Q Tower launches in Queens Quay West

Q Tower is a new British-inspired condo project that will rise in Queens Quay West, which is part of Toronto’s central waterfront revitalization in the Harbourfront neighbourhood.

Led by developers Lifetime Developments and Diamondcorp, the design of the 60-storey residential tower comes from Canada-based Wallman Architects.

“The Toronto skyline, photographed from the lake with the CN Tower in the frame, is one of the most used visuals when describing our City and knowing that our tower will forever be positioned immediately next to the CN Tower really pushed us to come up with a sophisticated design, that we are extremely proud of,” said Rudy Wallman, principal of Wallman Architects.

U31 is leading the interior design, with a mix of “rebellious chic inspired by the British Monarchy and British design and fashion,” and ‘Bond-esque’ glamour.

The building will also feature the image of Queen Elizabeth II adorned with a big bubble as its artistic focal point. This comes by way of artist and photographer Michael Moebius who is known for his hyper-realistic illustrative portraits featuring celebrities blowing large bubblegum bubbles. This will be his first North American partnership.

“Q Tower is more than just a residential project; it represents a lifestyle promise that will exceed purchasers’ expectations and allow them to discover an elevated yet attainable standard of living,” said Stephen Diamond, CEO of DiamondCorp.” The central downtown location in the Harbourfront neighbourhood, offers the very best of Toronto living – from being immersed in the energy and excitement of the bustling city to unmatched views of the calming waters of Lake Ontario.”

Getting your hard floors back-to-school ready

It’s almost that time of year again when schools reopen and are flooded with traffic, trampling over floors during all sorts of weather. The summer provides custodial staff with some of the time they need to get floors back in shape and ready for the next school year. In fact, it’s estimated that 50 per cent of summer hours are spent redoing floors by school maintenance teams, making it a significant investment of time, money, and labour.

Getting your hard floors looking and performing their best is crucial for the coming year, so use your maintenance plan to get your floors in tip-top shape and start the year off on the right foot.

A recent episode of Straight Talk! with Jeff Cross features a few expert tips from Becky Kaufold from Spartan Chemical Company on getting floors ready for the upcoming school year.

Custodial staff can start by assessing the condition of the floors. Unlike years gone by, today’s flooring has evolved to mean that only about 25 per cent of flooring will typically need intensive treatment, leaving the majority of the surfaces to be top scrubbed and recoated. So, getting to know which areas see the most traffic and need the most attention is important as you treat the areas with scratching or discolouration as the first step.

Kaufold notes that one of the most significant challenges for summer floor cleaning is that drying can be really difficult, as many of the buildings are closed and sealed, eliminating the possibility of cross-breeze or outside air to help speed up the process. Applying thin coats of floor finish can help, along with getting as much airflow as possible to help you get there faster.

If you are looking for advice or information, your manufacturer is a valuable resource, often providing training sessions or support to help make the most of your products and application.

As school reopening approaches and traffic will be at its highest, getting the floors in their best shape will give you a head start on the year. Focus on an efficient application where it’s needed most, use the resources at your disposal, and maximize airflow to speed up drying time. Hard floors need attention all year long, but using the last few weeks of summer to address these surfaces will provide a solid start to the school year.

Slight change in homes sales from June to July

National home sales shifted slightly between June and July, 2023. A 0.7 per cent drop was attributed to a decline in the Greater Toronto Area, although sales were up in the majority of all local markets.

Newly released statistics from the Canadian Real Estate Association found that lower sales in the Fraser Valley also offset gains seen in Montreal, Edmonton and Calgary.

Transactions for July were 8.7 per cent higher than last July – the largest year-over-year national sales increase in more than two years.

“July continued along the same trend we’ve seen emerge in recent months, with sales levelling off and new listings returning in more normal numbers,” said CREA Chair Larry Cerqua. “This has been giving buyers more choice and balancing the market, which as of July was also slowing the rate of price growth.”

Newly listed homes were up 5.6 per cent since June, having gone from a 20-year low in March and nearing average levels by mid-summer.

With new listings outperforming sales in July, the sales-to-new listings ratio eased to 59.2 per cent compared to 63 per cent in June and a recent peak of 68 per cent in April.

There were 3.2 months of inventory on a national basis at the end of July 2023, up a bit from 3.1 months in May and June. While this was the first month-over-month increase since January, this measure is still a full month below where it was at the beginning of 2023, and almost two months below the long-term average for this measure (about five months).

The MLS Home Price Index sits at 1.5 per cent, below year-ago levels and the smallest decline since October 2022. CREA said prices continued to decline through the second half of 2022 so year-over-year comparisons will likely tip back into positive territory in the months ahead.

The average home price in July was $668,754, up 6.3 per cent from last July.

“Following a brief surge of activity in April, housing markets have settled down in recent months, with price growth now also moderating with its usual slight lag,” said CREA’s Senior Economist Shaun Cathcart. “Sales and price growth are already showing signs of tapering off further in August in response to the Bank of Canada’s mid-July rate hike and messaging regarding above-target inflation for longer than previously expected. We’re probably looking at another round of ʻback to the sidelines’ for some buyers until there’s a higher level of certainty around interest rates going forward.”

Condo managers breaking gender stereotypes

The underrepresentation of women is a prevailing narrative across the traditionally male-dominated building sector, but the world of condo management tells another story. In a recent email correspondence, the Association of Condominium Managers of Ontario (ACMO) confirmed that, according to a 2020 survey of members, over 55 per cent of their Registered Condominium Managers (RCMs) are women. Here, a few executives explore their journey into condo leadership.

Being a condo manager wasn’t the expected career path for Michelle Joy, who received her RCM designation in 2017 and is now an executive director of property management for Wilson Blanchard Management.

Looking back, the 34-year-old is surprised where life has taken her. She joined the accounting team at Wilson Blanchard in 2014 and quickly took up the ACMO courses offered in-house to become licensed. Having already earned a degree in political science and an accounting diploma, studying was nothing new to her.

