Home Realty: Flexible Building Equals Affordability

Four-storey infill projects have distinct cost advantages

Municipalities across the GTA are looking to add density along their city streets, particularly urban corridors that are serviced by transit.While midrise condo buildings — those that range between five and 11 storeys — are well-suited to achieving this objective, the scale of midrise projects can present certain challenges for developers that make it difficult to deliver affordable units to home purchasers.For example, the development of a midrise condo has many of the same input costs as that of a highrise building (construction labour and skilled trades, land assembly, rezoning processes and underground parking, to name a few), but a midrise project doesn’t enjoy the same economies of scale. That is, there aren’t as many condo units over which to spread those same costs, so the midrise suites end up being more expensive than those sold in a highrise tower.But there’s a new type of infill building that’s been gaining traction in the market that offers a happy medium. Known as a high lowrise building, it is typically a four-storey mixed-use structure built over one or two lots, replacing smaller one- or two-storey buildings, and often slotted in beside or behind existing buildings.High lowrise projects deliver the same benefits as midrise buildings — adding density to transit-oriented areas and blending well within existing neighbourhoods — but can usually be constructed at a lower cost than a midrise project. And the reasonably priced units that can result from this makes the development accessible to a broader market of buyers.As most of the GTA’s best developable lots get snapped up for residential and commercial projects, the opportunities that remain tend to be on awkward-shaped sites that have discouraged redevelopment in the past.High lowrise buildings are flexible, however, and can be wedged into narrow or shallow lots with greater ease. Plus these previously unattractive sites can be bought at a discount (albeit slight), and ideally those savings are transferred down to buyers.Other potential savings with high lowrise buildings include having no elevator. At four-storeys, these can be constructed as walk-up buildings. And the structure is typically built using wood-frame construction, versus concrete, which is more expensive and skilled-labour intensive. Best of all, there is no re-zoning required for high lowrise buildings, so they can be redeveloped under the existing zoning designation. This saves money on administrative processes and fees. It also means the buildings can get built more quickly. All of this translates into lower costs for all concerned, particularly the purchasers of the suites.What’s more, high lowrise buildings mix retail, employment and residential uses, with commercial and retail space on the ground floor, offices on the second floor and condos or apartments above. This mix ensures vibrancy and street activity around the building most of the day, making for a better and safer neighbourhood. An added bonus is that high lowrise buildings often tend to have the same smaller-sized retail footprint as the buildings they’re replacing, so they remain well-suited to housing independent businesses.

By delivering cost savings while ensuring the preservation of neighbourhood character, high lowrise buildings are poised to be the future of our intensifying cities.

Debbie Cosic, CEO and founder of In2ition Realty, has worked in all facets of the real estate industry for over 25 years. In2ition.ca