CAPREIT announces several strategic transactions

Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) has been busy buying and selling apartment properties across the country in recent weeks. On February 10, 2025, the company announced it had completed two non-core dispositions for $96.8 million, in addition to closing on a 717-suite sale in Montréal for $103.8 million; it also acquired two recently constructed rental apartment properties in Western Canada for an aggregate purchase price of $97.6 million.

In January, CAPREIT sold a non-core portfolio containing 242 residential suites in Brampton, Ontario, for $73.8 million and a 138-suite portfolio located in Charlottetown, Price Edward Island, for $23.0 million. Meanwhile, it closed on the acquisition of a purpose-built 41-suite rental property situated in Vancouver. In February, it purchased an “on-strategy” 27-storey, 240-suite rental property located in the Wîhkwêntôwin (formerly Oliver) District of Edmonton.

“We’re kicking off the new year on an exciting note with these strategic transactions, through which we’re continuing to upgrade the quality and enhance the diversification of our core platform in Canada,” said Mark Kenney, President and Chief Executive Officer. “These recently constructed, mid-market rental properties fit perfectly into our target portfolio positioning, and we’re acquiring them at an age where they provide an ideal balance of embedded value and growth potential. We’re equally pleased to be able to keep playing our part in supporting the Canadian housing eco-system, through the investment of our capital into newer purpose-built rental properties, and we’re looking forward to doing more of this in 2025.”

“We’ve strengthened our Western Canadian presence with the addition of these two on-strategy properties, which boast affordable rents averaging in the high $2 per square foot range,” added Julian Schonfeldt, Chief Investment Officer. “These transactions demonstrate that we’re able to sell our non-core legacy properties at prices that are at, or above, IFRS fair value, while also purchasing well-located, high-quality buildings at meaningful discounts to replacement cost. Our current capital reallocation plan remains robust, and we’ll continue to execute on value-enhancing transactions that benefit all of our key stakeholders moving forward.”

For more info, visit: Rental Apartments in Canada – Canadian Apartment Properties REIT

A tailored approach to energy management

Energy management plays a crucial role in addressing rising utility costs and achieving sustainability goals for Canada’s evolving apartment sector. Since the early 2000s, building retrofits aimed at improving energy efficiencies have been gaining traction in the multifamily space, with popular upgrades ranging from replacing old lighting systems to improving the building envelope. By the late 2000s, Energy Management Systems (EMS) began to take off thanks to the promise of increased optimization through their ability to monitor and control energy consumption. Today, as the technology continues to develop, building owners and operators are increasingly investing in advanced energy management platforms that are proven to deliver better results and greater savings than before.

“Today’s systems not only reduce costs but also adhere to stringent energy efficiency regulations and cater to tenants’ growing preference for environmentally conscious properties,” says Claudel Therrien, president and CEO of Demtroys. “Furthermore, the integration of smart devices and data-driven insights enhances operations across properties, resulting in improved financial performance and reduced environmental impact.”

As shrewd as that sounds, not all energy systems and strategies are right for every multi-residential building. From pre-war row-housing to post-90s high-rise apartments, building stock and their conditions can vary greatly, further impacted by maintenance practices, renovations, and the materials used in construction. Owners and property managers are well advised to do their research to determine the best approach and the right solutions for each asset they operate.

“The optimal energy management strategy depends on the building’s configuration,” says Therrien. “For buildings without in-unit temperature controls, advanced controls on main equipment, such as boilers and chillers, offer an effective solution. Conversely, for buildings with in-unit temperature controls, deploying a centrally managed system of smart thermostats, temperature sensors, and real-time energy management tools provides the greatest benefits.”

Therrien points to his own company’s energy management platform, touting its ability to enhance efficiency by dynamically adapting to environmental and occupancy conditions. Leading-edge features of the platform include load-shedding capabilities and targeted heating or cooling adjustments that ultimately result in lower energy bills, reduced greenhouse gas (GHG) emissions, and extended equipment lifespans.

“The bottom line is that a tailored approach to energy management is essential, as no two buildings are the same,” he says. “My recommendation to owners is that they begin with a detailed energy assessment to identify inefficiencies and potential savings. For those not ready to undertake major renovations, such as replacing lighting, windows, or building envelopes, implementing energy management systems that require minimal installation effort is a highly effective alternative.”

To support these types of upgrades, various government grants are available, and most solution providers can help their clients navigate the process of securing funding through to training staff on the newly installed equipment. Ongoing support and system optimization are also recommended, as this will help ensure long-term efficiencies while maximizing the benefits of the investment.

Smart devices give data-driven results

One of the key benefits of investing in smart devices and integrated energy platforms, according to Therrien, is their ability to enhance tenant comfort by maintaining consistent and optimal indoor temperatures.

“By regulating temperatures more precisely than traditional mechanical thermostats, these devices often overshoot the setpoint and then drop below it in a continuous cycle,” he notes—adding that space heating accounts for over 60 per cent of total residential energy use in Canada. The next highest energy consumers are water heating and appliances, which together make up only about 17 per cent of energy use.

Meanwhile, from a property value perspective, the benefits of energy management platforms are undeniable given that buildings equipped with advanced management systems are more appealing to investors and buyers as they offer reduced operating costs and typically align with corporate sustainability goals.

“The impact on property value can be substantial, depending on the capitalization rate,” says Therrien. “For example, with a capitalization rate of 5 per cent, every $1 saved in energy costs can increase the property’s value by $20, reflecting a 20x multiplier effect.”

In terms of savings incurred through energy investments, it all depends on the building’s initial efficiency and the extent of the upgrades implemented.

