Rent growth in Canada continued to fall in January

The average asking rent for all residential properties in January continued to fall for the fourth consecutive month to $2,100. This 4.4 per cent decline marks an 18-month low, according to the latest National Rent Report from Rentals.ca and Urbanation. Still, despite the reduction in rent growth, average asking rents remain 5.2 per cent higher than two years ago and 16.4 per cent above levels recorded three years ago.

“The downward trend for rents in Canada accelerated during the first month of 2025,” said Shaun Hildebrand, President of Urbanation. Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead. This will result in improved affordability for renters.”

Much of the decline in January was concentrated in the secondary rental market, where asking rents for condominium apartments fell 6.5 per cent year-over-year to an average of $2,219, while rents for houses and townhomes declined 8.9 per cent to $2,144. Meanwhile, purpose-built rental apartments saw a milder decrease of 1.7 per cent, with some unit types bucking the overall downward trend. Studio and three-bedroom purpose-built rental units remained in high demand, with rents increasing 0.5 and 2.1 per cent respectively.

Ontario saw the steepest rent declines among the provinces, with apartment rents falling 5.2 per cent in January to an average of $2,329. Despite a 2.6 per cent decrease over the past year, British Columbia remained the country’s most expensive rental market, with average asking rents for both purpose-built and condominiums coming in at $2,463. Other provinces recorded mixed results, with Nova Scotia rents down 0.7 per cent year-over-year to $2,195, while Quebec remained stable at 0.4 per cent. Meanwhile, Alberta, Saskatchewan, and Manitoba saw 2-3 per cent annual rent increases, reflecting continued demand in these more affordable markets.

Within Canada’s largest rental markets, Toronto recorded the largest rent decline, with apartment rents dropping 7.6 per cent annually to $2,615, reaching a 30-month low. Calgary also experienced a significant decrease, with rents down 6.0 per cent to $1,925. In Vancouver, where rents have now fallen for 14 consecutive months, the average asking rent declined 5.2 per cent year-over-year to $2,896. Since reaching a peak of $3,340 in July 2023, Vancouver’s rents have fallen by a total of 13 per cent, equating to a $443 monthly reduction.

The downward trend in rents was evident across most unit types, particularly in Toronto and Vancouver, where two-bedroom apartment rents declined 8.1 per cent and 7.0 per cent respectively. Calgary saw the largest decline in three-bedroom apartment rents, down 8.7 per cent to $2,412, while Montreal was the only major city to record an increase for this unit type, rising 5.8 per cent to $2,771.

The growing supply of shared accommodations contributed to a sharp decline in roommate rents. Listings for shared housing increased 42 per cent year-over-year in January, primarily driven by growth in Calgary. As a result, the national average asking rent for shared units fell 7.6 per cent annually to $933, the lowest level in 18 months. Alberta and Ontario saw the largest declines, with average roommate rents dropping 2.7 per cent and 2.6 per cent year-over-year, respectively.

Classic portfolio management set for comeback

Retail was the best performing asset type last year for institutional investors represented in the MSCI/REALPAC Canada Property Index. Newly released 2024 results, capturing 54 participating commercial real estate portfolios, reveal year-over-year improvement in all four of the major property sectors, as the average total return across all standing assets crept up to 3.21 per cent after coming in flat in 2023.

That was realized through a 4.91 per cent income return to offset a 1.63 per cent loss in capital value. Similarly, improved average total returns for retail, multifamily, industrial and office were largely attributable to income return. Industrial and office both lost capital value, while average capital gains were very modest for retail (0.8 per cent) and multifamily (0.1 per cent).

Income was also the major factor in seven of the eight surveyed regions, with Halifax standing out as an anomaly in posting 5.4 per cent capital growth. Among the four largest markets, Calgary delivered the top average total return, at 6.5 per cent, followed by Vancouver at 4.1 per cent, then Montreal and Toronto both hovering around a 2 per cent average total return.

In parsing out those results, industry analysts draw connections to unfolding real estate cycles. That has a brought a vast injection of new industrial supply since earlier in the decade when investors were realizing outsized returns on their industrial assets. Meanwhile, relatively modest retail development activity has fallen behind the pace of population growth.

“It was the case that a portfolio overweighted to industrial would outperform, but that has fallen off now. From a portfolio standpoint, it’s coming back to fundamental real estate management — not necessarily over-allocating or under-allocating, but selecting the best properties and managing the right properties,” Peter Koitsopoulos, vice president with the index producer, MSCI, told a gathering on hand in Toronto last week for the release of the investment results. “I think the industry has partly lost track of that. It’s good to see those fundamentals coming back.”

Industrial market returning to balance

Continuing with that theme, he theorized that below-average total returns for industrial properties in Toronto and Montreal are symptomatic of a flood of new investment. Canada-wide, industrial assets delivered a 3.4 per cent total return on average — breaking down to a 4.2 per cent income return against a 0.7 per cent decline in capital value. Among the four largest markets, that varied from average total returns of 6 per cent in Vancouver and Calgary to 2.1 per cent in Toronto and negative 0.8 per cent in Montreal.

“Not too long ago, those two markets were having year-over-year returns of 30 or 40 per cent, which is quite remarkable for real estate. That triggered a lot of building, a lot of supply coming to the market, and that excess supply really being absorbed by investors in Toronto and Montreal,” Koitsopoulos recounted. “This is actually a good thing in the sense that it creates a balanced market for Toronto and Montreal, which is something we haven’t seen for a long time. Having a balanced market, even though it lowers returns, is actually positive.”