Her accounting skills helped navigate the financial planning and budgeting aspects of the corporations she managed. In fact, it was through work with an auditor that she gained her first insight into the industry. “We were at the office (at WB) in our little backroom for four or five days straight,” she says. “I thought it looked like a fun place to work.”

Five years after achieving her license, she was invited to be a guest speaker and moderator on panels, sitting next to the lawyers who inspired her as a junior manager.

“One of the first public speaking events I did was with Patricia Elia (of Elia Associates) when the new Act came out,” Joy says. “I had the worst case of imposter syndrome. It took me a while to build confidence for public speaking. Now, I love it.”

When asked how she’s been so successful, she says it’s important for new managers not to put too much pressure on themselves. “Property managers are expected to be so well-rounded in such a diverse number of topics. There’s no way you can know it all.”

Her career now involves teaching with the Condominium Management Regulatory Authority of Ontario (CMRAO)—something that she enjoys immensely—and she’s seeing a lot of female enrolment. “There are so many more women in the industry and I think that’s fantastic.”

Angel-Marie Reiner is the owner, co-founder, and president of the Onyx Group of Companies, which she operates with her husband, Eric. In 2018, the Onyx Group managed a portfolio of commercial and residential properties but also developed their own low and mid-rise apartment buildings.

“We tried to find managers and found it difficult to find somebody who cared about our tenants and the aesthetic of our property and investment,” Reiner says. Frustrated, she took over the management side of the operation. “I woke up one day and I was a property manager.”

In 2019, Onyx started getting requests to manage condominiums. After working through the licensing requirements, Onyx opened their own condo management division, which Reiner now owns and leads—headed up by a primarily female team.

Bringing strong and supportive women together paid off for her that same year when a sub-metering division of the Onyx Group received a $100,000 federal government grant through the Women Entrepreneurship Fund. “I felt particularly proud because that space (sub-metering) is very male-dominated.”

She’s seeing more women rising up in leadership roles, but has noticed hesitation from some of the trades.

“A lot of people don’t know that as part of my early career, I sold construction materials. We had to do a roof inspection on an industrial roof and, I won’t name the company, but he suggested I didn’t need to come up to look.”

Many female managers begin as administrators and work their way up. “We share the path our staff have taken and what it could look like for them. Females within the industry are supporting each other in a wonderful way. I don’t think the career is for the faint at heart, but it’s very rewarding.”

Elaina Kutz is co-founder of Three By Three Inc, a boutique condominium management company in Calgary, Alberta. By the time the 39-year-old entrepreneur bought a unit in a self-managed condo, she already owned several revenue properties. She volunteered for the board and quickly discovered the amount of work involved in self-managing.

“We were all getting burnt out,” she says. When they started to look into condo management firms to take over, costs were “crazy expensive” and she was told the 16-unit condo didn’t translate to enough profit.

Every now and then she’d joke with another woman board member about starting a condo management company. Initially, the two hadn’t got along, but after a board meeting one evening, Kutz convinced her to go for drinks.

Both agreed that “someone needed to look after the little guys,” so the conversation around managing condos returned and Three By Three was formed. The name is based on three women using three very different methodologies. Employees work remotely and maximize the use of Google Suite.

She asserts that to make a difference in this industry, it’s not whether you’re male or female, but how you handle tricky situations. “The way that some individuals speak to me versus how they would speak to a male is very different,” she says.

Discussing organization, all three women say they strategize their days using calendars, and keeping on top of their emails is paramount.

“My inbox is organized,” explains Joy. “I have a bajillion folders—probably more folders than anyone needs.”

Kutz also agrees that inbox organization is an important tool. “Being at a zero inbox is a massive takeaway that I would recommend anybody do,” she says. “I live and die by my calendar. Anytime anybody wants anything, it goes in my calendar.”

Reiner says that keeping connected to her team has been an important structuring tool. “We have team meetings and talk about what’s getting us stuck. When I get to the office each day, I get my ideas into a OneNote and decide how I’m going to tackle the day.”

For anyone considering a career switch into condominium management, Kutz recommends researching how the company operates. “The work-from-home option for someone new to the industry is phenomenal. Being male or female is irrelevant; you still end up with chaos on your plate.”

Sarah Farr is a writer, researcher and condo geek. In her spare time, she writes about historical true crime from her hometown of Hamilton, Ontario.

Designing a successful private condo terrace

With the population aging and living longer, downsizing in real estate will continue to fuel the demand for condos. Higher-end condos with large terraces may also be more prevalent, with many private owners scratching their heads as to what to do with them.

On the opposite side of the spectrum, condominium property managers may also be at a loss as to what to demand of their owners in terms of approving a proper renovation plan.

Draft a plan

The first step is to have a landscape architect draft up a preliminary plan for the terrace or balcony renovation. Three dimensional colour renderings can go a long way to help visualize the design vision for its audience. Any landscape terrace plan design will have to be done based on an accurate architectural base plan. Such drawings should be readily available from the developer or, if need be, the local building department. A site inventory is then required to take into account what may be missing from the architectural base plan, namely:

1) Location of large and small metal plates which cover the anchor points for window cleaning scaffold and safety belt tie off ropes.

2) Existing hose bibs, exterior GFI outlet locations, gas bibs.

3) The existing exterior ‘floor’ materials and the composition of the supporting base material beneath them.

4) All area drains and general pitch (or lack of it) of the ‘floor’ materials.

Preliminary design

Just as with any outdoor living design on the ground level, a condo terrace or balcony design must be practical in its approach. Let form follow function when considering the following:

1) Short and long-term seating areas such as lounging and dining areas.

2) Food preparation such as a BBQ and outdoor kitchen.

3) Screening undesirable views and focusing on good ones.

4) Barrier-free and handicap access to and from the interior of the condo.

5) New flooring treatments such as replacing the builder’s unit slabs, introducing wood decking tiles to sit on existing slabs and outdoor sisal carpets.

