Report sheds light on Canada’s short-term rental supply

A new Statistics Canada report, released July 30^th, 2024, indicates that the number of short-term rental units has grown by 60 per cent since 2017, potentially taking valuable long-term rentals off the market.

According to the data, Canada’s short-term rental supply has increased from 214,808 units in 2017 to 355,070 in 2023. Of that total, the number of units considered ‘potential long-term dwellings’ (PLTDs) – i.e. not vacation or secondary properties but housing units rented specifically as short-term income properties – has risen by 80 per cent.

In Ontario, the share of housing units defined as PLTDs more than doubled, jumping from 0.35 per cent in 2022 to an all-time high of 0.69 per cent in 2023. In Quebec, there was also a jump from 0.38 per cent in 2022 to 0.51 per cent in 2023.

Meanwhile, both British Columbia and Prince Edward Island had a share of PLTDs that exceeded 1 per cent of housing units in 2023, aligning with those provinces being known tourist hubs and leaders in Canada’s short-term rentals sector.

“The shares were higher in tourist areas, especially in ski towns,” the report states, pointing out that Whistler had the highest share of PTLDs in 2021 at a whopping 35 per cent. “A situation in which PLTDs make up more than one-third of housing units can be expected to have a significant impact on a community’s housing market. However, the nature of the market as a tourist hotspot likely changes the approach to short-term rental policy. These areas may be disproportionately reliant on short-term rental activity since it often supports tourism and stimulates the local economy.”

For a detailed look at the report, click here: Short-term rentals in the Canadian housing market (statcan.gc.ca)

Bruce McKenzie receives Tom Sutherland Award

Bruce McKenzie was honoured with the 2024 Tom Sutherland Award by the Alberta Association of Architects (AAA). The award for volunteer achievement, created in Tom Sutherland’s honour, is presented annually to one AAA registrant who demonstrates emphatic leadership and dedication to positively impacting architecture and design.

McKenzie is a strategic advisor at NORR focusing on residential projects. He joined NORR in 2007 and pulls upon his 40 plus years in the architecture industry to shape the landscape of Calgary, where he started his career, as well as many other communities in Alberta.

He believes that connecting with the client is the most important building block to success. He fosters deep client relationships and is an expert at distilling the complexities of architecture to his clientele.

His designs reflect understanding of context, culture, and human experience, resulting in spaces that are aesthetically appealing, functionally efficient and environmentally sustainable.

Some of his signature projects include the Calgary Courts Centre and the McMahon Stadium Renovation. One of his most recent projects is the Hat @ Elbow River, the largest single mixed-use residential project ever approved in Calgary, as well as the city’s tallest residential complex.

Beyond professional accomplishments, McKenzie is a talented painter and illustrator, keen to share his work with friends, family and colleagues.

In addition to supervising around 50 intern architects over his years as a volunteer, McKenzie also gives his time, expertise and knowledge to future generations of architects and designers by providing guest critiques and talks at both the University of Calgary and Mount Royal University.

Over and above his industry volunteerism, he has also dedicated his time to many community projects including the Lions Festival of Lights, Meals on Wheels, Habitat for Humanity, and the Jack Long Foundation for Affordable Housing.

Legal case puts spotlight on condo security

Last year, community stakeholders, including the Association of Condominium Managers of Ontario (ACMO), the Canadian Condominium Institute (CCI), and the Community Associations Institute (CAI), called on the Ontario government to enact legislative reform and allocate more funds in order to improve the protection of all parties within condominium communities.

However, new regulations have not been implemented yet, and communities have been left to safeguard themselves against harassment and violence. This has resulted in condominium directors resigning, not running for election (or re-election), or avoiding the enforcement of rules due to safety concerns. Fortunately, successful outcomes can be achieved, if these issues are tackled strategically and preventative measures are put into place.

The Khraplyvyi case

In a recent case, Toronto Standard Condominium Corporation No. 2715 v. Khraplyvyi, a condominium found itself at the centre of a significant security challenge posed by a resident. This case highlights the inherent risks involved in maintaining a safe and harmonious living environment for all residents.

The case revolves around multiple incidents of disruptive and threatening behaviour exhibited by the son of a condominium owner over the course of a couple of years. The son’s actions included yelling and screaming at residents and staff, refusing to comply with security requests, and engaging in potentially dangerous activities such as obstructing fire safety inspections and using inappropriate language and gestures towards female residents.

These behaviours culminated in the discovery of a disturbing note in the condominium’s parking garage, which contained graphic threats of sexual violence and derogatory language towards management and other residents, in addition to images of the Russian “Z” symbol representing the military invasion of Ukraine.

Legal implications for safety

The Khraplyvyi case underscores several legal and safety implications for condominiums and property managers:

1. Compliance with the Law: condominiums must ensure that all residents comply with the Condominium Act, 1998, declarations, bylaws, and rules. This includes taking reasonable steps to address any behaviour that may cause damage, injury, or interfere with other residents’ enjoyment of their property.

2. Workplace Harassment and Violence: The case highlighted the issue of workplace harassment, particularly when residents’ actions impact workers. The Occupational Health and Safety Act defines harassment as any vexatious conduct or comments that are unwelcome. In this case, the son’s behaviour towards the management staff can only be characterized as workplace harassment and violence.