Investors enjoyed positive average total returns on retail properties across all markets, but recorded the best results in Calgary, with an 8.6 per cent total return. Average total returns mimicked retail’s 6.5 per cent national average in Vancouver and Toronto, and settled at 5.2 per cent in Montreal.

Commenting on the sector’s strengths as part of an associated panel discussion, Cathal O’Connor, chief executive officer of Salthill Capital, cited: rising rents as lease renewals catch up with inflation; population growth that has eroded Canada’s “over-retailed” accumulation of enclosed malls; and a particular competitive advantage for grocery-anchored, open-air centres from lower operating costs and taxes than enclosed malls.

“We’ve been under-building retail now since 2016 and, quite frankly, tenants can’t afford to pay rents for new retail (that does get built),” he said. “That’s why retail is a good buy.”

Office posted a flat average total return across the index after a negative 5 per cent total return in 2023. There was a further 5.4 per cent drop in capital value last year (following a 9.9 per cent decline in 2023) against a 5.7 per cent income return. Calgary and Vancouver saw modest average total returns of 1.9 per cent and 0.5 per cent, respectively, and Toronto rallied somewhat from a negative 5.1 per cent average total return in 2023 to negative 1.1 per cent in 2024.

Ottawa also improved from a negative 9.9 per cent total return in 2023 to negative 3.3 per cent in 2024, but remained the worst performer among office markets. “The government workers are starting to go back to the office and that’s having a positive impact in Ottawa, but, over the last couple of years, Ottawa has been hit hard by those workers being slow to go back to the office,” Koitsopoulos observed.

Focus on income returns and portfolio diversification

Other panellists echoed Koitsopoulos’ general conclusions that income returns and strategic management are primary focuses for investors, particularly with the sudden added uncertainties of tariffs and other geopolitical upheaval.

“Coupled with available financing, especially in the major asset classes, you’re buying for a really good equity yield right now,” advised Michael Fraidakis, chief investment officer for LaSalle Investment Management’s Canadian holdings. “I wouldn’t bank on cap rate compression for the next little while. We’re back to income and having a portfolio that’s diversified enough to maintain that.”

Looking beyond, retail, multifamily, industrial and office, panellists also pointed to positive prospects for niche assets. “From public pension funds, there is money for certain sectors — data centres, self storage, university rentals,” O’Connor said.

However, slight existing inventory and hefty costs to develop new supply present barriers. Thus far, some Canadian investors have largely stuck to financing other developers and deal-makers in those burgeoning areas.

“Our credit book has lent to student housing and data centres, but data centres are very big cheques and I think we’ve taken the approach that we’d rather not (invest directly) right now,” reported Liz Murphy, chief financial officer, with Oxford Properties. “We haven’t seen a lot of opportunity (for data centres) here in Canada, or for student housing either. There’s a lot more opportunity for both those sectors in the U.S.”

“The space is crowded from an investment dollars perspective relative to the universe of assets,” Fraidakis concurred. “That is a sleeve that will continue to grow no matter what your portfolio looks like, particularly an institutional portfolio. It’s just that Canada is lagging other countries, particularly the U.S., in terms of the numbers of assets.”

Graham to acquire Rokstad Power

Graham Power Services on behalf of its parent, Graham Maintenance Services LP. and its partner, 42 West Constructors Ltd., announced that Graham intends to acquire the powerline construction and maintenance assets and resources of Rokstad Power Ltd. and affiliates from FTI Consulting Canada Inc, in its capacity as court-appointed receiver of Rokstad.

The transaction remains subject to the approval of the British Columbia Supreme Court. Once approved, there are certain closing conditions that will need to be met, with an outside close date of February 17, 2025.

“Graham is very excited for the opportunity to welcome a highly capable team that will now operate as Graham Power Services, delivering maintenance and construction of overhead and underground distribution and transmission systems, as well as emergency response to storms and substation services,” said Thomas Grell, Graham’s executive vice president, services.

As part of the transaction, Graham intends to assume and maintain all existing agreements and relationships between impacted First Nations to perform work designated with BC Hydro.

“It will also be our honor to continue to build and grow these existing relationships with all Indigenous groups that share the same values for territory sustainability, economic stewardship for the land, and to benefit their communities,” said Graham vice president, Terry Mitchell.

42 West Constructors intends to assume and continue the collective bargaining agreement (master line agreement) with Local Union 258 of the International Brotherhood of Electrical Workers.

“I am proud of the services our team has been delivering to outstanding Canadian customers like BC Hydro and many others,” said Bryan Plowe, vice president, Power Services. “As we join Graham, I am excited by the possibilities for expanding our customer relationships, working with other divisions of Graham, and creating opportunities for our people.”

International competition seeks design for Banff Ave

Parks Canada has engaged the Royal Architectural Institute of Canada (RAIC) to oversee an international design competition to develop a conceptual design for the 200-block of Banff Avenue Redevelopment Project.

“Parks Canada is pleased to announce our commitment to collaborate with the Royal Architecture Institute of Canada in launching a competitive design process for the revitalization of the 200-block of Banff Avenue. As members of the Banff community, the Parks Canada team looks forward to seeing the progression of this project and the ways it will create lasting opportunities and benefits to Indigenous peoples, visitors, and our vibrant local community,” said Salman Rasheed, Banff Field Unit superintendent.

The competition marks a crucial step towards a concept design — one that will not only honours the heritage of Canada’s first national park but also invite the world to experience the natural beauty and timeless wonder of the destination.

“This is a rare, once-in-a-generation opportunity to reimagine and transform a vital public space in Banff National Park. Parks Canada has listened to the voices of Indigenous communities, stakeholders, local residents, and Canadians from every corner of the country who all share a deep connection to the future of this remarkable place,” said Ron Hallman, president & chief executive officer, Parks Canada.

