[innsertnamehere]

Perhaps what you see as a non-issue of leasing, I do see as an issue. There is a lot of availability at both Birch and Maple…when I have to scroll through a list of available units, I’d say there’s a lot of unit available, not like it’s a handful only. And if brand new rentals have to entice new tenants with months free + additional means to entice, I see that as an issue. There are a ton of other rentals coming up far earlier than 49 Ontario, you honestly think 1,700+ units are going to rent easily when a building with a fraction of that many units is, in my opinion, struggling?

I mean I'm seeing over 90% occupancy, likely higher. Birch House has 21 units available, that's about a 91% occupancy rate in a building which started lease-up less than a year ago.

As I said - new buildings also have the challenge of leasing out an entire building. They offer incentives to drive down vacancy in new buildings and get cash flow moving. Once occupancy stabilizes they typically drop the incentives.. Having 200 units sit empty burns a hole in the developers pocket worth putting incentives out. A stabilized rental building only needs to lease out 5-10% of their units a year as tenants turn over.. new buildings need to get hundreds of units leased very quickly.

it's all a very normal process of occupying a new market-rate rental building.

49 Ontario is also likely not going to enter occupancy until 2029 or 2030. We are in a down rental market right now which will more than likely have stabilized at that point.

 

[Northern Light]

Perhaps what you see as a non-issue of leasing, I do see as an issue. There is a lot of availability at both Birch and Maple…when I have to scroll through a list of available units, I’d say there’s a lot of unit available, not like it’s a handful only. And if brand new rentals have to entice new tenants with months free + additional means to entice, I see that as an issue. There are a ton of other rentals coming up far earlier than 49 Ontario, you honestly think 1,700+ units are going to rent easily when a building with a fraction of that many units is, in my opinion, struggling?

@innsertnamehere is correct.

The incentives here are normal for the current market, and they are getting uptake on the larger units which exceed $4,000 per month in rent, they aren't discounting that heavily.

When you're looking at uptake rates, most rental builders in the market currently, on larger builds, are seeing ~18-24 months to lease up, on ~ 600 units, so about 30 units per month.

Some are a bit faster, some a bit slower, usually there's a small surge at the beginning for people who were wait listed for a unit, then it slows down to a steady uptake rate.

When I look at the vacancy level at Canary, I don't see anything alarming.

****

As to the current proposal, it is large, and some of the unit sizes are a bit small. It would not surprise me to see a variance tweaking that up to or during the early construction process; the market for 2029 is something we just cant' be sure about yet....

However, I don't expect they will have any problems leasing out the full sized units, particularly 2 bdrm and larger.

Given the number of units, a lease-up period of 2 full years would not be unreasonable.

 

[ProjectEnd]

@innsertnamehere is correct.

The incentives here are normal for the current market, and they are getting uptake on the larger units which exceed $4,000 per month in rent, they aren't discounting that heavily.

When you're looking at uptake rates, most rental builders in the market currently, on larger builds, are seeing ~18-24 months to lease up, on ~ 600 units, so about 30 units per month.

Some are a bit faster, some a bit slower, usually there's a small surge at the beginning for people who were wait listed for a unit, then it slows down to a steady uptake rate.

When I look at the vacancy level at Canary, I don't see anything alarming.

****

As to the current proposal, it is large, and some of the unit sizes are a bit small. It would not surprise me to see a variance tweaking that up to or during the early construction process; the market for 2029 is something we just cant' be sure about yet....

However, I don't expect they will have any problems leasing out the full sized units, particularly 2 bdrm and larger.

Given the number of units, a lease-up period of 2 full years would not be unreasonable.

30 units / month is way too aggressive an assumption. I use 12-15 as baseline for all underwriting these days.