“On average, we report heating cost reductions of 15 to 45 per cent with our systems, leading to substantial financial and environmental benefits over time,” he says. “The return on investment is generally achieved within a few years, further supported by grants available for the initial setup.”

How Energy Management Systems (EMS) work

A typical EMS is designed to help building owners monitor, control, and optimize energy use by collecting data and identifying areas where energy is being wasted. For example, it might detect that a piece of equipment is malfunctioning and using more energy than necessary, prompting a replacement or repair. EMS platforms can also help building owners set energy goals, track progress, and even predict peak usage times to better manage energy consumption.

Typical components of an EMS include:

Sensors that continuously measure energy consumption and send the data to the EMS platform
An EMS Interface where the user can monitor and manage energy usage, with real-time data and historical trends
A Control System that sends commands from the EMS interface to the devices being managed, such as HVAC systems, lighting, and other electrical equipment
The energy-consuming devices controlled by the EMS include heating and cooling systems, fans, and lights

Resources for interested owners

While there’s little doubt about the significant benefits energy upgrades bring, the upfront investment can be off-putting; that’s why it’s important to take advantage of any available grants or incentives to help ease some of the financial burden. Grants can cover a significant portion of the retrofit costs, and some programs offer low-interest loans with favourable repayment terms, making it easier for owners to manage the costs over time.

The government of Canada’s “Retrofit Hub” hosts a collection of resources to help multi-residential building owners plan, finance, and implement their retrofit projects. Current opportunities listed include the Canada Infrastructure Bank’s Public and Commercial Building Retrofits Initiative; the Clean Technology Investment Tax Credit (ITC); Canada Mortgage and Housing Corporation’s Canada Greener Affordable Housing program, as well as several provincial and municipal programs. In addition, Natural Resources Canada offers a wealth of information about best practices for maximizing energy efficiency in existing buildings, energy management training resources, fact sheets, data and benchmarking.

Demtroys specializes in advanced energy management systems that help optimize energy usage and reduce heating costs in Canadian apartment buildings. For more information, visit the Quebec-based company at www.demtroys.com

Tariff blows would land on U.S. construction

Some of the first tariff blows would land on in-progress construction and public infrastructure projects if threatened action on steel and aluminum imports into the United States goes into effect on March 12. Newly released commentary from the credit rating agency, Morningstar DBRS, projects a variety of repercussions for contractors, equipment manufacturers and their clients, with the latter including procurers in the commercial real estate, facilities management and public works sectors.

If enacted, the U.S. government-imposed 25 per cent tariff on steel and aluminum is expected to quickly flow through to input costs. Morningstar DBRS analysts foresee at least part of that will be passed through to consumers in higher prices for end-products. However, some contractors may have to absorb the full hit if they have fixed-price contracts that do not include leeway for cost escalation or a change-in-law clause to mitigate their risk. This, in turn, could undermine their financial stability and credit profiles.

If the proposed tariffs were to remain in place for an extended period, analysts project increased potential for inflationary prices, supply chain disruptions, project delays or cancellations, and more disputes and litigation between contractors and their clients related to unfolding changes in project budgets and scheduling.

“Trade wars create an environment of general uncertainty within the construction industry,” they note. “For projects in the procurement phase, risk management and efficient planning will be a top priority for contractors. We anticipate contractors will expand their contingency budgets, avoid pure fixed-price contracts, or include price escalation clauses in their contracts.”

Morningstar DBRS analysts also express skepticism that there are adequate sources of domestic supply to replace imported steel and aluminum any time soon. The most recent stats show that nearly 29 million tons (26.2 million metric tonnes) of steel was imported into the U.S. in 2024 and nearly 5.3 million tons (4.8 million tonnes) of aluminum was imported in 2023. The latter amount represents nearly half of the U.S. annual consumption, and Canada is the primary source.

“Contractors and OEMs (original equipment manufacturers) in the U.S. could look to source products locally and/or find alternatives to mitigate tariff impacts. However, the high cost of labor and energy in the local market may diminish the cost differential over imported goods,” the commentary states. “Reshoring requires extensive design, logistics and input materials. Our view is that these projects are becoming increasingly expensive (vis-à-vis low-cost countries like India and Vietnam) on the back of ongoing tariff wars affecting the cost of essential inputs.”

Credit ratings remain firm, thus far, for potentially affected industry players. Drawing on the previous 2018-19 experience, when the U.S. government implemented a 25 per cent tariff on steel imports and a 10 per cent tariff on aluminum imports, analysts conclude that most of the agency’s “rated investment-grade issuers” are positioned to navigate the upheaval that may be coming.

“Large contractors typically have low leverage because of the self-financing nature of the industry and have the balance sheet strength to withstand near-term earnings volatility,” they observe. “We remain cautious of smaller players as they do not have a notable backlog, rely on a limited network of suppliers, and have less of a liquidity buffer. Therefore, for these smaller issuers, financial risk profiles are more exposed to margin squeeze.”

$58M investment to create thousands of homes in Winnipeg

The City of Winnipeg and the federal government are investing $58.5 million through two housing programs to create nearly 2,500 new homes across Winnipeg.

The two governments announced recipients of the second round of grants under the Housing Accelerator Fund Capital Grant Program. The City is awarding $25 million in capital grants to 12 local housing projects focused on affordable housing and developments in downtown. These projects will create 1,418 new housing units with 633 affordable units.

In addition, 16 housing development projects will receive $33.5 million in tax increment financing (TIF) through the City’s Affordable Housing Now Program. Overall construction costs are expected to exceed $1.6 billion.