6) Permanent new planters from portable urns up to sizable permanent planters.

7) Water element.

A very large corner terrace proposal located in Yorkville. Issues of wind are quite pronounced. The steel panels, water wall and fireplace are all anchored to a structural slab poured over top of the existing structural slab beneath.

Reality checks

All preliminary plans must be reviewed by management and the corporation’s engineers for the following:

1) Acceptable load capacity for all new structures, in particular any proposed planting structures, new urns and containers and the weight of hot tubs and spas.

2) Wind analysis: any new vertical element on the terrace must be analyzed for structural soundness in terms of adequate anchoring to the existing terrace floor and/or structural concrete slab beneath. This is a critical point to all terrace design, private and common elements. Wind is especially an issue when the building is grouped with other high-rises, and when wide open to prevailing winds. Wind patterns move up and down the sides of high-rise towers, from the south in summer and northwest in winter. Any proposed vertical element such as privacy panels must be anchored structurally while not penetrating the structural concrete slab beneath.

3) Analysis that any proposed architectural element such as vertical panels, overheard arbors, outdoor BBQ and kitchens and storage units do not adversely affect the appearance of the building from adjacent residents and to passersby on the street.

4) Clearance from all steel plates covering the anchor points for roof cleaning equipment and clearance in all directions for the ‘arms’ and ropes that are anchored at these locations to be brought in during spring and fall window cleaning.

5) The ability for the terrace floor to handle the new normal of monsoonal spring and summer rains in such a way that doesn’t overwhelm the existing terrace area drains.

Kent Ford is a landscape architect and founder of KFDG Inc., an award-winning landscape design and project management firm specializing in the renovation of private and common element condo spaces. He can be reached at [email protected], 416 360-7175 and at www.kentforddesign.com

UBC expanding Sauder School of Business

The Sauder School of Business at the University of British Columbia (UBC) is in the process of planning its largest campus building expansion in more than 10 years. The plan involves the construction of an 11-storey building at the rear of the business school’s hub on UBC’s Vancouver-Point Grey campus, facing West Mall.

The new building will be built on the footprint of the decommissioned Power House and old fire hall buildings. The 1925-built Power House will be demolished due to contamination and seismic concerns.

Construction is scheduled to begin in 2024 and is expected to be completed by 2026.

The Sauder School of Business Power House Expansion will provide approximately 145,000 sq ft of additional academic, collaborative learning, and office space. This will effectively increase Sauder’s purpose-built space by about 50 per cent on the block.

The new building will include a range of configurations and spaces, including breakout rooms, meeting rooms, labs, an Indigenous center, study areas, and classrooms. It will also feature a footbridge connecting it to the adjacent Henry Angus Building.

The 10th floor of the building will be dedicated as event space, offering indoor and outdoor areas with picturesque views. The top 11th floor will house mechanical systems.

The architectural design of the building by Patkau Architects and Acton Ostry Architects is inspired by the layers and white colour of an oyster shell and is considered an evolution of the “International” style. The design aims to express Sauder’s distinctiveness from traditional corporate norms.

The expansion is being undertaken to accommodate the projected 30 per cent increase in enrollment in Sauder’s graduate programs and the creation of new graduate programs.

Canada’s housing sector joins forces to end rental housing crisis

A group of Canadian housing sector organizations, including non-profit and for-profit housing providers, developers, and investors, came together at a recent Roundtable to discuss the issues impacting affordability and supply constraints within the rental housing system. The discussion culminated in the creation of “The National Housing Accord: A Multi-Sector Approach to Ending Canada’s Rental Housing Crisis”, a 10-point blueprint to restoring affordability and providing immediate protection for those at risk of homelessness.

In addition to outlining a path to building two million rental units in less than a decade — effectively tripling the current rate of home building — the report includes a roadmap for the federal government to create the conditions for massive private investment in rental housing construction and to ramp up investment in deeply affordable, co-op and supportive housing.

Proposals include:

Federal funding for deeply affordable housing, co-operative housing, and supportive housing, along with seniors’ housing and student residences, and doubling the relative share of non-market community housing;
Reforming the National Building Code;
Eliminating the GST/HST and changing capital cost allowance provisions on new purpose-built rental housing to incentivize construction;
Creating property acquisition programs for non-profit housing providers to help purchase existing rental housing projects and hotels, and facilitate office-to-residential conversions;
Creating a Homelessness Prevention and Housing Benefit to provide immediate support for people at risk of homelessness;
Reforming the Canada Housing Benefit to better support individuals and families with the greatest housing needs; and
Providing low-cost, long-term fixed-rate financing for constructing and upgrading purpose-built rental housing.

“The purpose-built rental housing sector in Canada continues to face major challenges responding to depreciating buildings, high inflation, and dramatically increased demand,” noted Michael Brooks, Chief Executive Officer, REALPAC. “Governments, for-profit and not-for-profit housing providers must come together to increase supply at all levels, from market rentals to social and supportive housing. That’s why we brought together this team of experts to put pen to paper and come up with a comprehensive set of realistic and immediately actionable solutions that can put Canada back on the path to the right to adequate housing for all.”

“Rents have been increasing faster than inflation across much of Canada, as the population of renters grows faster than the stock of rental housing,” added Dr. Mike Moffatt, Founding Director, PLACE Centre at the Smart Prosperity Institute. “To house a growing population, to restore affordability, and allow workers to live in the communities in which they work, we need a substantial increase in the supply of purpose-built rental units. The National Housing Accord provides the federal government with an ambitious but achievable blueprint to create the housing Canada desperately needs.”

According to the Canada Mortgage and Housing Corporation, the average monthly rent on a one-bedroom apartment has been increasing at or above Canada’s 2 per cent inflation target for the past 13 years. To restore affordability to Canada’s housing market, 5.8 million homes must be built in the next seven years, roughly two million being purpose-built rental units. Meanwhile, most of Canada’s existing purpose-built rental stock is over forty years old.