3. Financial Accountability: This ruling reinforces the principle that residents who violate condominiums’ governing documents can and should be held financially accountable for the consequences of their actions.

The cost of prevention – who is responsible?

Disputes between an owner and a condominium’s agents, individual board members or between owners themselves, certainly comes at a hefty price for the corporation’s. Whether it’s legal costs, administrative or soft costs (e.g., tracking, recording, and expending time and efforts to curb a dispute).

In response to the unwelcome actions by the unit owner’s son, TSCC 2715 was compelled to take extensive security measures. These included hiring additional security guards at a cost of over $31,000, installing more closed-circuit television (CCTV) cameras for approximately $17,000, and conducting a security assessment costing $5,400. Additionally, the condominium had to repair the door to the unit after the police forcibly entered, adding further to the expenses. In total, the corporation incurred security-related costs amounting to $54,624.30.

The court ultimately awarded the condominium the complete amount it incurred in security costs plus legal costs in the amount of $39,805.38. Meaning, in total, the respondent owner and son were jointly ordered to pay the condominium $94,429.68.

Key takeaways

This case serves as a crucial reminder of the importance of robust security measures in condominiums. Condominium boards and managers must be vigilant and proactive in identifying and mitigating risks to ensure the safety and well-being of all residents and workers. Key takeaways include:

Early Intervention: Prompt action can prevent situations from escalating. Regular monitoring and addressing minor infractions early can deter more serious violations and will generally set an expectation in the community that issues will be dealt with (i.e., residents cannot get away with this type of conduct).

Documentation and Proof: In such cases it is pivotal to document any interactions with the wrongdoer and establish clear boundaries to avoid any misunderstandings. If at all possible, avoid interacting with these individuals by phone.

Comprehensive Security Plans: Investing in comprehensive security systems, including CCTV, security personnel, and regular assessments, is essential. These measures not only enhance safety but also provide valuable evidence in case of disputes. Connect with your security and concierge service providers to carry out a comprehensive security audit or highlight the “hotspots” or “problem areas”.

Resident Education: Educating residents about the importance of security and the consequences of non-compliance can foster a cooperative community environment. Clear communication and reminders regarding the existing rules and, their legal obligations with respect to the condominium’s governing documents can help set expectations and reduce conflicts.

Policy Implementation: Complaint response and harassment policies can be implemented by condominiums in consultation with their property management service providers, legal counsel, and other professional advisers. Additionally, condominiums can look to different communities for insight and practical implementation of ideas that have worked elsewhere.

Work on Conflict Resolution Skills: All community stakeholders ought to work on improving their conflict resolution skills and learning how to de-escalate situations. This is not only true for managers, but also for directors.

Listening: often individuals simply want a chance to express their frustration or explain a situation that is causing them distress.

Remain professional: angry responses to an angry resident will not de-escalate a situation. It is important that people in these situations understand the value of remaining calm and collected.

Suggest solutions: offering to solve a problem may ease tensions.

Follow through with promises: it is vital that stakeholders stay true to their word and, when promises are made, that they are kept.

A light at the end of a tunnel

The Khraplyvyi case illustrates the complex challenges property managers face in maintaining security and order within residential communities. It also underscores that while the costs of security improvements and prevention may be significant, the price of neglecting it can be far greater. It is also worth recognizing the important role that property managers have in reducing the risk of conflicts and protecting themselves from potential harm or legal action.

By reflecting on this case, boards and property managers can learn how to take proactive steps to safeguard their properties and communities. They can also look to it as an example that wrongdoers can ultimately be held accountable, even if the journey is challenging.

Luis A. Hernandez is a condominium lawyer with Levitt Di Lella Duggan & Chaplick LLP in Toronto. He services condominiums across Ontario with all their solicitor and litigation needs. He is also a frequent speaker at industry events, and contributor to industry publications.

Ingrid Kulik, RCM, CMCP is a condominium manager with Icon Property Management Ltd., providing full-service property management services in the Greater Toronto Area.

Helping condos stay afloat during a flood

The immense flooding that occurred recently across the Greater Toronto Area led to massive evacuations and widespread power outages. This is just one example of the increasing severity of natural disasters. Whether a result of climate change, urban expansion, or inadequate city planning, one thing is clear: the potential for water-related disasters is real.

But it doesn’t only take big storms to cause major problems for a residential community. Smaller-scale events such as fires, burst pipes, or power outages can be extremely challenging for several reasons.

Perhaps most important is the leadership structure in residential communities. Communities and associations typically don’t have the same type of central, onsite management as office buildings, nor are they guided by the same regulations. This can create much confusion when developing and maintaining an emergency response plan.

So, how can these situations be handled in condo buildings or managed communities? There are four basic steps that those responsible for a property need to take to help manage disasters effectively to get residents back into their units as soon as possible.

1. Establish leadership

Every good military and police operation has a strong central command because it helps control the flow of information and the allocation of resources. Good disaster response is no different.

Defining jurisdiction will help prevent paralysis following a flood and improve the chances of effective management of the recovery process. When a condo building’s parking garage is flooded, who manages the disaster? Is it a property manager? The condo board? Or is there a separate committee that deals with these situations?

