PCI Developments' aggressive pipeline of purpose-built rental developments in the City of Vancouver reveals a deepening commitment to rental construction in the region as the condo market continues to languish. 

The Vancouver-based developer and owner of multifamily and commercial buildings says it's nearing completion of more than 400 purpose-built, transit-oriented and move-in ready rental homes. 

PCI has a further 3,000 rental homes, including more than 500 below-market units, in the application stage in the city, said Tim Grant, president with the company. 

"Three quarters of what we do is in the City of Vancouver,” he said in an interview. 

19 On The Greenway, The Stories

Among its latest rental projects is 19 On The Greenway, a rental property on Vancouver’s Westside. It will add 118 secured market rental homes in twin six-storey buildings, including 24 below-market rental homes that had financing support from the Canada Mortgage and Housing Corporation. It’s located at Arbutus St. and West 20th Ave. 

The new buildings are located a short walk from the under-construction Arbutus Station of the Broadway Subway. A central courtyard connects the buildings and each features outdoor rooftop spaces, access to an indoor fitness room and resident multi-purpose and social spaces.

Meanwhile, PCI is also preparing to start renting homes at The Stories at South Granville Station, located at West Broadway and Granville. The high-rise development includes 226 studio, one-, two-, and three-bedroom rental homes, including 44 homes below market rents. 

The mixed-use tower will also include a coffee shop, a Royal Bank of Canada branch, a Loblaws City Market grocery store, and 100,000 square feet of office space, including Nicola Wealth’s new head office. It connects directly to South Granville Station of the under-construction Broadway Subway Project.

Grant notes that getting rental units permitted and built has typically been a challenge on Vancouver’s Westside, a section of the city mostly composed of pricy, single-family homes. The vast majority of multifamily development has been either on the downtown peninsula or in East Vancouver. 

Over the next year, in addition to completion of 443 new secured rental homes, PCI also plans to start building another 786 homes, adding what it calls “much-needed, high-quality, desirably located and pet-friendly homes” into the rental supply. Each of the developments will include more than 35 per cent two- and three-bedroom homes, located within walkable neighbourhoods in close proximity to rapid transit, shops and services. 

Prioritizing rental over condos 

“Through uncertain economic conditions and a time when new rental housing construction starts in particular are challenged, we remain committed to, and focused on, adding much-needed new, high quality and well-located rental housing throughout the City of Vancouver,” Grant said. 

Grant said PCI's team has been prioritizing rental development in recent years, but still continues to develop condos, including in Surrey, where it is nearing completion of over 800 condos at the latest phase of the King George Hub master plan.

But the regional condo pre-sale market continues to languish with many projects paused, converted to rental. or cancelled entirely. 

"Condo development can still be more profitable than rental projects,” Grant said. "You have a defined closing, whereas rental housing is more of a continuing over a longer term.”

"I think that that's rule No. 1 for a real estate developer, particularly in our region, is that you have to have the ability to adapt," Grant said. He said the rental development market has become more attractive over the past 10 years as the city has adjusted or added incentives and opportunities for this type of housing. 

He said the market is evolving and PCI recognizes the need for high-quality rental homes in volume, and especially in locations well connected by transit.

The surge in rental development has helped improve availability of rental homes and softened rental rates, which is important for the city and the region. “Renters have more choice,” Grant said.

PCI stays busy in uncertain market

Overall, PCI remains busy amid market uncertainty. "We're fortunate to have a few projects successfully completing right now. We're working really hard to get a couple more projects started this fall."

The overall development market is tough, he said, adding that the line between building or not "is very thin."

The cost pressures have not subsided as revenue has softened, he said. 

Among PCI's other rental projects in Vancouver are: 

• A boutique 14-storey building at Oakridge and 41st, across from the Oakridge-41st Canada Line Station with 99 secured market rental homes (under construction);
• A 256-rental home project at West Broadway and Arbutus with 52 below market-rate rentals, ground-floor retail space, new community space for the Ohel Ya’akov Community Kollel, and a public plaza fronting Arbutus Greenway (planned);
• 153 secured rental homes at West 8th and Granville with 32 below market-rate rentals, and 13,000 square feet of commercial space in a 27-storey mixed-use building. This building will be located adjacent to the future South Granville Station on the under-construction Broadway Subway Project (planned);
• 377 market rental homes at West 4th and Vine with a new Safeway grocery store, and street-front retail (planned).