“The federal government needs to change its targets, policies, and taxation settings if it is going to scale up the affordable housing that Canadians so desperately need,” said Carolyn Whitzman, Expert Advisor, Housing Assessment Resource Tools project, University of British Columbia. “This report, arising from a big tent coalition of private and non-profit developers along with researchers, develops an agenda to address homelessness, core housing need, and moderate-income rental affordability. We need to scale up well-located social housing and market rental and the federal government can and must take the lead on this critical infrastructure provision.”

The National Housing Accord was designed by industry leaders from across the housing spectrum and was brought together by the Canadian Alliance to End Homelessness and REALPAC and was facilitated by the PLACE Centre at the Smart Prosperity Institute.

For more information, visit: The National Housing Accord: A Multi-Sector Approach to Ending Canada’s Rental Housing Crisis

FCM’s Summer 2023 issue is now available!

As the cleaning and maintenance landscape continues to improve and evolve, what does it look like these days? The pandemic leaves its mark with labour shortages and flex hours, but the industry is moving forward with the help of technology, flexibility, and creative thinking to thrive into a successful future.

Our summer 2023 issue of Facility Cleaning and Maintenance is seasonally focused, addressing common challenges from this time of year. We take a look at landscaping tips and tricks to minimize your outdoor maintenance, and we delve into mitigating the risks to outdoor workers and keeping them safe during the hot summer months.

With health and safety at the forefront, we explore the relationship between cleaning and disinfection, as infection prevention stays top of mind. As well, we offer some insight into autonomous cleaners and the ways that technology is helping to address labour shortages and boost efficiency.

In our cover story, we put the spotlight on Hallmark Housekeeping Services, a company that’s overcoming industry challenges by putting people first and leading with heart, focusing on data-driven change and employee retention for this year and beyond.

For our expert Q&A, we share our interview with Randy Burke, CEO of DCS Global, diving into the post-pandemic reality for commercial cleaners and the challenges they are facing today. We focus on lower building occupancy and how transparency and adaptability are crucial for cleaners as they navigate their way through a long-term (or even permanent) shift in the industry.

We recognize ISSA’s 2023 Environmental Stewardship Award winners, honouring companies that are helping the environment, reducing their carbon footprint, and protecting the health of their workers and building occupants. ISSA also showcases the newest products from its members, and our Clean Matters section features some of the companies recently attracting attention with their innovation.

This issue highlights how far we’ve come, gives a broad view of commercial cleaning and maintenance today, and offers a look at where we’re headed as we approach the fall.
Read the full summer 2023 issue here.

VRCA welcomes Jeannine Martin as president

The Vancouver Regional Construction Association (VRCA) has announced the appointment of Jeannine Martin as its new president.

With extensive construction industry knowledge, Martin is an industry veteran and well-positioned to elevate the association’s member engagement, focusing on meeting and anticipating member priorities while demonstrating industry leadership and advocacy on a regional level.

With more than 25 years of industry experience in private construction and engineering, and leadership on local industry boards, the British Columbia Construction Roundtable (BCCR) and the Association of Consulting Engineering Companies – British Columbia (ACEC-BC), Martin understands the challenges and opportunities facing B.C.’s construction industry. She has extensive experience working with government agencies and construction professionals within our industry.

In her first 100 days with the association, Martin will focus on:

Building connections with VRCA members, stakeholders, and staff.
Operationalizing VRCA’s Strategic Plan.
Working with the British Columbia Construction Association (BCCA) to continue to advance Prompt Payment legislation and other topline issues including the shortage of skilled trades.
Continuing to develop VRCA’s Reconciliation Action Plan.

As president, Martin will work closely with the VRCA board of directors, staff, and members to develop and implement strategic initiatives that further strengthen the industry’s position and contribute to its growth and success.

Landmark Indigenous housing breaks ground

Construction is underway on a major Indigenous led and focused development in Vancouver that will bring nearly 170 mixed-use homes and 80 shelter beds to the city’s Downtown Eastside community.

More than $97 million will fund the 248 new spaces for Indigenous individuals and families with the project slated to complete in late 2025.

Located at 1015 East Hastings Street, the building is named Ho’-kee-melh Kloshe Lum, which means “to gather, good spirits.” It will be a mixed-use development across two concrete towers and will include 143 low- to moderate-income rentals, 25 supportive housing units, and 80 shelter beds.

The development will prioritize Indigenous residents, and the building will incorporate design elements to foster culture and community. This will include larger, family-oriented homes, gathering and ceremonial areas, and space allotted for Indigenous artwork and installations.

Two social enterprise spaces are being planned and will feature a café and Klatawa Bike Shop, both of which will be operated by Vancouver Aboriginal Friendship Centre Society (VAFCS).

The project will also include courtyard access, a rooftop multipurpose room with a shared kitchen and landscaped area, and a multi-level day centre with a range of services available such as lounge areas, library, an art studio, and counselling spaces.

The project is a partnership between federal government, through the Canada Mortgage and Housing Corporation (CMHC) and Indigenous Services Canada, the Province, through BC Housing, the City of Vancouver, the Aboriginal Housing Management Association, and Vancouver Aboriginal Friendship Centre Society. Development support has also been provided by M’akola Development Services and Western Canadian Properties Group.

“The collaboration across all partners involved in this project is an example of excellence in creating more equitable, community-based housing to serve those most in need. Forty percent of those who are unhoused in Vancouver are Indigenous. At AHMA, we know that culturally supported living spaces with trauma-informed wraparound services are a pathway for healing, safety, connection and belonging. We hope to see more of this kind of housing moving forward,” said Margaret Pfoh, CEO, Aboriginal Housing Management Association (AHMA).

Delinquent loans mount on U.S. office assets

DBRS Morningstar reports a growing number of delinquent loans tied to office properties in the United States. The credit rating service projects the payoff rate on maturing commercial mortgage-backed securities (CMBS) will hover in the 50-to-55 per cent range for the remainder of 2023 with a large portion of subsequent refinancing, special servicing agreements or liquidations related to office, retail and hotel assets.