Before a condo is hit with an unexpected event, establish management responsibilities and clearly communicate this to residents to streamline the response process. Also, make residents aware of where the building’s responsibility ends and the unit owner’s responsibility begins.

2. Develop and test plans

Office buildings are mandated to develop emergency preparedness plans and conduct evacuation drills. But that’s not always the case for residential buildings. Condo buildings are required to test and maintain a working emergency alarm and fire escape plan, rarely more.

Developing and testing an emergency preparedness plan is undoubtedly in the best interest of both the property manager and residents. If a disaster hits, condo buildings should immediately put that plan into action. This includes issuing clear evacuation orders and enabling the flow of people out of the building in a safe, controlled manner. It also includes clear guidelines and 24/7 contact information for service providers such as plumbers, restoration firms and electricians.

3. Communicate next steps

Communication is often the first thing to collapse during an emergency. Having clear and strong leadership helps, but much more can be accomplished.

Residents should know what will happen after an evacuation order is issued and whom to contact about next steps. The condo board, the property manager, or the decision maker, needs to distribute news via their website, email, social media, and some other agreed-upon communication, such as SMS so that residents are aware of the situation in their building. Also, pre-determine alternate meeting places so residents know how to contact management.

4.  Mobilize resources 

After a disaster hits a residential building or community, specialized resources should be quickly mobilized to properly mitigate damage and start a safe and healthy path to recovery. Depending on the size of the flood, these resources could include restoration specialists, plumbers, electricians, and specialized equipment for dehumidification and temporary power generation.

Management can have a professional restoration provider on speed dial who will arrive immediately, assess the situation, and enact an emergency mitigation plan. The sooner this process begins, the sooner residents can begin returning home. The best scenario is to have a partnership with a disaster restoration company already in place.

Failure to bring in specialists could result in individuals taking incorrect actions, possibly endangering residents as well as lengthening the recovery timeline. Often, these professional service providers will be able to map out and track the progress of the recovery, therefore speeding up the insurance claim process.

When it comes to disaster management in residential buildings and communities, the mandated minimum is far from good enough. By establishing leadership, developing, and testing plans, communicating the next steps, and mobilizing resources, Managers and communities will be far better equipped to respond to disaster and restore their properties.

As the saying goes, “an ounce of prevention is worth a pound of cure.” In the case of water damage, several hundred dollars in preparation can save tens of thousands in restoration and repairs.

Jim Mandeville is the SVP, Large Loss, at First Onsite Property Restoration.

Managing your cleaning labour

In today’s competitive marketplace, providing excellent service means higher profits, more loyalty, and increased efficiency. By maximizing your employee retention and effectively managing your labour, you can grow your business and keep clients coming back.

Scope of work

In order to allocate the correct number of staff or an accurate number of hours, you need to define your scope of work accurately. There are several factors to take into consideration when defining the scope of work:

Frequency of service. This could mean daily, weekly, or monthly.
Areas to be cleaned. Include all locations and surfaces, including windows, furnishings, floors, and restrooms. This should also include a list of tasks such as dusting, sanitizing, disinfecting, scrubbing, and recoating floors.
Cleaning methods and tools required. Specify the equipment needed to complete the tasks to make the process simple and efficient.
Standards and expectations. Be clear on the outcome expectations with respect to appearance, odour, safety, health, and sustainability.
Reports and communication. Define the required communication steps and time required to manage the job, resolve issues, and make suggestions for improvement.

RELATED: The value of workloading

Staffing levels

Servicing your clients means maintaining staffing levels that fulfil those needs. Attracting and retaining top talent is necessary to manage labour effectively. There are a few ways that you can create an environment that employees want to join and a place where they want to stay:

Adopt an efficient interview process. Shorten the hiring window, communicate the job responsibilities clearly, and be transparent with your pay structure.
Automating your timesheets and payroll can help track performance, improve accuracy, cut down on overtime pay, and help you see where there might be the prospect for savings.
Prioritize employee training and certification. Providing opportunities for growth will keep employees invested in your business. Adding certifications to your qualifications could mean standing out, being more qualified than the competition, and bettering your workforce.
Create a positive culture. Staff who feel supported and appreciated work harder and stay longer. Studies show that employes with a positive work experience are 68 per cent less likely to leave their employer. Encourage milestone achievement, adopt an appreciation program, and encourage staff feedback.

Effectively managing your labour with an accurate scope of work, monitoring staffing levels, and creating a positive place to work can help cleaning companies stand out among their competitors while growing the business.

New children’s treatment centre breaks ground in Chatham-Kent

A brand new treatment centre for children with specialized needs broke ground in Chatham-Kent this week.

The 58,000‐square‐foot, fully accessible building will replace the existing site to reduce wait times and offer a larger space for autism services, speech-language pathology, occupational therapy, physiotherapy, audiology, fetal alcohol spectrum disorder, specialized rehabilitation and respite supports, and coordinating care for those with multiple and/or complex special needs.

The current facility serves about 3,700 children and youth with special needs.

