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Retrofit realities: The risks and rewards of rejuvenating existing
apartment stock
November 2010
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| Greg Romundt, President of Centurion Apartment REIT |
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By Clare Tattersall
As Canada’s apartment stock continues to age, the debate over whether to retrofit existing buildings or construct new ones rages on.
Before embarking on the former, Greg Romundt, President of Centurion Apartment REIT says landlords should conduct a retrofit analysis to determine whether it’s worth the investment.
“You need to look at the strategic position of the building in the existing marketplace and the kind of competitor buildings that surround it,” he says. “You also have to do a risk return analysis for what you’re going to spend on.”
According to Romundt, landlords should start to see a return on their investment directly following completion of the retrofit project.
“It might not pay back fully in a month or even six months but you should expect to see returns immediately, otherwise it might be time to reassess (future) work you want to do,” he says.
To achieve anticipated returns on your investment, Romundt recommends planning ahead and hiring a qualified contractor to conduct the work.
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