The latter property types generally carry a higher loan-to-value (LTV) ratio than industrial or multifamily properties, and also account for more than 80 per cent of maturing loans. DBRS Morningstar’s recently released CMBS status report counts July as the fourth consecutive month with rising delinquency rates, pegged at 3.85 per cent of all property types and at 4.6 per cent of office loans.

The July office delinquency rate is a 308 basis point (bps) increase over year-end 2022, including nudging up 48 bps since June. As well, the delinquency rate for properties classified as “other” than the main asset categories — which typically include mixed-use projects with an office component — rose 60 bps over the June level. The percentage of office loans referred to special servicing has also climbed over eight consecutive months, standing at 8.14 per cent in July, up from 4 per cent at year-end 2022 and 3.27 per cent 12 months ago.

Nevertheless, liquidations remain rare with 10 CMBS loans totaling USD $214.4 million garnering slightly more than USD $53 million through distressed property sales in July — a loss rate surpassing 75 per cent. “Many special servicers are opting to hold on to the debt for longer and work out situations with borrowers,” the DBRS Morningstar analysis notes.

Rising interest rates and lenders’ wariness continue to complicate refinancing as only 11.2 per of maturing office-backed loans were paid off in July. The overall payoff rate of maturing loans slumped to just below 29 per cent, down from 45.4 per cent in June. Notably, though, 95 per cent of maturing loans on multifamily properties were paid off.

“Commercial real estate, especially office space, has been under intense investor scrutiny. Office performance has been declining as employees show a continued preference to work from home,” the accompanying analysis states. “With both daily and leased vacancy rates at multi-decade highs, we expect the office market to continue to struggle.”

Hotel investment volume enjoys COVID recovery

Hotel investment volume surpassed pre-pandemic levels in the first half of 2023. Colliers Canada’s newly released stats for the second quarter also show gains in occupancy levels and revenue per available room (RevPAR) compared to the spring of 2019.

More than $1 billion worth of hotel deals were completed between January 1 and June 30 this year with about 70 per cent of those occurring in the second quarter. In total, 77 hotels traded, a 38 per cent increase over the first half of 2022. In contrast with trends during the grip of COVID, only about 10 per cent were purchased for conversion to other uses. The normalized average price per room — i.e. for those remaining as hotel accommodations — sits at $192,100, equating to a 32 per cent year-over-year gain.

Eight of 10 provinces (excepting Prince Edward Island and Newfoundland and Labrador) have seen transactions thus far this year, with the largest share of deals occurring in Ontario (35) and British Columbia (19). However, a smaller number of big-ticket sales in Alberta represent 23 per cent of total investment value. The nine transactions there encompassed 972 rooms and collectively tallied $244 million for a normalized average price per room of $269,500.

Quebec’s eight deals account for another 15 per cent of H1 investment value, comprising a total 1,023 rooms and an normalized average price per room of $154,400. Looking east, there were two transactions in each of New Brunswick and Nova Scotia, while, looking west, Saskatchewan and Manitoba each chalked up one deal.

Major sales during the second quarter include the $110-million transaction for the 77-room Hazelton in Toronto and the $170-million trade for the 330-room Rimrock Resort Hotel in Banff. As well, InnVest Hotels acquired the historic Algonquin Resort St. Andrews by-the-sea in New Brunswick for an undisclosed price.

The national occupancy rate nudged slightly above 63 per cent for the first half of the year, up 920 basis points (bps) from the same period in 2022 and 80 bps above the first six months of 2019. RevPAR is pegged at $189 for H1 2023, versus $164 for H1 2022 and $159 for H1 2019.

Colliers analysts point to “remarkable increases in average daily rates” as a prime reason for the gain, along with a pickup in domestic and cross-border travel. Canada’s steady population growth and governments’ efforts to promote tourism are also tagged as positive influences.

“This strong bounce is acting as a catalyst for investment sales, both closed and in the pipeline,” they contend. “Despite new interest rate realities, upwards pressure on cap rates has been mitigated by significantly improved in-place cash flows and greater visibility into future operating performance.”

Meanwhile, in the larger picture, JLL pegs global hotel investment volume at USD $20.6 billion (CAD $27.6 billion) for 652 transactions during the first six months of this year. Both figures show a slip from 2022, which was one of the most active years for trades in history. Yet, drilling down to 2023 sales of full-service hotels — accounting for 54 per cent of single-asset transactions — the first half delivered the second-highest ever average price per room at USD $405,000 (CAD $542,700).

Canada does not figure in the most active North American markets for transactions. In fact, the top three — New York City, Fort Lauderdale and San Antonio — all recorded investment sales volume in excess to the entire Canadian market, ranging from USD $1 billion (CAD $1.34 billion) to USD $844 billion (CAD $1.13 billion). However, Toronto is highlighted among 14 identified international “gateway” cities for an above-average gain in RevPAR relative to 2019.

For the first six months of this year, Toronto is 19 per cent ahead of the first half of 2019, the best performance of the three North American destinations cited. Paris and Rome top the list, with gains of 47 and 46 per cent respectively. New York and Los Angeles both fall below the 11 per cent average for the group, and LA is one of four cities, along with Beijing, Tokyo and Hong Kong, where RevPAR still trails 2019 levels.

Using textiles to improve wellness and lower maintenance

Facilities today face stricter cleaning and maintenance standards, as the general public continues to become more informed about climate health, sustainability, and the environment. This means that conscious practices are a priority for specifiers and end users. The selection of materials, particularly textiles, can play a crucial role in reducing the demands on facility maintenance staff, as well as creating sustainable and healthy indoor environments. Whether you are completing a renovation or simply updating your furniture or coverings, consider cleanability and durability to save money and lessen your environmental impact.

