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$10-a-day child care still elusive for most B.C. families

espite concerted efforts to expand the level of safe and affordable child care in B.C., advocates estimate three-quarters of children in the province do not have access to licensed child care, and less than three per cent are receiving care for $10 a day.

Those numbers fall short of the provincial government’s commitment eight years ago to establish universal, affordable child care, according to the Coalition of Child Care Advocates of BC, which has renewed its 14-year-old campaign for $10-a-day child care in British Columbia amid long waitlists.

“There isn’t a client that has approached us who doesn’t have a whopper waitlist,” said Brian Wakelin, architect with Vancouver-based Public Architecture + Design Inc.

But delivery more daycare supply is challenged by B.C. real estate realities, including space scarcity, and limited or complicated funding options.

For example, while it may seem logical to include daycares in mixed-use developments, an increasingly prevalent development choice in the Lower Mainland, a separate financing and governance structure may be required for that daycare component. Daycare spaces also have unique needs, such as a rooftop playground and dedicated elevators, experts say.

“You’re trying to get ideally good sun access, good pickup and drop-off and things like that, and sometimes those just take a little bit more planning, a little bit more imagination and consideration with mixed-use developments,” Wakelin said.

He said daycares should ideally be located near employment and housing areas, and should be developed in bundles or clusters to accommodate a mix of age ranges.

Besides square footage, perhaps the biggest barrier to rapid growth is a high degree of regulation. Due to prescribed target sizes, staffing ratios, kitchen sizes and washroom sizes, the industry is “quite carefully controlled,” he said.

“Licensed child-care facilities in B.C. [are] taken very seriously. There are all sorts of standards,” Wakelin said.

“There’s actually a whole body that oversees licensing and child-care facilities,” which reviews daycare plans and buildings before, during and after construction, he said.

Things inspectors check for include sight lines for staff; no sharp edges, protrusions or hiding places; and access to adequate outdoor space. “Washroom design for child cares is like a whole industrial design exercise,” he added.

Provincial child-care efforts in detail

While all levels of government are involved in expanding child care, the province is the main player.

Since 2018, the province has funded the creation of 40,900 new licensed child-care spaces, with 24,900 of these spaces open and providing care. There are also 160,000 children in B.C. whose families are benefiting from the province’s child-care affordability programs, according to a statement from the Ministry of Education and Child Care.

The families of 16,000 children are paying $10 per day for that care, according to the province. As of May 2025, the families of 144,600 children are saving up to $900 a month through B.C.’s Child Care Fee Reduction Initiative, with 96 per cent of eligible spaces participating and offering reduced rates.

Some families receive additional help. According to the province, the Affordable Child Care Benefit (ACCB) is further reducing fees for 34,900 children each month. Available to families earning $111,000 or less, ACCB can be combined with other programs to bring costs down to $0 for some families.

“Together, these affordability programs have reduced average child-care fees for families with children 12 years and under from $47 per day before fee reductions to approximately $19 per day across the province,” said the ministry’s statement. 

The types of child care available in B.C. vary widely.

Some facilities are operated by institutions, non-profits and community centre associations. One example is the new Fulmer Family Centre for Childhood Studies at Capilano University, which was designed by Public Architecture + Design and includes an integrated 74-space daycare.

On the other end, small operators do not need a permit or licence if they are providing care for up to two children (or three or more children who are siblings) and there are no renovations made to the home.

In the middle are private facilities that combine supervision and education, such as Vancouver-based CEFA Systems Inc. and Nova Scotia-based Willowbrae Academy.

When it opens in Delta in late fall 2025, Willowbrae will operate the city’s largest daycare facility at 11,470 square feet and the capacity to care for 166 children. Preet Gill, CEO of the academy, said finding a suitable location was the hardest part. 

“There’s very limited commercial space right now. You also want to be very particular what area you’re having this daycare in. Is it too busy? You don’t want it to be too dense or a city centre-type area. That’s not safe for children,” she said.

Financing can also be tough. Not all banks are willing to work with or lend enough money to borrowers who don’t have a track record of operating daycares, she said. 

Fortunately for Gill, Willowbrae supports its franchisees in various ways. “Even in the construction phase, we do weekly meetings, even as of right now, so they’re very hands-on,” she said.

“They have a very tailored step-by-step program for the owners themselves.”

Harp Khela, president of Khela Real Estate Group, brokered the Willowbrae Academy deal in Delta. He said there are two big things B.C. municipalities can do to enable more daycares.

The first is to follow Delta’s example of pre-zoning all of its commercial zonings so that they are pre-approved for daycares, giving operators one less thing to worry about.

Second, cities should lower or eliminate community amenity contributions (CACs) for daycares, as is currently done to incentivize rental housing.