Ontario recently invested $59 million into the $66-million project. “With our vision of Amazing Kids Today, Enriching our Community Tomorrow, this significant provincial investment will meet the needs of our Chatham-Kent children, youth and families with physical, developmental and communication needs,” said Donna Litwin-Makey, the treatment centre’s current CEO.

Vancouver Island Hwy 1 funding to improve transit

Highway improvements for southern Vancouver Island communities will help provide faster public transit services after a joint investment of $95 million from the federal and provincial governments.

The funding will widen around 3.8 kilometres of the highway between the McKenzie and Colwood interchanges to better support continuous northbound and southbound bus-on-shoulder lanes running on the TransCanada Highway.

“We know transit is a vital resource for our West Shore communities, and funding these new dedicated lanes will make taking the bus an even easier choice, so people can count on getting to their homes and work as quickly as possible. It means everyone will have an easier time travelling on our highways,” said Rob Fleming, B.C. transportation minister.

This work connects improvements being made to the Colquitz Bridges Widening project, including its dedicated bus lanes, and transit improvement work BC Transit is completing from the Six Mile area to View Royal, making one continuous route of easier travel for people between communities.

RapidBus is designed to deliver consistent and frequent bus service, limiting stops to high passenger volume areas. Investing in bus-on-shoulder lanes along Highway 1 will accelerate the service’s implementation, making transit for the South Island faster and more reliable.

Funding for this project will include converting and widening the existing shoulders on Highway 1, as well as realignments to ramps and ramp-terminal intersections, installing roadside barriers, additional signage and warning flashers, and constructing a new bridge for pedestrians and cyclists crossing Craigflower Creek.

This project aligns with the South Island Transportation Strategy’s goal to construct more bus lanes along highways and other inter-regional service corridors and more specifically, to develop the Rapid Transit Corridor along Highway 1.

“This is one of the largest investments in transportation and infrastructure in the West Shore’s history, set to deliver faster and more reliable bus service. This will save people time, fuel and money by getting them out of congestion and onto rapid buses,” said Ravi Parmar, MLA Langford-Juan de Fuca.

Work is anticipated to start in early 2025 and be completed by late fall 2027.

Mainstreet steps up to help Jasper wildfire victims

Mainstreet Equity Corp. is working to provide shelter and support for Jasper residents displaced by the wildfires that continue to wreak havoc on western Canada. Mainstreet’s offer includes a six-month lease, with no rental fees for the first two months.

According to Bob Dhillon, Founder, President and CEO of the Calgary-based real estate company, occupational opportunities at Mainstreet are also available to help support the independence of those in need.

“People are fleeing a serious threat, and that means they are forced to abandon their lives to seek safety elsewhere,” he said. “Many are now grappling with the devastating loss of their homes, the uncertainty of their current situation, and the challenge of finding a new place to go. We would like to help these individuals, by making this offer during these times of tight rental markets, to move into a place that is stable and comfortable.”

On July 24, the wildfire swept through the region destroying more than 350 buildings in the mountain town of Jasper, which is home to just under 5,000 people and thousands of seasonal workers. Further west, hundreds of people across B.C. continue to face evacuation orders as out-of-control wildfires continue to spread.

Jasper residents in need of assistance are encouraged to call 866-480-6246 or email [email protected]

New research lab tests how grid hosts cleantech

A new research lab at University of Toronto will simulate how emerging clean technologies interact with the electrical grid, providing insight to address capacity constraints, potential cyber-security issues and other identified required system refinements. It will serve as Canada’s first accelerator for advancing and commercializing grid-integrated technologies and has been launched with a $10 million grant from the Canadian government and the backing of the university’s Clean Positive Energy (CPE) initiative.

The CPE initiative was established in 2022 to explore scientific, engineering, social and economic supports for the transition to net-zero carbon emissions, and is also aligned with research efforts around sustainable energy, energy storage and sustainability financing. It’s foreseen that the new grid modernization centre will host up to 120 businesses commercializing the components of decarbonized, decentralized, digitalized electricity system.

“Working across government with communities, industry and universities is key to building more energy infrastructure across Canada — infrastructure that is not only affordable, but also reliable and clean,” says Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources.

“By convening stakeholders across the electricity ecosystem, Climate Positive Energy and their partners will help ensure the electrical grid remains safe and reliable, while supporting the development of clean technologies and jobs,” maintains Professor Leah Cowen, vice president, research, innovation and strategic initiatives, at University of Toronto.

Design concepts for sustainable cleaning

The design of public spaces, such as restrooms, plays a key role in ensuring effective cleaning and long-term durability. All too often, original and aesthetically pleasing design choices make day-to-day cleaning and maintenance costly and laborious, compromising the cleanliness and hygiene of these spaces. Through numerous audits performed to assess the quality of cleanliness and cleaning practices, we have identified several types of design elements to avoid and alternative solutions to ensure that public spaces are not only beautiful but also easy to maintain.

Avoid porous surfaces

Porous surfaces, whether floors, walls or countertops, are breeding grounds for bacteria and dirt. Materials such as marble, untreated granite and unsealed concrete easily absorb liquids, stains and contaminants, making them difficult and costly to clean.

