Sustainable finance quest spurs global alliance

Green building proponents in Australia, the United Kingdom and the United States are joining forces to produce and promote guidance on sustainable finance options for real estate. The Green Building Council of Australia (GBCA), the U.K.’s Building Research Establishment (BRE) and the U.S. Green Building Council (USGBC) are aiming to release their first joint publication this June in sync with London Climate Action Week.

The new alliance responds to growing concerns the world’s nations are falling short of their targets for reducing greenhouse gas (GHG) emissions, and looks to marry the financial sector’s rising ESG obligations with demands to retrofit and reorient the built environment. In doing so, the green building organizations also plan to highlight how their marquee certification systems — Green Star, BREEAM and LEED — help to drive and validate compliance with the various reporting requirements related to climate risk that are now emerging globally.

The alliance’s initial publication will build on the green finance guide the GBCA published last year. Gillian Charlesworth, BRE’s chief executive officer, notes international cooperation of green building organizations sets the tone for forging stronger ties between the real estate and financial sectors and prompting more issuance and uptake of green bonds and loans.

“The green building community has proven that buildings can accelerate global decarbonization. Increasing the flow of capital to buildings and portfolios delivering these outcomes is essential to expanding the scale and impact of this work,” says Peter Templeton, the USGBC’s chief executive officer.

“As we move through a global sustainable finance revolution, together, we have the potential to unlock significant benefits for buildings, the environment and for people,” concurs Davina Rooney, chief executive officer of GBCA.

GTHA condos under $500,000 increasingly scarce

Affordable condos in the Greater Toronto and Hamilton Area are increasingly becoming a pipe dream. Today, a little more than 11 per cent of condos are priced below $500,000, according to newly released data from the Municipal Property Assessment Corporation that covers the period between December 2013 and December 2023.

The average condo in the GTHA now stands at $645,000, a stark difference from 2013 when 88 per cent of condos were less than $500,000 and the median price was $325,000.

MPAC suggests that buyers looking to enter the market may need to look beyond the GTHA for a condominium priced at less than $500,000. Across all housing types, properties at this price can be found in cities such as Sudbury, Sault Ste. Marie, North Bay, Thunder Bay and Windsor. Homes under $750,000 can be found in cities such as Ottawa, London, Kitchener, Kingston, Barrie, and Peterborough.

Semi-detached and townhomes have also appreciated in value. In 2013, 94 per cent of semi-detached and 97 per cent of townhomes were $750,000 or less. Ten years later, that number has dropped to 33 per cent of semi-detached homes and 46 per cent of townhomes, a decrease of 61 per cent and 51 per cent respectively.

When looking at a value of $500,000 or less, the inventory drops to just 13 per cent for semi-detached and four per cent for townhomes. The average detached home in 2013 was once $378,000 and has now increased by 128 per cent to over $862,000.

Overall, the median home value in the GTHA is now $1,031,000 and $765,000 in Ontario.

“Looking across the province, our data shows increases in home values across Ontario – even in smaller communities outside the GTHA,” says Greg Martino, vice-president and chief valuation and standards officer for MPAC. “The reality is that current home prices are a reflection of various economic forces at play. Factors like supply and demand, increased construction and labour costs plus inflation are all part of what’s driving today’s house prices.”

EV tax framed as fairness for Alberta road users

Alberta road users are promised a somewhat similar tax burden with the introduction of a new $200 annual fee for electric vehicles (EVs). The 2024 provincial budget, released February 29, announces the new tax — which is considered on par with what the average vehicle owner pays in fuel tax each year — will be collected beginning in January 2025.

“EVs tend to be heavier than similar internal combustion vehicles and cause more wear and tear on provincial roadways while their owners pay no fuel tax,” the budget document states. “While fuel tax revenue is not dedicated to funding construction and maintenance of provincial roads, there are nevertheless fairness concerns with drivers of other vehicles and longer-term challenges associated with declining fuel tax revenue.”

A similar tax came into force in neighbouring Saskatchewan in 2021, with EV owners paying $150 per vehicle annually. In Alberta, the EV tax is projected to raise about $1 million in 2024-25 after subtracting out $3 million in implementation costs for Alberta registry services. Earnings are expected to rise to $5 million in 2025-26 and $8 million in 2026-27.

Enabling legislation is slated to be introduced in the fall of 2024. Hybrid vehicles will be exempt from the EV tax.

“While the number of electric vehicles in Alberta is currently low, EVs are being purchased in ever-increasing numbers, “ the budget document states. “Government will continue to review the sustainability of the fuel tax, including the increasing use of alternative fuels, and consider changes to protect tax revenue.”

Burnaby approves James Cowan Theatre upgrade

Burnaby City Council has approved a contract to replace the James Cowan Theatre at the Shadbolt Centre for the Arts with an exciting new theatre and specialized program space suitable for a variety of events and activities.

“This is a great opportunity to upgrade the James Cowan Theatre so that it can continue to play an important role in the vibrant arts, cultural and community space that exists at the Shadbolt Centre for the Arts,” said Mayor Mike Hurley.

The existing theatre was built as a gymnasium in the 1940s and converted into a theatre in 1995. The building is long past its useful life, is not wheelchair accessible or earthquake compliant and requires significant upgrades.

The redevelopment project will create a new 38,000 sq. ft. (3,500 sq m.) theatre and studios wing for the Shadbolt Centre on the same site as the current James Cowan Theatre.