“If there’s no CACs being charged for that square footage, there’s that much more of an incentive for the developer to say, ‘Hey, let’s build more square footage and let’s add another floor … and let’s put a daycare there,’” he said.

On June 24, the Coalition of Child Care Advocates of BC re-launched its “$10aDay” campaign for universal, affordable, quality child care in B.C.

Participants say the campaign, which dates back to 2011, is being brought back because of “a failure by the province to deliver on its commitment.”

In 2017, then-premier John Horgan committed to “affordable universal child care.”

Gregson said B.C. has about 600,000 children aged 0-12 years, but just 160,000 licensed spaces, only 16,000 of which officially offer care for $10 per day.

That means as few as 2.7 per cent of B.C. children are receiving $10-a-day care.

“For a few years, there was significant progress in making affordable child care available to more B.C. families, and improving wages for educators. That progress has now stalled,” said Sharon Gregson, a coalition spokesperson.

With just three years remaining in the government’s 10-year plan, she said the province has “flatlined” provincial child-care funding in its last two budgets, with no new provincial funds committed to achieving the promise of quality, universal $10-a-day child care by 2028.

“If you’re lucky enough to get a licensed child-care space, you’d have to be, on top of that, a lottery winner,” she said.


Jami Makan jmakan@biv.com

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Top Businesses to Start in Vancouver in 2025 with $50,000

1. Mobile Car Detailing or Eco Car Wash

  • Why: Vancouverites love their cars and the environment.

  • Start-up Needs: Equipment ($15K), branding & website ($5K), van lease ($10K), licenses & marketing ($5K)

  • Highlights: Low overhead, scalable, high demand in condos and office districts

  • Bonus: Promote as a waterless or eco-friendly service


2. Home Organization & Decluttering Service

  • Why: Popular with urban professionals, downsizing retirees, and busy families.

  • Startup Costs: Equipment & supplies ($5K), website + ads ($5K), vehicle or transit pass ($2K), insurance & admin ($3K)

  • Opportunities: Partner with realtors and staging companies

  • Extras: Offer digital organization or minimalism coaching


3. Pet Care Business (Mobile Grooming, Dog Walking, or Pet Sitting)

  • Why: Vancouver is extremely pet-friendly.

  • Startup Budget: Marketing ($5K), licensing ($2K), equipment ($5K), website ($3K), van lease optional

  • Scalability: Add grooming or training services later

  • Niche Add-On: Organic or handmade pet products


4. Boutique Cleaning Business (Eco or Specialized)

  • Why: High-density residential areas and eco-conscious consumers

  • Start-up Budget: Cleaning kits & uniforms ($5K), insurance ($3K), website & branding ($5K), marketing ($5K)

  • Niche Option: Focus on post-renovation, Airbnb, or seniors

  • Scalability: Easy to grow team-based model


5. Online or Pop-up Specialty Food Business

  • Examples: Vegan treats, Asian fusion snacks, gluten-free baked goods

  • Startup Needs: Cottage license or commissary kitchen rental ($10K), product dev & branding ($10K), pop-up equipment ($5K)

  • Where to Sell: Farmers markets, Granville Island, Instagram

  • Bonus: Partner with local cafés or food delivery platforms


6. Digital Marketing Consultancy (Niche: Real Estate, Wellness, Local Retail)

  • Why: High demand from small businesses with weak digital presence

  • Skills Needed: SEO, social ads, Google My Business

  • Startup Use: Branding + website ($5K), software tools ($5K), networking events & workspace ($3K)

  • Scalable Model: Freelancer to agency model


7. Health & Wellness Coaching (Mobile or Online)

  • Popular Niches: Nutritionist, fitness coach, mindfulness guide

  • Budget Plan: Certifications & liability insurance ($5K), branding & client platform ($10K), ads ($5K)

  • Target Market: Professionals, moms, retirees, immigrants

  • Add-On Ideas: YouTube, online classes, or group workshops


8. E-commerce Retail (Locally Made, Sustainable Products)

  • Popular Ideas: Home goods, fashion, wellness kits

  • Startup Budget: Inventory ($15K), Shopify setup & branding ($5K), marketing & influencer budget ($5K)

  • Local Strength: Market through Vancouver artisan networks

  • Bonus: Add in-person booth at markets or local collabs


9. Tourism Side Hustle: Guided Experiences or Walking Tours

  • Startup Focus: History, culture, architecture, photography, Indigenous tours

  • Startup Budget: Permits, branding, insurance, website ($5K–8K)

  • Monetization: Airbnb Experiences, TripAdvisor, direct bookings

  • Low Overhead: Just your expertise and a good story


10. Artisan Crafts or Customized Products (Etsy + Vancouver Markets)

  • Examples: Jewelry, laser-cut wood, handmade candles, home decor

  • Startup Costs: Equipment/materials ($10K), branding & e-commerce ($5K), market fees ($3K)

  • Great Fit: Vancouver’s art-friendly scene & conscious consumers


📝 Tips for Success:

  • Focus on Niche: Vancouver rewards highly specialized and value-driven businesses.