“It’s wonderful to see the impact the Housing Accelerator Fund is having across Winnipeg.” said Minister of Sport and PrairiesCan Terry Duguid. “Projects like these will help young people find affordable homes and create vibrant, inclusive communities where all families, especially the next generation, can thrive and build their future.”

The projects awarded funding through the second round of the Housing Accelerator Fund Capital Grant Program had all applied to the program during its initial intake period. Through that intake, there were 66 total grant applications and requests for about $160 million in funding. The City was able to award $25 million to 11 projects in the first round of the program.

Equiton launches The Maxium Collection

Equiton Developments introduced its first flagship project for The Maxium Collection. 875 The Queensway is a boutique mid-rise condo that is being called a “game changer in condo architecture” with a shift towards end-user-centric design.

“The speculative condo boom in Toronto is over,” said Equiton’s Chief Operating Officer Christopher Wein “But Toronto is maturing. We’re no longer the ‘teenage cousin’ to other global metropolises. As the city grows, so do the expectations of its residents. The focus now is on livability, long-term value, and creating apartments that people truly want to call home.”

To reflect this vision, space, functionality and premium finishes are key design elements of The Maxium Collection, with a focus on maximal living over minimalistic trends. Some features include Scavolini kitchens with integrated Bosch appliances and walk-through closets with generous millwork.

Residences in the building range from studios to three-bedroom apartments. Icon Architects has designed an inviting ground-level experience and a greater connection to the outdoors. The facade features strategically placed openings to add visual interest and improve natural light and views. Step-backs on higher floors create spacious, functional terraces for residents.

Where larger outdoor spaces were not possible, the team opted to forgo balconies in favour of larger living spaces and Juliette balconies.

Interiors by Patton Design Studio draw inspiration from Japandi—a fusion of Japanese minimalism and Scandinavian warmth. Amenities include a wellness spa with an infrared sauna, an exercise room, a kids’ play area with a treehouse, and a rooftop terrace with views of Lake Ontario.

Getting a jump on landscaping season

Even with snow still on the ground, it’s not too early to plan your landscaping strategy as part of your spring maintenance plan. Putting a plan together before the seasons change allows you to mitigate any surprises, save your budget, and get ahead of any issues you might need to address. Lawncare is not just about the maintenance of your property and achieving the results you’re looking for, it is often the first thing guests notice about your business.

Here are some of the ways that planning ahead for landscaping season in the winter can benefit your business:

Tackling your outdoor maintenance plan early may mean you have better access to equipment and professional contractors. Both are heavily booked once spring arrives, so you may be able to take advantage of improved availability by booking in the winter. There might even be an early booking or materials discount for scheduling before the demand gets high.
Enjoy the fruits of your labour sooner by planning in the winter and planting as soon as you can. By waiting until late spring, early bloomers may not be an option, leaving your landscaping looking barren into the summer. Planting sooner means your property can look polished and professional with spring curb appeal.
Winter planning allows more time for you to explore your options, adjust your budget, and plan for any operational disruptions. Also, without the distraction of any existing landscaping, winter allows a blank slate for you to create the spring and summer look you want.
Permits and approvals may also be an issue. If you are taking on a larger project, you may need to allow for enough time to have permits approved. Planning early means you won’t be delayed by bureaucracy and need to push back your project.
Seasonality can also be an issue, with weather concerns occurring through the spring season. More time can allow you extra leeway with scheduling, so your project does not get derailed. Often, as more weather causes issues and the spring continues, projects are delayed into the summer, which you can avoid by booking early.

While landscaping may not be on your mind with snow still on the ground, there are significant benefits for your business when you plan your spring landscaping in the winter.

How to avoid ambushing owners with difficult news

An all-too-common occurrence at owners’ meetings is the surprise residents feel when financial shortfalls for major capital repair projects are up for discussion.

Some would argue that owners are apathetic and should pay close attention to notices or participate in every owners’ meeting to stay up-to-date. Others might say condo corporations should focus more on when and how they are communicating so that owners have a better opportunity to understand what is happening in their community.

What is the best way to find middle ground so owners don’t feel ambushed when difficult news is delivered?

Back to basics

Communication is critical in a condo community. Notices and newsletters inform owners about disruption related to construction, unit access, fire alarms, and more. But are boards effectively communicating all the planning work that goes on behind the scenes? The planning process can take years, particularly for major capital repair projects, but owners are often unaware of what is really going on. They may see in the reserve fund study what projects are expected and they receive notice when the work is scheduled, but what about all the stuff in between?

Engaging with owners regularly about what is being planned extends beyond the day-to-day operations. It’s also about proactive leadership, consistency, and providing opportunities to ask questions along the way.

Use multiple communication channels

Using digital communication channels is an essential practice for keeping owners up to date, while being aware that complete reliance on digital tools is a fools practice. Since many individuals shy away from technology, know your audience and connect in a way that works for everyone. In most communities that means using multiple communication channels to deliver the same message. Being considerate of how people consume information will offer maximum reach and minimize surprises.

Get the board talking

Being a board member involves long hours and difficult decisions—all while trying to be part of the community. As such, some boards rely on their managers to deliver every message, but eventually, the elected leaders will need to speak directly to their neighbours.
This often happens at the annual general meeting where the president will deliver a report. While a good start, there may be owners who cannot attend or new community members moving in throughout the year. Think about adapting the president’s report into other forms of more regular communication.

Don’t wait

Planning a capital repair project has many moving parts. Owners might strictly focus on how project execution will affect their lives, information which may not be known until the board has signed with a contractor. As well, the financial realities can change as planning progresses.
Many boards want to wait until they know everything before engaging with owners. If this is the case, construction will have already started and owners will know nothing.

