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Boardwalk Says: Vacancy Level Flattening Out
April 2010
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| Sam Kolias, CEO of Boardwalk Rental Communities |
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| *V-Report Sponsors |
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| *Not affiliated with V-Report Speakers |
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By Hayley Mitchell
Sam Kolias, CEO of Boardwalk Rental Communities and Boardwalk REIT, began his company in 1984 with the purchase and renovation of a 16-unit walk-up apartment building in Calgary. Today, Boardwalk owns and manages more than 35,000 rental units across five provinces, employing approximately 1500 associates and providing homes for more than 60,000 residents.
It is Kolias’s view that “the apartment sector is usually a lagging industry,” and that in 2010 the rental market should remain relatively flat. In response to the 2009 recession, Boardwalk’s bottom line has continued to grow, brought about by recessionary cost savings implemented by the company and by energy costs coming down in price. Kolias explains that to combat the recession and keep Boardwalk’s bottom line pointing up, the company lowered some rents and offered competitive incentives to attract renters. The company focused on increasing occupancy, which would in turn offset the cost of the rental incentives and vacancy expenses. Low interest rates throughout the recession and into 2010 have also provided for large savings for Boardwalk REIT and other property owners.
When it comes to looking ahead toward recovery, Kolias predicts that this year the vacancy levels should begin to drop, which is in line with Canadian Mortgage and Housing Corporation’s (CMHC) predictions. In Boardwalk’s largest market, Calgary, it is predicted that vacancy rates should go down to 3 percent, which is a stable balance between supply and demand. “We believe our results [for 2010] will be flat,” says Kolias.
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