  • Go Local & Sustainable: BC consumers strongly prefer local, eco-conscious businesses.

  • Use Free Resources: Explore Small Business BC, Launch Academy, and Futurpreneur for mentorship and funding options.

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Top Startup Business Opportunities in Vancouver (2025)

1. Sustainable and Eco-Friendly Products

Business Concept: Launch a retail or e-commerce store specializing in eco-friendly products such as biodegradable packaging, sustainable fashion, and green consulting services.

Target Market: Environmentally conscious consumers and businesses in Vancouver seeking sustainable alternatives.

Revenue Streams: Product sales, consulting fees, and potential subscription boxes for eco-friendly products.

Marketing Strategy: Utilize social media, local eco-events, and partnerships with environmental organizations to build brand awareness.

Financial Projections: Aim for steady growth with a focus on reinvesting profits into expanding product lines and services. 


2. Health and Wellness Services

Business Concept: Establish a wellness center offering services like virtual wellness coaching, holistic health treatments, and mental health apps.

Target Market: Health-conscious individuals, including professionals and seniors, seeking comprehensive wellness solutions.

Revenue Streams: Service fees, membership subscriptions, and sales of wellness products. BPlan AI

Marketing Strategy: Leverage content marketing, partnerships with healthcare providers, and community workshops to attract clients.

Financial Projections: Project gradual growth with an emphasis on client retention and service diversification.


3. E-Commerce and Digital Services

Business Concept: Develop an online platform offering niche products or digital services, capitalizing on the growing e-commerce trend.

Target Market: Tech-savvy consumers and businesses looking for specialized products or services online.

Revenue Streams: Online sales, digital service subscriptions, and advertising revenue.

Marketing Strategy: Implement SEO strategies, social media advertising, and influencer partnerships to drive traffic. 

Financial Projections: Aim for scalable growth, with initial investments in platform development and marketing.


4. Renewable Energy Ventures

Business Concept: Offer renewable energy solutions such as solar panel installations, EV charging stations, and eco-friendly product retailing.

Target Market: Homeowners, businesses, and municipalities aiming to reduce carbon footprints.

Revenue Streams: Installation fees, maintenance contracts, and product sales.

Marketing Strategy: Engage in educational campaigns, attend green energy expos, and collaborate with environmental groups.

Financial Projections: Plan for long-term contracts and government incentives to support steady revenue.


5. Food and Beverage Industry

Business Concept: Open a food truck, specialty café, or restaurant offering unique and culturally diverse food options.

Target Market: Food enthusiasts seeking new culinary experiences in Vancouver's diverse food scene.

Revenue Streams: Food and beverage sales, catering services, and cooking classes.

Marketing Strategy: Utilize social media, food festivals, and local advertising to attract customers.

Financial Projections: Focus on high-traffic locations and quality offerings to ensure profitability.


6. Pet Care Services and Products

Business Concept: Provide pet grooming, boarding, and specialty pet products to meet the needs of pet owners. 

Target Market: Busy professionals, families, and elderly pet owners in Vancouver. 

Revenue Streams: Service fees, product sales, and subscription-based pet care packages.

Marketing Strategy: Engage with local pet communities, offer loyalty programs, and maintain an active online presence.

Financial Projections: Aim for steady client growth with a focus on personalized services. BPlan AI


7. Educational and Training Services

Business Concept: Establish language schools, tutoring centers, or IT training programs catering to both local and immigrant populations.

Target Market: Students, professionals, and newcomers seeking skill development.

Revenue Streams: Tuition fees, online course sales, and corporate training contracts.

Marketing Strategy: Partner with community organizations, utilize online advertising, and attend education fairs.

Financial Projections: Plan for gradual enrollment increases and course diversification.


8. Digital Marketing Agencies

Business Concept: Offer specialized digital marketing services, including SEO, social media management, and content creation.

Target Market: Small to medium-sized businesses seeking to enhance their online presence.

Revenue Streams: Monthly retainers, project-based fees, and performance bonuses.

Marketing Strategy: Showcase case studies, attend networking events, and leverage client referrals.

Financial Projections: Aim for consistent client acquisition and retention to ensure steady income.


9. Green Cleaning Services

Business Concept: Provide eco-friendly cleaning services using sustainable products for homes and offices.

Target Market: Environmentally conscious households and businesses in Vancouver.

Revenue Streams: Service fees, subscription packages, and sales of eco-friendly cleaning products.