Communication must begin as early in the planning process as possible, which means being upfront about what is known and committing to keeping everyone informed throughout the process.

People do not like to be surprised. Not everyone pays as much attention as they should. But using reasonable efforts for transparency will minimize finger pointing when challenges arise.
Involve Owners in the Solutions

After keeping people informed, if challenges arise, boards have an opportunity to engage ownership in the solutions. Don’t shy away from owner information meetings, even if the subject matter is difficult or unpopular.

Delaying the conversation only provides an opportunity for people to get more worked up. Take a deep breath, face the conversation head on, and thoughtfully consider any feedback that is received, even if that feedback is negative.
This can present its own challenges as sometimes owners can be quite unreasonable; they may want the board to take no action at all, even if there is a statutory obligation that can’t be avoided. For this reason, when there are difficult discussions to be had, preparedness is key.

Make materials available

As a general rule, boards shouldn’t make blind decisions. They rely on their experts to guide them in the decision-making process. When complex resolutions need to be made, this usually involves written reporting to the board.

A common question at meetings is, “Can I get a copy of the engineer’s report?”, often followed by the manager giving a complicated explanation of how records requests work. These details are not secret, yet there are sometimes reasons to keep things confidential. Instead of waiting for someone to complain about needing more information, make it available from the beginning.

There is no sense guarding information that owners have the right to access anyway, and providing it helps ensure a productive owners meeting.

Ultimately, every decision the board makes will impact condo owners. Capital repair projects can be especially disruptive and have a major financial impact. Conversations about these issues can be tricky but are absolutely necessary. Timely, relevant, and transparent communication is key for success, and can help to reduce conflict when the unexpected happens. Don’t ambush owners with difficult news, and they will be less likely to ambush you in return.

Lyndsey McNally, OLCM, LCCI, CCI (Hon’s), is a Director at Condominium Lending Group and President of the Toronto & Area Chapter of the Canadian Condominium Institute.

Improving B.C.’s transportation corridors

Engineers play an important role in designing the critical transportation infrastructure that connects communities throughout B.C. From highways and bridges to transit systems, well-designed and planned transportation systems are essential for economic development and connectivity.

B.C.’s leading engineering firms are helping to deliver several mega infrastructure projects which will improve the province’s most critical transportation corridors. Three projects were highlighted during a session at the 2025 ACEC-BC Transportation Conference.

Major construction is underway on the first rapid-transit project south of the Fraser River in 30 years. The $6 billion Surrey Langley SkyTrain project will extend rapid transit 16 kilometres, primarily along Fraser Highway on an elevated guideway from King George Station in Surrey to 203 Street in Langley City. It includes eight stations and three transit exchanges at the Bakerview-166 Street, Willowbrook and Langley City Centre stations.

Significant progress was made in 2024, with 90 per cent of right-of-ways cleared and drilling and piling at the 152 Street, 166 Street and 184 Street station sites with 15 foundation piles completed, according to Gilles Assier, executive project director for the Surrey-Langley SkyTrain Project Transportation Investment Corporation.

The complex project is being delivered by three contractors: Skylink Guideway Parnters (guideway), South Fraser Station Partners (stations) and Transit Integrators BC (systems and trackwork).

Casting of guideway segments will begin in April at a pre-cast concrete facility in Campbell Heights with 40 per cent of all segments expected to be completed by the end of 2025.

Foundation construction has also started for three stations: Green Timbers, Fleetwood, Clayton and Langley City Centre.

“Looking ahead, it’s going to be a very busy year. We have the majority of utility work done and will start construction of guideway spans and the installation of 200 guideway piers and columns,” he said, noting more than 30 engineering firms are involved with the project. “The province is excited to deliver such a transformative infrastructure project…that will reshape transit in the region.”

Another significant project is the $4 billion Fraser River Tunnel Project, which will replace the George Massey Tunnel.

The new crossing will be a toll-free, eight-lane immersed tube tunnel that includes three general-purpose travel lanes and a dedicated public transit lane in each direction. The new tunnel will also feature a separate multi-use path to support walking, biking and other active transportation options.

The Fraser River Tunnel project will be the fifth widest tunnel in the world, said Donald Trapp, executive project director, Transportation Investment Corporation.

The new tunnel will be made of six tunnel elements. Each element will weigh approximately 60,000 tonnes and will be 130 x 45 metres or about the size of a football field.

Trapp explained the tunnel elements will be made on Deas Island to promote efficiency and reduce construction traffic in the region.

Cross Fraser Partnership, collaborating with the province through the development phase, is comprised of Bouygues Construction Canada Inc., Fomento de Construcciones y Contratas Canada Ltd., Pomerleau BC Inc. and Arcadis Canada Inc.

The project will be delivered through a collaborative Progressive Design-Build. The construction contract is expected to be awarded in 2025 with work beginning in 2026. When completed in 2030, the tunnel will reduce traffic congestion and improve reliability.

Traffic congestion is also being addressed with the Fraser Valley Hwy 1 Corridor Improvement Program, a large-scale highway widening initiative between Metro Vancouver and the Fraser Valley.

Sarah Gaib, engineering director, BC Ministry of Transportation and Transit, provided an overview and an update on current work. The project is in phase 2 with highway widening between 216th and 264th streets and the replacement of the 232nd interchange. The existing cloverleaf interchange at 264th Street is also being replaced.

“The 264th interchange is a showcase project for the corridor and is being delivered through design build procurement. It will be B.C.’s first ever divergent diamond interchange and on the third in Canada,” said Gaib.