Features include:

364-seat theatre with retractable seating convertible to a large reception/atrium hall
professional stage, lighting and audio equipment
3 classroom studios: visual arts, multi-use and theatre/literary arts
reception/atrium hall
gender neutral and universal washrooms
Encores Café and bar
improved accessibility and entrance location

It will be a versatile facility, with a theatre with flexible floor space and studios that can be set up for a variety of purposes. Uses may include multimedia, traditional and contemporary theatre, cultural performances, large events and celebrations, trade shows and conferences. Shadbolt Centre will continue to be open to the public throughout the construction project.

Phase 1 includes the preliminary and up to 60 per cent of detailed design work. Phase 2 will complete the design work and move to the demolition of the existing building and construction of the new building.

The estimated cost of the project is $55 million. Construction is expected to begin in 2024, with the new facility to open to the public in 2027.

B.C. housing bill challenges municipalities

The growing housing affordability crisis is at the forefront of conversations across Canada. Decades of underinvestment in housing is catching up and having significant impacts, according to Independent Contractors and Businesses Association (ICBA) president Chris Gardner.

“We’re building less homes now than 50 years ago,” he said, explaining that between2019-2022, Canada built an average of 200,000 new homes annually. In 1972, Canada built 232,000 new homes.

Gardner cited recent bleak reports from RBC, CMHC and CIBC that indicate how many homes need to be built annually between now and 2030 to meet the demand for housing. According to RBC, Canada will need to build 800,000 new homes, while CIBC states one million new homes are needed.

Gardner said a “war time effort of cooperation and collaboration at all levels of government” is needed to address this challenge. He noted while lots of policy announcements have been made relating to housing – often they are conflicting so more coordination is required.

Housing and B.C.’s new legislation were discussed further by the panel of mayors at the annual Buildex Vancouver CEO Breakfast. Ken Sim, Brenda Locke and Mike Hurley, representing three of the biggest cities in Metro Vancouver, shared their thoughts on Bill 44.

The B.C. government introduced legislation (Bill 44) last year to address the housing crisis, reduce construction delays and streamline processes. The bill increases density across most B.C. municipalities.

On July 1, 2024, developers will be able to start building a minimum of three and up to six units (near transit) on lots currently zoned for single-family homes and duplexes in municipalities with more than 5,000 people.

“While we have some challenges with some of the legislation that is proposed, there’s no perfect answer,” said Sim, mayor of Vancouver. “We’re going at it 100 miles per hour. We’re going to be densifying in the right spots.”

Surrey Mayor Locke and Burnaby Mayor Hurley were not as optimistic, expressing concerns about the increased density potentially putting a strain on existing infrastructure.

“I think it’s an overreach by the government. I don’t like the legislation,” said Locke. “Every city is unique and I don’t think the legislation respected that. It’s disrespectful to single family neighbourhoods. Surrey does not have the infrastructure – schools, hospitals – but we’re building quickly.”

Hurley acknowledged there are some positives to the legislation but didn’t think the one-size-fits-all approach to housing was a good idea.

All three mayors said their cities are working diligently to expedite development permitting and processes to address the housing shortage.

“Our job is to make sure you can get a permit as quickly as possible so we can de-risk your projects so you can build more housing faster,” said Sim, adding his goal is to make the permit process “super simple.”

In Burnaby, Hurley said the goal is to cut the permitting time down by 50 per cent. He advised that they have a form where if all the boxes are ticked, the project will move quickly through city hall.

“A single family home in Burnaby right now if all boxes are ticked, it’s five weeks to process,” he said. “We’re trying to shorten those times and we will shorten those times but it works both ways: quality in – quality out.”

While there are no easy solutions, the housing crisis is being compounded by the ongoing skllled labour shortage in the construction industry. Contractors continue to cite labour shortage as a major challenge.

Gardner said B.C.’s population is declining and retirements mean the industry is losing experience. It’s an enormous challenge so what needs to happen?

“We need to be smarter about how our immigration system operates,” he urged. “We are not doing a good job bringing people in and recognizing credentials.”

Despite challenges and economic uncertainty, 87 per cent of B.C. construction companies expect 2024 to be as busy – or even busier – than last year, which is surprising, said Gardner.

On the international stage, he discussed how Canada continues to rank poorly against other countries, highlighting the Port of Vancouver and LNG investments as examples.

According to the World Bank and S&P Global Market Intelligence, Canada’s largest container port ranks at No. 347 out of 348.

LNG is another story of under-investing in infrastructure, said Gardner. The U.S. has soared to the top for exporting LNG while Canada lags behind.

Significant challenges are showing up in every metric when Canada is ranked against its peers and we’re falling behind, he said. We need to do better.

Cheryl Mah is managing editor of Construction Business.

Going digital with diagnostics

Technology is constantly evolving and while infrared thermography is not a brand-new tool, maintenance and facility managers may be unaware of its full potential for cutting costs and lowering the risks to your building and business. The infrared thermography industry is expected to grow 9.5 per cent per year until 2027, with more and more maintenance and property managers using this technology to manage their properties better.

What is infrared thermography? This type of technology works by identifying and capturing temperature differential in a photo, demonstrating potential issues in your building. Thermography exposes concerns in your roof and walls, and within your electrical system that are not visible to the naked eye. This technology helps to identify issues before they become critical, allowing you to correct potential failures before larger problems occur.

Your roof

Infrared thermography serves as a non-destructive diagnostic tool, identifying moisture in your roof system by highlighting areas of wet insulation that hold the heat during the day. For the most accurate results, roof scans should be completed when it is 15˚ C or warmer during the day (without rain) and when an 8˚ C difference exists between the daytime high and the time of the scan. This temperature differential exists most commonly from late spring to early fall.