Instead, opt for non-porous materials such as vitrified ceramics, tempered glass, and stainless metals. These materials prevent the absorption of liquids and can be cleaned with standard disinfectants without damaging the surface. They also remain true to their original appearance for longer, reducing the need for frequent renovation.

Choose resilient flooring

Resilient floors are an ideal option for public spaces because of their durability, ease of maintenance, and resistance to high-traffic wear and tear. Unlike porous floors, which absorb liquids and dirt, resilient floors such as vinyl, linoleum, and rubber prevent the infiltration of contaminants.

Porous floors, such as untreated natural stone or rough concrete, may be good-looking, but they raise serious hygiene concerns. They require regular application of chemical sealers to prevent stains and infiltration, which drives up maintenance costs. Resilient floors, on the other hand, offer a non-porous surface which can be easily cleaned without the excessive use of chemical cleaning products, making them particularly suitable for high-traffic areas such as public restrooms.

Avoid acoustic wall panels

Although they’re a beautiful feature, they’re a real headache for cleaning crews! Horizontal slats, whether made of wood, metal or plastic, easily collect dust, allergens, and debris. As eye-catching design elements, they require regular dusting and meticulous cleaning to maintain a clean appearance, increasing the workload for maintenance crews.

Stay away from fabric cushions

Fabric cushions, while comfortable and pleasing to the eye in places like offices and lobbies, are often difficult to maintain, especially in public environments where dirt and spills are common. Fabrics absorb liquids, odours and all sorts of contaminants that are not necessarily visible! Therefore, they should be treated with water-repellent products and cleaned frequently to remain hygienic.

For durable and much easier-to-maintain alternatives, materials such as synthetic leather or vinyl are recommended. These non-porous materials resist staining and can be quickly cleaned with a simple disinfectant. They also retain their appearance and functionality longer than traditional fabrics.

Avoid ceramic mosaics under hand dryers

Ceramic mosaics are elegant, but they present considerable maintenance challenges, especially under hand dryers where water and soap residues collect in the joints. These areas quickly become critical spots for dirt and mould, requiring frequent and intense cleaning to remain hygienic.

RELATED: Moisture and mould

A practical solution to this issue is to install a stainless-steel plate under the dryers, which offers a non-porous material that resists water and is easy to clean. It protects walls from water splashes and soap residues, minimizing the frequency of scouring ceramic tiles and joints. What’s more, it offers a smooth, glossy surface that adds a modern yet timeless touch to the space.

Facilitate access to dispensers

In many public spaces, the design of countertops makes it difficult for cleaning staff to reach soap dispensers for refill purposes. These uncluttered counters force employees to bend or even lie on the floor to reach the soap bottles, which is not only inefficient but also uncomfortable and potentially dangerous.

To remedy this situation, it’s best to design counters with easy access to soap dispensers. This can be achieved by installing integrated dispensers or open niches under counters, allowing easy access for employees. In addition, the use of wall-mounted automatic soap dispensers reduces the need to handle soap bottles manually, improving efficiency and hygiene.

Focus on sustainability

As more and more organizations commit to reducing their environmental impact, it’s important not only to prioritize the choice of sustainable materials, but also to include consideration of the impact design can have on the organization and logistics of cleaning operations.

By avoiding porous surfaces and horizontal slat wall features, eliminating ceramic mosaics under hand dryers, and by facilitating access to soap dispensers, designers can create public spaces that are not only aesthetically pleasing but also practical, ecological and cost-effective to maintain.

By applying these design concepts, we aim to improve the efficiency of housekeeping operations and ensure clean, safe public spaces for all users

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.

Alliance Française Vancouver opens new centre

The Alliance Française Vancouver (AFV) has unveiled its new cultural facility, at 6161 Cambie Street, Vancouver.

The $24-million, 30,000-square-foot community hub is the largest, independent cultural facility in B.C. and will serve the region’s francophone and French-speaking community.

It includes a 1,120-square-foot art gallery, 2,700 square feet of artist studio space, a media library, a 165-seat theatre, a bistro and cafe, a demonstration kitchen for cooking classes, plus 16 classrooms. The studio space will offer affordable rentals for artist residencies.

Plans for the building began in 2015, and in 2021, the original location was torn down to make way for the new facility, designed by the Vancouver-based architectural firm, McFarland Marceau. The development has been funded by all levels of government, as well as foundations, private companies and individual donors.

The new building is now the third-largest Alliance Française location in North America, after New York and Toronto. Alliance Française Vancouver is part of the global network of Alliances Françaises, which includes 834 centres in 132 countries.

“Drawing upon the rich cultural heritage of Alliance Française Vancouver, which this year celebrates its 120th anniversary, we are thrilled to unveil our new landmark cultural facility, devoted to preserving and celebrating the French language and thriving francophone cultures present in Vancouver today,” said Damien Hubert, executive director of Alliance Francaise Vancouver.

The new centre is a hybrid mass timber structure that uses concrete, masonry, steel and glass, in coordination with mass timber elements to achieve a premium architectural finish. The building features a 4 storey atrium at it’s heart, which provides a grand entrance, and contains a custom floating staircase, and decorative millwork.

