Why you should be evaluating your distributors

Most commercial facility administrators have an evaluation process for their vendors to ensure that they are getting the best service for the best price. For instance, even if an administrator is happy with the cleaning company contracted to maintain their facilities, they may still take bids every few years just to compare janitorial services and see how their current contract compares to what other cleaning contractors would charge them.

However, one type of vendor evaluation that is often overlooked involves distributors and the products used on their properties every day. As it applies to a janitorial or sanitization distributor, this could include cleaning supplies, sanitizers, and disinfectants, as well as touchless dispensers, paper towels, and more.

Administrators must realize that having a strong and dependable supply chain – starting with the distributors that administrators work with – is the backbone of efficient facility operation. These distributors can help reduce costs, streamline ordering processes, ensure the facility has the products it needs when needed, and make the administrator’s job much more manageable.

So, how do we go about evaluating a distributor?

The first thing administrators must do is create a list of key performance indicators (KPIs). These KPIs are a set of expectations. These could include expectations related to the distributor’s ability to:

Deliver products on time.
Maintain proper inventory levels in the facility.
Select the most cost-effective products for your facility.
Meet the facility’s – and your – quality and performance needs and standards.

From here, administrators should consider looking into the following:

The financial viability of the distributor

Some independent distributors are struggling as clients have downsized, reducing the demand for their products. This can start a chain of events, including reducing the purchasing power of the distributor and threatening their long-term viability. The result is that their customers may not be purchasing the most cost-effective products, causing them to turn to other suppliers. While administrators can ask for financial statements and credit checks, a more straightforward and effective evaluation of a distributor’s economic viability is to ask if they are part of a network of distributors. If so, they can take advantage of the purchasing power of the entire network, maintain product cost-effectiveness, and leverage the strength and marketing skills of that network to generate sales, find leads, and close deals.

Product mix

Some distributors may carry only a few product lines from a limited number of suppliers or manufacturers. More prominent distributors, or those part of a network of distributors, typically have a more comprehensive range of products to select from, from a wider range of suppliers. Always remember that products that work well in one facility may not work well in another; a broader selection of products helps ensure that the most effective products are selected for your specific location.

Trends in service and support

Many distributors encourage verified customers to provide testimonials about their service and support. But don’t expect every testimonial to be five stars – look for the trends instead. If most testimonials tend to be positive overall, that’s a good sign, and if a customer testimonial is unfavourable, check to see if the distributor responded with a reasonable solution. Look for remedies, rather than excuses, as a cautionary tale. If you have a problem with a distributor’s products or services, the way that they address another customer could very well indicate how they handle your issue.

Cultural fit

Typically, a cultural fit refers to how comfortably administrators, distributors, and the distributor’s staff work together. However, in recent years, this has expanded considerably. For instance, if your organization is sustainability-focused and the distributor is not, they will likely not be the best distributor to work with for your facility. In the same way that you want to build like-minded relationships with your clients, you want to ensure you work with distributors that share your organization’s values and goals and align with what’s important to you and for your business.

Don’t be just another customer

Administrators want to work with distributors committed to their company’s or facility’s success. You want someone that is part of your team. As so many facility managers are having difficult times with unusually high vacancy rates, ask current and potential distributors if they are committed to your organization’s goals and success. You need to be a priority, so watch for a commitment to your success. ,. Remember: distributors can be the backbone of your facility’s entire operation.

Additional evaluation tips

It’s important to take the time necessary to evaluate your distributors and make sure they are a fit for your business. Do your research and learn as much as possible about your distributors. In addition to how long they have been in business – longevity is often a reflection of a distributor’s quality of products and services – ask for customer references.

Don’t be shy about calling references, maybe even visiting those facilities. In many cases, these are your peers. Not only may they share their views on distributors, but what they have learned about operating their facilities might help you.

Also, don’t hesitate to ask tough questions about the distributor’s experience and capabilities. Their answers will help you determine if they are a good fit for your organization.