What’s involved in a thermal roof scan? A certified thermographer will take thermographs at night, note the areas that appear wet within your roofing system, and re-visit during the daytime to verify that those areas are in fact wet, using a moisture probe. All roofs with exposed membranes can be scanned, making this an effective investigative tool for most roofing systems.

Infrared thermography can help you identify areas on your roof that need attention and help you budget accordingly, but it’s a tool that can cut costs in other ways, too. Often when issues start occurring with older roofs, the assumption is that a major repair or replacement is imminent, however, a roof scan can help you avoid unnecessary spending by identifying small areas that need repair. “Even with an old roof, if you can determine that only 4 per cent of that roof is wet, why replace 96 per cent of dry roof before you need to?” asks Brian Jastrow, Principal at InfraRed Imaging Solutions Inc (IRIS).

Your walls

As part of your building envelope, certain issues in your walls can also be identified with an infrared scan. A wall scan is the process of testing the physical separator between the interior and exterior of a building to determine if there are any air, water, or thermal leaks within the structure.

These scans are completed in 2 phases. The first phase occurs when the building is under negative pressure and demonstrates conductive heat loss. The second phase takes place when the building is under positive pressure, demonstrating where air leakage exists.

Wall scans are best conducted in the winter when the building’s temperature is higher than the temperature outside. When the technician returns to verify areas of air and heat loss, they can locate the source of the leak, identify the cause, and recommend steps for repair. Issues could include anything from missing caulking to a hole in the wall, insufficient insulation, thermal air bridging, and beyond. Many of these issues are simple, often inexpensive repairs, saving you money and increasing your building’s efficiency over the long term.

Your electrical panels

Infrared thermography works similarly on electrical panels, identifying problematic areas within the electrical system, even while the system is still in service. Electrical scans are conducted to identify whether any electrical connections are overheating, energy efficiency is down, or a safety hazard exists, helping you avoid a potential fire by preventing an electrical failure. These can be dangerous, possibly fatal, and often expensive concerns for building owners.

These types of scans consist of 3 phases: a, b, and c, identifying issues like loose lug connections, bad fuses, and more. These potentially dangerous issues create resistance and heat, easily identified by the infrared camera.

Unlike roof scans, electrical panels can be photographed any time of year, and all types of panels can be scanned. Jastrow recommends an annual scan to determine benchmarks and stay on top of developing hazards, explaining that some managers like to alternate between summer when the chillers are running and winter to evaluate the heating system as a whole. Similarly, mechanical motors including any equipment up to 74 horsepower, ranging from elevator machine motors to chillers can also be scanned.

Infrared thermography serves as a predictive diagnostic tool saving facility and maintenance managers money, headaches, and income lost to unexpected shutdowns or costly repair or replacement.

What you need to know

If you are new to the infrared realm, there are some things to take into consideration before settling on a technician. Here are some questions to ask when looking at investing in an infrared scan:

What are the qualifications of the technician? Thermographers are qualified in three levels (levels one, two, and three). Use these levels to determine the best fit for your needs.
What are their specialities? Along with the thermography certification, you want someone who can properly interpret the results, so roofing, building envelope, and electrical experience should be a requirement as part of your elimination process.
What is the quality of the equipment they use? Higher quality equipment means clearer images and a more specific look at any troublesome areas in your building. Requesting to see previous reports can help you get an idea of the quality of the images you will receive.
How available is your technician? Issues with your building don’t always happen during the workday, of course, so look for experts who will be available when you need them most.

Think your building is “too new” to benefit from this type of technology? Even new equipment and roofs should be scanned. “Infrared thermography is a preventative tool to save you from expensive repairs, replacement or worse,” says Jastrow, explaining there may be a tendency to skip a scan due to a system that seems to be working well. However, as he points out, “You can drive your car every day and nothing happens to you, until one day, something goes wrong.” This same philosophy applies to maintenance management and taking advantage of technology like infrared thermography to practice a proactive approach to your building.

Infrared thermography is a tool to help maintenance and facility managers understand more about their buildings. Scans can be an annual line in your budget, allowing you to benchmark and plan for the deterioration of these assets, avoid costly surprises, and protect the people and property in your building.

Alberta aims to entice skilled labour from afar

Alberta has earmarked $10 million to entice skilled labour from outside the province. The newly released 2024-25 provincial budget announces a one-time $5,000 refundable tax credit for workers in designated occupations who relocate to the province this year.

More details are promised in the coming weeks, but the credit is expected to be available for incoming workers who arrive in Alberta as early as this April. To qualify, recipients must file taxes in Alberta, have fulltime employment in a specified occupation and live in the province for at least 12 months.

“We heard from industry that more skilled workers are needed, and we agree,” Finance Minister Nate Horner said as he tabled the budget.

Dubbed an “attraction bonus,” the tax credit is aligned with the Alberta Calling campaign, which promotes the province to prospective migrants. Horner reported that approximately 195,000 new residents arrived in the 12 months between October 2022 and 2023, representing the province’s largest annual growth spurt since the 1980s.

New levy coming at Alberta land titles registry

Alberta’s land titles registry will generate an estimated $77 million in revenue over the next fiscal year once a planned new levy is in place. The 2024 provincial budget, released February 29, announces that a straightforward charge of $5 per $5,000 of value of transferred property and mortgage registration will come into effect to replace the current fee schedule.