Concluding in March 2026, the design competition for the 200-Block of the Banff Avenue Redevelopment Project will follow established industry standards and protocols and bring professional expertise to the evaluation process to generate conceptual designs for the site.

The feedback gathered so far through engagement will be used to guide the design competition, as all applicants will need to ensure the values and vision shared by Indigenous communities, stakeholders, and the public are reflected in the conceptual design options that are developed.

BCI bids for global firm’s infrastructure assets

British Columbia Investment Management Corporation (BCI) has made an offer to acquire BBGI Global Infrastructure and take it private. The Luxembourg-based entity holds a mix of infrastructure assets, but is largely weighted to transportation, including the Golden Ears Bridge in B.C.’s Fraser Valley, and health care facilities, including Women’s College Hospital in Toronto.

BBGI’s supervisory and management boards have unanimously endorsed the proposed all-cash deal, which would see shareholders receive 147.5 U.K. pence (CAD $2.63) per share. BCI’s total outlay is pegged at ₤1.062 billion (CAD $188 billion).

“We believe BBGI will be a compelling and strategic addition to BCI’s Infrastructure & Renewable Resources portfolio, with a diversified mix of international holdings across the transport, clean energy, healthcare, education and social infrastructure sectors,” says Grant Hodgkins, a senior director with BCI.

Slightly more than one-third of those assets are in Canada. The remainder are located in the United Kingdom (33 per cent), continental Europe (13 per cent), the United States (10 per cent) and Australia (9 per cent).

BBGI is currently trading at 142.8 U.K. pence (CAD $2.54) per share on the London Stock Exchange with slightly less than 715 million shares issued. If shareholders agree, the deal is expected to be completed in the third quarter of 2025.

Cleaning and sustainability in 2025

As the commercial cleaning industry evolves, 2025 brings an updated set of priorities, as cleaners and facility managers strive to provide safe and healthy business environments. Sustainability, ESG goals, and natural ingredients have emerged as top priorities for many businesses and commercial cleaners in recent years. As more and more companies work towards lowering their carbon footprints, what are businesses and cleaning companies prioritizing for 2025?

Sustainability audits

Start on the path to greater sustainability by assessing your current status, assigning goals, and then developing a plan to get greener for your business and for your clients. The audit should allow you to get a clear idea of your current footprint to be able to take steps to lower your impact going forward. If you’re not sure how to get started, consult experts like CSR and take advantage of their online, downloadable tools to guide your efforts and establish realistic environmental goals.

Gain a clear understanding of your facility’s environmental footprint by conducting a sustainability audit. Collaborate with trusted organizations, such as Green2Sustainable, to identify areas for improvement and

Leveraging data

Technology plays a large part in company efforts to reach ESG goals, as companies continue to use data for the insights they need to refine their operations and improve green initiatives. While completely overhauling practices may not be in the cards, many companies can improve their environmentally friendly efforts by investing in smart technology. These tools monitor inventory levels, notifying cleaners when levels get low, so products are not wasted, and patrons continue to receive a positive experience. These sensors also monitor usage and traffic levels, allowing cleaning staff the ability to better manage operations, clean more efficiently, and reduce water usage levels. Innovation like Internet of Things (IoT), offers a real-time data-driven approach to decrease the carbon footprint and increase environmental endeavours.

Achieving certification

As sustainability continues to become more critical to business operations, certification for cleaning companies is on the rise this year as a way to validate sustainability practices and provide transparent environmental reporting. More and more businesses are seeking to align with companies that can help them in their endeavour to lower their environmental impact, and sustainability certifications are a simple way to appeal to like-minded customers.

In the continued age of greenwashing, certifications can also help to provide clarity and confirmation to clients for energy-efficient equipment, green practices, and environmentally friendly products. Companies using products certified with USDA BioPreferred®, UL EcoLogo, Green Seal or USDA Certified Organic provide peace of mind that the products have been rigorously tested and verified for environmental safety and human health.

By conducting sustainability audits, leveraging data, and attaining certifications, facility managers and cleaners can stay relevant in 2025, lower their carbon footprint, and create lasting partnerships with like-minded businesses.

Tariff chill could put CRE investment on ice

Tariff chill pervades the investment climate throughout Canada’s economy this winter, but commercial real estate insiders are tallying some reasons to be optimistic if the United States government pulls back from its current aggressive posturing. Newly released 2024 results from the MSCI/REALPAC Canada Property Index peg the total annual investment return across participants’ portfolios at 3.21 per cent — an improvement from a flat return in 2023.

Although last year was the third consecutive year of negative capital growth for the index — which represents 54 institutional portfolios with 2,255 individual assets in Canada, collectively valued at CAD $165.4 billion — the 1.63 per cent slip in value was more muted than the declines of the previous two years. Meanwhile, a 4.91 per cent income return continued a steady uptick from 2022 (4.35 per cent) and 2023 (4.6 per cent).

“We can see an improvement in the capital growth in that things are getting less worse. So that does start to signify that maybe there’s a market recovery,” Peter Koitsopoulos, vice president with the index producer, MSCI, told a gathering in Toronto earlier this week. “We also have to consider that fundamentally we do not see the incomes in Canada deteriorating. The fundamentals of Canadian commercial real estate and where (index) participants are investing is fundamentally sound, and I think that’s an important distinction to make.”

Many index participants were likewise hailing recovery signs and readying for more deal activity in 2025 prior to the surprise onslaught of the new U.S. administration’s destabilizing tactics. Now, like contemporaries in most other economic sectors, they’re waiting to see what unfolds at the U.S. White House in early March when the 30-day deferral period for a threatened 25 per cent tariff on most Canadian imports comes to an end.