Finally, look at the way your distributor dresses. While dressing down is now acceptable in virtually all industries, that does not mean under-dressing or being poorly dressed in a business situation is acceptable. How people dress is often an expression of their competence and how well they will work with you and your staff. Dressing appropriately shows respect for you, your team, and your facility.

Finding a distributor that aligns with your company in as many ways as possible increases your efficiency and the success of your business.

Michael Wilson is the CEO of AFFLINK, a distributor membership organization made up of more than 300 distributors in North America. He has been with the organization since 2006 and provides strategic leadership for distributor members around the country. He can be reached through his company website at www.afflink.com.

Legal implications of AI in condo management

The use of Artificial Intelligence (AI) tools, like ChatGPT, is becoming more commonplace, and this emerging technology is likely to continue to evolve and embed itself in business practices.

AI in condominium property management can have several legal implications, depending on how it is implemented and used. Here are some important legal considerations:

Privacy and data protection

Managers and management companies have an obligation to ensure that appropriate measures are in place to safeguard the privacy and security of personal data. This includes ensuring protection is in place when using AI technology tools. For example, ChatGPT’s terms of service permit it to share and store the information and data input into the platform. In so doing, the manager may be breaching contractual obligations, internal policies and procedures, and/or privacy legislation.

When using ChatGPT for business purposes, managers should not input any confidential or personal information as this could constitute breach of data protected by law (personal information or information that is privileged in other ways under specific laws, such as personal medical or banking information).

Contractual agreements

If you plan to integrate AI tools into your condominium management services, it is essential to review and update your contractual agreements with corporations, owners, residents, and other stakeholders. You should clearly define the scope and purpose of the use of AI technology, data handling practices, and any implications on individual rights and obligations.

Privacy policies should also be updated and managers should clearly communicate to owners, residents, and stakeholders that they are interacting with an AI system and how the information will be collected, used, and stored. Provide transparency about the capabilities and limitations of AI systems to manage expectations and avoid any potential confusion or misrepresentation.

Liability and accuracy

AI tools can provide automated responses based on training data and algorithms. While it can be helpful, it may not always provide accurate or reliable information. Property management companies should be cautious about relying solely on AI for important decisions or legal advice. It is crucial to ensure the accuracy and suitability of information provided by tools like ChatGPT and, if necessary, involve human oversight or verification.

For example, a manager may want to use ChatGPT to draft a letter to a unit owner to respond to a question or concern that the owner has raised. The manager can use a prompt such as:

“draft a brief e-mail to [condominium unit owner] responding to complaint about noise from neighbouring unit from a party at 3 a.m. on a long weekend” or

“draft an empathetic letter to [condominium unit owner] responding to request for human rights accommodation for an accessible parking space and request further medical information”

While tools like ChatGPT can assist with drafting language for a letter, the AI tool is of limited value and the manager must ensure the accuracy and suitability of information provided.

Condominium managers in Ontario must be licensed and comply with the CMRAO’s Code of Ethics; this professional responsibility cannot be outsourced to AI tools. Additionally, AI tools like ChatGPT should never be used to provide legal advice, as legal issues are highly nuanced and fact specific.

Discrimination and algorithmic bias

Condominium managers must be aware of human rights laws and regulations that prohibit discrimination. Unfortunately, training data and algorithms used by AI tools can inadvertently perpetuate discriminatory practices or bias due to various factors.

First, if the training data used to train an AI system like ChatGPT is not diverse and representative, it may reflect existing societal biases or disparities. If the data predominantly includes certain demographic groups or contains inherent biases, the system may learn and replicate those biases in its responses. Second, biases can emerge if the training data reflects historical or systemic discrimination, leading the AI system to inadvertently perpetuate discriminatory patterns.

Additionally, algorithmic bias can arise if the training process or algorithms inadvertently amplify certain patterns or make erroneous associations between protected characteristics and certain behaviours. These biases can manifest in the system’s responses and decision-making processes, potentially resulting in unfair treatment or discrimination.

It is crucial for the companies designing AI tools to carefully design the them to recognize and mitigate these risks and to curate training data. Ultimately, if managers are going to leverage these AI tools, it is important for users to acknowledge this systemic bias and employ bias mitigation techniques and conduct regular monitoring and testing to mitigate and rectify any biases that may arise from the algorithms.

