Protecting your building through the winter

The outside of your building takes a beating in the winter, from the strong winds to the freeze-thaw cycle and ice accumulation. Many times, outdoor maintenance means landscaping and groundskeeping, but there are some simple things you can do in the winter to help protect your property from damage in the colder months.

From the façade to your roof, take steps to maintain and protect the exterior of your building this season:

If water enters your building through a hole, condensation and mould can be created, and that void could grow as the water thaws and refreezes. Assess your building and repair any visible holes in the brick, cracks in the façade, or entry points into your building. In a pinch, a low-expanding foam can serve to address these issues temporarily.
Take care when cleaning the outside of your building, as certain practices can cause damage during the winter months. For example, avoid using water to clean your brick because it can freeze in cold temperatures and damage the brick.
To help avoid condensation and moisture entering your building, check windows to confirm that gaskets are working and are in place. Also, check for missing or cracked sealants that need replacing.
If your roof is visible, look for debris blocking the drain and any unsealed penetrations that may be allowing water to enter the building. Call in a professional to address any issues on your roof.
Assess your drainage, making sure that eavestroughs are clear and water is draining away from your building.
Keep an eye on your plumbing, paying special attention to exterior pipes or pipes that are exposed to cold weather (like in a warehouse or bay) to stay on top of their condition. You may want to consider insulating these for protection and to help keep them from bursting through the winter, potentially causing interior and exterior damage to your property.

Extreme winter weather poses a risk to the exterior of your building, creating the potential for unexpected expenses, work stoppage, and safety hazards. Including your building’s exterior as part of your maintenance plan will help you protect your property through the winter and beyond.

Canada spending $4.5M on Whitehorse community centre

Upgrades are coming to the Canada Games Centre in the Yukon. The multi-use community recreation and wellness facility serves the City of Whitehorse and surrounding communities.

The federal government announced an investment of more than $4.5 million through the COVID-19 Resilience Infrastructure Stream of the Investing in Canada Infrastructure Program. The City of Whitehorse is contributing $2,475,000 to this project.

The facility serves about 735,000 people throughout the year and is open 16 hours per day, seven days a week. Its pool section HVAC requires a significant upgrade to improve air quality, ventilation, and address the effects of the high humidity. The project will also install new insulation in the area to improve overall energy efficiency in the building.

Retrofit planned for Eden Valley Arena

A hockey arena retrofit is planned for members of Bearspaw First Nation in Alberta. The federal government is investing more than $1.4 million into the Eden Valley Arena to boost energy efficiency.

Funds will support upgrades to the building envelope, electrical and HVAC systems as well as the arena ice while creating local jobs. Once completed, these improvements are expected to reduce the facility’s energy consumption by an estimated 46.7 per cent and greenhouse gas emissions by 133 tonnes annually.

Constructed in 1995, the Eden Valley Arena is in need of many energy upgrades to reduce the maintenance and utility costs for its ongoing operations, as it uses more energy than needed.

The retrofit will save costs and reduce greenhouse gas emissions, allowing the community to accommodate more programs and their growing needs.

“Eden Valley has had a rich history of winter sports participation including hockey,” said Chief Darcy Dixon of Bearspaw First Nation. “This arena has been very central to our community for many years and has brought our community and the communities around us together in sport.

“This Arena has been vital part of our community; it has hosted many other events for our people including Powwows, Funerals, Dances, and Community meetings. This building will be getting a new life with these Monies and will become much more economical for our nation to operate.”

Photo by Tima Miroshnichenko

A new vision for Green Gables Heritage Place

Parks Canada has developed the first stand-alone management plan for Green Gables Heritage Place in Cavendish, Prince Edward Island, to shape the future of the 80-year-old heritage site.

Green Gables has become famous around the world as the inspiration for the setting in Lucy Maud Montgomery’s classic tale of fiction, Anne of Green Gables. This year will mark the author’s 150th birthday for which the heritage site will be commemorating throughout 2024.

The management plan outlines three main strategies for the next ten years that will guide the visitor experience, the management of natural and cultural resources, and continued collaboration of partners, stakeholders and first nation communities.

Some objectives over the next decade include improving the maintenance and interpretation of the house’s garden and upgrading barrier-free access for visitors with mobility challenges and other disabilities.

The plan was based on input from Mi’kmaw partners of P.E.I., the Indigenous community, stakeholder groups, tourism industry, nature and recreation groups, local residents and visitors.

In spring 2019, Green Gables Heritage Place underwent a site development project that included a new visitor centre, upgraded parking lot design, updated interpretive elements and a new gift shop and café. The new visitor centre was designed for energy efficiency and functionality that match the high levels of visitation of the site.

More information about the plan can be found here.

GVWD celebrates 100 years in Metro Vancouver

Metro Vancouver is marking the 100th anniversary of the Greater Vancouver Water District providing drinking water to the region’s residents.

Metro Vancouver provides excellent drinking water for 2.8 million residents through a complex treatment and transmission system that is safe and reliable. The regional district is also responsible for the protection and stewardship of the Capilano, Seymour, and Coquitlam watersheds.

Regional water supply collaboration began in 1886 with the founding of the Vancouver and Coquitlam Waterworks companies. The Greater Vancouver Water District was founded in 1924.