Marketing Strategy: Highlight environmental benefits, obtain green certifications, and engage in community outreach.

Financial Projections: Focus on building a loyal customer base and expanding service areas.


10. Tour Guide and Event Planning Services

Business Concept: Offer personalized tour guide services and event planning for weddings, corporate events, and festivals.

Target Market: Tourists, corporations, and individuals seeking unique event experiences in Vancouver.

Revenue Streams: Service fees, vendor commissions, and package deals.

Marketing Strategy: Develop partnerships with local businesses, utilize online platforms, and attend trade shows.

Financial Projections: Plan for seasonal fluctuations with diversified service offerings.

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Vancouver needs 10K more hotel rooms, says report

Vancouver desperately needs 10,000 more hotel rooms but development is being held up, says a new report.

Just 12 new hotels have been built in the city over the last 20 years, and Vancouver has the same number of hotel rooms as it did in 2002, according to a Wednesday report from Destination Vancouver and the BC Hotel Association.

“Vancouver hotels are operating at near full capacity, with 80 per cent average annual occupancy and up to 95 per cent during peak seasons, well above rates in peer cities,” said a statement from the organizations.

“The lack of new capacity makes it increasingly difficult to attract major conferences and marquee events, and meet visitor demand.”

In fact, hotel supply has actually declined, the report found. Vancouver saw a net loss of hotel rooms between 2002 and 2022, largely due to hotel closures and conversions, although 4,200 rooms are now in the pipeline.

The groups said 10,000 new hotel rooms are needed in Vancouver by 2050, representing a 70-per-cent increase from today’s inventory.

If this target is met, the report said it would result in 5,450 direct local hospitality jobs; up to 8,000 indirect jobs in retail, events and services; $125 million in annual municipal tax revenue; and $78 million in provincial tax revenue.

The report offers recommendations to overcome development barriers, including deferring development charges, pre-zoning for hotel use in transit-oriented areas and pairing hotels with residential developments.

The drive to have additional hotel rooms in the city comes because Vancouver tends to have the most occupied and priciest hotels in the country.

CoStar data shows Vancouver hotels were on average 71.5-per-cent occupied in February, with a $216.16 average daily room rate. That compares with Toronto's 68.4-per-cent average hotel occupancy and $213.96 average daily room rate during the month.

Late last month, Vancouver's Reliance Properties and Montreal's Germain Hotels launched the city’s latest hotel proposal – one that would see a 12-storey office building at 1111 West Hastings Street get converted into a 180-room boutique hotel.

The site is zoned to allow hotel use as well as office, so no rezoning is needed.

"It would be just [needing] a minor development permit, just for any outside related work, and a building permit," said Reliance Properties CEO Jon Stovell. "It's very fast."

Destination Vancouver CEO Royce Chwin told BIV at the time that the project goes a long way towards addressing the city's hotel shortage.

–With files from Glen Korstrom

jmakan@biv.com

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2024 finishes with the fewest commercial transactions in over a decade

VANCOUVER, BC — April 3, 2025 — In aggregate, commercial transaction volumes in the Lower Mainland finished 2024 at the lowest level recorded in over a decade, down roughly seven per cent from 2023 which previously held this un-prestigious record.

The Greater Vancouver REALTORS® (GVR) reports that commercial real estate transactions in the region totalled 1442 in 2024, a 7.0 per cent decrease from the 1551 sales recorded in 2023.

The total dollar volume of commercial transactions in the Lower Mainland for 2024 was $9.589 billion, a 13.2 per cent increase from $8.471 billion in 2023.

“2024 was a year marked by turbulence and uncertainty in the commercial market, unusually situated against a backdrop of easing borrowing costs” Andrew Lis, GVR’s director of economics and data analytics said. “From worries about a potential recession, to the increased capital gains inclusion rate, to the more recent concerns over tariffs brought about by the new U.S. administration, 2024 had its fair share of headwinds and the year-end totals we are seeing now are representative of that.”

Annual sales and dollar volume totals for 2024 for each asset class were as follows:

Land: There were a total of 407 commercial land sales in 2024, a 5.6 per cent decrease from the 431 land sales in 2023. The dollar volume of land sales was $4.283 billion in 2024, a 7.8 per cent increase from $3.975 billion in 2023.

Office: There were a total of 230 office sales in 2024, a 28.8 per cent decrease from the 323 office sales in 2023. The dollar volume of office sales was $888 million in 2024, a 45.7 per cent increase from $609 million in 2023.

Retail & Other: There were a total of 318 commercial retail (& other) sales in 2024, a 12.4 per cent increase from the 283 retail (& other) sales in 2023. The dollar volume of retail sales was $1.330 billion in 2024, a 31.6 per cent increase from $1.010 billion in 2023.

