B C D E V E L O P M E N T
expect to see more properties become
available in 2018, so investors should have
more opportunities." He notes that some
foreign investors have been shifting from
residential to commercial investments
due to the provincial government's 15
percent foreign buyer's tax.
"Investors are always chasing the next
up-and-coming neighbourhood," Rezai
says. "Last year it was New Westminster
and currently it's Port Moody, due to new
o…cial community plans in each jurisdic-
tion. The prime investment properties
continue to be ones that oˆer future
redevelopment potential near transit
hubs or close to downtown."
Political headwinds could buˆet the
commercial outlook as well. Provincial and
federal budgets are soon due, and munici-
pal elections will take place in the fall. All of
these things can make investors jittery.
There is pain, meanwhile, for many
small business owners. Many commercial
and retail leases are "triple net," meaning
that an increase in assessments—and the
concurrent rise in property taxes—is
passed on directly to the lessee.
Warren Smithies, senior vice-president
at Martello Property Services, believes
that ill-conceived tax policies by munici-
pal governments have unfairly driven up
property taxes for main street retailers.
He cautions that "for the long-term health
of our local restaurants, shops and bars,
municipalities like the City of Vancouver
have to stop levying commercial property
tax mill rates on undeveloped density that
will one day be turned into towers of
condos. They should be taxed at residen-
tial rates, which is their future use."
Commercial mill rates are four times
higher than residential, and those
increases are directly passed on to the
business owner. Smithies warns that "if
this practice is not halted, it will inevita-
bly result in further hollowing out of our
main streets as the city continues to
Priced out of Class A locations,
some companies are finding
viable second- and third-tier
properties to redevelop
Find an AIC appraiser in your area by visiting