Metro Vancouver is now looking to the future, planning for the next 100 years to meet the needs of a growing population and ensure the water supply system is resilient to the effects of climate change and seismic events.

“Long-term planning for a sustainable water supply is always top of mind at Metro Vancouver,” said Malcolm Brodie, chair of Metro Vancouver’s water committee. “As our region grows and the climate changes and becomes more unpredictable, the next important challenge we have is to ensure that we’re storing and using treated drinking water responsibly. We use too much drinking water in this region in areas it isn’t needed, and the actions and decisions we make now around water conservation will make a huge difference for the future.”

Sustainable use of water resources, including a focus on conservation, will remain key as Metro Vancouver updates its Drinking Water Management Plan to address the challenges associated with population growth and climate change that have emerged since the last plan update in 2011. Later this year, the public will be invited to participate by providing input on Metro Vancouver’s goals, strategies, and actions regarding water supply for the next 10 years.

Year-end retail rents show little slippage

Retail rents rose or remained steady across most formats during the second half of 2023 with slippage confined to a few street-based, downtown shopping districts in large Canadian cities. Newly released data from CBRE Canada shows strong performance for convenience/strip plazas and urban mixed-use developments, while Vancouver and Calgary are leading rent growth hubs among the 11 markets surveyed.

“Good real estate has and will continue to be leased quickly and has resulted in limited vacancy amongst the most in-demand formats,” observes Kate Camenzuli, vice president, retail, and Christina Cattana, research manager, with CBRE Canada. “This type of market activity is expected to persist and when paired with a softening supply pipeline, a byproduct of higher construction costs, could result in further rental appreciation in the coming year.”

Convenience/strip plazas enjoyed the most consistent gains nationwide, posting rent increases in eight markets: Vancouver; Calgary; Edmonton; Saskatoon; Winnipeg; Ottawa; Montreal; and Halifax. Average rent ranges are highest in Ottawa, where they top out at $45 per square foot (psf), and Calgary, where the high end hits $42 psf. Toronto is one of the most affordable markets for retailers in small plazas, with average rents in the range of $20 to $25 psf.

Neighbourhood malls and convenience/strip plazas command the lowest rents among Toronto’s retail formats by a margin of $5 to $140 psf, while convenience/strip plazas are much more evenly matched with other property types in other markets. In Calgary, for example, small plazas outperform power centres and enclosed community malls, and are close to on par with rents achieved in open-air community malls and urban and suburban mixed-use developments.

Since the spring of 2023, Calgary has charted rising rents in four categories of retail facilities — convenience/strip plazas, power centres, open-air community shopping centres and suburban mixed-use developments — as well as in two downtown shopping districts, along 17 Avenue SW and Marda Loop. Alistair Corbett, CBRE’s senior vice president in Calgary, points to “staggering” population growth and a paucity of new retail supply as two key contributing factors.

Similarly, “moderate new supply and growing tourist demand” are seen to be driving down retail vacancies and pushing up rents in Vancouver. There, average rents climbed over the second half of 2023 in enclosed community malls, neighbourhood malls, convenience/strip plazas, urban mixed-use developments and in the West 4th Avenue shopping district.

“This is expected to continue as many future development sites will see existing retail demolished and, at best, replaced by a smaller footprint,” observes Adrian Beruschi, CBRE’s senior vice president in Vancouver. “This will reduce the overall supply of retail in Vancouver, keeping vacancy low.”

Retail rents in urban mixed-use developments trended upwards in four other markets in addition to Vancouver: Toronto; Montreal; Edmonton; and Saskatoon. Space in Vancouver is the priciest, at $65 to $95 psf, with more modest and somewhat comparable rent ranges in Toronto ($35 to $65 psf) and Montreal ($30 to $70 psf). Among the other larger markets, average rents top out at $45 psf in both Calgary and Ottawa.

For Toronto, urban mixed-use developments were the sole category of retail facility to see rent growth over the summer and fall, although two street-based shopping districts, Bloor-Yorkville and King Street W., also recorded gains. Arlin Markowitz, CBRE’s executive vice president in Toronto, notes the arrival of a significant new player in the urban mixed-use category as some retailers in The Well — the massive redevelopment project in the downtown west district — opened for business last fall, while the full retail complement, including the food market, is set to open early this year. Elsewhere in Toronto, the Queen Street W. shopping district was the one area to register a decline in rents, while they remained stable in other types of retail facilities.

“The landlord community is working to differentiate in the face of current market conditions, implementing innovative technologies that aid in enhancing the customer experience,” Markowitz states. “New, exciting retailers and specialized product installations are also creating a draw in centres.”

With the exception of a few high-end downtown shopping districts — Alberni and Robson Streets in Vancouver, Bloor-Yorkville in Toronto and Rue Sainte-Catherine in Montreal — regional malls dominate, commanding the highest rents, by a wide margin, in markets nationwide. Stability typified the second half of 2023, with rents neither rising nor falling for the retail category.

Toronto ($155 to $165 psf), Calgary ($130 to $165 psf) and Vancouver ($100 to $155 psf) are the priciest markets for retailers, but CBRE analysts generally concur with recent conclusions from the credit rating agency, DBRS Morningstar, that the combination of surging population growth and little new development will serve regional malls well.