Industrial: There were a total of 401 industrial sales in 2024, a 9.7 per cent decrease from the 444 industrial sales in 2023. The dollar volume of industrial sales was $1.806 billion in 2024, a 13.3 per cent decrease from $2.084 billion in 2023.

Multi-Family: There were a total of 86 multi-family sales in 2024, a 22.9 per cent increase from the 70 multi-family sales in 2023. The dollar volume of multi-family sales was $1.283 billion in 2024, a 61.7 per cent increase from $793 million in 2023.

“The aggregate figures for the year mask a few pockets of resilience in the market, with multi-family, retail, and to a lesser extent, land deals holding steady or increasing year-over-year. Part of the activity in the multi-family segment was driven by government purchases of multi-family buildings, so we should be cautious of overstating the strength in that segment in particular. With that said, considering the significance of the headwinds the market has faced in 2024, these segments had a more impressive showing than the office and industrial segments.”

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Top High-Income Business Opportunities in Vancouver (2025)
  • AI-Powered Business Solutions
    With the rapid adoption of artificial intelligence, businesses offering AI-driven tools and consulting services are in high demand. Opportunities include developing automation tools, AI-driven marketing platforms, and providing AI integration consulting.

  • Green and Sustainable Building Services
    Vancouver's commitment to sustainability has led to a surge in demand for eco-friendly construction and retrofitting services. Businesses focusing on green building technologies, energy-efficient retrofits, and sustainable construction practices are poised for profitability.

  • Digital Marketing Agencies Focused on Niche Markets
    As businesses strive to enhance their online presence, specialized digital marketing agencies targeting specific industries or demographics are thriving. Services in SEO, content creation, and social media management tailored to niche markets are particularly lucrative.

  • SaaS (Software as a Service) Platforms
    Developing subscription-based software solutions for business operations, such as project management, HR, or data security, offers scalable income with high-profit margins.

  • Health and Wellness Tech
    The growing emphasis on health has increased demand for telehealth platforms, personalized nutrition services, and mental health apps. Businesses in this sector can capitalize on the trend towards digital health solutions.

  • Real Estate Investment Companies
    Investing in real estate, including short-term rental management, co-living spaces, and senior housing developments, continues to be a profitable venture due to consistent property value appreciation.

  • Pet Services and Products
    With pet ownership on the rise, businesses offering pet grooming, boarding, and specialty pet products are experiencing significant growth.

  • Food Truck Business
    The food truck industry in British Columbia is booming, with annual revenues ranging from $250,000 to $500,000. This mobile business model offers flexibility and lower startup costs compared to traditional restaurants.

  • E-commerce for Sustainable Products
    Launching an online store that sells eco-friendly products, such as sustainable fashion or biodegradable packaging, aligns with consumer trends towards environmental consciousness.

  • Online Courses and Educational Services
    The e-learning market is expanding rapidly, with opportunities to create and sell online courses in various fields. This business model offers low overhead and the potential for passive income.

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Vancouver is country’s strongest hotel market, says Avison Young

As the Canadian hotel industry stabilized in 2024, Vancouver stood out from the pack as the nation’s strongest hotel market.

Among major Canadian markets last year, Vancouver had the highest performance in terms of occupancy (78.2 per cent), average daily rate or ADR ($285.21), and revenue per available room or RevPAR ($223.09), according to a Tuesday report from Avison Young (Canada) Inc.

Vancouver bested other hotel markets like Calgary, Edmonton, Toronto, Ottawa and Montreal.

Despite Vancouver’s domination, Edmonton showed momentum, with the highest year-over-year growth in some performance measures. Edmonton’s occupancy grew 3.4 per cent, compared with Vancouver’s negative growth of 0.4 per cent. Edmonton’s RevPAR also grew 10.2 per cent, compared with Vancouver’s 6.6 per cent growth.

Avison Young said Tuesday there is growing demand for hotel assets, and that the volume of deals spiked last year. In 2024, major Canadian markets recorded nearly $1.3 billion in hotel transactions, a 46-per-cent increase from the previous year and an 88-per-cent surge compared with 2019.

“Despite economic headwinds, the sector demonstrated remarkable resilience, achieving its highest transaction volume since 2017 and exceeding the 10-year average of $1 billion,” said the report. 

The report acknowledged that 2024’s transaction count of 56 came in below the historical average of 76. 

“Provided economic trade wars don’t dramatically disrupt the industry, market performance in 2025 is expected to reflect stabilized levels through the year with moderate growth in both ADR and occupancy,” the report said.

The commercial real estate services firm flagged other variables, such as Canadian families curbing non-essential expenses such travel amid inflation. On the other hand, a declining loonie could attract leisure and corporate travel from abroad. Also, budget hotels face more challenges than luxury hotels amid a “flight to quality.”

