Multiplex ROI in Metro Vancouver: What Returns Can You Expect?

Everyone asks about returns on a multiplex. The honest answer: it depends on four variables — land cost, hard costs, soft costs, and end value. In the right Burnaby or Surrey location, a 6-unit infill project can generate an 18–24% gross margin. Here's how the math actually works.

A Real-World Pro Forma

The example below is based on a 4-unit project on a 6,000 sq ft lot in Burnaby — representative of the infill opportunities Fort targets. Numbers are approximate and project-specific.

Breaking Down the Costs

Land cost is your biggest variable. In Burnaby, a 6,000 sq ft RS-zoned lot currently trades for $1.0M–$1.4M depending on location and lot dimensions. The land cost per buildable unit is what matters — divide land cost by the number of units you can build. On a 4-unit project, $1.2M land = $300,000/unit. That's workable.

Hard costs in Metro Vancouver currently run $250–$325/sq ft for wood-frame 3-storey construction. The range depends on spec level, site conditions, and contractor market at the time of tender. For a 4,800 sq ft project (4 units at 1,200 sq ft avg), budget $1.0M–$1.2M for construction.

Soft costs typically run 15–22% of hard costs and include: architect and engineering fees, development cost charges (DCCs), building permit fees, geotechnical report, surveying, legal, and marketing. DCCs alone in Burnaby can be $25,000–$40,000 per unit — budget for them early.

Financing costs depend on your capital structure. With a 65% LTC construction loan at current rates (6.5–8% depending on lender), a 22-month build carries roughly $100,000–$150,000 in interest on a $2.5M project.

The Thresholds Fort Uses

Before committing to any site, Fort runs a quick screen using three benchmarks:

• Go: Gross margin above 18% with conservative end-value assumptions
• Marginal: 12–17% — proceed only with exceptional site characteristics or strong pre-sale interest
• No-Go: Below 12% or requires aggressive appreciation assumptions to pencil

What Moves the Needle

The single biggest lever is land cost relative to unit count. A lot that supports 6 units instead of 4 — all else equal — drops your land cost per unit by 33%. That's why transit corridors where you get 6 units as of right are so valuable.

The second lever is spec level. Mid-spec finishes sell just as fast as high-spec in the infill market because buyers are buying location and newness. Value-engineering the finishes (not the structure) can add 3–5 points of margin without affecting saleability.

The Bottom Line

Multiplex infill in Metro Vancouver works — but the math is tighter than it was in 2021. Higher land values, elevated construction costs, and higher financing rates have compressed margins. The deals that pencil are on well-selected lots where the unit count is maximized and the build is disciplined.