A discussion of industry dynamics, held in conjunction with the release of the 2024 investment results, highlighted sector-specific and economy-wide uncertainties now clouding the investment outlook. Hesitant lenders, the Canadian dollar’s diminished buying power and foreign investors holding off due to perceived risk or anticipated better bargains in the future could all impede activity. As well, there’s concern about tenants’ ability to absorb another economic shock following the COVID-19 pandemic and a double-whammy of inflation and rising interest rates.

New sources of hesitation

“Things were loosening up. The debt was finally priced at a point where, if you were in one of the major sectors, you had positive leverage,” observed Michael Fraidakis, chief investment officer with LaSalle Investment Management in Canada, where the firm has more than $4 billion in assets under management (AUM). “My fear is that, in real estate, it’s going to introduce investment and pricing uncertainty again and that will be another round of just more capital on the sidelines.”

Liz Murphy, chief financial officer with Oxford Properties Group, concurred that the turnaround may not to be as quick as was envisioned a few months ago. As the real estate arm of the OMERS pension fund, Oxford holds roughly $85 billion in AUM globally with about 75 per cent of that located in North America.

“Our teams were ready. We were seeing pricing at the right level and space for income returns at the right level, but, with this uncertainty, I think we will slow down unless it’s a really, really good opportunity,” she said. “There’s also the volatility around the Canadian dollar. If we’re paying Canadian dollars that are 50 cents in U.S. dollars, that really limits the amount we can invest in the U.S.”

Looking at possible scenarios beyond March 4, Jim Costello, chief economist with MSCI, cited examples of economies adjusting to or remaining largely unscathed from the sudden imposition of taxes. Notably, he characterized Australia’s introduction of a 10 per cent valued-added tax (VAT) in 2000 as a one-time, relatively short-term upheaval preceding adaptation to a new status quo.

“Inflation spiked, GDP fell for a bit, supply chains were disrupted, people changed their consumption patterns and then it all just kind of stabilized after that,” Costello recounted. “If it was something like that, it wouldn’t be as much to worry about, but we’ve got this situation where we may end up with some sort of trade war back-and-forth on tariffing”

His second example comes from 2018 when the first Trump administration invoked tariffs on Canadian imports of steel (25 per cent) and aluminum (10 per cent), prompting counter-tariffs on nearly 130 U.S. products in-bound to Canada. Consumers were largely insulated during that roughly one-year period before tariffs were lifted because importers absorbed much of the new cost.

“This time, we just don’t know what’s going to happen,” Costello acknowledged. “Is it going to continue into an ongoing fight, and are firms too tapped out at this point and will they have to pass costs on to consumers?”

Cathal O’Connor, chief executive officer of Salthill Capital, outlined the potential implications for his company’s portfolio, which is heavily weighted to retail.

“A lot of retailers buy merchandise from the U.S.. That’s going to cause some uncertainty on the leasing side and slow down commitments by tenants to lease space,” he said. “Their product is going to be more expensive, and that’s going to come at the expense of their margins or sales.”

Canadian fundamentals remain strong

Yet, he also expects resilient consumer demand for groceries and others staples will serve some segments of the sector well. So, too, should other favourable fundamentals such as Canada’s shrinking per capita retail space ratio, resulting from a growing population and relative a dearth of new development.

Given the source of the current crisis, there’s perhaps some solace in what’s seen as Canada’s generally stronger fundamentals compared to the U.S. in all four major property sectors. (MSCI’s Canada Property Index also outperformed its U.S. equivalent in 2024.) Fraidakis noted that Vancouver, Toronto and Montreal continue to boast lower vacancy rates than major U.S. markets and that foreign investors are tending to look more at Canada-specific allocations rather than lumping it together with the U.S.

“The fundamentals and our currency being where it is helps on the buyer side,” he said.

“The pricing of real estate right now is good. You can buy real estate and you can earn a good income return. That will really help to push through all this uncertainty,” Murphy submitted. “Hopefully, we get an opportunity where interest rates are low for a period of time.”

For now, though, there’s no expectation for a surge of deals in the near term. “There’s going to be a slowdown in investment in Canada until we get some clarity,” O’Connor reiterated.

“When you don’t know what the rules of the game are, you’re going to be cautious,” Costello agreed. “Absent all that, the property market is recovering; investors are becoming more accepting of the sector again; there’s some stabilization of pricing; and things are looking good. This is a shock that might unsettle that.”

CAO launches guide to support self-represented parties

The Condominium Authority of Ontario (CAO) released the CAO Guide for Self-Represented Parties to help condo owners or corporations represent themselves in a Condominium Authority Tribunal case.

The guide helps navigate the CAO’s integrated issue and dispute resolution ecosystem and outlines how individuals can tackle a Tribunal case without legal representation. It comes with practical advice, step-by-step instructions and tools to help owners and corporations address disputes collaboratively and effectively.

In developing the guide, the CAO consulted with former Tribunal case participants and legal representatives who conveyed that “having a better understanding of condo principles and the Tribunal’s process will help self-represented parties move more effectively through their case and reach a satisfactory outcome.”

Besides covering the Tribunal and its jurisdiction, the resource explains how to resolve issues collaboratively before taking further steps, what to consider before filing or responding to a case, what to expect from the Tribunal, how to make use of information found in similar cases, and tips to prepare, build and participate in a case.

