Digging Deeper:

How Qualex-Landmark Creates Value Through Thoughtful Project Strategy

The Canadian real estate sector is currently undergoing a transformation, characterized by both notable challenges and new opportunities. Developers are adapting by restructuring projects and innovating their real estate strategies. While some are reducing budgets and scaling back, others are finding ways to thrive within constraints.

In an insightful conversation, BUILD CANADA speaks with EVP Henry McQueen, who reveals how Qualex-Landmarks generates value that fosters sustainable long-term growth.

BUILD CANADA: Describe your building style in three words.

Henry McQueen: Thoughtful. Detailed. Timeless.

BUILD CANADA: Why these three?

HM: We generally take-on fewer but larger projects – which allows us to focus our energy and make every single space we design really count, be it a home, a new retail space or our indoor and outdoor shared spaces.

We only get to do so many of these in our lifetime, and so we pour a ton of ourselves into this work to ensure we get it right for today and tomorrow. When we design we need to make sure we’ve thought about the intended outcomes, we spend a great deal of time on execution, and the trickiest part which is how it might evolve or be perceived over time.

BUILD CANADA: Developers are halting new projects due to high construction costs and reduced buyer demand, leading to tighter residential construction pipelines nationwide. With current conditions, what strategies is Qualex-Landmark implementing to maintain an active pipeline during periods of market uncertainty?

HM: There’s no margin unless you can create it today. If we need to find $1, we are looking for 100 pennies, as there are no loonies lying around! What I mean by that, is we are taking a microscopic look at current and future projects the underlying question as to whether this is the most efficient way to execute the project the way we want to.

This means really disciplined acquisitions, thoughtful entitlements, and thorough design, tender and financing strategies. I can’t stress enough how each entitlement and set of drawings are not created equally for the same kinds of projects in the same neighbourhoods. You have to take a surgical approach to every word and detail, and ask yourself if this detail or policy is necessary to bring the shared vision to life?

BUILD CANADA: What types of properties are currently considered more resilient and in-demand in the real estate market compared to traditional condo pre-sales?

HM: Speaking for residential tenures, we can design for great amenities, businesses and homes to stand out, at the end of the day, all our work competes for the desired balance of price and location.

Our thesis today is that “B” locations will continue to feel the effects of this market, whereas well priced homes in excellent “A” locations will be more resilient. Capital for large new projects has been constrained, so well-located rental without large equity demands remain more likely to proceed whether it be smaller concrete or wood-frame, those appear to have more options in front of them despite changing federal financing policy. Retail has also done well in a number of locations we have explored, so a mixed-use component is both additive to the project and a great amenity for residents.

BUILD CANADA: What projects are Qualex-Landmark bringing to the market that are contributing to achieving strong long-term value for buyers and renters?

HM: We are actively selling strata homes under construction in West Coquitlam at prices that I don’t believe we will see again in our lifetimes due to simple fact that the cost of delivery is higher today than it was when we started work. We believe those projects will deliver exceptional value to those buyers over time, and in a really livable area near major transit and amenities.

As for upcoming projects, we just started construction this Spring on 200 rental homes in the Fraserhood in Vancouver which felt like a small miracle in this market, with some great new retail spaces and public space planned at street-level that we think will be special. We have to thank the City, our design team, lenders and contractors for helping us get across the line so we could begin work. Our team put everything into that effort, and we’re both proud and fortunate for each of the people behind it.

We have two other mixed-use rental projects going through the rezoning stage in the area. Again, with that focus on cost-of-delivery, location and design to make sure we can make a compelling offering for people who love and believe in these neighbourhoods like we do.

For More Information, please visit www.qualex.ca

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