Nonetheless, Avison Young said the overall hotel investment climate in Canada is “sound.” 

“There are several willing debt and equity participants that are interested in the sector,” the report said. “As income levels normalize across a range of property types, reasonable buyers and sellers will find the best investment opportunities.”

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Metro Vancouver's quick-service restaurants face multiple challenges heading into 2025

Demand for street-front quick-service restaurant (QSR) retail unit space remains high in Metro Vancouver, but the industry is experiencing a slowdown in available new franchises.

Michael Anderson, president and managing broker at Langley-based Northern Vision Realty Advisors, said there’s “more demand than space” for street-front QSR retail units in Metro Vancouver.

“Many quick-service restaurants require a kitchen exhaust,” said Anderson. “Those spaces are rare.”

Franchises are vying for spots in areas with residential towers – including Metrotown and Brentwood in Burnaby, and North Road in Coquitlam.

Anderson said drive-thru restaurants are becoming “a thing of the past” in Metro Vancouver except where chain restaurants own land.

“Very few developments are offering a drive-thru restaurant, and when that happens, there’s fierce competition,” Anderson told Western Investor. “Land is costly, so I think you’re seeing more of a shift to the street-front situation or the non-drive-thru.”

Sean Black, chief investment officer of Vancouver-based restaurant operator Happy Belly Food Group, is betting on more health-conscious appetites.

Happy Belly opened its newest Heal Wellness location in Vancouver’s Kitsilano neighbourhood in October, serving smoothies and açai bowls. It’s the third of 10 planned for B.C., adding to 12 existing locations across Canada. Black said the company plans to have about 20 locations by year-end, expanding to 40 by the end of 2025.

Black said Happy Belly is experiencing “healthy” sales growth due to “significant demand.”

“Emerging brands are stealing market share,” said Black. “I think people are changing where they’re spending.”

Happy Belly has 421 committed retail locations from master franchisees across Canada with several emerging brands – including Yolks – in its pipeline, opened or under construction. It’s planning to enter the U.S. market in 2025 with a Heal Wellness multi-unit deal in Florida.

Joe Sangha, franchisee partner for three new Heal Wellness locations in Kitsilano, West Abbotsford and Chilliwack, said he sees growth potential.

“It’s a simple, clean operation – very easy to operate with lower startup costs than other QSRs that require hood ventilation,” said Sangha, who is opening three more locations in Alberta.

Happy Belly’s support system was a draw for Sangha, who was B.C.’s first franchisee of Mucho Burrito, a brand Black held through Extreme Brandz, sold to MTY Food Group in 2013.

“Finding the right location isn’t always easy,” Sangha said. “The other issue is staffing. There’s high turnover in QSRs, which makes it challenging. Now with limitations on the [Temporary] Foreign Worker Program that specifically affect the QSR space, I think we’re in for some challenging times.”

Mark von Schellwitz, vice-president, Western Canada, for Restaurants Canada, said there’s a slowdown in new QSR franchise openings in B.C. due to lower discretionary income and higher operating costs.

“We’re seeing demand soften a little bit simply because of the troubles the industry is in, especially on the QSR side,” said von Schellwitz. “In QSR, your profit margins are so tiny. You need that heavy volume to make a profit in that business.”

Von Schellwitz said about 53 per cent of Restaurants Canada’s B.C. members are not making money, contributing to “a record number of bankruptcies in 2024.” Rising real estate and operating costs are the key factors.

Restaurants Canada’s Q3 report found that QSRs are disproportionately affected, with 23 per cent describing the business climate as “very poor.” This compares to nine per cent of full-service restaurant members. Of B.C.’s 15,000 restaurants, about 37 per cent are QSRs.

Von Schellwitz said leasing costs are “not sustainable” as rents continue to increase.

“You’ve got a lot of people closing their restaurants as a result of that. That is even more pronounced in the big urban centres where those lease rates have really increased substantially.”

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Cash flow appeals to manufactured home park investors

The housing crunch has bumped up the appeal of modular housing in many quarters, with the rapid pace of delivery making it ideal for temporary worker housing, urban centres grappling with homelessness, and – in an upscale version – hotels.

Some of the same factors are driving the appeal of manufactured housing parks, a low-cost housing option for close to 60,000 households in B.C. and the asset of choice for many new investors.

A case in point is Lakeview Terrace, a 22-pad manufactured home park overlooking Okanagan Lake in Summerland, which sold in May for just over $2 million. Geared to seniors, the park has changed hands on a regular basis as owners have stepped in, enjoyed the cash flow and traded up.