How 2025 plumbing trends will impact facility management and building maintenance

The plumbing industry is set for a significant technological transformation in 2025, reshaping facility management, cleaning, and maintenance, according to Klaus Reichardt, CEO and founder of Waterless Co., Inc. He attributes this transformation to advancements in artificial intelligence, the Internet of Things (IoT), robots, and enhanced water efficiency technologies.

The key trends he forecasts include the following:

Remote monitoring: New smartphone apps will provide real-time data on building water pressure, flow, temperature, leak detection, and enable water shutoffs. This empowers facility and maintenance managers to be more proactive in water management 24/7, preventing costly water damage, eliminating emergency cleanups, and improving water efficiency.

Smart water management systems: These systems identify water consumption patterns, automatically adjust water flow to prevent water waste, maintain optimal plumbing performance, and offer actionable recommendations to enhance water efficiency. This might include suggesting the installation of low-flow toilets or no-water urinals to reduce water consumption. “These intelligent systems go beyond monitoring to actively improve facility water management, optimization, and provide strategic upgrade recommendations,” explains Reichardt.

Augmented reality (AR): Remarkably, AR simplifies repairs by allowing users to measure distances, angles, and pipe diameters in plumbing systems deeply embedded in walls and under floors. It also offers step-by-step guidance for plumbing repairs, displays detailed 3D models of complex plumbing components, and creates training scenarios for skill development. AR enables facility managers, custodial staff, and maintenance workers to manage complex challenges with greater confidence and competence, helping them quickly and effectively diagnose and resolve most plumbing issues.

Robotic pipe inspection: Robotic devices can produce high-resolution images and collect data on a facility’s overall plumbing condition. Reichardt points out that many issues, such as tiny cracks and corrosion developing in pipes, cannot be seen with the naked eye. These robotics can detect them, allowing plumbers and maintenance personnel to prioritize plumbing tasks.

These new plumbing technologies will benefit property and maintenance managers in several ways, according to Reichardt. “They will help cut costs, ensure tenant satisfaction, use water more efficiently, and reduce overall consumption. They also take the guesswork out of plumbing, allowing managers to make more confident decisions about their systems.”

Outlook predicts modest price growth for GTA home sales

Gradual increases in the average selling price of homes in the Greater Toronto Area (GTA) are expected over the course of 2025. A new market outlook from the Toronto Regional Real Estate Board (TRREB) predicts it will reach $1,147,000, up by 2.6 per cent from 2024.

Price growth is expected mainly in the single-family market, including townhomes.

“A growing number of homebuyers will take advantage of lower borrowing costs as we move toward the 2025 spring market, resulting in increased transactions and a moderate uptick in average selling prices in 2025,” said TRREB Chief Market Analyst Jason Mercer. “However, the positive impact of lower mortgage rates could be reduced, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence.”

In the past, high borrowing costs were flagged as a key obstacle for home buyers. More recent Ipsos consumer polling revealed that 28 per cent of respondents are likely to buy a home this year. First-time buyers accounted for 42 per cent of prospective homebuyers. Although, intentions hinge on how high taxes continue increasing. Another 37 per cent of respondents desire to sell a home in 2025, with 14 per cent feeling more sure about this decision. TRREB predicts 76,000 home sales this year.

“As we look to the future, prioritizing housing diversity and supply remains paramount,” added TRREB President Elechia Barry-Sproule. “Encouraging the development of missing-middle housing—such as townhomes, duplexes, and low-rise multi-unit buildings—is critical to delivering a range of attainable options for individuals and families. Purpose-built rentals also play a vital role in ensuring everyone has access to a place they can call home.”

Prefabricated classrooms open and more underway

Prefabricated classrooms have opened in four schools over the past month, with more underway, adding more than 1,000 new student spaces in growing communities throughout B.C.

“We are committed to providing students with the best possible learning environments,” said Minister of Education and Child Care Lisa Beare. “These prefabricated additions will provide students with the spaces they need to succeed, and will benefit these communities for years to come.”

The use of prefabricated construction means students will be learning in modern classrooms that are just like regular classrooms. With sustainable and energy-efficient designs, the additions also align with the province’s CleanBC targets and meet B.C.’s enhanced energy requirements. Due to their unique build, prefabricated classrooms are more cost effective and can be built twice as fast as traditional schools. Since 2017, the province has approved more than 42,000 new student spaces, with more than 2,400 open in just the past month.

“These rapidly built additions are one way we are quickly getting new classroom spaces ready for students now, and we know the solution is working,” said Minister of Infrastructure Bowinn Ma. “These additions get students into new classrooms faster, while still providing the same lifespan and comforts of a traditional school environment.”

Newly opened prefabricated additions include:

a 10-classroom, two-storey addition to Scott Creek Middle school in Coquitlam, adding 250 new student seats;
an eight-classroom addition at Lena Shaw Elementary school in Surrey, adding 200 new student seats;
a five-classroom addition at North Glenmore Elementary in Kelowna, adding 120 new student seats; and
a new five-room school and gymnasium at École La Grande-ourse in Smithers, which replaced the leased facility that École La Grande-ourse has been operating in since 2019; adding 70 new student seats.

Prefabricated additions starting construction soon:

Dr. Charles Best Secondary in Coquitlam will get a 12-classroom addition, adding 300 new seats.
R.C. Talmey Elementary in Richmond will get a six-classroom addition, adding 150 new seats.

New financing option for Indigenous investment

Caisse de dépôt et placement du Québec (CDPQ) and the Mohawk Council of Kahnawà:ke (MCK) plan to jointly back renewable energy infrastructure projects in Quebec. The newly formed partnership will offer financing for Indigenous investment proponents to obtain equity stakes in new developments in their territories.

