Quote:
Originally Posted by Harley613
Are you seething with rage at my layman's knowledge due to the expertise you clutch so close to your heart? 
Honestly, I'd love to hear more from you! My comments contain a lot of conjecture, I'm just an armchair development analyst who loves to talk about buildings and things.  |
No harsh feelings. Believe me, your skin gets very thick in RE. But everyone oversimplifies everything on here, especially the transaction part of such a purchase. The development model is incredibly simple yet incredibly complicated. It is very easy to make it pencil out on the back of a napkin but the current state of building cost, cost of money, Ottawa's inability to pay premium market rental rates in prime locations, dealing with the NCC, the building on the corner, the state of the homeless in the market make this a complicated transaction for the buyer. Someone will make it work but it won't happen quickly.
Current height is 20 storeys at 3m/storey. No setbacks/podium are needed in the current bylaw except the northern portion of the lot line where the zoning schedules have lower height limits. Tower setback is 11.5m on your side of the property above 9 storeys.
Developers never pay what they think it will be worth if they rezone. They'll pay what the current zoning allows and maybe a bit more through in a density bonus structure upon SPA/BZA/ Sellers always want to be paid on the new density that comes out of rezoning. So lots of properties never trade because of this imbalance. The risk is too high. Currently the market has very few buyers for dev lands but the sellers of dev sites aren't acting that way so we haven't yet seen a price adjustment on land values. Simply cause they aren't trading. Montreal just saw its first month without a dev site transaction. BTW, no developper ever takes a flyer in their proforma and BZA/OPA/SPA. It's just a waste of time and money.
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