Vancouver City Council heard a presentation today by the City’s Engineering Services and Director of Transportation on the various options for Broadway Rapid Transit. The presentation provided further detail on demands for transit and business opportunities on the Broadway corridor.

The City highlights the urgency to implement an upgraded form of rapid transit along the growing Broadway corridor. Currently the UBC 99 B-line is the busiest bus route in North America. The City is clearly veering their support away from LRT and toward sub-surface Rail Rapid Transit (ie. Skytrain).

While previous policy indicated a willingness for a subway only to Arbutus, there are many who are arguing for an extension of subway all the way to UBC, rather than rapid bus, which had been explored as an option. As Frances Bula points out, the University is one group that much prefers a single skytrain line all the way to UBC.

Source: City of Vancouver

Canada’s Government Bond Yield for 5 Year Notes has declined from 1.39% to 1.26%. During the last 12 months, the 5-year bond yield remained relatively flat. By comparison, in November 2010, 5-year notes were yielding 2.48%. Yields remain at or near all-time lows that reflect ongoing global uncertainty, a trend which is reflected in yields on sovereign debt in other economies.

The Bank of Canada has shown no indication that it will raise rates until the currently risky economic outlook becomes clearer; likely in late 2013 at the earliest.

For investors looking to buy commercial real estate assets in Vancouver this points to debt financing rates at or near record low level heading into 2013.