Q&A: Ben Taddei’s analytical approach to development

From wandering Richmond construction sites as a kid to pivoting from pre-dentistry at UBC into real estate, Conwest partner and COO Ben Taddei has spent three decades sharpening a builder’s instincts with a strategist’s discipline. Today he is known for rigorous market forecasting, execution-first leadership, and an underdog ethos that has shaped Conwest’s growth. In this Q&A, Taddei reflects on lessons that endure through cycles, what many get wrong about development, and where he sees the next opportunities as Canada’s market begins to shift.

SiteNews: How did you get involved in the development and real estate sector?

Ben Taddei: I grew up in Richmond, B.C. in the 1970s. It was a time when Richmond was going through a significant phase of growth. I lived in a construction zone for years as my neighborhood built up around me. Between the ages of 5 and 12 I would wander and play in the houses that were being built in my surrounding neighborhoods. I got to see roads being built, schools, community centers and homes being built, and I met a lot of tradespeople. I watched what they were doing and asked if I could help. Sometimes they would give me a small job to do—they got a kick out of it. I loved the sights, sounds, and smells of new construction. This stuck with me for the rest of my life.

It wasn’t until I got into UBC Sciences, on my way to being a dentist (imagine that), that I realized I was on the wrong path in life. I didn’t want to be a dentist. I wanted to be a builder of homes and other types of buildings. Back in those days the Vancouver Sun newspaper had a Homes section on the weekends that was always about half an inch thick. On the front page you’d often find a picture and a story of a young Nat Bosa. I didn’t know him, but being a young Italian boy I knew of him. He was “the guy” in our community. I was fascinated by the stories of Nat building towers all over the region. He was an immigrant like my parents were. I thought to myself, “I want to do that! I want to be that guy!”

So, I decided to switch my major to Business, later specializing in Marketing and Real Estate. I graduated from UBC Commerce in 1990 in the middle of a recession. The real estate industry was in tough shape, but I was young and had nothing to lose, so I jumped in with both feet. I hit the pavement and started knocking on doors and making contacts. I talked my way into my first job, offering to work for free. The guy that owned the company I was chasing saw the hunger in my eyes and felt sorry for me or something, so he said he’d hire me on a contract basis. My gross salary was $1,100 per month. But I didn’t care. I jumped at the opportunity.

I had no connections, no family in the business. Everything was on me. But what I did have was a clear personal vision to work towards and a massive desire to achieve my goals. The rest is history.

What habits outside of work keep you at the top of your game?

I’m a very focused and disciplined person. I’ve set up my routines so my life is efficient and scalable. I can get a lot done quickly. I don’t like to spend time on things I don’t value. For example, I’ve got friends that love to golf. They’ve been trying to get me on the course for decades. But all I can think of when I’m on the course are all the other fun and fulfilling things I could be doing with them or others instead, like meeting people in the business, or reading about other markets and innovation in real estate. I love what I do. My work is my hobby, and my hobby is my work. So…I don’t golf.

You have been a leader in the industry for decades. What business strategies have kept you on top this long through the many challenges the industry has faced?

The number one thing you must remember is that our business is cyclical. The next thing you need to remember is that the cycle is different every time. So, you need to be a good forecaster. If you don’t understand the business—all the variables, how they are interconnected, how they are changing, and how the cumulative effect of the changes will impact profit and cashflow—you’re going to have a very difficult time in this business.

I often use the following analogy when I’m describing this to someone. Back in my Statistics class at UBC I learned about regression analysis. You may know or recall that what you’re solving for when running a regression analysis is a “what if” function—you know, f(x). And f(x), the result, is dependent on a string of variables and the weighting of each variable in the function. For example, one variable could be interest rates on mortgages. But what’s the weighting for this variable? Also, what are the other variables and weightings? You’ve got to figure this out.

If you look at our business that way you can improve your forecasting ability. But people don’t want to do this level of analysis because it’s difficult and it takes a lot of effort and commitment. You need to be an avid student of our business and everything that affects it. You must read…a lot! Shortform YouTube and TikTok videos won’t get you there. Not enough detail.

What is the best advice you’ve ever been given?