Cheryl Mah is managing editor of Construction Business.

Top Canadian cities to be hit hardest by tariffs

Saint John, Calgary and Windsor are the top Canadian cities that would be most vulnerable to U.S. tariffs, according to a report by the Canadian Chamber of Commerce.

“The looming tariff threat is still very real: we have to remain vigilant and brace for impact. Already we’ve heard from members across Canada how the threat of tariffs is disrupting local businesses and economies. This new data further emphasizes that this is not a game we want to play when so many livelihoods depend on a stable relationship with the U.S.,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce.

On Monday Trump signed executive orders to impose 25 per cent tariffs on all steel and aluminum imports into the United States, including from Canada. Cities like Hamilton and Sault Ste. Marie may be hit hardest by those specific tariffs, with their large steel industries.

The report estimates that the tariff will impose the steepest hit for the value of Canada’s energy exports. Saint John ranks the most vulnerable – home to the largest crude oil refinery in Canada. It can process more than 320,000 barrels daily and more than 80 per cent of that oil is exported south of the border.

“President Trump’s proposed tariffs will have significant consequences for the global economy — but for some of Canada’s cities, the threat is far more local and personal. With this analysis, Canadians, businesses and policymakers have more evidence to inform ongoing discussions about how Canada can best respond to the monumental challenge brought by unnecessary and unjustified U.S. tariffs,” said Stephen Tapp, chief economist, Canadian Chamber of Commerce.

To determine the risk level of the 41 largest cities in Canada, the Business Data Lab developed a U.S. Tariff Exposure Index that reflects both a city’s U.S. export intensity and its dependence on the U.S. as a key export destination.

Manitoba launches inquiry into Winnipeg Police HQ renovation

The Manitoba government is launching a public inquiry into the Winnipeg Police Service (WPS) headquarters to examine the circumstances surrounding its renovation and determine what measures are necessary to restore public confidence in the city’s ability to build large, publicly funded construction projects.

In 2009, the City of Winnipeg purchased the former Canada Post building, located on Smith Street, for conversion into a new WPS headquarters. The project was completed two years behind schedule and $79 million over budget.

The inquiry’s scope includes reviewing the City of Winnipeg’s past and current policies for planning, approving and managing projects as well as conflict-of-interest and disclosure obligations for elected officials and senior employees.

“Taxpayer dollars need to be spent transparently and Manitobans deserve to know the truth,” said Justice Minister Matt Wiebe. “An inquiry into the police headquarters project will help restore public trust and confidence, and its recommendations will ensure best practices are used to prevent similar mistakes from being repeated.”

Garth Smorang, who has litigated a wide variety of cases for both private and public sector clients, will serve as commissioner. His experience includes litigating both in front of administrative tribunals and the courts.

He will determine the timing and manner of conducting the inquiry, including gathering relevant evidence. Smorang is expected to complete the inquiry and deliver a final report containing his findings and recommendations by Jan. 1, 2027, noted Wiebe. A budget of $2 million has been allocated to support the inquiry.

U.S. CRE investors ponder tariff implications

Tariffs on incoming Canadian products can be expected to accentuate differences within the commercial real estate sector in the United States. Landlords of existing multifamily buildings could realize some business benefits, provided they’re not spending on capital upgrades, but developers should expect escalating costs. As well, financing could get more expensive for everyone if tariff-related inflation drives up interest rates as projected.

“Tariffs are one of the news items every investor will want to monitor,” John Chang, a national director with Marcus & Millichap real estate investment services in the U.S., observes in a newly released online commentary. “While tariffs themselves will have little direct effect on most types of commercial real estate, the indirect impact is more significant — increased construction costs, a slowing economy, higher inflation and higher interest rates would all weigh on the sector.”

Builders specializing in wood frame low-rise are likely in line for the biggest hit since roughly 25 per cent of the lumber used in U.S. construction projects is imported from Canada. Canada is also the source of 9 per cent of the copper for U.S. construction; Canada and Mexico together account for more than 8 per cent of the cement; and Canada, Mexico and China combined provide more than 9 per cent of steel.

In total, it’s estimated that the threatened 25 per cent tariffs on in-bound Canadian and Mexican products along with the new 10 per cent tariff on Chinese imports will almost immediately translate to a 7.5 per cent premium on construction materials. That’s happening in a market that’s already experiencing a slowdown in housing starts and rising concerns about affordability.

“When a 7.5 per cent bump in material costs is combined with rising labour costs, rising debt capital costs and other construction headwinds, it could drive housing construction down even more,” Chang speculates. “For existing multifamily owners, adding even more headwinds on new housing supply would put downward pressure on vacancy rates, leading to rising rents.”

Aside from generally escalating operating and capital costs, tariffs are not expected to have much ripple effect in the office sector. The retail and warehouse sectors are somewhat more exposed due to either rising costs of merchandise or a reduction in consumer spending that could affect the demand for space, but that’s not expected to filter through in the short term.

Across the broader U.S. economy, economists estimate that the threatened tariffs would hold growth to within the range 0.7 to 1.8 per cent — a pullback from the 2.2 per cent growth rate that had been envisioned for 2025. Tariffs are also expected to push inflation up by 0.5 per cent, taking it above 3 per cent and making the Federal Reserve less inclined to lower interest rates. Some economists also foresee a jump in the 10-year treasury yield of up to 50 basis points.

“That would certainly impact commercial real estate lending,” Chang says.

Vancouver moves to bolster local economic resilience

The City of Vancouver has passed an amended motion to protect local businesses and strengthen economic resilience.