“Traditional enclosed malls, for their part, are poised to evolve,” Camenzuli and Cattana maintain. “2024 will be characterized by finding opportunities for growth through value-add.”

Perhaps offering some solace to areas caught up in continuing construction disruptions, Christopher Rundle, CBRE’s associate vice president in Montreal, notes a resurgence of interest in the Sainte-Catherine corridor, where national and international retailers have been opening flagship stores. “This long overdue influx is a result of the first major phases of the street revitalization being complete, filling up key vacancies that closed shop during the long process,” he reports.

Schneider Electric and YVR to reduce emissions

Schneider Electric and YVR have signed a five-year partnership agreement with an additional five-year renewal option to aid in the digital transformation and modernization of the airport’s energy management system.

The proposed modernization of YVR’s existing installed products will significantly cut capital costs for the airport with minimal operational disruption, improve operational reliability and workplace safety to support the airport’s goal to become net zero carbon by 2030.

“At YVR we are focused on energy conservation and electrification across our operations to reduce carbon emissions and strengthen the green economy,” said Christoph Rufenacht, vice president, Airport Development & Asset Optimization at YVR. “Working with Schneider Electric, we will enhance how we monitor and manage our energy use, optimize our current energy infrastructure, and explore innovative solutions to maximize carbon reduction. We are pleased to extend our long-time partnership and look forward to creating a greener, more sustainable future at YVR with Schneider Electric.”

YVR is expecting to invest $135-million over 10 years to become net zero by 2030 and, in achieving this goal, become one of the world’s greenest airports. This includes a commitment to meet operational requirements more efficiently and use less energy for heating and cooling, cooking, lighting, and other electrical needs.

“Schneider Electric is proud to supply a comprehensive roadmap and support for YVR to help facilitate the modernization and digital transformation of one of Canada’s largest and busiest airports,” says Courtney Forget, vice president, services, Schneider Electric. “We are thrilled to extend our ongoing relationship with YVR, working side-by-side as one team, and providing solutions on their electrical distribution systems to ensure we’re fostering a sustainable and reliable airport environment.”

Valhalla Village Phase 1 kicks off in Etobicoke

Located at 300 the East Mall, the Valhalla Village project is a two-tower affordable housing development featuring 494 units for middle class families and individuals. Developed by Kingsett Capital, together with its project team BDP Quadrangle and Reliance Construction Group, the project was made possible thanks to a $235-million repayable, low-interest loan secured through Canada’s Apartment Construction Loan Program.

Valhalla Village is designed to be net-zero carbon through geothermal heating and is on track to achieve the Canada Green Building Council’s Zero Carbon Building – Design (ZCB) Standard™ certification in 2024. The project will participate in the new WiredScore Multi-Residential Certification Program. The site, which will also include a community agency space and public park, is zoned to allow for a second phase to be constructed at a later date, with project completion anticipated for May 2027.

“Breaking ground at Valhalla Village is a critical first step in KingSett’s ambitious goal of developing a portfolio of rental housing that leads the industry in terms of depth, product design, and sustainability,” said Jeff Thomas, Group Head, Development at KingSett Capital. “The location and scale of Valhalla Village presents a compelling opportunity to create purpose-built affordable housing at a critical time for the local community. We are very excited to be moving ahead with this extraordinary development.”

According to the federal government, Canada’s construction of rental homes has not kept pace with the country’s growing cities and population, leading to a decline in the existing and aging rental stock for decades. The Apartment Construction Loan Program – previously known as the Rental Construction Financing Initiative (RCFi) — is part of the Government of Canada’s National Housing Strategy (NHS), an $82+ billion plan to tackle the ongoing housing shortage.

“Too many Canadians are struggling to find somewhere to rent and to call home, especially here in Toronto,” said Yvan Baker, Member of Parliament for Etobicoke Centre. “That’s why the federal government is seized with reversing this trend, and through the Apartment Construction Loan Program, we are incentivizing the development of much-needed rental units in the whole country. Investments like the one announced today in Etobicoke Centre will help to increase the supply of housing and create a huge difference in strengthening our communities.”

In addition to market rental homes, Valhalla Village will include 172 affordable units, which Toronto Mayor Olivia Chow calls “a testament to what can be achieved when different orders of government and developers work together.”

Progress updates on Valhalla Village and other government-funded purpose-built rental projects and initiatives can be found at www.placetocallhome.ca.

Nominations open for Cintas 2024 Custodian of the Year

Cintas is now accepting nominations for the 2024 Cintas Custodian of the Year contest, recognizing custodians who work tirelessly to keep their school clean and safe for students, staff, and visitors.

“Custodians are the force behind a clean, safe, and welcoming space for students to learn and succeed,” said Christiny Betsch, Marketing Manager, Cintas. “For the last 10 years, we’ve had the honour of celebrating one-of-a-kind custodians with remarkable stories. We’re ecstatic to honour custodians once again in our 11th year of this contest.”

Rubbermaid Commercial Products’ Sr. Vice President and GM of Commercial Business, Robert Posthauer, added “Taking on the responsibility of providing a healthy learning environment for students is no easy feat. We look forward to another year of taking part in honouring custodians who help make it possible for students to prosper at school.”