I’ve received a ton of great advice over the years. Bad advice too. But one of the best nuggets of advice I ever received was from Gary Santini, the Founder of ParkLane Homes. (NB: I consider my early years at ParkLane to be foundational in my career.) Gary was a huge presence in our local housing industry in the 80s and 90s. It wasn’t long after I started working at ParkLane that Gary started to drop nuggets of wisdom on me. The one that I never forgot was when he said, “Ben, never take credit for the market going up unless you’re prepared to take the blame for it going down.” He had a lot of these little but powerful sayings. An associated one was, “Ben, even turkeys fly in a strong wind.”

Bottom line, people aren’t as smart as they think they are. They love to take credit for making money when the market is strong. They espouse how hard they work or how smart they are. But then the market turns, and it always does, and their egos can’t take the pain of the poor decisions they made in the past. Then, it’s always everyone else’s fault. Or they use phrases like, “no one could have seen this coming.” He also wanted to make sure I understood that it was very important to make your moves in the market before it turns down because when it turns, you’ve got no liquidity and prices fall. Wise!

Are there any personal rules you follow for business or life that have helped you?

My main operating principle is to always leave everyone you deal with better off than they were when you started dealing with them. People need to win. If you make sure they win, your reputation as an honorable person will precede you. People will want to do business with you. This means you need to take the long view and sometimes leave a fair chunk of money behind. People are too short-sighted. They go for the quick cash or easy deal. They can be selfish. This approach will hurt you in the long run in my opinion. But, on the flip side, you can’t be a pushover either. When people are trying to take advantage of you or you need to make tough decisions…well…you need to meet the moment.

Who do you admire most in industry and why?

There are quite a few people I admire in our industry, both young and old. Mostly because of their passion for the business—that’s the common link. But the one person that stands out to me the most is David Baxter. He was my Real Estate Finance professor at UBC. That’s where we met when I was about 20 years old and we hit it off from the get-go. I thought he was super funny, wickedly smart, and a great long-term thinker and strategist. I think he saw something in me too—perhaps it was my enthusiasm and drive. Regardless, he got me thinking.

After I graduated in 1990, I went back to see him. The market was tough. Jobs were nonexistent. I had come to the realization that although I had a great business education, I really didn’t know anything about the business. I also didn’t have the technical skills needed to be in construction. I was feeling a bit sorry for myself, and I thought about going back to school to be a chartered accountant. He said, “Why do you want to be an accountant?” I said, “I don’t. It’s just really hard right now.” He said, “What do you want to be?” I said, “A developer.” He then gave me the best advice I’ve ever received when he said, “Ben, everything in life is hard and life is what you make it. If you really want to be a developer, then go do it. Give it everything you’ve got. Never give up. You’ll get there.” And that’s what I did and still do. To this day we are friends. We get together and talk about life, his travels, the market, etc. He’s still as wickedly smart as he was back then. And funnier!

If you could go back in time and give yourself one piece of advice when you were just starting out, what would it be?

This one is easy. I’d tell myself, “Work harder. Get smarter faster. Be more confident in my abilities to figure stuff out. Take more risk. Repeat.”

Developers have been all over the headlines recently as the sector has seen some major shifts. What is your analysis of what is happening in the B.C. real estate market and what can we expect to see in the coming months?

This is a big question. The bottom line is that we went from a very bullish real estate regime to a very bearish one over the past decade. And when we go through something like this—and it’s not the first time, and it won’t be the last time—there is pain, usually for most people.

The pain on the renter’s side is coming from lack of affordable supply. The pain from condo buyers is coming from a lack of affordable supply. The pain from condo and purpose-built rental builders is coming from a lack of affordable supply. Are you seeing a trend? Everyone wants the same thing, but the reality is that we can’t get there unless government subsidizes the first two and the market can afford the latter.

Even if builders wanted to build cheaper homes—and we do—we just can’t. The cost of building is a factor of many things that are largely beyond the control of the builders. Most materials that go into housing are manufactured offshore and are priced in U.S. dollars. That means we pay a 40% premium for everything. Also, building guidelines, codes, and regulations have increased the complexity and cost of building. Permits take too long, driving up financing costs. Even if you take the land cost and builder profit out of the equation, builders still can’t deliver affordable housing. Even if you strip the finishes of a building to a base-level specification, and build 300 sq. ft. condos that the market doesn’t want, you still can’t hit the affordability levels required by potential customers. If it wasn’t for the parents of first-time buyers helping them out, there would be no first-time buyer demand.