Since 2019, registrants have paid $2 per $5,000 of property value plus $1.50 per $5,000 of mortgage registration on top of a base fee of $50. Citing the example of $450,000 home purchase with a 10 per cent down payment, the budget document portends a looming 138 per cent increase with the new fee structure.

“This translates to a levy of $955, an increase of $553.50 from the existing fees,” it states. “Additional revenue from this measure is estimated at $45 million for 2024-25 and $91 million in 2025-26.”

Enabling legislation for the new levy, which will also include the date it is to go into effect, is expected this spring. The budget document reports the previously accumulated backlog of registrations was cleared last year, but an increase in demand is projected for the future.

Meanwhile, Alberta’s new levy is presented as something of a bargain compared to elsewhere in Canada. The budget document notes that provincial land transfer fees for a similar $450,000 home would be $2,050 in Saskatchewan, $5,628 in Ontario and $7,156 in British Columbia.

OEB in doghouse for cost recovery ruling

The Ontario government plans to establish its authority to designate critical gas transmission projects and reaffirm the existing cost recovery model for connecting natural gas service to new residential development. Proposed amendments to the Ontario Energy Board Act, recently tabled as Bill 165, come after the Ontario Energy Board (OEB) issued a ruling that would have added an estimated $4,400 to the cost of a home or small commercial building in a new subdivision.

The OEB’s December 2023 decision directed Enbridge Gas to begin securing upfront payment for new connections to serve small volume customers as of January 2025 — thus replacing the historical financing formula, in which customers’ share of capital costs are calculated over a 40-year horizon and collected through a surcharge on rates. The OEB maintains this incumbent approach now risks leaving future generations to pay for stranded assets as the province moves away from reliance on fossil fuels.

However, the Ontario government argues a sudden switch to upfront payment — similar to the mandate that has long been in place for new connections to the electricity grid — would undermine housing affordability and limit consumers’ heating choices. Bill 165 aims to overturn the ruling and give the Ontario government more leeway to instruct the OEB’s decision-making processes in the future.

“Natural gas will continue to be an important part of Ontario’s energy mix as we implement our pragmatic plan to invest in and bring online more clean nuclear energy,” Energy Minister Todd Smith said, as he announced the new legislation.

Currently, under section 96.1 of the Ontario Energy Board Act, the OEB is compelled to approve the “construction, expansion or reinforcement” of an electricity transmission line that the government has deemed to be a “priority project”. One of Bill 165’s proposed new provisions would allow the government to similarly designate priority “natural gas transmission or dual-purpose transmission and distribution” lines. If so designated, the OEB would be required to approve construction, and be prohibited from ordering a surcharge on customers to collect a contribution toward the line’s capital costs.

“The proposed approach seeks to ensure Ontario continues to attract new investments in sectors like greenhouses and electric vehicle and battery manufacturing,” states the explanatory summary posted on Ontario’s regulatory registry.

Steering decisions to reflect government policy

Various other components of the bill will likely have repercussions for a range of consumers beyond the “residential, small commercial and small farm customers” who are central to the government’s initial messaging. To begin, it would enable the government to dictate the time period for capital cost recovery from small volume customers via regulation, but it also includes measures to steer the OEB to decisions that are reflective of provincial policy and to introduce more stakeholder voices into OEB deliberations.

As set out in the bill summary, that would include: new requirements to notify and invite testimony from “specific stakeholders or economic sectors that could be significantly impacted by an upcoming decision or hearing”; and a new category of “generic” hearings to address broader issues that may affect numerous utilities, generators or stakeholder groups.

In the latter case, the government would determine when generic hearings would be conducted, and would have the authority to transfer any in-progress hearing to generic status, It could also reopen past OEB decisions, provided they were made at least 24 months earlier, for a generic hearing.

Specifically related to the disputed Dec. 2023 decision, the government states it will temporarily regulate a continuation of the 40-year horizon for cost recovery, while also setting a deadline for the OEB to reconsider and update its ruling. In this stipulated do-over, the OEB would be expected to weigh evidence from “significantly impacted stakeholders”, such as developers and the Independent Electricity System Operator (IESO), not included in the original hearing.

Notably, though, groups such as the Ontario Home Builders’ Association (OHBA) and the Building Industry and Land Development (BILD) Association do not appear on the list of 33 organizations that applied for standing in the original hearing. Meanwhile, the Building Owners and Managers Association (BOMA), the Federation of Rental-housing Providers of Ontario (FRPO), the London Property Management Association (LPMA) and Otter Creek Cooperative Homes Inc. were among the 20 organizations granted intervenor status.

The Bill 165 summary advises that the OEB could be directed to take “government policy documents and reports that have been published related to the future role of natural gas in Ontario” into account when considering the decision for a second time. That’s expected to include a pending Natural Gas Policy Statement.

“The proposed approach seeks to support the government’s policy to build affordable housing, maintain customer choice for homes and businesses and keep costs down,” the summary states.

Addressing anticipated future “rightsizing” of natural gas infrastructure

The promised Natural Gas Policy Statement follows from one of 33 recently released recommendations from the provincially appointed Electrification and Energy Transition Panel. Recommendation 6 calls for policy direction that is “consistent with the clean energy economy policy commitment”.

