The rents for newly renovated and furnished studio units at the Lotus Hotel had been publicly listed for $1,995 a month for some time.
But it took a viral TikTok video by a company that does “PR and media for real estate and corporate projects” to spark a larger conversation about the property at 445 Abbott — and the state of renting in Vancouver’s Downtown Eastside.
“It’s disheartening to see this happening to some of the most affordable housing stock in the city,” said Vancouver councillor Pete Fry.
“These are housing units that were typically affordable to folks on pension, folks on on social assistance, and obviously at $2,000 a month, it’s bringing in a whole different kind of demographic.”
Reactions to the video on the 200-square-foot micro-unit — which made light of its size and was set to jaunty music — included confusion over whether it was sincere or an attempt at satire.
The company behind the video deleted it from its social media channels after it went viral, and declined to speak on the record when asked by CBC News.
‘If I’m honest, the building is not good’
The Lotus is a private SRO (single room occupancy) hotel, which has historically housed thousands of the poorest people in Vancouver, usually around shelter rates.
But over the years, private operators have raised the rents at many of the properties they own, which often include renovations.
In the case of the Lotus, Toronto-based company Forum Asset Management purchased the building less than two years ago, and has offered tenants in unrenovated units $15,000 to leave.
Multiple tenants of the Lotus confirmed they’ve been given offers of $15,000 to vacate their units so that renovations can happen. (Ben Nelms/CBC)
“We talked with a lot of people from the building, and they said, ‘Yeah, that happens all the time’, so pay attention, and so that’s what we do,” said Juanita Estrada, who described the building as a mix of long-time residents and short-term student renters like herself.
“If I’m honest, the building is not good. The elevator doesn’t work anymore … nobody answers if something goes wrong in your apartment. So you have to fix it by yourself,” she said.
“I’d prefer to go farther from downtown and leave than staying here, if I’m honest.”
Greg Spafford, forum managing director of real estate management, defended their plan when it was first reported by Vancouver Is Awesome, saying no tenants were forced to leave and that some have welcomed their approach.
“They’re affordable rents,” he said.
“This is the cheapest option for people in downtown Vancouver.”
According to Rentals.ca, the average asking price for vacant one-bedroom apartments in Vancouver has increased from $2,004 in August 2020 to $3,013 in August 2023.
A rental availability sign is pictured outside an apartment building in Vancouver in November 2022. According to Rentals.ca, the average asking price for vacant one-bedroom apartments in Vancouver has increased from $2,004 in August 2020 to $3,013 in August 2023. (Ben Nelms/CBC)
“I do believe that we’re appealing that decision with the courts, but for the time being our hands are pretty much tied,” said Fry.
“There’s really nothing we can do about it. It’s totally legal.”
Wendy Pedersen, executive director of the SRO Collaborative, said an appeal should be an urgent priority.
“SRO gentrification is causing homelessness unfortunately. And we can’t build fast enough to stop the flood of people into shelters and the B.C. Housing, tent cities, and emergency services on the street, which are all very expensive,” she said.
“It’s like musical chairs, and the chairs keep getting pulled away. People are wondering why homelessness is so visible, well this is a huge cause.”
As for the $2,000 apartment in the Lotus?
A day after the promotional video was deleted, the posting was also removed from Craigslist.
The property management company didn’t respond to a message for comment — leaving it unknown whether it was pulled for bad publicity, or because someone decided to rent the unit.
HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.
Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.
Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”
Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.
The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.
Those delays forced Nova Scotia Power to spend more on generating its own electricity.
This report by The Canadian Press was first published Sept. 16, 2024.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