“Lakeview sold two years ago for $1.6 million, now it’s $2,050,000,” said Bill Summers of Lighthouse Realty Ltd. in Abbotsford. “It’s making $100,000 a year, so [the owners] were doing really well but now they figure all their relatives have huge parks so they’re going to go big, too.”

The gain in value is attributable to the steady revenue the parks generate and the upside in rents through turnover, especially in those geared to residents 55 years and older.

Lakeview’s lowest rent is $456 a month for a pad, but incoming tenants face rents of $650, an indication of how the market is changing.

The parks usually pay for themselves in 10 to 15 years but with rent increases, Summers says anyone who holds onto them will see “pure cash flow.”

 

Yet the affordable price versus multifamily units in town makes them an appealing housing option.

“The way housing is right now, parks are just a really good opportunity,” said Alan Johnson, vice-president with the Unique Properties Group at Colliers. “That’s why guys buy them; they’re just good long-term investments.”

But investors don’t have to buy the whole property. Some simply buy a unit, rent the pad, and lease them.

The park in Fernie had a model that sold for $290,000 and rents for $2,500 a month, including the $400 pad rental.

“[You’re] getting $2,100 a month less tax for a $290,000 investment. That’s pretty good, and you have really good security in parks,” he said.

Parks are governed by the Manufactured Home Park Tenancy Act and face similar controls on rents as other rental properties. But unlike multifamily rentals, landlords can chargeback the cost of city services, such as sewer, water and garbage collection.

“All that can be passed along to the tenants, which makes it nice,” Summers explained. “[And] increases can go in above the Residential Tenancy Branch increases, so you’re inflation-proof that way. You’re always going to stay ahead of the game.”

Eugen Klein of the Klein Group at Royal LePage Westside describes manufactured home parks as “recession-proof.”

“Most of them are excellent cash-flow properties, very good communities. They offer the best affordable type of housing,” he said. “I’ve never had a mobile home park that’s a bad investment or didn’t cash flow. Even ones that needed a full redo of their services for a million-plus dollars, people have spent the money.”

Klein typically handles three to four listings at any given time, primarily the result of long-time owners retiring.

Since park residents typically own the homes that sit on the rented pads, units are updated regularly and residents take pride in what they own.

“They’re built to better standards than detached homes are today. They’re not Trailer Park Boys anymore. No pressed board,” he said. “You have a different feel to the community because of that. From an investment perspective, that’s good.”
Klein, together with his parents, owns a manufactured home park in Merritt that’s been home to workers on the TransMountain pipeline as well as retirees and local families.

“We see a lot more people from the Lower Mainland and somewhat younger people,” he said.

There’s also been an influx of new residents to a park he’s listing in Nelson, while the Alder Bay RV Park and Marina in Port McNeill, another listing, has units geared to vacationers. Northern BC is starting to see parks with duplexes thanks to the modular nature of the units.

This creates new and alternative options for investors.

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B.C.’s RV parks and campgrounds face shifting challenges and opportunities

The landscape of campgrounds and recreational vehicle (RV) parks across B.C. continues to evolve in 2024 as investors eye these properties for their recreational value and redevelopment opportunities.

Listed for about $7.5 million, Beachcomber RV Resort in Central Saanich on Vancouver Island is a waterfront RV park and campground on nearly 10 acres in two land titles. The property—listed last summer at $8 million—includes 60 seasonal RV sites and a walkable beach. Its upper level, partially in the Agricultural Land Reserve (ALR), features a 1,176-square-foot house on a bluff with potential for single-family home redevelopment. The forested bluff rises from sea level to the upper bench, transitioning to agricultural land.

“There’s a corner of the upper property that’s in the ALR,” said Mark Lester, senior vice-president with the Unique Properties Group at Colliers International. “It shouldn’t affect the development of that upper portion because residential is permitted in the ALR.”

The RV park is on a lower terrace at sea level near a swimmable area. It’s not in the ALR. The site includes a 1,223-square-foot, two-bedroom caretaker’s home and resort office.

“There’s a huge opportunity for somebody to acquire it and actively work it, market it, and put some investment into it,” Lester told Western Investor. “What makes it unique is its waterfront.”

Beachcomber has operated seasonally for years under a renewable temporary use permit. Designated destination commercial in Central Saanich’s official community plan (OCP), the property can be rezoned to accommodate tourist commercial development, such as cabins or a boutique resort, per the OCP. Current zoning allows for luxury residential development.

Lester said RV park and campground sellers have higher expectations of values based on sales activity before and during the pandemic.

“Values went up during COVID and expectations haven’t fallen in a manner that corresponds to rising interest rates since then,” he explained.

As interest rates rose, the market softened, prices fell and sales slowed. According to Lester, higher interest rates, inflation, and ongoing global geopolitical issues have affected buyer perceptions and real estate risk profiles.