Real after-tax income levels in Canada over the past decade have not kept up with inflation. Our governments have neglected their role in creating the ecosystem to enable us to grow our economy with good, high-paying, house-buying jobs. So we are now in an untenable situation. Everybody is in a tough spot, and we have no choice but to do what it will take to dig ourselves out of this.

That includes a combination of things: the market has to settle into its new equilibrium, our industry will shrink with fewer people working and delivering fewer homes than in the past, unemployment will likely increase in the short term, government needs to employ austerity measures and reduce the cost and size of government, the tax regime needs an overhaul to reward investment, we need to speed up the approval of resource projects, we need to figure out the land rights question, and we need lower interest rates, etc. There is no magic bullet. Above all, we need the right mindset to get this all done. Bring back reward for innovation, risk, and investment, create accountability in government, attract foreign direct investment into industry to help create higher value jobs, etc.

What do you see as the biggest threat to the development sector currently?

The number one threat to the development sector is the question around land rights in Canada, particularly in B.C. This question needs to be settled quickly. But it’s been ongoing for decades if not centuries, depending on how you look at it. Our entire real estate sector—all asset classes, all corners of this nation—is predicated on fee simple land rights.

Think about it: people investing capital, whether buying a $500,000 condo or a major international corporation investing tens or hundreds of millions of dollars, need certainty of tenure. The banks and institutional investors/lenders that enable these transactions need to register their mortgages and rely on the security provided by enabling legislation. I remember talking about this growing risk back when the UN adopted UNDRIP and when the Trudeau government in Canada and the Horgan government in B.C. did the same. People thought I was paranoid. Well…here we are.

I understand the history of our country and the need for economic reconciliation. We just need to define what it is, how it will work, and who will pay for all this. Not an easy task. Until then, there will be uncertainty. But, with uncertainty often comes opportunity for those who can work together toward a mutually beneficial outcome. Win/Win!

You have been with Conwest for more than a decade. What accomplishments are you most proud of and what do you think makes your team successful?

When I joined Conwest over 11 years ago, I had the benefit of knowing John and Tony Marinelli personally and professionally. We always got along, and we had similar shared goals, values, histories, and work ethics. So the thing I’m most proud of is our ongoing partnership.

Focusing on the company, we’ve come a long way since then. Conwest, back in 2014 when I joined, was known as a small, boutique civil company that happened to also do some industrial development. Since then, Conwest has become a leader in both the civil and development sectors. None of this could be possible without the focus that John, Tony, and I had on the future of the business and without the commitment of our staff, especially those who have been around long term.

What’s the secret sauce? It’s one thing: authentic alignment throughout our organization. It’s summed up by the following statement I repeat often: “This place is this place…and it’s not for everyone.” Bottom line: we have a pervasive underdog mentality that runs throughout the company. It comes from John, Tony, and my history. We are all the sons of Italian immigrants. We come “from nothing.” No one gave us anything, so we work hard. This is a psychology we can’t shake. The people that thrive here also have that authentic drive. Others don’t value what we value…and that’s fine. Conwest is not for everyone.

Industrial, housing, rental, commercial—where do the future opportunities sit for developers in B.C. and what is next for Conwest?

Short term (2–3 years) will continue to bring some pain for pretty much everybody. Then, if we do what we need to do starting now—and we have no choice—the medium term will be more prosperous, and the long term will be great.

We need to grow our economy by leveraging our resource base. We need to be globally competitive and attract the kind of people who can help us grow. We need to reward innovation and risk-taking. We need to leverage royalties from resource projects to create economic clusters of innovation. We should be building products and services in Canada that we can export all over the world. Some say manufacturing is dead and that tech/financial services are where it’s at. That’s naïve. Not everyone can or wants to be a software engineer, and where is national resiliency in that? Nowhere. We saw this during COVID when Canada couldn’t manufacture vaccines or secure masks. Let’s get real.

Conwest is getting involved at all levels of government to help create change. We’re investing in our people and projects to make us better, in fact the best, in our marketplace. We sponsor youth education like UBC Sauder School, BCIT, and SFU Beedie. We started a trade introduction program called Building Tomorrow, provide scholarships, and started the Conwest Mentorship Program for youth. After 40 years in the business, we’re just getting started.