The value of long-lasting interior elements

The pandemic has certainly transformed the perception of sanitation and cleanliness in public spaces. Whether it’s hotels, healthcare facilities, offices, or other high-traffic environments, rigorous cleaning protocols are crucial. By selecting textiles that can withstand harsh conditions and heavy use without degrading, facility managers ensure the longevity of these surfaces while supporting sustainable practices. Cleanability not only enhances the health and wellness of a building’s inhabitants but also prolongs the life of the materials themselves, a crucial element of sustainable design.

Investing in cleanable and durable textiles benefits facility owners and managers by reducing time and expense attributed to rigorous maintenance procedures and frequent renovations. In an industry that continuously grapples with labour shortages, making daily cleaning and maintenance tasks easier and more effective is essential. Quality textiles for wallcoverings, upholstery, and drapery are built to withstand wear and tear over many years, reducing the frequency of replacements and repairs, while lowering maintenance costs.

By focusing on the longevity of these interior elements, businesses minimize the need for renovations and prevent unneeded consumption of resources and materials, making it a financially responsible and environmentally friendly choice.

A resurgent emphasis on wellness has influenced facility design to offer occupants a deeper connection with nature. Commercial facilities that previously wouldn’t consider creating outdoor spaces are now requesting seamless design connections between the indoors and outdoors. This can look like spaces with open-air configurations, flexible exterior environments, or outdoor pavilions. As textiles in these adapted spaces will be subjected to withstand adverse weather, dirt, extreme temperature fluctuations, and fading from sun exposure, durability and cleanability become even more crucial for textile selection.

The environmental Impact of cleanable and durable textiles

Selecting cleanable and durable textiles contributes significantly to a sustainable environment. Durability ensures a longer life cycle for the product, reducing the need for frequent replacements and refurbishments. This, in turn, minimizes waste generation and conserves valuable resources. Opting for materials from reputable manufacturers with take-back policies or recycling initiatives aligns with the principles of a circular economy and will allow you to go greener.

The manufacturing process is one of the most critical aspects of sustainable material selection. Many traditional approaches to creating textiles have been found to have adverse effects on both the environment and the health of building occupants. For instance, PVC, also known as vinyl, has been deemed one of the most toxic substances saturating our planet by organizations like Greenpeace. This awareness has prompted facilities and designers to seek alternatives to PVC and specify plant-based sustainable products that are third-party certified.

Innovative trends in commercial textile design

The growing emphasis on high-performance/low-maintenance fabrics has driven several innovative trends in the commercial design industry in recent years. Of note, coated fabrics are becoming increasingly popular across all sectors because they are wipeable and easy to maintain. Because of the demand, options for these materials have evolved in the last few years to include affordable coated fabrics that mimic the texture of woven textiles and offer warmer, more tactile aesthetics reminiscent of hospitality or residential interiors.

Across the commercial interiors industry, facility designers have noticed an increased prioritization of interior health, with clients and specifiers seeking options that improve air quality and occupant well-being. Materials that avoid substances like PVC are becoming more popular as a result. Sustainability innovation is also thriving, with previously impossible advancements such as fabrics made from 100 per cent recycled content and high-performance biobased materials redefining commercial design practices.

Emphasizing the importance of selecting cleanable and durable textiles in facility design is paramount, from a labour to cleaning to an environmental perspective. From the manufacturing process to its environmental impact, as well as its influence on the health and well-being of building occupants and the economic benefits, the advantages of choosing wisely are significant.

The collective shift toward a more responsible and conscious approach to crafting indoor spaces is evident. And by deliberately opting for materials that not only withstand the test of time but also support sustainable manufacturing practices, facility designers and managers can substantially contribute to a healthier planet and pave the way for a better future for generations.

Heather Bush is the Chief Creative Officer of Carnegie and has been a leader at the company for the past 26 years. Her work over the years has helped ensure Carnegie’s reputation for authentic commitment to the environment and responsible innovation through every part of its business cycle.

Retail rents posting gains in open-air venues

Retail rents held steady in Canada’s dominant regional malls during the first half of 2023, with rent growth most often exhibited in open-air community shopping centres, select urban districts and within mixed-use developments. CBRE Canada’s newly released semi-annual survey reveals Calgary, Montreal and Halifax particularly enjoyed an upturn in retail rents, while declines were next to non-existent across all of the 11 major urban markets examined.

“Good real estate continues to be leased quickly, resulting in limited vacancy amongst the most in-demand formats, particularly those that are unenclosed,” Kate Camenzuli, CBRE vice president, and Christina Cattana, CBRE research manager, observe in their introduction to the survey results. “This is expected to continue, and when paired with a softening supply pipeline — a by-product of higher construction costs — could result in further rental appreciation over the next six months.”

The survey reflects asking rent ranges for Class A space in nine different retail formats and further drills down to traditional key downtown shopping districts in the 11 cities. Despite the holding pattern in growth, regional malls generally command the highest rents by a decisive margin within their markets. The exceptions are high-end retail enclaves in Toronto, Vancouver and Montreal, which post the highest rent ranges to be found during the first half of the year.

Vancouver’s Alberni Street commanded rents of $195 to $300 per square foot (psf), while Toronto’s Bloor-Yorkville neighbourhood pulled in rents from $200 to $250 psf. Asking rents along Montreal’s Rue Sainte-Catherine Ouest were in the $150 to $180 psf range.

Montreal’s retail landlords enjoyed generally favourable conditions across the board, with rent growth in three other downtown shopping districts, as well as in neighbourhood malls, convenience/strip plazas and mixed-use developments both downtown and in the suburbs. Calgary likewise saw rent growth in downtown and suburban mixed-use developments, convenience/strip plazas, open-air community malls and two of three downtown shopping districts. However, Marda Loop, in the 19th to 22nd Street SW zone of the city, was the lone vestige of falling rents across the entire 11-market survey base.

“Select cities have noted challenges with downtown areas, citing slower foot traffic from reduced office occupancy,” Camenzuli and Cattana report. “This sentiment and its subsequent impact on urban retail formats are not uniform across the country. In fact, five of 11 markets sawrental appreciation in two or more key urban nodes.”