The winning custodian will be awarded $10,000, with an additional $5,000 in Cintas and Rubbermaid products and services going to the winner’s school. The winner’s school will also receive a complete facility assessment and Cleaning Industry Management Standard (CIMS) Advanced by GBAC certification from ISSA, The Worldwide Cleaning Industry Association, valued at $20,000. Finally, Cintas will also reward the winner’s school with a pizza party for all staff and students.

In addition, the nine finalists who round out the top ten will receive $1,000 each on behalf of Cintas, a cleaning supply package from Rubbermaid, and complimentary tuition to one ISSA Cleaning Management Institute (CMI) virtual training event, valued at $1,500.

Once again this year, the top 3 finalists will also receive an all-expense-paid trip for two to the ISSA Show North America in Las Vegas in November where they’ll be celebrated for their accomplishments.

“It’s important to show appreciation to school custodians for the important work they do in establishing healthy learning environments,” said John Barrett, Executive Director, ISSA. “ISSA is proud to take part in this contest and looks forward to celebrating outstanding custodians across the U.S.”

The Cintas Custodian of the Year contest is open to all elementary, middle, high school, college, and university custodians who have worked at their school for at least two years. Nominations must be 500 words or less on why the nominee is deserving of the award and submitted by February 9. Cintas will announce the top ten finalists on March 5. The public can vote for their favourite custodian through April 12, and the finalist with the most votes will be crowned Custodian of the Year in the spring.

Please visit custodianoftheyear.com to enter your nomination and here for more information on last year’s winner.

BOMA Canada seeks technical advisors

The Building Owners and Managers Association (BOMA) of Canada is seeking 12 industry-based technical advisors to guide its BOMA BEST Sustainable and Smart certifications and other program development. Collectively, the volunteer recruits are expected to provide informed insight on matters related to building management, energy efficiency, sustainability and emerging technologies, and to play a role in developing industry standards and strategies to advance innovation and proficient commercial real estate operations.

Qualified professionals with relevant experience in property management, energy efficiency and sustainability, proptech, regulatory compliance and risk management or industry standards and best practices are invited to apply by January 29. Expertise in one of four categories is sought: indoor air quality; waste management; smart buildings and systems; and issues related to resource conservation, emissions reduction, wellness and resilience.

Research uncovers risks of generational prejudice in the workplace

New research underscores the risks of relying on generational stereotypes in the workplace. The report, Making Sense of Generations in the Workplace, from global HR advisory firm McLean & Company, advises that leaders should consider employees’ diverse identities when making organizational decisions rather than only looking at them through a generational lens.

Doing so risks overseeing crucial aspects of employee identities, creates unintentional biases, and jeopardizes a company’s success. As companies rethink people management in a new era of work, more focus has been placed on generations and the differences between them in recent years, the study argues.

“The discussion about generations is inescapable and exists through several lenses, including social, economic, political, and organizational,” says Janet Clarey, principal director of HR Research and Advisory Services at McLean & Company. “No aspect of generational differences exists in a vacuum. Rather, each reinforces the others, causing the phenomenon of generational stereotypes to intensify.

“For example, the recent social interest in generations has led to business consultants pushing the concept to sell their services. This push inflates interest in generations, which in turn can risk adopting a one-dimensional approach to people management that ignores the critical and varied complexities of employees’ identities.”

To support an holistic approach to people management and make sense of generational stereotypes, the firm has organized its resource into three sections:

Section one: Critical examination of generational differences

The first section presents findings from empirical investigations, reviews of relevant literature, and interviews with leading experts in the field to put forth arguments to challenge the very concept of generations as a valid means by which to categorize and explain people.

Additionally, this section notes that the construct of generations is further complicated by the fact that it cannot be accurately measured in isolation due to the many factors that are so closely intertwined with it. These factors include:

The age effect: Variation associated with aging attributable to life stage, maturity (e.g., career stage, family status), and physical changes (e.g., general health and wellness).

The period effect: Variation associated with societal, historical, or cultural shifts in a specific period, such as widespread technology accessibility.

The cohort effect: Variation associated with groups of individuals based on shared experiences of major events, such as birth year or coming of age around a particular period.

Section two: Psychology and media as catalysts

The second section explains what has contributed to the rapid emergence of generational differences as a social and workplace phenomenon. Psychology and media are examined as two catalysts through which humans have come to rely on generations as a way of organizing and giving meaning to the world.

For example, the human brain seeks to simplify and make sense of complex environments. One of the ways in which this is done is by relying on heuristics, which are mental shortcuts employed to quickly make judgments about surroundings or solve problems without requiring immense cognitive effort. Organizing complex people by generation is an application of heuristics.

Section three: Implications for the workplace

The third section outlines potential risks associated with improper application of generational stereotypes and provides approaches to navigate them in workplace contexts. Despite the limitations, generations are something organizations must reckon with as they continue to be a popular construct.

Organizations should approach the concept of generations with sensitivity and awareness of the implications generational stereotypes pose and learn to navigate and manage the permeation of generational stereotypes within the organization.

Elisa Brandts promoted to regional leader

Stantec announced the promotion of Elisa Brandts, Architect AIBC, AAA, OAA, NSAA, FRAIC to regional business leader for the Canada West region of its buildings practice.