That would entail analysis of a range of issues including: energy efficiency; decarbonization options such as renewable natural gas and clean hydrogen; costs and complexities of switching to clean energy sources; feasibility of alternatives to gas-fired plants to respond to peak electricity demand; and analysis of “decommissioning or rightsizing” of natural gas infrastructure as the transition to cleaner energy progresses. Congruently, the OEB’s December 2023 decision discusses the long-term outlook for natural gas assets

“Two important themes emerged during this proceeding: climate change policy is driving an energy transition that gives rise to a stranded asset risk; and, the usual way of doing business is not sustainable,” the OEB ruling states. “If the depreciation expense was expected to be recovered over a period that ends up being longer than the asset is used and useful, this will give rise to stranded asset costs. In the context of the energy transition, the question is how this risk should be mitigated or avoided, and if the risk is realized, who should bear the stranded asset costs.”

The Electrification and Energy Transition Panel (EETP) also weighs in on the discrepancy in cost recovery models for gas and electricity utilities. The code of practice governing how costs are allocated for upgrading electricity transmission systems requires upfront collection of customers’ capital contributions, arguably giving gas a competitive advantage. The EETP suggests adjustments to the natural gas governance framework may be required to remove a barrier to the electrification of new development.

Recommendation 15 calls on the OEB to conduct reviews of the cost allocation policies for natural gas and electricity, and to evaluate “natural gas infrastructure investment” with an eye to protecting customers and facilitating development of the clean energy economy — which appears to be what adjudicators have done in the ruling the Ontario government is disputing.

“Levelling the playing field between electricity and natural gas might encourage developers and other customers to make choices that are more aligned with the government’s clean energy economy commitment,” the EETP report states.

The public is invited to provide feedback on Bill 165 through the portal on Ontario’s regulatory registry until April 7, 2024.

Canada commits $25M for new Lawrence Heights community centre

The federal government is investing $25 million towards the new Lawrence Heights Community Recreation & Child Care Centre—one of Toronto’s largest community centres at 72,000 square feet.

The facility will target net zero emissions with its building design. Some features include a six-lane, 25-metre pool and leisure pool, a double gymnasium with a raised track, fitness and dance studios, a community kitchen and social services office and Indigenous Placekeeping elements. The child care centre will hold 88 spaces and include stroller storage space, a parent/staff resource room and playrooms for infants, toddlers and preschool kids.

The project is part of TCHC’s Lawrence Heights Revitalization project. Since 2022, its been designed with the community through an extensive public engagement and consultation process. The current centre serves more than 48,000 residents in one of the largest public housing communities in Canada.

Funding comes from the Green and Inclusive Community Buildings program and offsets part of the $128 million Toronto City Council has budgeted for the facility’s construction and design and $13 million for the new child care centre.

A benchmark for luxury living

A new rental property recently opened in Forest Hill, Toronto, that most would liken to a luxury hotel. Elegant and well-appointed, the 20-storey building features 177 premium rental suites in a range of sizes and layouts.

To be clear, this isn’t your typical Toronto apartment building. Every detail was carefully curated to resonate with its intended demographic, from the custom millwork and handmade Danish brick to the anodized bronze mullions that frame the oversized windows. As DBS Developments puts it: 2Fifteen is for ‘high net-worth individuals’ seeking flexibility, freedom, and carefree living without a long-term financial burden. Visually, the building was designed to blend seamlessly with the aesthetics of the surrounding estates that characterize one of Toronto’s oldest and wealthiest neighbourhoods.

“2Fifteen stands out from other rental properties through its unparalleled quality and commitment to a worry-free lifestyle,” says Bryan Levy, CEO of DBS Developments. “Distinguished by the two professional doormen at the entrance, it draws inspiration from 5-star hotels and aims to elevate the long-term rental living experience. Also, DBS Developments oversees property management through DBS Communities, another arm of our company, to ensure the continuation of a hotel-inspired lifestyle after construction. This commitment to quality positions 2Fifteen to set a new benchmark for luxury purpose-built rentals in Toronto.”

A lifestyle choice

While the lack of affordable rental housing has been an intense subject among policymakers and the public for years, Canada’s luxury rental market has been quietly growing. The appeal of this category, from Levy’s perspective, is that renting vs. owning offers flexibility for those who’d like to keep their money liquid. Target demographics at 2Fifteen include downsizers, young professionals, and seniors looking to shed the long-term financial commitment of a large, burdensome home. Renting removes the responsibility for property maintenance and adds the flexibility of leasing—and let’s not forget the plethora of high-end services and amenities that serve to sweeten the deal.

“Our residents appreciate the meticulous attention to detail we put into our amenities and services,” Levy says. “The small touches, such as a well-stocked gym fridge and high-quality espresso machines, contribute to a luxurious living experience. Our party room and games room surpass typical condominium or apartment standards, fostering frequent use by our residents who enjoy entertaining guests.”

Envisioned by Toronto-based Diamond Schmitt Architects, the building reflects opulence and sophistication at every turn, including the suites that are outfitted with full-size Gaggenau appliances, quartz countertops, and spa-like bathroom fixtures. Day-to-day building activities are overseen by two full-time concierges, a pair of distinguished doormen, a general manager, and resident experience coordinators who all ensure the needs of residents are met—much like the staff at a luxury hotel, only better given the first-name basis, familiarity, and ensuing relationships that develop. According to Levy, it’s touches like these that are contributing to the rise in popularity of luxury rental apartments among certain segments of income-earners.

“We’re observing a specific clientele who don’t necessarily adhere to a standard 9 to 5 routine,” he says. “This includes high-level executives and CEOs who may find themselves travelling extensively throughout the year. For these busy professionals, owning multiple properties can be logistically challenging. Renting at 2Fifteen offers a solution that aligns with their dynamic schedules, providing luxury and comfort without the commitments associated with homeownership.”