The partnership also aims to provide capacity-building resources so that Indigenous proponents can assess investment opportunities, negotiate agreements with prospective partners and maximize the benefits for host communities. This builds on the expertise MCK has already acquired through its involvement, with project partner, Kruger Energy, in two wind farms, totalling 171 megawatts of electricity generating capacity, and a new 58-kilometre transmission line interconnecting Quebec and New York State, in partnership with Hydro Québec.

“We believe the time is right for our communities to participate in the energy transition by owning and benefiting from energy infrastructure on our ancestral lands,” says Cody Diabo, Grand Chief of the MCK. “We have developed this partnership to provide the economic opportunity for First Nations and Inuit communities to maximize their stake in large-scale energy infrastructure on their lands and benefit from the revenues generated.”

“This partnership to fund renewable energy infrastructure projects reflects our commitment to supporting sustainable and inclusive development initiatives while contributing to Québec’s energy transition,” concurs Emmanuel Jaclot, CDPQ’s head of infrastructure and executive vice president. “We are delighted to be working with the Mohawk Council of Kahnawà:ke.”

Creating longevity-ready communities

The global population of humans living to 100 and older is predicted to increase to nearly 3.7 million by 2050, but according to the Stanford Center on Longevity, the institutions and policies in place today are unprepared for this growing life expectancy.

Creating longevity-ready communities is one way society can support the needs of those thriving beyond 70 years old. A recent discussion about senior living facilities, hosted by BIFMA, explored the trends and opportunities for designing these spaces.

“We really need to focus on prolonging independence and active lifestyles,” said Jen McDermott, principal and global practice director of senior living interiors at design and architecture firm HKS.

At the onset of a project, her team focuses on the lifestyle of residents within the larger community—looking at what draws them away from a smaller senior living environment. Clients for recent projects have requested co-working spaces as residents remain in the workforce, flexible hobby rooms, and master-classes, such as culinary experiences, that support life-long learning opportunities.

A new approach also prioritizes all aspects of wellness: physical, emotional, environmental, intellectual and financial. Other trends extend to smart home technology and fitness spaces where residents can personalize workouts.

Creating areas that support multi-generational connections also brings new design opportunities. “As people are living longer, it’s going to re-shape the family dynamic,” said McDermott. “One project we just completed has a bowling alley; it’s a great space for all ages to gather.”

Aging in place

Sara Marberry, a healthcare design knowledge expert, marketing consultant, writer, speaker and blogger with Sara Marberry, LLC, said aging in place doesn’t always mean remaining in the home where one lived for 25 years. “There are consultants out there who can help retrofit for safety,” she said “But many of the homes we live in are just not designed for aging.”

By thinking about aging in place within the community, many of McDermott’s clients are looking to adopt a model where all units are licensed as assisted living. “What this does is it allows for that higher level of care to be brought into the unit when it’s needed,” she said. “Or, if a couple is living there, and the spouse needs more assistance, they don’t have to move throughout that continuum; they can stay within their apartment.”

These units are designed to be adaptable, with accessible bathrooms and full kitchens with appliances. “It’s not just for the residents living there but for families coming in,” she added. “If they want to make a meal for their parents, they can do that.”

HKS partnered with the U.S. Food and Drug Administration on an initiative called Home as a Health Care Hub, which looks for design solutions that view the home as a primary hub of care delivery. It also focuses on integrating medical treatment in an equitable and reliable way to support health and wellness.

A virtual reality tool for medical device developers and manufacturers and other stakeholders allows them to walk through real-life scenarios, such as managing diabetes, so they can better tailor solutions for the home.

The middle market

In the U.S., while the population of high-income earning seniors is expected to rise, Marberry acknowledged the demand within the middle market. “By 2033, almost 16 million seniors over 70 will be considered middle market consumers,” she said. “Nearly a quarter of them won’t be able to afford private pay senior living options or qualify for Medicaid. There is this huge opportunity to address this middle market.”

Many communities are looking to offer a more accessible pricing model or à la carte services, McDermott pointed out. “Rental options are going to be increasing instead of buy-in fees,” she added. “Operators are also really trying to streamline operations. We see it with the use of robots. . . it’s leveraging technology to reduce those overhead costs.”

Replacing the concierge with a scheduling app or incorporating more resident-led activities in place of hiring staff are other prospective alternatives. McDermott envisions fewer amenities, such as scaling back on luxury features like spas. High-end multiple restaurant venues could reduce into a more flexible plan, with one dining option that transforms from morning to evening. Situating living facilities into more urban settings can also tap into the benefits of the outward communities and walkable amenities, she noted.

Creating a community of tiny homes is another trend on the horizon, where residents own their home within a small neighbourhood. Cozy Home is actively promoting this option for middle-income boomers, looking to jumpstart communities with senior living providers who own land.

As projects for middle-income seniors take shape, designers are looking for ways to incorporate concepts with new products that are targeted for that market’s price point.

“For flooring, we could use more off-the-shelf type products,” says McDermott. “With those higher-end communities, we are looking at custom carpet. We’re not going to be able to do that for the middle-market projects. We’d love to see more designs coming out to meet that need. Also, because the spaces have to be designed to be more flexible, we see more open floor plans. The need to define spaces with flooring (not using walls) is going to increase.”

Addressing climate change and ESG

Extreme weather events are also top of mind for many operators, who are more readily considering how to evacuate buildings and temporarily place residents in other communities.

“I think it’s our responsibility as designers to rethink how we’re designing buildings to withstand these disasters, like a fire, and also look at how to retrofit existing structures to protect them from future devastations,” McDermott noted.

The industry is also beginning to embrace the economic benefits of adopting environmental, social and governance (ESG) principals.