Brandts is transitioning from her position as operations leader for the firm’s 300-person architecture and engineering practice in British Columbia. She brings valuable experience in client account and operational management, leadership on large alternate delivery projects, and strategic planning.

In her new role, Brandts will drive strategic thought leadership, business acumen, and consulting excellence for the region’s multidisciplinary teams. Her goal is to deliver exemplary work that exceeds client expectations and showcases Stantec’s visionary commitment to be the leading integrated design firm.

As a fellow of the Royal Architectural Institute of Canada, Brandts is an avid advocate of architecture and engineering services, extending to her participation in external professional industry organizations such as the Architectural Institute of British Columbia, and Canadian Construction Documents Committee as well as being a regular speaker at industry conferences.

“Elisa’s focus will remain on delivering impactful design and business outcomes while strengthening the steady growth in the Canada West region,” said Arliss Szysky, Stantec’s senior vice president for buildings. “She is a collaborative, respected, and inspiring leader who will leverage the immense talent throughout the region to deliver strong results for our clients.”

Registered rental homes in BC increased by 30% in 2023

New data released by BC Housing shows that a record number of purpose-built rental homes were registered in British Columbia for the second year in a row, increasing by 30% since 2022. The December 2023 New Homes Registry Report shows 19,064 rental homes were registered in B.C. in 2023, representing the highest annual total since BC Housing started collecting this data in 2002.

“Our government’s actions to tackle the housing crisis are starting to take hold as evidenced in the record-setting number of purpose-built homes registered in B.C. last year,” said Ravi Kahlon, Minister of Housing. “When you compare that to the fewer than 2,000 rental units registered in 2012, it’s quite remarkable how the landscape has changed under our government. I’d like to thank our province’s construction industry for its work to get more homes built for the people of B.C.”

In total, 45,647 new homes were registered in B.C. in 2023. These include 6,522 single detached homes and 39,125 multi-unit homes. Registered new-home data is collected at the beginning of a project, before building permits are issued, making it a leading indicator of housing activity in B.C.

Quick facts:

Under the Homeowner Protection Act, all new homes in the province are required to be registered with BC Housing before a building permit will be issued. Each new home must either be enrolled in home-warranty insurance by a licensed residential builder or have an applicable exemption, such as a purpose-built rental exemption or an owner-builder exemption.

Through its $19-billion “Homes for People” plan – the largest housing investment in B.C.’s history – the Province is supporting the creation of new housing, including purpose-built rental homes. In total, more than 77,000 homes have been delivered since 2017, or are currently underway.

See the latest data here: New Homes Data | BC Housing

Overhauling reserve funds in Ontario

Ontario has seen an unprecedented boom in condo construction over the past few decades, but many of these promising investments have been showing signs of advanced wear and tear, posing significant challenges to both owners and condo sector professionals. As the landscape of aging condos continues evolving, the need for adequate reserve funds to pay for these repairs assumes greater importance.

There is a perfect storm. These condos are underfunded and their reserve fund studies are in shambles. By examining the dilemma, overhaul potential, and financing, there is a glimmer of hope.

The deterioration dilemma

Deteriorating condos in Ontario, with severely underfunded reserve funds, have become a pressing issue that threatens the overall well-being of both residents and property values. Some of the key problems contributing to this crisis include:

Deferred Maintenance: Many condominium corporations have deferred essential maintenance work to cut costs. This means that necessary repairs and replacements have been postponed, leading to the gradual decline in the building’s condition and ballooning price tags for refurbishment or replacement.

Construction Deficiencies: The insufficiency of quality control during construction, coupled with inadequate practices and materials used in the past, is coming back to haunt condo owners. Leaky roofs and garage membranes, faulty plumbing, and subpar insulation are common issues that affect the structural integrity and comfort of condo units.

Financial Mismanagement: Some condo corporations have struggled with financial mismanagement, failing to collect sufficient money for reserve funds to conduct necessary replacements and repairs. This leaves them ill-equipped to address major issues when they arise.

Aging Infrastructure: In Toronto alone, over 42,500 condominium units were constructed during the 1970s and 1980s. As these buildings approach critical years, they require significant updates and renovations to meet current safety and energy efficiency standards.

Addressing the crisis

Recognizing the gravity of the deteriorating condo crisis, it’s important for the government as well as boards, to take concrete steps to address the issues.

Revamp the Reserve Fund: It is time to revamp how communities view and conduct reserve fund studies. It has been treated as a guideline and not necessarily a prescription. There needs to be serious consideration of a legislation amendment allowing condominium boards to conduct published updates every year, similarly to the insurance appraisal.

An insurance appraisal is typically done every three years, similar to reserve fund studies, with replacement cost value updated annually. Perhaps one answer is to amend the legislation with declarations also containing provisions to conduct these period studies as prescribed. The expected result is more accurate numbers, better financial understanding and, more importantly, planning.

Furthermore, the reserve fund study needs to be treated similarly to the annual financial audit, with owners voting on appointments. This way, the reserve fund consultants are answerable to the owners annually at the AGM, with the presentation of the annual update of the reserve fund during the section of the agenda allotted for that purpose. The report will carry more weight, the risk of underfunding by boards will be reduced as there is great transparency in the numbers, and the owners will gain the information to make financial decisions regarding one of their largest investments.