Grocery retailers and quick service restaurants continue to show an appetite for space and underpin the rent gains in open-air formats. In Halifax, Kitchener-Waterloo, Saskatoon, Calgary and Edmonton asking rents for open-air community shopping centres, neighbourhood malls and convenience/strip plazas have surpassed or are on par with rents for enclosed community malls and power centres. Montreal and Victoria have also seen asking rents for open-air community shopping centres and enclosed neighbourhood malls climb above rents for enclosed community malls, while Edmonton’s open-air community shopping centres, neighbourhood malls and convenience/strip plazas command higher rents than power centres.

Commenting on general trends, Geoffrey Smith, a director with CBRE Canada, notes that medium-sized independent operators and specialty ethnic and health/alternative food enterprises have joined the traditional big-box grocery stores in leasing up retail space. As well, new fast food providers continue to come onto the market. Space demands in the fashion, children’s and pet-related market segments remained fairly static in the first half of 2023, but conventional online retailers are now increasingly looking for physical venues. The service/medical sector is also evolving.

“This sector has seen significant growth from non-traditional users such as fertility, medical spas and plastic surgery clinics. The introduction of these minor elective surgery clinics has offloaded hospital demand and is a boon to centres as they typically occupy non-primary locations,” Smith states.

Rooftop solar photovoltaics spark safety advice

Rooftop solar photovoltaics can help real estate owners/managers lower energy costs, boost operational resiliency and meet ESG commitments, but proponents of the technology caution that it also packs a potentially lethal electrical charge. Vigilant maintenance and risk management are critical for what is, in essence, a power plant affixed to a highly valuable asset.

Clean Energy Associates (CEA), a consultancy providing project management, engineering and technical services for solar, green hydrogen and energy storage systems, is sounding the alarm after safety audit data from more than 600 rooftop solar PV installations worldwide revealed a disconcerting magnitude of fire hazards. Just 3 per cent of audited sites were completely clear of safety concerns, while nine of the 10 most prevalent issues surfaced in more than one quarter of the inspections.

“This is frightening: one, for your buildings; and two, for the industry,” Chris Chappell, CEA’s senior director of engineering services, asserted during a recent online presentation. “These things are happening on your roofs right now.”

Canada was among the 14 countries in North America, Europe and Asia-Pacific where the safety audits were conducted. Nearly half the examined installations — 49 per cent — were improperly grounded in some places, posing risks for on-site personnel and compromising equipment performance, while 47 per cent of the installations sported cracked or soiled modules, creating shock and fire hazards in addition to diminishing operational performance.

Connectors emerge as a hazardous link

A large share of the identified risks relate to connectors — or the wiring and cabling connecting the modules, racking and inverters — of which there may be hundreds or thousands in a rooftop installation. Faulty connectors could be the source of arc flashes, an opening for water infiltration or an ignition source should they overheat, melt and drop down onto the roof ballast. Chappell and his colleague Ankil Sanghvi, CEA’s engineering manager, cited examples of all those occurrences during the presentation.

“The 10 most common items that we found, these are not equipment-related per se. These all have to do with workmanship,” Chappell maintained. “The modules, inverters and racking are all integrated with wires and it’s these little things that are the biggest issues that we see on sites.”

Sloppy or perilous practices include: pairing the positive and negative sides of connectors from two different assemblies; placing wiring over sharp metal edges that can inflict damage as they expand and contract in fluctuating temperatures; and over-torquing connectors or other kinds of aggressive handling that can cause cracks in components. Manufacturers’ specifications typically state the required type of DC connector, but safety auditors found that instruction had been flouted at 41 per cent of the sites they examined. Connectors were improperly installed in about the same portion (40 per cent) of systems.

“These connectors are UL listed and come as an assembly. You can’t cross and mix parts, but it happens a lot, more times than not, because the threads (from different assemblies) are the same,” Chappell explained.

“This is a big no-no. We have seen, a lot of times, connectors burning because of cross-mating,” Sanghvi concurred. “With all DC connectors, please follow the manufacturer’s manual very closely and please make sure that you are using the right tools while assembling the connectors.”

Hotspots implicated in arc flashes and ignitions

In some cases, lurking fire hazards should first become evident through a drop in power output. For example, damaged, soiled or shaded modules can cause a mismatch in voltage that will result in underperformance and can also lead to hotspots where one cell is operating at a higher temperature than those surrounding it. Such hotspots could potentially ignite nearby organic material and/or cause the backside of the module to melt, increasing the risk of arc flashes.

Shading could occur if modules are crowded too closely together. Natural elements — including wind, hail, lightning and animals — and on-site personnel could cause other types of damage. In the latter case, Sanghvi chides some marketers for misleading messaging.

“We see module manufacturers advertising their modules by walking on them and showing people: Look how strong they are,” he recounted. “Every time they walk on the module, they break the cells.”

“Those cracks are going to grow and grow and grow,” Chappell added. “Tell the teams up on your rooftops: Do not walk or kneel on the modules.”

CEA’s safety audit data shows hotspots detected on modules at 31 per cent of the inspected sites. As well, hotspots were recorded in enclosures encasing solar batteries at 19 per cent of sites. That’s in part attributed to improper termination of wiring to enclosures, which was found at 40 per cent of the audited sites.

Sanghvi recommended infrared scans as part of the maintenance schedule with scans of all enclosures at a maximum interval of six months. As part of daily operational oversight, he suggests keeping watch for “inconsistencies” with connectors and obvious damage like cracks and broken pieces. Nevertheless, potential hazards are often difficult to detect through cursory visual scrutiny and impossible in some cases. For example, he recalled physically opening an enclosure during one field inspection and finding some questionable splices.

“A lot of these decisions are made on the side by a technician or an electrician,” Sanghvi reflected. “For this particular site, no one knew the splices existed in this box. No one knew there was something bad going on in this box. Luckily, we found this before it became a major incident.”

