqft of office space is inspired by Japanese Cube Lamps.
 
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Last year, we thought Apple will lease 60,000-sqft (5 floors equivalent) of office space. According to a new report from Bloomberg, Apple will only occupy two floors of the building. Deloitte LLP will take up to 117,000-sqft of space and IWG Plc up to 120,000-sqft of space.
 
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Furthermore, Apple is planning to open a flagship store at the intersection of Howe and West Georgia Street replacing the Apple store located inside Pacific Center. The proposal has recently been approved by the City of Vancouver to replace Pacific Centre’s glass rotunda.
 
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Vancouver’s is concentrated with tech company and more major industry players continue to gather. Amazon is already working on a new purposely built office building around the corner and is expected to complete by early 2020. Vancouver’s growth is not limited to tourism and we’re in the progress of rapid changes attracting hundred and thousands of talented people to live in this beautiful British Columbia.

Coromandel Properties is bringing the largest Rental Development to the Cambie Corridor


Posted on July 30 2019

Community, Real Estate, Rental

Project Overview

West 41st

The 100% rental with commercial space at grade redevelopment is in open house consultation stage comprised of Two Sites. The West Site is a full block, 357-475 West 41st Avenue. The East Site consists of 325-343 W 41st Avenue. In total, the development will create approximately 427 rental units. Both sites were assembled by Covalent Advisory Group. It is one of the prized sites at the heart of the Cambie Corridor Plan.
 
West 41st
 
West Site

  • 22-storey, 14-storey tower, and 6-storey podium with an FSR of 6.1
  • Total Floor Area 310,000 Sqft
  • 344 rental units (153 one-bedroom and 122 two-bedroom units)
  • 64 studio units
  • 78-hotel unit potential
  • 16,000 Sqft of retail and restaurant space
  • 375 vehicle and 661 biking parking stalls

East Site

  • 10-storey with an FSR of 5.3
  • Total Floor Area 68,000 Sqft
  • 83 rental units (54 one-bedroom and 29-two bedroom)
  • 43 vehicle and 161 bike parking stalls

West 41st
Potential change in density according to contemporary situation
 
According to the early stages of Cambie Corridor Plan, the site only allowed 6 storey mid-rise development. As the housing crisis persists, we see higher development potential along the arterial road. Homeowners continue to plead for a high density of their property as the city needs more housing supply to meet existing demand. The new planned allowed up to 22-storey if the developer meets certain conditions:

  • 6-storey Commercial at grade (West Site)/choice of use at grade (East Site)
  • Above 4 storeys, upper floors are stepped back from 41st Avenue to be compatible with existing streetscape
  • Public realm feature requirement
  • Specific space and height requirement

West 41st
 
Oakridge Town Center has amenities planned to cope with the changing density. We’re getting a new community center, library, and park. The additional bicycle lane and new B-Line will help with traffic. Covalent Advisory Group also acquired 495 W 41st for Coromandel Properties. We are excited to see what is planned for this exceptional redevelopment opportunity.