Condo sales in Toronto drop nearly 20% in Q2

Condo sales in Toronto were down nearly 20 per cent in the second quarter of 2024. The Q2 condo market report by the Toronto Regional Real Estate Board found there were 5,474 sales during April, May and June, compared to 6,824 in Q2 2023.

TRREB President Jennifer Pearce said high interest rates continue to dampen buyer enthusiasm in a segment that is a traditional entry point for ownership. “With monthly payments remaining high and average rents edging lower over the past year, many would-be buyers remain on the sidelines,” she said. “However, over the next year, an improving affordability picture will see a growing number of first-time buyers enter the condo market.”

Although listings went up significantly by 36.5 per cent (16,917 in total), prices haven’t declined by much. The average condo in the Greater Toronto Area now costs $729,005, down by 1.2 per cent compared $737,925 in Q2 2023. In the City of Toronto, the average selling price was down by only 0.5 per cent at $765,963.

“Despite a much better supplied condo market over the past year, selling prices have remained relatively flat, especially in Toronto,” said TRREB Chief Market Analyst Jason Mercer. “This suggests that sellers are holding relatively firm on their listing prices. This may be in anticipation of improved market conditions as borrowing costs continue to trend lower this year and next.”

Inlet District gets final rezoning enactment

Wesgroup Properties received final rezoning enactment for the 14-acre Inlet District in the area formerly known as Coronation Park.

The transit-oriented development in Port Moody will add more than 2,400 market condos and 101 market rentals to the city as well as two daycare centres, an office building, a supermarket, a drug store and other retail.

Wesgroup acquired the site in 2019 through one of the largest assemblies of single-family homes in B.C. The master plan encompasses 2.2 million square feet of buildable area and will feature six condo towers and three low-rise buildings surrounding a new community park.

The development agreement between the developer and the City of Port Moody includes $137 million in financial and in-kind contributions to the community.

“Inlet District is an example of the time and effort required to bring transformative projects like this to fruition,” said Brad Jones, senior vice president of development. “We first started working on Inlet District in 2019 and now expect that it will take another five years until the first residents are able to move in.”

Construction on the community is slated to begin in fall 2025 and the first residents are expected to be able to move in by 2029.

New green buildings strategy mostly a rehash

The Canadian government’s newly released green buildings strategy contains little that is actually new for commercial real estate or public sector facilities. Rather, it’s an after-the-fact summary of programs and policies that have already been announced and funding initiatives that are mostly in progress. This fulfills the 2022 federal budget promise for an overarching masterplan, and parses out where various envelopes of funds have been channelled or will be directed.

The strategy reiterates three key federal intentions to reduce greenhouse gas (GHG) emissions in line with national targets to achieve net-zero emissions by 2050, and to bolster the built environment’s resilience to climate change. That entails: accelerating the pace of retrofits for existing buildings; ensuring that new construction meets low-carbon, high-performance criteria; and nurturing skills, technologies and financing mechanisms to make both those outcomes possible.

“It is a challenging sector to decarbonize because we must all do it, together. To succeed, close collaboration is needed between the federal government, provinces, municipalities, Indigenous groups, businesses, financial institutions and industry,” maintains the joint introductory statement from Jonathan Wilkinson, Minister of Energy and Natural Resources, Steven Guilbeault, Minister of Environment and Climate Change and Sean Fraser, Minister of Housing, Infrastructure and Communities. “There are 16 million homes and half a million other buildings standing in Canada today and most of these are expected to still be standing in 2050. Each home and building owner has a role to play in this sector to upgrade and retrofit these spaces to significantly reduce emissions in that time.”

Perhaps indicative of the staleness of the messaging, a junior minister with nebulous ties to those three portfolios — Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec — represented the government when the strategy was officially unveiled earlier this month. That’s more than 12 months behind the originally envisioned spring 2023 schedule, which was announced with the government’s consultative discussion paper two summers ago.

Third-party project managers deemed more effective for reaching low-income tenants

The strategy’s regurgitation of existing initiatives does come with one new incentive program for affordable housing providers. Canada Mortgage and Housing Corporation (CMHC) has been assigned to deliver the program, which underwrites deep retrofits that can reduce energy consumption by at least 70 per cent and greenhouse gas (GHG) emissions by at least 80 per cent compared to pre-retrofit performance.

Non-profit housing corporations, public housing agencies, rental cooperatives, Indigenous governments and organizations, and provincial/territorial and municipal governments are eligible for up to $130,000 per project for pre-retrofit preparatory studies and up to $170,000 per unit in combined low-interest repayable and forgivable loans for retrofit measures. The forgivable portion will max out at $85,000 per unit or 80 per cent of eligible costs, whichever is the lesser amount.

This could apply for community and social housing, Indigenous cultural spaces, mixed-income rental housing or mixed-used developments with an affordable rental housing component, shelters, transitional and supportive housing or single-room occupancy buildings. Qualifying buildings must have at least five dwelling units or single-room occupancies and be at least 20 years old, with some exceptions for newer vintage housing in Nunavut, Yukon and Northwest Territories.

In total, $19.5 million has been earmarked to fund pre-retrofit studies and $1.1 billion will available to bankroll retrofit measures. Recipients are expected to repay 20 to 50 per cent of their share of the latter amount over a period of up to 40 years, but will be required to cover only the interest on loans until the energy retrofit components of their projects are completed and they begin to realize those cost savings.

