CBRE's Q4 2016 Halifax Multi-Residential Market Report. This issue looks at what we can expect in the market for 2017.

1. HALIFAX
MULTI-RESIDENTIAL MARKET
The multi-residential rental market had a strong finish in 2016, with the overall vacancy rate declining to 2.6% and approximately
750 completions according to CMHC’s Rental Market Report. This strength in the rental market was driven by a record year for
immigration in the province, combined with a robust local economy supported by a diversity of industries. At a robust 2.8% GDP
growth in 2015, Halifax ranked 4th of 28 CMA’s in the country and in 2016, ranked 2nd only behind Vancouver with a GDP growth
of 2.9%. Halifax remains a vibrant market with new household formation and strong apartment absorption throughout the City.
However, the limited amount of new supply added to the market in 2016, the lowest amount since 2011, also contributed to the
declining vacancy rate. The ten year average annual completions in Halifax is 829 rental suites.
A high level of multi-residential development continues in Halifax and CBRE estimates completions in the 2017 calendar year
will approach 2,000 new units; though a few larger projects may get pushed into 2018. Of those 2,000 units, over 1,000 are
located on Halifax peninsula. We believe pent up demand for multi-residential offerings on the peninsula will ensure strong rental
absorption in 2017 and 2018 as product becomes available. Outside the peninsula, a number of projects make up the balance
of the units, with developments in Dartmouth/Cole Harbour, Halifax Mainland, Bedford South and the Fairview area. The previous
high-watermark for completions was in 2014 when just over 1,400 rental units were introduced to the market in Halifax.
Fourth Quarter, 2016
CBRE CAPITAL MARKETS | ATLANTIC CANADA
Robert Mussett
Senior Vice President
902 492 2077
robert.mussett@cbre.com
Chris Carter
Vice President
902 492 2085
chris.carter@cbre.com
Andrew Cranmer
Sales Associate
902 492 2065
andrew.cranmer@cbre.com
Edwina Govindsamy
Client Service Assistant
902 492 2069
edwina.govindsamy@cbre.com
CONTACT US
Overall Vacancy Rate (YoY)*
2.6% r, 201
Overall Average Rent (YoY)*
$987
Units Under Construction
3,935
*Source: CMHC, 2017
OUTLOOK
CBRE expects multi-residential development
and the active pursuit of development sites
will continue unabated. While development
has slowed in certain suburban markets,
pent up demand for new apartments and
condominiums on the peninsula is driving
unprecedented levels of construction. All
areas throughout the peninsula are sought
after by developers and residents alike. A
large influx of new suites coming to market
in 2017 and 2018 will put upward pressure
on vacancy rates with a marginal increase
expected in 2017.Source: CMHC Halifax Rental Market Report, CBRE Research, 2017.
Vacancy Rate and Rental Completions, Halifax
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(f)
Completions Vacancy
Avg. 10 year Vacancy: 3.0%
WHAT TO EXPECT IN 2017

2. © 2016 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions
or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to
determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner
is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the
AVAILABLE PROPERTIES RECENTLY SOLD
HALIFAX
MULTI-RESIDENTIAL MARKET
Fourth Quarter, 2016
PAIGE PLAZA
ADDRESS
9-54 Paige Plaza,
Lower Sackville, Nova Scotia
PRICE $7,750,000
SUITES 72 units
LOT SIZE 2.30 acres
BRUNELLO MAPLE GROVE SITE
ADDRESS
Maple Grove Avenue,
Timberlea, Nova Scotia
PRICE $1,225,000
SUITES Up to 70 units
LOT SIZE ± 1.80 acres
The Centre Plan process continues to loom over current multi-residential development proposals on the Halifax peninsula and in
downtown Dartmouth. Recently it was noted by Halifax’s CAO, Jacque Dube, that staff is expected to deliver a report and the draft
Centre Plan to Halifax Council in May 2017. Billed as the next phase of HRM by Design, the Centre Plan is intended to guide the
development in Halifax for the next 15-years.
With the Centre Plan underway, many active development applications submitted for sites in the city centre area are proceeding
slowly, if at all. Confusion over the current status of the by-laws and whether development applications should be considered
under Centre Plan rules, a document and by-law yet to be adopted by Halifax Council, has resulted in regular public scrutiny and
media reports on development business. Once the Centre Plan is approved, we expect a backlog of applications resulting in a
slow period of approvals for the following 24 – 36 months. In fact, many current applications are measured against current rules
with commentary on how the proposal compares to the Centre Plan. Development pipelines and the addition of new supply to, in
particular, Halifax peninsula, may be impacted.
NAME MARKET DEVELOPER UNITS
The Maple Downtown Halifax Southwest Properties 300
Point North Peninsula North End Banc Properties 140
The Kensington Russell Lake West Blue Iron Developments 114
Boss Plaza Fairview United Gulf Developments 104
St. Joseph’s Square Peninsula North End Dexel/Lawen Group 106
AVERAGE INVESTMENT CAP RATE
Apartment Q4 2015 Q4 2016
High Rise A 4.75-5.25% 4.75-5.25%
High Rise B 5.00-5.75% 5.00-5.50%
Low Rise A 5.00-5.50% 5.00-5.25%
Low Rise B 5.50-6.00% 5.25-6.00%
Source: CBRE Research, 2017.
CAP RATE SURVEYCURRENT LARGE DEVELOPMENTS UNDER CONSTRUCTION
QUINELLA & TOUCHSTONE COURT
DATE January 2017
PRICE $8,525,000
SUITES 82
PRICE/SUITE $103,963
BUYER Private National Investor
THE CENTRE PLAN
CBRE