The plan aligns with a Team Canada approach, ensuring local, provincial, and federal coordination to safeguard Canadian jobs and businesses from economic threats such as tariffs, trade disruptions, and foreign policies.

“We can’t afford to wait for economic challenges to hit us—we need to be proactive,” said Mayor Ken Sim. “That means strengthening our ability to buy local, cut red tape, and explore new pathways to make Vancouver more competitive.”

The amended motion directs staff to review procurement policies, launch a Buy Local / Buy Canadian campaign, and establish an internal roundtable to respond quickly to tariffs and supply chain disruptions. Staff will also explore temporary business relief measures, such as permit fee reductions and property tax deferrals, to support local businesses.

“This is an important step forward for Vancouver’s economic resilience,” said Councillor Pete Fry, who introduced the original motion following U.S. President Donald Trump’s threat of tariffs against Canadian goods. “I appreciate the collaborative approach we’ve taken to get this across the finish line. By working together, we’ve strengthened this plan to ensure Vancouver businesses have the tools they need to navigate economic uncertainty.”

The amended motion also calls for the creation of a Mayor’s Task Force on Economic Competitiveness, dedicated to making Vancouver the top destination for businesses in North America. The Task Force will lead policies and initiatives to drive economic growth, setting an aspirational goal of 3 per cent annual GDP growth in alignment with the Greater Vancouver Board of Trade’s 3 per cent Challenge to strengthen the city’s economic future.

“Vancouver is open for business, and we’re making sure it stays that way,” added Mayor Sim. “By strengthening our local economy, attracting investment, and cutting red tape, we’re making sure Vancouver stays competitive—not just today, but for the long run.”

Aspiring homebuyers sticking to rental markets

A convergence of factors are driving rental markets in six of Canada’s big cities. New analysis from RE/MAX Canada examines how price appreciation, rapid population growth and lack of affordable supply are putting a chill on home-ownership rates.

Between 2022 and 2024, demand for rental units accelerated. RE/MAX Canada President Christopher Alexander said first-time buyers continue to fall through the cracks, with the average price of a home more than doubling between 2006 and 2021.

“Rental rates that remain above historic levels, the high cost of living, and wages that have not kept pace with price growth pose a serious challenge to buyers hoping to amass a downpayment,” he said. “It’s near impossible for some buyers, even with steady, well-paying jobs. The dream of home ownership is eroding further and faster than their ability to save.”

The Nation of Renters report highlights previous research on how housing shortages are bumping prices upwards and the cost of renting versus buying. According to Ratehub.ca, carrying a $600,000 unit in the Greater Toronto Area, based on a 10-per-cent down payment with a five-year fixed rate of 4.1 per cent and a 30-year amortization period would be $2,665 monthly—only a bit higher than the average cost to rent a one-bedroom apartment in Toronto.

In December 2024, the average price of a residential rental dropped to a 17-month low of $2,109, according to a Rentals.ca-Urbanation report. Yet average rates remain high; in Toronto they’re 2,360 and the highest in Vancouver at $2,512.

On the supply side, The Social Housing Supply Mix Strategy 4A Report, by Toronto Metropolitan University, City Building, University of Toronto and School of Cities, found that Canada was able to build 45,000 federally assisted affordable units in 1971, but it took almost 25 years to build the same number of properties between 1995 to 2019.

A shortfall of housing will continue plaguing most parts of the country also due to the rising population. Between 2006 and 2021, Statistics Canada reported that the population climbed by 17.4 per cent and could reach close to 52.5 million by 2050. Meanwhile, government policies inhibit capable entry-level purchasers.

“We need policies and incentives that support home ownership as a feasible reality for Canadians, not a distant or improbable dream,” explained Alexander. “Each percentage point contraction in the national home-ownership rate represents thousands of Canadians locked out of the housing market.”

Condos offer viable opportunity

Small condo units are viewed as a viable home-buying option as investors face negative cash- flow situations and leave the market flooded with inventory.

“There is an opportunity for first-time homebuyers to absorb these listings,” says Alexander. “While they are small and designed for two people, they may very well be the most affordable entry point to Toronto’s housing market in recent years.

“The move to buy one of these units provides a stepping stone for first-time buyers, by giving them the means to enter the market at an affordable price point. The decision to move can be made in future years when equity gains can pad their progression to a larger condominium or freehold property.”

Vancouver

Depending on the size of the condo and where one lives, some units may not be suitable for young families, such as micro-condos that are currently in development at 400 square feet in Vancouver. Meanwhile, townhome projects in the suburbs are halted for now until there is some clarity surrounding the tariff dispute from the U.S.

“Some first-time buyers are looking at older condominium housing stock built in the 1990s for empty nesters and retirees in suburban areas,” the report states. “These large units, ranging from 1,000 sq. ft. to 1,500 sq. ft., are attracting a growing audience, especially given that many down-sizers are staying put, unwilling or unable to pay the transactional fees now associated with a move.”

Greater Toronto Area

In the GTA, people desire the most expensive home types: freehold, detached, townhomes and row housing, but condos are now the first step to home ownership for many.

More than one in three homes sold in the GTA is now a condominium apartment or townhouse. In 2024, the average price of a condo apartment was $702,858, while the cost of a condo townhouse was about $803,246, down 2.1 per cent and 3.1 per cent respectively from year-ago levels.

Fewer freehold properties have been built in recent years, while buyers are revitalizing older neighbourhoods throughout the city, which is expected to hike lower rise prices.

For condos, the decline in pre-construction starts and an uptick in failed transactions spurred a new climate. “Assignments in the market have soared as a result, with builders abandoning condominium construction and shifting toward purpose-built rentals,” RE/MAX states. “The math simply does not work for developers, given the current cost of construction, especially when factoring in development costs, material costs, labour shortages and wage increases.”