With this level of transparency, the reserve fund consultants will have an even higher degree of accountability to deliver a must-see-and-act report rather than a spreadsheet with numbers that boards can tweak at a whim. This plan will require additional fine tuning, but the conversation must begin somewhere. The current system is no longer sustainable and efficient; it’s desperately calling for change.

Condo Finances: it’s all in the numbers

Condominium corporations can only raise funds through common element fees, special assessments, interests on the balances and investments and sundry income. What if the corporation was truly run as a business and was focused on profit?

The industry constantly mentions property values and investments in condominiums. Would it not make sense to have these corporations profitable to maximize the investments? With high condo fees, special assessments, and underfunded reserve funds, the values and investments will certainly not look favourable and become undesirable.

As the condominiums are becoming one of the primary forms of residence, it’s time to deliver on the finances. Several streams of income are already in place, generating extra cash flow for the corporation. These include revenue sources like the installation of cellular antennas on the rooftop, marketing efforts, and partnership deals similar to those seen with downtown Toronto’s ICE condos and Airbnb, among many others.

Additionally, some of the income streams may include selling filters for fan coils and ERV units; hard-to-find parts of bespoke plumbing fixtures: fill up valves, cartridges, handles, etc.; electrical supply: LED bulbs for building and suite- unique light fixtures; batteries for smoke detectors and garage remotes; doing laundry for guests staying in the guest suites; profit sharing with personal trainers for using condo amenities; vending machines in the larger buildings; mark up on the concierge services for parties; moving in and out; and 50/50 lotteries for the building during holiday seasons.

Is there an opportunity to go beyond the sundries and the non-profit status? Absolutely. The condominium corporations can no longer cut expenses and services to the detriment of the resident experience. The conversation has to start around generating income. There are collective ideas that can be assembled and implemented to better offset the financial strains of not only reserve funds but operating budgets.

If the condominium is facing great challenges financially, it is no longer taboo to consider financing arrangements with lenders for projects to address the infrastructure shortfalls. With construction costs increases outpacing the rate of return on investments of the reserve funds, would it not make sense to put a financial plan, that includes borrowing, in place to undertake critical projects and not defer?

The condo reserve fund crisis in Ontario is a complex issue that requires a multi-faceted solution. While government regulations and initiatives have started addressing some of the problems, the journey towards resolving this crisis will be long and challenging. There cannot be a standstill approach.

Val Khomenko, RCM, OLCM is a Regional Condominium Manager with TSE Management Services Inc., providing full-service property management and consulting services in the Greater Toronto Area.

Pavlo Khomenko, OLCM, RCM is a Condominium Manager with Del Property Management Inc. based in Toronto, Ontario, providing condominium management services in the Greater Toronto Area.

Building electrification projects impart lessons

Early examples of large scale building electrification projects plot out a learning curve with some rewarding discoveries along the way. Notably, there are cost savings to be reaped when efficient new technologies enable the downsizing of HVAC systems from original specifications. That can further bolster the business case if the building’s existing electrical capacity can then handle the added heating load without need for expansion.

However, project proponents stress that the numbers will crunch most effectively when switchovers are synced with the end-of-life of existing mechanical equipment and/or asset repositioning plans. Sharing their experiences during a December webinar sponsored by the Collective for Advancement of Connected Buildings (an offshoot of the Proptech Collective), they sketched out both project details and the broader decarbonization mandates of their corporate employers or government clients.

“Our philosophy is that every time you have the opportunity to touch a system, if you’re spending money on it, replacing it or upgrading it, that is the best time to align it with a net-zero roadmap,” advised Lee Hodgkinson, head of sustainability and technical services with Dream Unlimited, which is targeting net-zero greenhouse gas (GHG) emissions in its portfolio by 2035.

One such example is 67 Richmond Street West, an 80-year-old, 50,000-square-foot mid-rise that Dream asset managers envision as a “net-zero-ready luxury boutique office building”. The in-progress transformation includes: a new variable refrigerant flow (VRF) heat pump system for heating and cooling; an energy recovery ventilator (ERV) for ventilation and managing outdoor air intake; and building envelope upgrades that underpin a 10 per cent reduction in HVAC system size. Collectively, retrofit measures are calculated to deliver a 61-tonne annual reduction in emissions, representing a 55 per cent cut to the building’s previous tally, along with a 30 per cent reduction in energy use.

Similarly, co-presenter, Joe Brown, vice president, building technology, and decarbonization lead with KingSett Capital is tasked with executing his company’s goal for a 67 per cent reduction in GHG emissions by 2035. He underscored that the recent $65-million overhaul at Toronto’s venerable Royal York Hotel, which has merited CAGBC zero carbon certification for the 94-year-old facility, entailed about $55 million worth of upgrades that would have been required anyway.

“The additional $10 million to go zero-carbon was a very small uptick,” Brown said. “All these projects that we’ve done have really been driven by end-of-life mechanical equipment. Then you can come up with a long-term plan and the numbers start to make a lot more sense.”

In this case, the hotel was opportunely located to adopt deep lake water cooling (DLWC) with connections already in place to the district energy provider’s (Enwave) pipe. DLWC has supplanted three 800-ton chillers, cutting the building’s electrical load. Water pulled from the return side of the heat exchange also supplies the energy source for the heat pumps that provide domestic hot water and space heating. Project commissioning was still in progress as of the mid-December presentation, but it’s expected to deliver a 7,700-tonne annual reduction in emissions.

