Development is a conservative profession by nature, but out of necessity, it’s also getting more creative in its delivery, says long-time developer Brent Sawchyn, founder of Vancouver’s PC Urban, a merchant development company that builds purpose built rental and industrial strata buildings in Western Canada and soon, Toronto.
Sawchyn grew up in Winnipeg, the son of an impresario who managed 1970s band Lighthouse, and the Royal Winnipeg Ballet, circuses from Moscow and China, and theatrical troupes. When his dad launched a precursor to Cirque du Soleil in the 1980s and interest rates soared to around 20%, Sawchyn saw the risks of running a small business. He became a commercial broker and when he got the call from Rod Schroeder to join his Vancouver-based shopping mall development company, he jumped at it.
“After you’ve been through situations like that, you have a better idea on how to mitigate your risk and a better sense of where you can get caught out. And what's the adage? You learn a lot more from mistakes than you do from success.” Of course, the development world has grown more sophisticated and complex, he says. Everyone, including consumers, knows the price of everything these days, and demands have changed. The capital required is massive, as are the hurdles to get through the process, from acquiring the land to completion. Finding investor partners takes up considerable time and requires networking.
The biggest obstacle he cites is the timeline for approvals, which has grown significantly over the decades since he began. There are layers of bureaucracy, building codes, and politically motivated policy changes that all developers must now contend with. He’s grateful for the federal government’s GST rebate on new purpose-built rental buildings, but a year has gone by since the announcement and they’re still at the application stage. Change is slow.