Overall inventory levels have climbed in the Toronto Regional Real Estate Board, with an estimated 7,400 active condominium and apartment listings available for sale at the end of 2024 and an estimated 30,000 new units expected to be released by developers in 2025.

Hamilton

Ownership rates in Hamilton have been declining over the years, along with wage growth. A condominium priced at $425,000 can be a challenge for a single first-time buyer, given unrecoverable costs such as maintenance and taxes.

Rentals have become an increasingly common option for younger generations. Even buyers who can afford to own are staying put in their rented units to avoid all the costs associated with ownership. Although, there has been a move to cool urbanized areas outside the city, such as Dundas

Micro condos have been a big component of the Hamilton market in recent years, are losing appeal as demand is limited for the product. Large condo units are in greater demand, but are low in supply. The focus has shifted on construction that is more communal as a result, allowing for several generations to live in one larger unit.

“While a good selection of product is available throughout Hamilton, Burlington and surrounding communities, housing policymakers need to look for new and innovative ways to make home ownership more accessible,” added Conrad Zurini, RE/MAX Escarpment & Niagara.

Ottawa

Affordability has played a large role in the decline in home ownership in Ottawa.

Demand for homes priced between $400,000 and $600,000 remains strong, but supply is limited. Although condos are affordable, they cost more when condo association fees are factored in. Some younger buyers are looking to rent rather than own so they can potentially move. Although, expensive rental rates are making it hard to save for down payments. Other tenants are comfortable with the stability of rent control in buildings older than November 2019 where annual rate hikes are limited.

“Urbanization has led to upward pressure on housing values, with homes in the central area of the city experiencing strong homebuying activity,” said Jason Pilon of RE/MAX Hallmark Pilon Group Realty. “The increase has fueled suburban sprawl, although zoning regulations, development costs and bureaucracy are impacting new housing starts.”

Calgary

Rental costs are comparable to owning in Calgary. As such, home ownership is expected to grow in the coming years. It also helps that the city and province have no land transfer taxes, and overall taxes are significantly lower than in other provinces. More than 41 per cent of homes sold in 2024 moved under the $500,000 price point, according to Calgary Real Estate Board.

“While Calgary still has issues with supply, migration into the city has tapered, giving homebuyers some much-needed breathing room in terms of decision-making,” said Richard Fleming, RE/MAX Real Estate (Mountain View). “The economy continues to expand, driven by oil and gas and a burgeoning tech sector. ”Lower interest rates are prompting some first-time buyers to take the home-ownership plunge, although the stress test continues to be prohibitive, preventing some buyers from qualifying.

New library for Brampton’s Howden Recreation Centre

The City of Brampton is adding a new library branch to the Howden Recreation Centre revitalization project.

The community facility is set to undergo major renovations to become a 45,000 square-foot multi-use hub that will replace the old building built in 1974.

A net-zero centre will be built directly on Howden Boulevard, offering a diverse range of programming and amenities, such as a new multi-sport gym featuring an International Basketball Federation sized court, dedicated space for a daycare centre, an outdoor play area.

A new library will bring access to resources, programs and services to meet high demand.

“Brampton Library board members and staff are thrilled to have this opportunity to serve the learning and literacy needs of the community,” said Todd Kyle, Brampton Library CEO. “Co-located in the revitalized Howden Recreation Centre, this branch will be an accessible and central addition to library service in Brampton, a hub in this high-density area of our city. We look forward to building a modern, flexible and connected library branch that is inviting and inclusive to all.”

With a city-wide increase in recreation programming by five per cent in 2025, Brampton aims to welcome 8,000 more patrons to its facilities and programs. Over the past two years, $1.4 billion has been allocated to projects, including Embleton Community Centre, with plans for additional projects over the next few years.

BC Hydro begins Ladore Dam seismic upgrades

BC Hydro has begun work to enable seismic upgrades at Ladore Dam, near Campbell River, marking a major milestone for dam safety projects on Vancouver Island. This upgrade will ensure Ladore Dam continues to safely hold and pass water downstream in case of a major earthquake or flood.

“The Ladore Spillway Seismic Upgrade Project will allow us to maintain public safety and reliability post-earthquake,” said Adrian Dix, Minister of Energy and Climate Solutions. “This critical project will also benefit local fish and wildlife habitats, as well as downstream domestic water supply.”

The Ladore Dam is one of three hydroelectric dams on the Campbell River system. The John Hart Dam is downstream, and the Strathcona Dam is upstream. Ladore was built in 1949 and its powerhouse was completed in 1957. The seismic upgrade work includes replacing spillway gates and installing new equipment and upgrades to ensure the spillway is operational following a major earthquake and to meet modern reliability standards.

“Vancouver Island is within the most seismically active zone in B.C.,” said Kermit Dahl, Mayor of Campbell River. “This critical work will not just improve seismic safety across the Campbell River system, the project will also create about 70 jobs per year until it’s completed in 2029.”

The Ladore Spillway Seismic Upgrade Project is one of the three dam safety upgrade projects for the Campbell River system. The John Hart Dam upgrade work started in the summer of 2023 and is being carried out in two segments over six years. That work is expected to be completed by 2030. The Strathcona Dam Water Discharge Upgrade Project is planned to begin in fall of 2025.

The importance of interior design

The Interior Designers Institute of British Columbia (IDIBC) turns 75 in June of this year. This was going to be an article about the history of the institution and by default, the profession, but there is a story with a bigger picture: what is interior design and why is it important?