Another segment of residents may only live in Toronto half the year, preferring to spend the other half in warmer climates, such as Florida. For these individuals, the flexibility of renting is a huge selling feature as it takes the stress and worry out of juggling multiple properties.

Families with children attending prestigious institutions like Upper Canada College make up another contingent of the tenant-base. As Levy puts it, “Renting in Forest Hill provides a convenient and luxurious living arrangement close to the school during the week, then on weekends or during holidays, they may return to their primary residence—which is perhaps a single detached home elsewhere in the city or further away.”

In essence, Levy says the lessened commitment associated with renting aligns seamlessly with these lifestyles in that they remove the traditional constraints of homeownership, pointing out that the value becomes more apparent when you break down the realities of renting vs. owning a comparable-sized condominium.

“With the monthly carrying costs of a mortgage, plus realty taxes, plus maintenance, not to mention the down-payment and equity that would be tied up in your condo, it all adds up to more money than your monthly rental payment,” he says. “At 2Fifteen, you can put down first and last months’ rent and use that capital in other more productive ways.”

Whether short-term or long-term, rental communities fill a need that Levy and the DBS team believe is only getting stronger. 2Fifteen is one of several rental communities the company is currently launching in the Greater Toronto Area. Other properties include Bela Square near Main and Danforth, comprised of two new residential buildings on Eastdale Avenue that will soon deliver 484 family-oriented rental units to the growing East York neighbourhood. Bela Square features thoughtfully curated amenities and services centred around “living well” and creating an enriching and vibrant environment for residents. From studio apartments to four-bedroom townhomes, DBS describes Bela Square as “a rental community that fits every lifestyle and raises the bar for connected city living.”

First student residence underway at Douglas College

Construction has started on one of British Columbia’s largest capital investments in student housing and the first ever residence at Douglas College.

The 20-storey integrated student housing and academic building will hold 368 student beds in one-, two- and four-bed units, new classrooms, student collaboration spaces, labs, offices, food services and parking.

The project will meet Step 4 of the B.C. Energy Step Code – the highest step in the code for commercial buildings – and will use wood throughout for design elements. B.C gave the school $202.3 million to support the $292.5-million project, with Douglas College providing the remaining $90.2 million. Premier David Eby said the project will “allow students to live where they learn and significantly reduce pressure on the local rental market.

“The prospect of having on-campus housing at Douglas College is incredibly exciting,” said Mitchie Nguyen, a commerce and business administration student. “808 Royal will be a place for students like me to be fully immersed in the college experience, to build community, feel connected and be supported while balancing academics, work and life.”

This project is part of the Homes for People action plan, which commits more than $2 billion toward developing 12,000 student beds on campuses throughout the province.

Spring cleaning commercial spaces

As the snow melts and the temperatures rise, it’s the perfect time for spring cleaning as part of facility maintenance! While you likely clean and sanitize regularly, spring is a great time to do some deep cleans and get to some of those spaces that you might not always address.

There are several ways you can up the IAQ and sanitization in your building this season:

Deep clean your carpets to get rid of any salt and dirt that may have been embedded in the fibres during the winter. This process can also help reduce pollen and other allergens that could affect the guests and employees in your building.
Use a pressure washer to remove dirt and debris in your parking lot, at the front entrance, in the bay, and in any other outdoor common areas. This can also help reveal any cracks or damage that you may need to repair on your property.
As this season brings increased precipitation, ensure that your roof drains and eavestroughs are clear so they can efficiently dispose of rainwater. Check to make sure all downspouts are also operational and that they are pointing in an area out of the way of traffic and away from your building.
Get your HVAC system ready for the heat of the summer. Clean your ducts and change the filters to make sure that your system is running as it should be.
Clean your windows, inside and out, to let in as much sunlight as possible. Research shows that exposing staff to natural light improves productivity, so this practice can help boost curb appeal and employee performance.
Test your irrigation and sprinkler system so if there are any repairs required, you can complete them before the temperatures rise.
Assess your landscaping to see whether there was any winter damage and if there are any changes that need to be made. Put a plan in place to tackle the gardens and lawns when the weather becomes consistently warm.

As winter ends and spring arrives, focus on cleaning and maintaining your building to keep it looking – and performing – its best through the summer and beyond.

Real estate leadership team gels at Fengate

Jaime McKenna has been promoted to president, real estate, at Fengate Asset Management. Joining her in the real estate leadership team are Alison Kimmell as managing director, development and portfolio management, and Colin Catherwood as managing director, investments.

McKenna joined Fengate as a managing director in 2019 after previously serving as chief investment officer at Minto Apartment REIT. Over the past five years, she has overseen portfolio growth, taking to its current $15 billion value with 5 million square feet of industrial space existing or in development and 25,000 residential units in the pipeline.

“Her leadership has resulted in remarkable growth for Fengate Real Estate’s investments, developments and asset management on behalf of our investors,” says Lou Serafini Jr., Fengate’s president and chief executive officer. “With Alison and Colin onboard in their senior roles alongside Jaime and the entire Fengate Real Estate team, I know there will be continued momentum and excellence.”

Kimmell previously led the development of CIBC Square for Hines Toronto, including securing the 1.8-million-square-foot anchor tenant lease and raising more than $2 billion in capital. She now transfers that expertise to Fengate, where she’ll be leading the land and development strategy.

