Understanding Development Costs in Metro Vancouver (2025 Numbers)

The number one reason multiplex projects fail is not zoning — it is cost estimation. Developers who underestimate soft costs, forget about DCCs, or ignore financing carry costs end up with a project that looked profitable on paper but lost money in reality. Here is the full cost breakdown for a Metro Vancouver multiplex project in 2025, based on real numbers from Fort's recent builds.

Hard Costs: The Build Itself

Hard costs are the physical construction: foundation, framing, plumbing, electrical, HVAC, finishing, and landscaping. In Metro Vancouver, wood-frame multiplex construction currently runs:

• Basic spec: $250–$275/sq ft — builder-grade finishes, standard appliances, basic landscaping
• Mid spec: $275–$310/sq ft — engineered hardwood, quartz counters, soft-close cabinets, quality fixtures
• High spec: $310–$350/sq ft — custom millwork, premium appliances, designer lighting, high-end landscaping

Fort builds at mid spec. The price-per-square-foot premium over basic is small ($25–$35/sq ft), but the sale price premium is significant ($50–$75/sq ft higher end value). Mid spec is where the margin lives.

Soft Costs: Everything Except the Build

Soft costs typically run 18–25% of hard costs. On a $1.2M construction budget, that is $216,000–$300,000. The major line items:

• Architecture and engineering: $60,000–$90,000 for a full set of construction drawings, structural engineering, mechanical/electrical design, and energy modelling
• Development Cost Charges (DCCs): $25,000–$45,000 per unit depending on municipality. Burnaby is on the higher end. These are non-negotiable fees paid to the city.
• Building permit fees: $15,000–$25,000 for a 4–6 unit multiplex
• Geotechnical report: $5,000–$8,000 — required for all new construction
• Survey: $3,000–$5,000 for a legal survey and building location certificate
• Legal fees: $15,000–$25,000 for strata subdivision, title work, and sales contracts
• Marketing and sales: $20,000–$40,000 for photography, staging, MLS listing, and marketing materials

Financing: The Hidden Cost

Construction loans in BC currently carry interest rates of 6.5–8.5% (prime + 2–4%) with lender fees of 1–2% of the loan amount. On a typical project with a 65% loan-to-cost ratio and an 18-month draw period, financing costs add $100,000–$175,000 to the total budget. This is money that does not build anything — it just pays for the time value of capital. Every month of delay in permitting or construction adds $8,000–$12,000 in carry costs.

Contingency: Plan for It or Pay for It

Every experienced developer budgets a contingency of 8–12% of hard costs. On a $1.2M build, that is $96,000–$144,000 set aside for surprises: contaminated soil (common on older residential lots), unexpected rock, weather delays, material price increases, or trade availability issues. If you do not need the contingency, it flows to profit. If you need it and did not budget it, the money comes from your margin.

Total All-In Cost Example

At a sale price of $875/sq ft across 4,800 sq ft, gross revenue is $4,200,000 — leaving a gross margin of approximately $1,018,000 or 24%. That is a healthy margin, but notice how quickly it compresses if construction costs rise 10% or sale prices drop 5%. This is why accurate cost estimation is not optional — it is the difference between a profitable project and an expensive education.