“Many of the healthcare REITS that fund capital projects for healthcare want to work with organizations that have good ESG policies,” said Marberry. Reducing the carbon footprint, both operational and embodied, is a cornerstone of the environment pillar.”

To address the social aspect, designing for diversity, equity and inclusion is key. “We want to create environments that accommodate diverse needs, preferences and backgrounds of residents to create that sense of belonging,” McDermott urged. “We used to design chapels as part of these communities years ago. Now, we are doing more mediation rooms that can cater to a variety of spiritual needs.”

Artwork, fabrics, textiles and dining options can all incorporate cultural diversity. Sourcing building materials and interior finishes that avoid using forced labour is another way to address the social pillar, Marberry adds, pointing to Design for Freedom, a movement that brings industry leaders together to eliminate forced labour in the building materials supply chain.

Many residents also have sensory challenges with noise, lighting or constantly living around other people. Designers are looking to accommodate these various needs. “Social isolation is important for people who may have difficulty connecting with others,” McDermott added. “As we think about the social aspect, we take into consideration neurodivergent residents and how the environment plays a big role in their lives and daily activities.”

Strategies to minimize tariff impacts on construction

The U.S. decision to put 25 per cent tariffs on construction materials is expected to have significant implications for the construction industry, leading to increased costs, supply chain delays, and contractual challenges.

Despite the 30-day pause on the pending tariffs, contractors, suppliers, and industry stakeholders must be prepared to navigate these uncertainties effectively to mitigate financial and operational risks.

Construction associations are actively monitoring the situation and advocating for fair and sustainable solutions. The most important advice for construction professionals is to carefully read and fully understand contracts.

Vancouver Island Construction Association, along with BCCA and the Canadian Construction Association, is strongly encouraging members to take immediate steps to safeguard their projects and contracts.

To minimize risk exposure, contractors should:

Use Standardized Contracts – CCDC contracts, such as CCDC 2 (Stipulated Price Contract), CCDC 5A/5B (Construction Management Contracts), and CCDC 14 (Design-Build Contract), provide clear risk allocation and dispute mitigation.

Include Price Escalation Clauses – Ensure that contracts account for unexpected material cost increases. CCDC documents include provisions for cash allowances and change directives that help manage volatility.

Negotiate Material Price Adjustments – Work with legal advisors to include clauses that allow for adjustments based on market conditions.

Secure Supply Chain Agreements – Where possible, establish long-term supplier contracts or explore alternative sourcing options to stabilize pricing.

Review Force Majeure & Delay Provisions – Ensure that contracts offer reasonable relief for project delays caused by trade disruptions.

Communicate Clearly with Clients & Owners – Set realistic expectations early regarding costs and timelines to prevent disputes and maintain strong client relationships.

BCCA has advised: Do not bid or sign contracts without clear duty provisions. Given the uncertainty surrounding supply chain stability, it is essential to review contract terms thoroughly and seek legal counsel before proceeding with new agreements.

Capacity for renewable power generation grows

Canada-wide capacity for renewable power generation from wind, solar or energy storage inputs has grown by nearly 7,600 megawatts, or 46 per cent, since 2019. Newly released data from the Canadian Renewable Energy Association (CanREA) pegs current installed capacity from those sources at about 24,000 MW, while another 10,000 MW is in development and slated to come online by the end of 2029.

“This investment is crucial in establishing resilient, sustainable infrastructure that can support Canada’s economic and environmental ambitions,” maintains Vittorio Bellissimo, CanREA’s president and chief executive officer. “Canada has massive, untapped wind and solar resources that can and should be harnessed to provide the affordable, clean, scalable electricity needed in all jurisdictions.”

About CAD $30 billion in investment is now in play for both projects to be completed in the next five years and others with longer development timelines that are projected to deliver an additional 5,000 MW of generating capacity. While wind power accounts for a far greater share of existing supply — at approximately 18,000 MW versus 4,000 MW of utility-scale solar, about1,600 MW of on-site solar and 330 MW of energy storage — solar and energy storage are showing momentum.

CanREA confirms that solar generating capacity grew by 92 per cent in the 2019-2024 period. Canada-wide there are now 217 utility-scale solar generation projects and nearly 96,000 on-site installations providing behind-the-meter or distributed generation. The last five years have also brought a 192 per cent uptick in energy storage capacity.

Gaining on its more established pre-2019 base, wind power registered a 35 per cent gain in installed capacity during the past five years, pushing the tally up to 341 wind generation facilities nationwide. Much of the recent new supply has been gleaned from Alberta.

Time theft in the cleaning industry

Time theft in many industries – including janitorial services – is a rampant practice that often goes unnoticed. In addition to the significant financial consequences for companies, this practice also affects customer satisfaction and employee morale. The adoption of real-time tracking technologies can limit this practice by improving the transparency of operations, boosting confidence, and optimizing team productivity.

Janitorial services are an integral part of the operations of many organizations across a wide array of industries. From office towers to healthcare facilities, shopping malls, and colleges and university campuses, housekeeping ensures cleanliness, hygiene, and comfort for its occupants. But behind this essential service lies an omnipresent and immutable problem: time theft. With telecommuting on the rise, a number of news outlets have lifted the veil on this trend that has been widely observed in the janitorial space for several years.

Most commercial cleaning services are outsourced to specialized contractors. These are major contracts, and overseeing their operation is complex. Since most janitorial work is performed outside business hours, either in the evening or at night, time theft often goes undetected.

But why does this practice persist, and above all, how can companies deal with it effectively?

What is time theft?