“We haven’t really seen the market turn back,” he explained. “A lot of people are sitting on their hands waiting for something to happen. I think expectations with the RV parks that I’ve seen are still up there. They’re harder to leverage.”

Agassiz-based Re/Max Nyda managing broker Freddy Marks said real estate deals are rare but more remote properties like Escott Bay Resort at Anahim Lake, which sold April 26 for $1.2 million, are “smoking deals” that have much to offer buyers.

“If they look at resorts and RV properties, there are great deals out there if you compare that to residential or other kinds of investments,” said Marks.

Located 325 kms west of Williams Lake, the 6.4-acre property features a 6,000-square-foot log lodge with a licensed dining room. The property includes 14 campsites spread over two service campgrounds, more than 1,000 feet of shoreline, a four-bedroom log chalet, several cabins, an equestrian area, boat dock, two RVs, boats and paddle board rentals.

Developing a pipeline of parks

Pathfinder Ventures Inc. (TSX-V:RV), a publicly listed company which launched Pathfinder Camp Resorts in 2021, has locations in Parksville, Fort Langley and Agassiz. The Fort Langley-based company recently announced plans to develop an RV park in Osoyoos with about 120 RV sites on six hectares (15 acres) of leased land on Osoyoos Lake. Currently working toward profitability, Pathfinder plans to offer pre-sales of new RVs and seasonally leased sites in Osoyoos this summer and be fully operational in 2025.

“This is going to be an opportunity for an RV owner to have more of a cottage-like experience,” said Pathfinder founder and CEO Joe Bleackley.

Pathfinder also recently announced plans to expand east with the right of first refusal and an agreement to manage four RV parks in Ontario and one in Nova Scotia. The resorts are mainly seasonal vacation properties with a short-term tourist component.

“By the end of this year, we hope to be operating at least nine RV parks,” Bleackley said, noting that Pathfinder is also eyeing Alberta resorts. “We’re looking at taking over management of specific parks where there is an opportunity to own in the future.”

Bleackley said there’s a shortage of RV parks in Canada, and he’s optimistic about growing demand.

“Because we have multiple locations, we’re creating a brand and an experience,” he said. “One day, we hope to be the Hilton of the campground space.”

Diversified approach

Located near Kelowna on Ellison Lake, Holiday Park Resort has 570 fully serviced leasehold and rental RV sites and 117 condos, both leasehold and timeshare. The 26-hectare (64-acre) resort doesn’t allow camping, but it has full-time security, pools, hot tubs, a recreation centre, equipment rentals, laundry facilities, a library, pickleball courts, a gym and a sauna. It’s also working on adding new amenities, including charging stations for electric vehicles (EVs) and e-bikes.

“We’ve got a big combination of people that have subleases here, we’ve got time share usage, we hotel out our condos,” according to the resort’s president and new owner Dawn McLaughlin.

Raging Okanagan wildfires were a major challenge last summer for the resort, which turned 40 in 2023.

“We had to basically close the resort down to any external people because the fires came within about a kilometre of us,” recalled McLaughlin, who has worked at the resort for 18 years, most recently as controller.

The resort was not part of a nearby evacuation but has taken precautions such as replacing combustible cedar hedges with metal fencing.

Falling outside of B.C.’s new provincial short-term rental restrictions, the resort has recently seen more customers staying longer term, largely due to the housing crisis and affordability issues.

“There’s a lot of people that have tried to downsize and purchase RVs to live in themselves or for rental purposes,” said McLaughlin.

“Softer season” predicted

Joss Penny, executive director of the British Columbia Lodging and Campgrounds Association (BCLCA), predicts a “slightly softer season” compared to summers during the pandemic. About 60 per cent of bookings comes from British Columbians.

“We’re seeing a definite change in booking patterns,” explained Penny. “Those booking patterns are a wait and see because of the wildfire seasons we’ve had.”

While BCLCA members currently report about 65 per cent booking—a decrease of about nine percentage point versus last year—Penny expects an increase to a typical 75 per cent occupancy this summer, but that will depend on wildfires.

Potential floods, cooler weather, inflation and fuel prices have also led to lower bookings, according to Penny, who added that the Bank of Canada’s recent interest rate cuts need time to take effect.

“We anticipate that in ’25 and ’26 we might see more of the same as what we’re seeing now,” he said.

During the pandemic, BCLCA members saw business increase about eight per cent over previous years, with most customers from B.C. and Alberta.

Changing demographics and expectations, such as more EV usage, are some of the new challenges, according to Penny.

“We’re seeing a move away from baby boomers being the largest group and moving toward Gen Z and millennials being the largest group of people that are camping. Their expectations are totally different when it comes to connectivity on Wi-Fi,” he said.

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