Timely risk management reminder for envisioned new project development

Vigilant safety monitoring programs could be particularly important for building owners/managers who acquire rooftop solar PV systems through a transaction and have had no input into its design and installation. In any case, some aspects of that process can become murky through the chain of contractors and sub-contractors involved. For new installations, Chappell sketches out some basic parameters.

“What you want to do is control your installers with design,” he submitted. “In your notes and your design drawings, you want to tell everyone: This type of connectors is acceptable; cross-mating is not. Then you meet with that EPC (engineering, procurement and construction) and you reiterate: Do you understand?”

A risk management reminder is timely as jurisdictions throughout North America and around the world encourage new solar PV installations in an effort to increase renewable supply and promote distributed energy resources (DERs) that can help alleviate demand pressure on the electricity grid. In Ontario, for example, a regulation was enacted last year to permit third-party net metering, freeing prospective clients, such as commercial and multifamily landlords and condominium corporations, from upfront capital investment and ongoing operating costs.

This aligns with the Ontario government’s vision to tap into an estimated 10,000 megawatts of DER capacity, as outlined in the clean energy plan it released earlier this summer. “Eligible third-party ownership arrangements now include leasing, renting and financing options with energy service providers as well as power purchase agreements with a licensed third-party generator, making rooftop solar and other DERs accessible to more Ontarians looking to better manage their energy costs,” it states.

Making power tool safety a priority

Facility managers often use power tools in the day-to-day maintenance of their buildings, but are you staying as safe as you can be? According to a study conducted by the Consumer Product Safety Commission, hand and power tools send over 400,000 people to the hospital each year to treat burns, lacerations, dismemberment, electric shock, and more. Keeping your team and yourself safe should be a top priority as you use power tools as part of your job.

Here is a list of tips to maximize safety for any member of your team using power tools on the job:

Read the instruction manual and user instructions carefully; operating the tools properly is the first step in prioritizing safety.
Clean your work area. Eliminate any potential hazards and materials that could catch fire from flying sparks, and create a separate area without bystanders who could be at risk.
Consider your power source. Make sure the area is dry, and that the outlet you are using is grounded. Inspect your cords for damage or fraying.
Ensure that the operator is equipped with the proper PPE, like boots, glasses, gloves, and hearing protection to stay safe during use. Tie back long hair and remove any jewelry that might increase the risk of injury.
Inspect the tool before using it to ensure that it is in good working order before you even turn it on. If it is found to be defective, do not attempt to fix it yourself. Replace the tool or have it professionally repaired.
If working outdoors, use power tools only in safe conditions. Avoid using them in the rain, as wet tools increase the likelihood of electric shock.
Don’t forget to apply these tips to your rented equipment, too, as these tools may not be part of your regular inventory.
Create a regular maintenance schedule to make sure that the tools stay in proper working order and are ready for use when you need them next.
If you are using an extension cord, be sure to protect the cord from damage and mitigate the tripping hazard for any foot traffic.
Store the equipment properly in a cool dry space with pegboards, chests, boxes, and more to extend its service life and keeps them out of harm’s way.

Power tools are likely a part of your regular maintenance plan, but prioritizing safety for your workers needs to be top priority, from the tool themselves to usage and storage.

First Housing Now development underway in Toronto

The first Housing Now development is officially underway at 5207 Dundas Street West in Toronto. When complete, a mixed-use building featuring 725 market and affordable rental units will occupy the City-owned land. Mayor Olivia Chow was joined by Councillor Brad Bradford, Beaches-East York, Chair of the Planning and Housing Committee and CreateTO Board Director, and other key players at the official ground-breaking ceremony on August 9, 2023.

“Building more affordable housing is critical to creating a city that’s accessible and inclusive to everyone,” Mayor Olivia Chow said. “The City is committed to increasing the supply of affordable housing so that people of all different income levels and occupations can afford to live here. The City’s Housing Now program is a great example of how strong partnerships between multiple levels of government, the private sector, the non-profit sector and the local community can help us build the housing we need. As the new Mayor, I’ve made building more affordable housing a top priority. I welcome other orders of government to partner with us as we endeavour to build even more affordable housing for the people of Toronto.”

The new development has been awarded to the Kilmer Group and Tricon Residential. The City, in partnership with CreateTO, Kilmer Group and Tricon Residential, is supporting the delivery of this project as part of the Housing Now Initiative, which launched in 2019 to activate City-owned lands and stimulate the development of affordable rental housing within transit-oriented, mixed-income communities.

Plans for the site include 725 residential homes, of which 30 per cent will be affordable ranging from 40 per cent to 100 per cent of the Average Market Rent (AMR). Unit types will be a mix of one to four bedrooms. Retail uses, services and amenities to support residents’ needs and public spaces for community gatherings and events are also included in the plans. The development will support the City’s climate action objectives and target Toronto Green Standard Version 3, Tier 3, with zero carbon certification.

“Today marks a significant achievement for our city and our community,” said Councillor Brad Bradford “We are breaking ground on the first Housing Now project, creating more diverse communities through mixed-income, mixed-use and transit-oriented projects on City-owned land across Toronto. As the Chair of the Planning and Housing Committee, I am proud of our part in moving this initiative forward because together, we are making Toronto a more affordable, inclusive and livable city for everyone.”

Since January 2019, City Council has allocated 21 prime transit-oriented sites to be used for future mixed-use developments, but so far just 10 of the sites have been re-zoned for residential use. Construction at two other shovel-ready sites, 50 Wilson Heights Blvd. and 140 Merton St., is expected to begin before the end of this year.

View the full Housing Now 2023 Progress Update report on the City’s website: http://www.toronto.ca/legdocs/mmis/2023/ph/bgrd/backgroundfile-235837.pdf

Connectors emerge as a hazardous link

Hotspots implicated in arc flashes and ignitions

Timely risk management reminder for envisioned new project development

BOMEX 2026

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