This new program replaces previously fully subscribed (and thus terminated) grants for homeowners to undertake energy and emissions-reducing improvements, and is presented in the federal government’s announcement as a more effective instrument for reaching targeted economically stressed households. Project proponents working with qualified energy services companies will handle the administrative, technical and financial aspects and there will be no costs for unit occupants.

“Using a direct-install model, where the retrofits are managed and delivered by third parties, this program could provide participating households with support up to four times more valuable than the former grant program. Recommended retrofits will be determined by experienced energy efficiency professionals, enabling each participant to receive what their home needs and making their homes more affordable and comfortable,” the government release states.

Existing programs promoted for commercial and institutional buildings

Turning to commercial and institutional buildings, the green buildings strategy tallies the programs through which the government is investing in energy retrofits and other improvements to reduce GHG emissions. Funds for the private sector are largely channelled through Canada Infrastructure Bank’s buildings retrofit initiative, which provides low-cost financing either directly to large players that can bring a minimum of $25 million in equity to the deal or to aggregators that are tasked with managing retrofit programs for a slate of smaller property owners. The deep retrofit accelerator initiative is a complementary program, underwritten through a $200 million 2022 federal budget allocation, which also tasks designated organizations (chosen through a competitive process) to “build capacity” for deep retrofits in the commercial, multi-residential and institutional property sectors.

Meanwhile, $1.5 billion is rolling out for upgrades and construction for a range of buildings that serve a community purpose and the Federation of Canadian Municipalities oversees the green municipal infrastructure fund, which subsidizes larger scale retrofits of public facilities. As well, $100 million has been made available for provincial/territorial, municipal and Indigenous governments and national and non-governmental organization to promote the adoption and implementation of the highest tier of national energy code performance criteria or other high-performance building codes.

The Canadian government has also made a commitment to reduce GHG emissions and demonstrate leadership on promoting climate change resilience within its own portfolio of buildings. Most recently, it has introduced new policies to target net-zero emissions in office space leased from private sector landlords and introduce conditions related to climate risk analysis and life cycle assessment for contractors bidding on public contracts.

Private sector participation called crucial for success

Building owners/managers, developers, investors and financiers, industry associations, organized labour and clean tech advocates are tapped to be drivers of the green buildings strategy. It’s envisioned that they will see and respond to economic opportunities and collectively support the demand for and scale of activities that lead to new industry norms.

“The private sector and civil society have a critical role to play in developing awareness of — and adopting and investing in — green buildings,” the text of the strategy urges. “Creating demand by raising awareness of heat loss in buildings, fuel switching technologies and resiliency options will help spur the green buildings transition from the ground up.”

In that vein, almost one quarter of respondents to Altus Group’s most recent quarterly survey of commercial real estate conditions and sentiment predict that environmental and sustainability requirements will be a high priority in their professional endeavours over the next 12 months. That’s a significant gain from the approximately 15 per cent of respondents who identified those issues as important during the first quarter of 2024, but still lags well behind the top concerns revolving around the cost of capital and interest rates (prioritized by 58 per cent of respondents), development/construction costs (55 per cent), inflation (41 per cent) and operating costs (39 per cent).

A more detailed breakdown suggests that a larger share of the players with greater economic clout are on board. In total, 50 per cent of respondents report that ESG considerations significantly or moderately influence their investment or credit decisions, but that jumps to 76 per cent of firms that have more than $5 billion worth of real estate under management. Conversely, 12 per cent of survey respondents say ESG is a negligible factor in their decision-making, but none of them are with firms that have more than $5 billion worth of real estate under management.

Firms with $500 million to $1 billion worth of real estate under management are most likely to report that ESG considerations are integral to decision-making — 33 per cent versus 18 per cent across the total survey base.

More housing options coming to B.C. communities

Provincial legislation to fix outdated zoning rules and create more small-scale multi-unit homes has now been adopted into local bylaws by almost 90 per cent of B.C. communities. Out of 188 local governments in B.C., 162 have adopted the legislation, and another nine communities are actively working on it.

“People expect governments to work together to tackle the housing crisis and provide more homes for people,” said Ravi Kahlon, Minister of Housing. “We are encouraged that the vast majority of local governments have worked hard to adopt much-needed provincial legislation to fix old zoning rules and deliver the types of homes that people need.”

Local governments were required to make changes to zoning bylaws by June 30, 2024, to allow either a minimum of one secondary suite or detached accessory dwelling unit; a minimum of three to four dwelling units; or a minimum of six dwelling units in areas near bus stops with frequent transit service, depending on location.

“Small-scale multi-unit housing is a critical solution to the housing crisis offering a practical and scalable way to increase housing availability that fits existing neighbourhoods,” said Akua Schatz, chair, Small Housing BC. “By integrating more houseplexes and accessory dwelling units, we can provide more attainable housing options, helping to meet the urgent needs of families and individuals.”

Fifteen communities have requested a formal extension on adopting the legislation beyond the June 30, 2024, deadline. Those requests are being reviewed by the Province. Two communities, the District of Wells and the Northern Rockies Regional Municipality, have been granted an extension due to recent or current impacts of wildfire and evacuation orders.