Toronto climate welcoming to heat pumps and added wintertime electricity loads

Both the Royal York and 67 Richmond previously relied on steam from Enwave’s district energy system for heating, and the building owners will continue to keep it as a backup option. In contrast, another KingSett project at 100 Yonge Street in Toronto, is now solely reliant on VRF air-source heat pumps that do not function in temperatures below -30 degrees Celsius. Since the initial start-up in November 2022, temperatures have dropped as low as -20 C on just one day, in February 2023.

“We have the capability of adding electric boilers; we just haven’t seen the need yet,” Brown observed. “They (heat pumps) cut out at -30 real temperature, but Toronto rarely, if ever, sees that temperature.”

Also related to Toronto’s climate, buildings are typically equipped for summertime peak demand, giving them surplus electrical capacity for their needs in colder months. This already provides manoeuvrability to take on an electric heating load, which can be stretched even further with other efficiencies a retrofit can introduce. When replacing end-of-life boilers and chillers at 100 Yonge Street, for example, decision-makers drew on historic consumption data to justify a 30 per cent reduction in system size.

“I didn’t have to call Toronto Hydro because we didn’t increase our line,” Brown affirmed. “Our peaks have actually reduced in this building overall. We have more efficient cooling equipment now and our heating equipment doesn’t pull what the old equipment pulled.”

Hodgkinson described VRF heat pumps as “the most energy-efficient, GHG-efficient option that we looked at” — also calling its ability to provide precise temperature control within a number of different contiguous thermal zones a good fit for the needs of an office occupancy. Even so, the technology was chosen for 67 Richmond Street after a thorough exploration of other possibilities and with integrated technical expertise on hand.

“Engaging heat pump manufacturers, energy consultants and mechanical-electrical consultants early on in a collaborative manner was very important,” Hodgkinson reported. “There are a lot of products out there, many of which are not tested for our climate. Also, there are a lot of products out there that don’t have real-world testing or data, and we need that data in order to form our energy models accurately as well as our HVAC design.”

Federal “flagship” retrofit features geoexchange infill

Heating for the government of Canada’s 442,000-square-foot office building at 25 St. Clair Avenue East in midtown Toronto is supplied via a new geoexchange system drilled in the underground parking garage. It’s one component of a whole-building retrofit — a newly completed five-year project expected to achieve an 80 per cent reduction in GHG emissions — that also includes a full envelope upgrade and installation of rooftop solar photovoltaic (PV) panels to power about 15 per cent of the building’s electrical needs.

The deep retrofit aligns with both required mid-life refurbishment of the 1950s-era building and the Canadian government’s pledge to pursue net-zero carbon within its own property portfolio. The project is considered one of the “flagship” undertakings, but is occurring along with a number of smaller-scale interventions to reduce emissions and offset peak demand through equipment replacement and operational adjustments within federal buildings.

At 25 St. Clair, major project components were devised to be mutually supportive with air-tightness and energy efficiency improvements deemed key to reduce the heating and electrical load. Adding to the challenge, the site is locked in on all sides with no exterior space to drill a geoexchange well.

“Using the envelope aspect has allowed us to make a manageable-sized geothermal system where we just had the space under the building, and that was it,” advised Paul Barton, director of energy and sustainability with the project manager, BGIS. “It was a very complicated drill session where we had more than 50 bore holes all at slightly different angles to spread out to be able to deal with the height restrictions in the parking garage.”

The system has now been operational for more than a year, providing heating throughout the winter of 2023 while other construction continued, and rendering the backup electrical boiler and emergency gas-fired boiler unnecessary. “We have had construction challenges throughout, but we’ve managed to get through and keep that gas turned off so we hope to use this as an example going forward for many other retrofits like this,” Barton recounted.

Meanwhile, synergies with energy efficiency are prioritized no matter what the project scale. BGIS has also managed a range of more scoped electrification projects in the government’s portfolio — switching out humidification or boilers without necessitating a complete system overhaul.

“We’re trying to keep flexible as we go forward and not presume we have to renovate everything. We can still do things with what we have and optimize that with controls and strategies to offset many peak demand charges and offset larger amounts of emissions,” Barton said. “The efficiency aspect in buildings is going to be hugely considered with this. We’re not doubling our demand at a building, simply jamming a heat pump onto an existing building.”

Technology is the easier part

Looking to the private sector, Hodgkinson and Brown concur that their companies’ emissions reduction targets are achievable, but other uncertainties complicate planning and budgeting. Unknowns include the future costs of electricity versus natural gas, particularly if there is a step back from the current carbon pricing schedule, while net-zero strategies in general are predicated on comprehensive and relatively rapid expansion of supporting infrastructure.

“The solutions are pretty available. I don’t really see a lot of buildings where I can’t come up with a combination of solutions to get there (net zero). I think the concerns over the longer term are around the grid, the cost of electricity and the carbon tax,” Hodgkinson reflected. “That does make it challenging to forecast out, as an asset manager, where we can afford to do things.”