Time theft is typically the falsification of hours worked, and most often involves the widespread practice of “buddy punching,” where one co-worker clocks in for another. Time theft can also include late arrivals, extended breaks, or early departures without notification. Time theft also extends to the misuse of time in the workplace, for example:

Intentionally wasting time on work routes in a disproportionate manner
Spending time on personal activities during work hours (e.g., phone scrolling, sleeping)
Avoiding managers or colleagues

A study conducted by the American Payroll Association found that this type of behaviour costs companies an estimated $11 billion a year in the United States. Even more alarming, around 75 per cent of facility management companies report cases of time theft among their staff, making it a systemic problem throughout the industry.

Who pays the price for time theft?

These practices are not without consequences. Financial losses linked to unworked hours add up quickly, particularly in environments where direct supervision is difficult. On average, an employee can “steal” up to 4.5 hours a week, equivalent to six to 10 per cent of a company’s annual payroll costs. These figures reveal a startling reality for managers, who have to juggle limited profit margins with rising service quality expectations. Time theft takes a heavy toll on companies and their customers, both financially and organizationally.

And it’s not only the employer who pays the price. Roughly speaking, the cost of janitorial contracts is based on an estimate of the number of hours required to perform the work to the expected level of quality. With time theft, the property manager who pays a fixed monthly fee is likely to miss out on the performance of the service they are paying for and customers paying an hourly fee may be charged for more time for a job that could have been completed more efficiently.

The impact of time theft on businesses and clients

Beyond the financial losses, time theft also affects trust on several levels. Often, clients are the first to notice a lack of efficiency in the execution of tasks, and when the hours required on a contract are not respected, the level of service quality will inevitably drop, often inciting occupant complaints.

Studies reveal that 57 per cent of customers change suppliers because of reliability concerns; this loss of trust can have a lasting impact on a company’s reputation, jeopardizing long-term contracts.

Time theft can also affect morale among colleagues. Those who are respectful of the time and attendance requirements often find themselves overworked as they have to compensate for the gaps left by their less diligent colleagues. This imbalance creates tension and reduces job satisfaction, leading to a general drop in productivity.

Companies unable to detect or correct such behaviour often see their organizational culture deteriorate and suffer the consequences of high turnover rates.

Transparency helps tackle janitorial challenges

Faced with these challenges, it is becoming increasingly important for companies to review their management and supervision practices. Technological developments now offer the tools to bring total transparency to operations. Modern solutions, integrating functionalities such as geolocation, real-time task tracking, and automated validation systems can help eliminate the hidden side of housekeeping.

These tools also help optimize processes and improve communication between teams. For example, by automatically recording employee arrival and departure times, companies can reduce human error and ensure that every minute worked is accurately accounted for. In addition, detailed reports give managers a clear view of team performance, which can help to facilitate strategic decisions.

A lasting impact on productivity and customer satisfaction

The adoption of advanced technologies in the cleaning industry for tracking and validating work is not limited to solving the problem of time theft. It also transforms the way companies manage their operations. By improving transparency and restoring trust, these tools heighten customer satisfaction, track progress on their premises in real-time and demonstrate the impact of efficient management.

What’s more, the productivity gains achieved with these solutions translate directly into financial savings. A company that reduces time discrepancies can save thousands of dollars per employee every year while strengthening customer loyalty and improving its corporate image. For employees, these tools provide structure and clarity, making their work more valuable and creating a culture of equity and employee recognition.

Modernizing the industry through trust and transparency

Time theft might seem trivial, but it is a complex issue that affects all aspects of the cleaning industry. By investing in modern solutions and adopting a proactive approach, companies can eliminate this threat and transform the way they work to meet real needs, encouraging the adoption of dynamic work schedules adapted to new building occupancy patterns. The future of housekeeping lies in its ability to offer a flexible service based on transparency, efficiency and trust – values that must be at the heart of every operational decision.

Karl Bédard is the Senior Director at ValkarTech, a consulting firm dedicated to optimizing commercial cleaning contracts. As an experienced LEED Green Associates certified auditor, he conducts many building visits and evaluates customers’ various processes. His recommendations are always aimed at improving cleaning quality and productivity while minimizing costs.

ITC Construction announces new president

ITC Construction Group announced that Brad Burnett has assumed the role of president, taking over from Doug MacFarlane. MacFarlane will continue to serve as ITC’s chief executive officer.

Burnett joined ITC in 2003 and has worked on ITC’s most complex and high-profile projects in his previous roles as estimator, director of business development and vice president preconstruction. In 2023, he stepped in to become ITC’s executive vice president.

With more than 25 years of industry experience, he is a seasoned expert who embodies the values of ITC. In his new role, Burnett will oversee the execution of the company’s continued success in B.C., Alberta and Toronto and continue to play a vital role in expanding ITC’s operations, strategic planning, and client development.

“I am excited to announce I am starting the New Year with a new position as president of ITC. I am grateful to my predecessor Doug MacFarlane who has been my mentor and supporter for over 20 years. As I continue my leadership journey at ITC, I feel privileged to guide such an incredible team in Vancouver, Calgary and Edmonton and am excited for our growth into new markets such as Victoria and Toronto,” said Burnett.

MacFarlane has been with ITC since 1996, contributing significantly to the organization’s growth and development. He has more than 35 years of diverse experience and a wide-reaching industry network. As CEO, he will focus on nurturing client relationships and strategic initiatives while also taking on a new role as vice chair, Pomerleau West, where he will foster synergies and growth for both ITC Construction Group and Pomerleau across Western Canada.

Industrial market returning to balance

Focus on income returns and portfolio diversification

New sources of hesitation

Canadian fundamentals remain strong

IDS Vancouver

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