Rental crisis: build-to-rent multi-use development’s cut down by “red tape”

Much needed build-to-rent properties that could help alleviate the rental crisis aren’t getting constructed because of key restrictions, a developer has revealed.

Vital rental properties that could help alleviate pressure on tenants are not getting built because of too much red tape, a commercial property developer has revealed.

Fivex, a commercial property investor company has completed three multi-use developments that include build-to-rent properties that they will “build to keep, not to sell”.

Fivex Managing Director Lesli Berger said that for these projects to be viable, government policy needs to be streamlined and updated to reflect the evolving needs and demographics of Australians.

Transforming commercial properties into ‘multi-use’, these rental properties have residential, retail and commercial spaces all in one.

The Double Bay multi-use property has 12 residential apartments, office spaces and retail all in the one building.

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Completing their third mixed-use development in Double Bay, the property now has ground-floor retail, office spaces and two levels of residential apartments above.

All 12 apartments in the building are leased and the office and retail spaces are almost fully occupied.

Mr Berger said the company could contribute around 1,000 new build-to-rent properties as rental stock if it wasn’t for policy and planning restrictions.

“If we are going to address the very real housing crisis, then we need a change of attitude, to

see more streamlined approval processes at a local government level, changes to zoning

and improved subsidies at a state and federal level,” he said.

Commercial office space available in the Double Bay multi-use rental property.

Mr Berger believes Fivex’ multi-use rental properties can help fix the rental crisis.

“The demand for rental properties is increasing. Multi-use properties can address this demand and expand housing options in areas traditionally earmarked for businesses, catering to changing societal needs,” he said.

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Mr Berger said they had to overcome “substantial challenges” when altering and expanding commercial properties to accommodate multi-use purposes.

Fivex build their properties to rent out, not sell, which Mr Berger said this changes the way they build, with sustainability and longevity in mind.

Commercial office space in the Double Bay multi-use property

“Our multi-use projects are evidence of how residential, retail and commercial spaces can be seamlessly integrated to meet the population’s demands for environments that bring productivity, leisure, culture and convenience into one place,” he said.

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Originally published as Rental crisis: build-to-rent multi-use development’s cut down by “red tape”