“The technology is there. The business case is tougher than the technology, trying to make the numbers work, but it’s doable as well,” Brown maintained. “You need to really push the engineering; you need the information; you need to make the decisions, but I’m picking them off based on when there’s capital work due. That makes the business case.”

Boost energy efficiency in your building

As facility and maintenance managers continue to strive for top building performance, energy efficiency remains an important factor in cutting costs, boosting efficiency, and increasing sustainability. Maintaining existing equipment, installing more efficient options, and leaning on technology are just a few ways that maintenance managers can lower expenses and get closer to environmental, social, and governance (ESG) goals.

HVAC

Keeping your HVAC in tip-top shape can help your building run at its most efficient. For example, if your air filters are dirty, it means that your system has to work harder, expending more energy to get the job done. According to the U.S. Department of Energy, changing clogged air filters can lower energy consumption by as much as 5 to 15 per cent.

Outdoor intake can also be an issue with your HVAC system, so consult a professional technician to adjust dampers to lessen outdoor air intake and keep your building warm.

Green choices

Increasing the sustainability of your building can improve efficiency with just a few simple steps. Switching your thermostat to a timer so that it heats most when there are people in the building can reduce the energy being used while your building is vacant. Going mobile can help, too, with smart technology and apps making it simple to set and adjust your thermostats remotely as needed. There are also elements like smart glass that can be installed to help regulate energy use and keep your building heated and cooled more organically.

If you still have traditional lighting, switching to LEDs can also help boost efficiency and lower energy costs. Again, technology including sensors and timers can help to limit wasted energy consumption in washrooms, parking lots, stairwells, and more. Assess your building for opportunities to install technology that will help increase your building’s performance.

Train your team

Train staff in sustainability policies like closing doors and windows with outdoor access, using environmentally friendly products, and ask them to initiate new ways to help reach your sustainability goals and reduce costs. Being part of a team means that you are all working together towards the same goals and getting fresh ideas can help increase your efforts.

As part of your maintenance plan, set a schedule to regularly check your HVAC, ensure that your outdoor condenser is leaf and debris-free, inspect doors and windows for air leakage, do your research, and take a proactive approach to achieve your goals through the winter.

Average asking rents reach record high in 2023

Average asking rents for all residential property types in Canada increased by 9 per cent in 2023, reaching a record-high $2,178 in December, according to new data from Rentals.ca and Urbanation. This represents an 8.6 per cent increase from the same period in 2022.

Over the past two years, asking rents in Canada saw a 22 per cent increase, representing an average monthly increase of $390. The 8.6 per cent year-over-year increase in 2023 follows a 12.1 per cent increase in 2022 and a 4.6 per cent rise in 2021.

“The rate of rent growth in Canada was stronger than expected in 2023, mainly due to a surge in non-permanent residents, a resilient economy, and a sharp pullback in home buying activity,” said Shaun Hildebrand, President of Urbanation. “While rents are expected to continue rising in 2024, there should be less upward pressure on the market this year as demand increases at a somewhat slower speed and more supply is added.”

Traditional purpose-built rental apartments reached an average asking rent of $2,076, and experienced the fastest growth in 2023, posting a 12.8 per cent increase. In contrast, condominium rentals and house rentals saw relatively slower annual growth rates of 6.9 and 5.9 per cent, respectively.

Rent growth breakdown

In 2023, average asking rents for one-bedroom apartments grew by 13 per cent, while studio rents followed closely with an 11.9 per cent annual rent increase. Two-bedroom apartments witnessed a 9.8 per cent annual increase, and three-bedroom rents rose by 9.9 per cent.

Alberta emerged as the province leader for fastest-growing rents in 2023, recording a 15.6 per cent annual increase to reach an average of $1,691. British Columbia maintained its position as the most expensive province for apartment rents, averaging $2,500 in December despite a 1.4 per cent year-over-year decrease. Ontario recorded a 3.7 per cent annual increase, with average apartment rents slightly below B.C. at $2,446. Quebec experienced faster rent growth for apartments in 2023 compared to 2022, with average rents rising 10.0 per cent to $1,953 in December.

Among Canada’s largest cities, Calgary posted the fastest annual rent growth for apartments in December, with rents rising by 14 per cent from the previous year. Edmonton followed with a 13.5 per cent annual rent growth, and Montreal secured the third spot with average asking rents increasing by an 11.3 per cent.

After posting annual rent increases of more than 20 per cent in 2022, Vancouver and Toronto experienced a considerable slowdown in rent growth. Vancouver’s average asking rents decreased by 0.7 per cent annually while Toronto’s asking rents for apartments increased by just 2.1 per cent.

As we enter 2024, the rental market in Canada is expected to remain undersupplied but will likely exhibit a “somewhat more balanced trajectory”, the report predicts. Rent growth is projected to converge towards the five-year average increase of approximately 5 per cent. Anticipated factors influencing the rental market include a slowing economy, a reduction in the number of non-permanent residents, and an improvement in homebuying activity fueled by declining interest rates. The introduction of more apartment completions and an anticipated increase in tenant turnover are expected to inject additional supply into the market, mitigating rent growth compared to 2023.

For more info, visit www.rentals.ca

Toronto climate welcoming to heat pumps and added wintertime electricity loads

Federal “flagship” retrofit features geoexchange infill

Technology is the easier part

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