One community, the District of West Vancouver, rejected passing bylaw amendments and is currently not in compliance with small-scale multi-unit housing legislation. This community has been sent a 30-day non-compliance notice. At the end of that 30 days, a ministerial order could be issued.

For more information, visit: Small-scale, multi-unit housing – Province of British Columbia (gov.bc.ca)

Interest rate cut emits positive signal for CRE

Another downward adjustment in the Bank of Canada’s overnight lending rate is touted as a positive signal for commercial real estate even though there is still some way to go to reach what’s considered a neutral level around 3 per cent. The newly announced 0.25 per cent cut takes the overnight rate down to 4.5 per cent and follows one month after a previous 0.25 per cent reduction.

In announcing its decision, the central bank reiterated that the inflation rate is expected to drop to roughly 2.5 per cent in the second half of 2024 and then continue downward to a 2 per cent target next year. With that, ongoing interest rate cuts are foreseen. For now, practical impacts on the cost of debt aren’t expected to flow through to the market for a few more months, but economists suggest the apparent momentum of falling rates should provide a psychological lift for investors.

“An interest rate cut changes expectations for where interest rates are going, which influences the decision-making process,” maintains Peter Norman, vice president and chief economist with Altus Group. “The pace of rate cuts is important. Successive rate cuts signal the Bank of Canada is no longer holding and is moving quickly towards bringing interest rates back into balance, which inspires optimism in the market moving forward.”

Recent results from Altus Group’s second quarter survey of commercial real estate trends in Canada reveal that nearly half of respondents (49 per cent) expect that all-in interest rates will decrease over the next 12 months. As well, 31 per cent foresee greater availability of capital at a lower cost, 36 per cent anticipate an uptick in attractive investment opportunities and 46 per cent expect more investment transactions will occur. Although 55 per cent of respondents predict increasing levels of credit distress in the coming year, that’s a more tempered outlook than during the first quarter of 2024 when 61 per cent foresaw that scenario.

Looking at actual market conditions (during survey dates from late March to the end of April), all-in financing costs were reported to have increased over the previous quarter for industrial, multifamily, retail and office properties, while dropping for hospitality properties. Maximum loan-to-value ratios for debt financing were deemed relatively on par with the previous quarter, but climbed about 5 per cent for office properties, while dropping about 2.5 per cent for multifamily properties.

Half of the respondents suggested their firm would mainly focus on managing its existing portfolio throughout the third and fourth quarters, while 18 per cent expected an emphasis on deploying capital and 15 per cent anticipated a focus on raising capital.

“We have moved from a period of an increasing rate to one of holding rates, and now it looks like to one of lowering rates,” Robert Santilli, a director of valuation advisory with Altus Group, observed during a recent webinar exploring the survey results. “This is going to spur more deal activity. There are some groups that want to get in to ride another cap rate cycle.”

Seasonal, sustainable lawn maintenance for commercial properties

As fall slowly approaches, outdoor maintenance means starting to prepare for the colder months. Getting your lawn in great shape is one way to ensure a healthy emergence in the spring, limiting your ongoing maintenance and saving on your expenses.

This time of year calls for maintenance to be done on your lawn and in your gardens to keep them looking great all year long, and a sustainable approach can lessen air pollutants, reduce energy consumption, and limit chemical use on your property.

Greener products

September is the perfect time for seeding, so consider some eco-friendly options if that is part of your fall outdoor maintenance plan. Today’s greener options include chemical-free lawn seed that requires much less water and only needs mowing monthly. You can also opt for organic fertilizer or chemical-free weed killer, and when fall arrives, mow the fallen leaves to provide a natural mulch for your grass. Choosing environmentally friendly products helps lessen environmental impact while decreasing energy and water consumption and costs.

Eco-friendly equipment

Research shows that gas- and fossil fuel-powered lawn and garden equipment produce up to five per cent of the national air pollution, so many companies are moving towards greener options. Robotic mowers offer some advantages because they are battery operated, many models also mulch the grass, and they are programmable, allowing less oversight and efficient charging. If you’re not ready to upgrade just yet, there are a few other ways you can get greener with electric or battery-powered mowers and solar generators to take care of your lawn more sustainably.

Sustainable practices

Limiting water use is important for an eco-friendly approach. Consider a rain barrel to catch the rainwater and reuse that water for your flowers and plants. Even with an irrigation system, this can be helpful in especially dry areas or a dry season.

Testing your soil every few years is a great way to determine how much water it needs and whether it needs fertilizing. Test your soil in the late fall to potentially save water, decrease chemical use, and lessen unnecessary runoff.

Dethatching your lawn can also help you take a greener approach to lawncare. Removing that layer of dead organic matter that sits above the soil surface will help deter pests from visiting, so you can better manage your pesticide use.

As the summer winds down, fall lawncare can become more sustainable with the right tools and a proactive approach.

Third-party project managers deemed more effective for reaching low-income tenants

Existing programs promoted for commercial and institutional buildings

Private sector participation called crucial for success

ASHRAE Building Decarbonization Conference

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