Catherwood joined Fengate in 2020, after previously serving as senior vice president, investments, at Graywood, overseeing multifamily sector activities. In his new role at Fengate, he lead North American activities across all property asset classes.

“Alison and Colin’s extensive investment and development experience across multiple real estate asset classes, proven track record in managing landmark projects and leading high-performing teams will be invaluable for Fengate and our investors,” McKenna says.

Calgary Community of Practice launches

Professionals in Calgary’s building and construction sectors have created the Emissions-Neutral Buildings Information Exchange (ENBIX) Calgary Community of Practice.

The ENBIX Calgary Community of Practice serves as a platform for ongoing collaboration between government entities and local industry professionals. It aims to accelerate the transition to an emissions-neutral built environment for both new and existing buildings across Alberta.

Led by Alberta Ecotrust, ENBIX launched in December 2023, and the establishment of the Calgary Community of Practice marks a significant step forward in this endeavor.

“The launch of the ENBIX Calgary Community of Practice marks a pivotal moment in our industry’s commitment to high performance buildings, especially in terms of long-term energy consumption and carbon footprint,” says Bill Black, president and chief operating officer, Calgary Construction Association. “By focusing on realistic solutions, and through collaboration and knowledge sharing, the leaders in our construction industry are taking proactive steps to mitigate our carbon footprint and contribute to a greener, cleaner future for Calgary”.

The Calgary Community of Practice provides a space for local professionals working in the building, construction and renovation industry to share information about emissions-neutral construction. The goal is to accelerate the transition to an emissions-neutral built environment for new and existing buildings across Alberta.

“Our greatest opportunity to see greenhouse gas reductions is through our buildings,” says Mayor Jyoti Gondek. “ENBIX is an investment in Calgary-made solutions, building capacity and momentum for emissions-neutral construction that will grow over the next several years and beyond.”

Over the next four years, ENBIX will continue to expand the ways in which it shares market research, industry experience and training, including webinars, site visits, technology demonstrations, training sessions and more.

WELL evolves into residential communities

123 Portland, a brand new boutique condominium in downtown Toronto’s King West neighbourhood, developed by Minto Communities, is the first in Canada to pilot the WELL for residential program, which sets out to create healthier, more resilient homes.

The WELL standard came onto the scene 10 years ago and has since widened its scope based on evolving research. Described as a roadmap for creating and certifying spaces that advance human health and well-being, the program has manifested throughout offices and other commercial spaces. It’s been called the first people-centred standard for the built environment. By implementing ten wellness concepts: air, water, nourishment, light, movement, thermal comfort, sound, materials, and mind and community, spaces can exceed industry averages in performance and sustainability.

But applying WELL to residential buildings has never materialized until recently. In fact, standards and regulations focused on resident health are lacking overall. Carl Pawlowski, senior manager of sustainability at Minto Communities, says the pandemic is one key motivator that has pushed people to focus on health and well-being in general. This new iteration presents an evidence-based approach that shows what features can actually impact condo residents and staff when they’re inside their buildings. “It gives some trust and validation,” he says.

There is also the larger impact it holds for the overall housing market, according to Olesy Alekseev, vice-president and Canada lead for the International WELL Building Institute. “As we set out to address the growing housing demand for the rapidly increasing population in Canada, it is essential to prioritize healthy homes designed, built and operated for long-term resilience,” he said in a statement last November.

Over the past two years, a team of 20 builders and developers worked alongside more than 100 advisors from the IWBI to bring various insights and recommendations to the new program, which consists of more than 100 health strategies for both new and existing residences, from single-family homes to multi-residential buildings. When it opened for enrollment last year, 25 pilot participants from around the world jumped on board, including Minto Communities.

Before that, Minto had been pursuing the existing version of the WELL standard at 123 Portland until it switched over midstream. Pawlowski says the change just made sense. One reason is it doesn’t follow some of the traditional scoring framework seen in commercial buildings.

“There are no Silver, Gold and Platinum (certification levels) that you’ll see in the existing standard,” he explains. “It’s more like a scale, so the idea is more tangible to homeowners where their unit would achieve x number of points out of 198. That’s a bit easier to comprehend how the unit is performing.”

The exterior envelope is insulated with glazing that offers sufficient daylight and maintains energy efficiency. Photo courtesy of Minto.

Fundamentally, all the categories of WELL remain the same, but once a developer digs into the details, weighing them might be different within a residential context or due to the technical requirements. Some might be more relevant in a home where people are spending the majority of their time.

As Pawlowski explains, there are components that can be tied to the units or common areas. It depends on the exact requirements and where it makes sense to implement features.

“Looking at air quality for example, people are spending all night sleeping in their suite, so maybe you’re going to prioritize that over spending money on a common area where people are there for maybe only an hour,” he says. “In terms of sound attenuation, maybe you’re doing a bit more around the gym or units adjacent to those areas.”

The 116-suite condo has been under construction for a number of years. Residents began moving into their units in December 2023, with more to follow. The Parisian-inspired condo has all the fittings one would expect these days—a 24-hour concierge, parcel storage, a co-working space and building-wide Wi-Fi—but there’s much more when it comes to health and wellness.

Those who are using the gym will find noise-reducing flooring and towering windows for natural light. On the roof, 15-storeys up, are unprogrammed spaces for morning fitness routines and lush green plantings that connect residents to nature. Biophilic design is also incorporated into the interior finishing through natural and textured materials.

To keep air quality high, the design used low volatile organic compound paints, sealants, adhesives, flooring materials and insulation, supported by an ionized air system. Chemical and scent-free cleaning systems are used in the common areas.