Seventy-five years ago, interior design was mainly about residential decor and those who could afford it. Demand increased as economies flourished and more people entered the work force, working in offices that were part of a post-war building boom. Practicality and function in the workplace was the primary focus for designers.

It didn’t stop there. As buildings and interior spaces became more specialized, socio-economic needs and public expectations grew. Design professionals responded in kind, taking on the design of shops, restaurants, theatres, medical offices, and other public facilities where people would live, work, gather and spend their indoor activities. Interior designers started to recognize the societal importance of their work, making sure that they were in lockstep with changes impacting society, particularly in matters of the environment.

Today, interior design is a multi-faceted discipline that perhaps is the most detail driven, all encompassing, and human-centric of the applied sciences. Interior designers fuse functionality, materiality, form, aesthetics and beauty to produce a result that benefits all. While many people believe that they have taste and can perform the perfunctory tasks needed to design a space, the nuances involved in creating successful interior demands extensive knowledge of codes, construction, cost, and business acumen in addition to a knack for aesthetics. Professional interior designers optimize space for both function and appearance, while ensuring that aspects of safety, sustainability, building technology, cost and occupant needs are satisfied.

Interior design makes for good business too. Well-designed interior environments increase productivity, reduce absenteeism, foster workplace culture, resulting in a better bottom line for business owners. Recent global pandemic events have resulted in hybrid work models that have influenced how we design residential interiors to pivot between work and everyday living. Escalating construction costs resulting in shrunken building footprints have raised the bar for designers to think outside the box in terms of designing higher density housing with innovative layout plans, materials and details. Interior designers have the education, experience and expertise needed to develop and deploy strategies that improve the lives of those who they design for and contribute to the greater good of the public interest.

The profession of interior design has taken great strides over the past 75 years to grow and evolve in sync with societal change, shifting economies, increasingly complex building designs, and the needs of a global audience with homogenous and distinct identities that our built environments need to acknowledge.

Traditional single family residential models are no longer the norm, surpassed by a rise in non-traditional households in want of housing design that addresses livability, affordability, and an acceptable standard of living. Economic disruptions challenge designers to reinvent how companies can readily adapt and reposition existing space.

Interior designers are tasked with designing for large scale, mixed use, complex commercial developments with a multitude of occupancies anchored by a unifying building element. A national hotel chain may have identical floor plans for properties in a semi-rural small town setting as in a major urban downtown core, but by commissioning an interior design professional with the ability to properly assess and provide design diligence, the result in identifying regional differences can maximize positive guest experiences in both. These are all scenarios professional interior design firms and designers are hired to consult on in present times.

This is not to say that others in the design and construction industry do not share related progressive minded processes and skills. Interior designers have long held the opinion that we need to be collaborative and collective minded in creating spaces that elevate a sense of belonging, health, happiness, comfort and thriving, in any size and type of interior space. The intent here is not to restrict or limit any other design professionals from practicing as they do, including decorators, architects and engineers. We must not lose sight that we do what we do to improve the human experience in all types of spaces, and by taking an inclusive and integrated approach to design, we have a much better opportunity to garner more rewarding outcomes.

From a regulatory system process and a construction standpoint, interior design is poised to emerge as a major component of the building process. We are fortunate to practice our profession in an age where opportunities are plentiful, demand for design professionals is increasing, and our role as specialists in the building design service sector becomes more clear and vital to the public. If the building design industry progresses as rapidly as in the past three quarters of a century, the trajectory for professional interior designers will continue upwards.

As for IDIBC’s next 75 years? The institute will continue to shape the profession as British Columbias regulatory body to ensure that interior designers in B.C. and beyond are prepared to embrace a leadership role and perform in the same spirit as their fellow design professionals – with enthusiasm, confidence and professionalism.

Jim Toy, BA BArch LEED AP RID (Fellow), is president of the Interior Designers Institute of British Columbia and principal of False Creek Design.

Streamlining your cleaning protocols

Are your cleaning practices outdated, over-complicated, or inconsistent? With the heightened attention on sanitization and safety in recent years, it may be time to reevaluate your cleaning protocols and make the shift to a simpler, more efficient system.

Recent studies highlight the importance of revisiting cleaning protocols, finding that 90 per cent of hospitals have at least one malfunctioning disinfectant dispenser, with 14 per cent not releasing any disinfectant at all.

With a streamlined approach, you can save time, better manage your labour, and get accurate results, making your space safer for staff and guests. Here are some of the ways that cleaning protocols can be simplified and still be effective:

Ready-to-use products offer consistent results, mitigating the risk of human error and minimizing training time. This can also make reading labels easier, resulting in a safer and more accurate process.
Choosing one solution for each type of cleaning can ensure that your products complement each other and achieve desired results while eliminating the need to analyze products each time.
Investing in technology or equipment can eliminate steps and make cleaning staff more efficient. From cleaning carts to robotics, choosing the right equipment can simplify the process, saving time and money.
An updated waste management system can streamline operations. Rather than multiple garbage and recycling stations, a centralized system helps simplify the process, as well as potentially saving money on supplying garbage bags and cleaning products in multiple locations.
Consider colour-coding your cleaning supplies. This way cleaners can easily identify the supplies they need and minimizing cross-contamination, increasing safety for cleaners and staff.
Re-vamp your supply closet. Often, supplies and equipment are stored haphazardly together, but an organized system can help staff find things faster and better access what they need.

Cleaning and sanitization are no less important today than they have been for the past few years, but overcomplicating the process can cost time and money, potentially resulting in less effective protocols. Streamline your cleaning practices for efficient, consistent results.

IDS Vancouver

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