The amenities are designed to “catalyze social interaction,” such as the lounge area. According to the website, they aim to inspire a mindful routine and “reestablish what it means to connect as a community.”

Companies earn the WELL Residence seal upon completion of third-party review and verification of the selected strategies the developer used. A home must achieve a minimum of 40 points to become certified. Projects can also become pre-certified as a WELL Residence before construction so that developers can communicate that at the sales launch. “People aren’t waiting a year or two after occupancy to get certification; they can see it’s been reviewed and verified before they even make a purchasing decision,” says Pawlowski. “Especially in the market today it is a huge differentiation.”

Pending how the pilot goes and if it meets certain expectations, Minto will look at its portfolio and consider undertaking the standard at other buildings.

“With the standard being applicable to both new and existing buildings, it also means that if we design a building to achieve 80 points, an individual unit owner can, down the road, make improvements to their suite to bring their score up. That will differentiate their unit versus the rest in the building or other homes in the community.

“This makes it a bit more tangible to them and it gives them an opportunity to be engaged in the process. . . and a framework to work off of. I think that’s really interesting for keeping the program moving forward.”

COVID-19’s impact on housing affordability

CMHC’s 2024 Rental Market Report, released earlier this year, attracted significant attention by underscoring just how urgently Canada needs more rental housing. Recording the lowest national vacancy rate since the 1980s at 1.5 per cent, the latest data paints a sobering picture of our current housing reality.

“Even in a G7 country that consistently ranks amongst the best in the world, the problem persists,” writes Mathieu Laberge, Senior Vice-President, Housing Economics and Insights for CMHC, in the preface to his recent article, “COVID made housing unaffordability contagious.”

Here, we share Laberge’s perspective and analysis on Canada’s housing crisis since the pandemic and what he suggests to address the rental housing shortage in the near-term.

Looking back

A decade or so ago, households seeking affordable dwellings in central Vancouver or Toronto still had options; they could consider buying a property in a more affordable neighbourhood, or alternatively, they could opt to remain in the rental market for a longer period of time, allowing them to save up for a larger down-payment and thus reducing their future borrowing needs. This led to lower unit turnover in the early 2010s and tighter conditions for those in seek of rental housing.

“We also saw a trickle-down effect for housing as demand spread from central to outer areas of Toronto and Vancouver,” Laberge points out. “This further exacerbated the tight market conditions.”

Then, COVID hit and brought new opportunities. The ensuing lockdowns enabled people to work remotely, which opened avenues for improving their housing situations. Workers were able to move to less-expensive areas, bringing increased demand to housing markets outside of the large urban centres. CMHC’s data shows that affordability started to deteriorate in Montréal, Ottawa-Gatineau, and other smaller urban centres during or just before the pandemic.

As Laberge put it: “Many factors have since contributed to the housing affordability crisis. One could say that COVID helped spread the housing unaffordability contagion across the country.”

Housing unaffordability: an engine for social immobility

While the pandemic sparked increased geographical mobility for many workers, eventually it led to social immobility. According to Laberge, it did this by increasing demand for housing in areas that were not ready for such a large influx of new residents.

CHMC’s latest report shows that social immobility is taking different forms as a result. While many Canadians are choosing to stay put with their current housing units, as indicated by the lower turnover rates in 2023 (12.5%) compared to 2022 (13.6%), more Canadians are also feeling unable to afford to move to a new home. Whether the decision to remain in place is due to financial stresses or a lack of availability, the trend seems to indicate that renters are increasingly reluctant to move.

But there are encouraging signs despite all of this, Laberge argues. For instance, he points out that housing starts in 2021 and 2022 reached historic levels. While starts were down slightly in 2023, they remained well above any average of the past 30 years.

There has also been a structural shift in recent years with apartments growing steadily as a share of total housing starts. Purpose-built rentals, as a proportion of all starts, have dramatically increased from 14 per cent in 2013 to 36 per cent a decade later. Though demand still outpaces supply in the rental market, builders are reacting to tight market conditions and development is on the horizon.

“This is encouraging, but collectively we must acknowledge a key point: new rental housing supply is not necessarily affordable when it is ready for occupancy,” he says. “It may take several years before new supply results in higher affordability. In the short-to-medium term, other options may need to be considered, but they involve rethinking how we envision housing.”

For instance, co-living spaces is one option he feels Canadians of all ages may need to consider. A well-documented phenomenon in cities like New York and London, Laberge argues that sharing an apartment with friends, family, or through organized means could provide an opportunity for better quality housing.

“Converting commercial buildings into residential units often poses technical challenges,” he explains. “The complexity arises primarily from the existing structural elements. For example, because plumbing is integrated into the structure, it becomes difficult to create multiple bathrooms and kitchens on each floor. However, a change in thinking in how some of our housing amenities are used could make conversions more viable.”

When it comes to alternative housing arrangements, Laberge says more research is needed to document how Canadian cities rank compared to their western counterparts and how co-living spaces could help ease housing demand. But, like it or not, he believes compromises in housing needs versus wants may be necessary until supply reaches adequate levels.

“The idea here is not to reduce anyone’s current living standards, but what may come as a sacrifice to some, may very well be a sought-after improvement for others,” he concludes. “The essence of that reflection is to provide new options to Canadian households living through our housing crisis.”

Steering decisions to reflect government policy

Addressing anticipated future “rightsizing” of natural gas infrastructure

BOMEX 2026

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