Bottom Line: AI tools can be useful for condo managers, but there are important legal considerations that need to be addressed to protect managers, condo corporations, and owners.

If you have further questions, it is important to consult with legal professionals who specialize in privacy, data protection, and condominium law to assess and address the specific legal implications of using AI tools in condominium property management.

Laura is a managing partner with Cohen Highley LLP and is part of the multi-residential housing group. Her practice focuses on condominium law, acting for condominium corporations, property managers, and developers in a broad range of litigation, operational and governance matters. Laura is actively involved in the condominium and multi-residential housing industry. She regularly writes and speaks about legal issues affecting the industry. Since 2014, Laura has been a board member of the Canadian Condominium Institute (London Chapter) and on the board of directors for Homes Unlimited (London) Inc.

Alberta to probe regulated electricity rate

Alberta’s regulated electricity rate has been flagged for possible elimination. A newly released list of priority tasks for the recently sworn-in Minister of Affordability and Utilities, Nathan Neudorf, instructs him to explore that option and to promote offset technologies that would allow for continued fossil-fuel-fired power generation.

In outlining Neudorf’s mandate, Alberta Premier Danielle Smith reiterates the envisioned schedule to achieve a carbon-neutral electricity grid by 2050, which was set out in a provincial plan for emissions reductions and energy development released earlier this year. “Pushing back against any federal regulation requiring a net-zero power grid by 2035” is cited first among the nine major responsibilities she identifies.

Other key chores in the Minister’s job jar include ensuring the Alberta Utilities Commission and Alberta Electricity System Operator are likewise aligned with the government’s power production philosophy, and looking for ways to cut transmission and distribution costs. The hinted phase-out of regulated utility rates is presented in the context of a cost review, which is also to examine how to protect consumers against price spikes and support “a competitive range of provider choices” in the market.

Neudorf is also directed to work with his Cabinet peers to address the costs of housing, food and insurance. That includes collaborating with the Minister of Treasury Board and Finance to produce recommendations related to cost and attainability of automobile and property insurance, and with the Minister of Seniors, Communities and Social Services to develop and implement an affordable home ownership and rental strategy, focusing on “incentivizing the construction of new homes and rental units”.

Finally, the list ends as it begins, with an emphasis on combatting the federal government. Neudorf is instructed to collaborate with the Minister of Energy and Minerals and the Minister Environment and Protected Areas “to develop strategic alliances with other provinces to deal with issues such as climate policy, electricity policy and federal intrusions into provincial jurisdiction”.

Office attendance rates flout corporate decrees

Office attendance rates continue to lag employers’ expectations, a new survey of large corporate real estate managers reveals. More than 55 per cent of respondents to CoreNet Global’s queries earlier this month report that corporate personnel are not fully complying with directives to return to the office.

Theoretically, about 97 of the 175 large global firms participating in the survey now decree staff should work in the formal office at least three days per week, with the largest share of those companies establishing a three-day standard. About 25 per cent of the surveyed corporations still allow employees to work entirely from home, while 12.6 per cent call for five days in the office. Only 2.8 per cent of have a one-day prerequisite.

“We are indeed seeing companies that wish to implement post-pandemic, return to office mandates, but employees are pushing back,” observes Tim Venable, senior vice president, research, with CoreNet Global. “We will be watching to see how this dynamic plays itself out over the next year.”

Other survey findings point to general shrinking of the corporate office footprint with more than 55 per cent of respondents currently occupying less space than they did in 2021. Nineteen per cent have trimmed more than 20 per cent of their office footprint. Meanwhile, nearly half of respondents have redesigned their headquarters — often reducing the number of individual workstations — and upgraded air filtration and added touchless devices.

Rents for GTA condos rose 12.6% in Q2

Q2-2023 rental market data, released July 19^th from Urbanation, reveals that the annual rate of rent growth for vacant GTA condos was 12.6 per cent, pushing rents to a record high average of $2,803. While this was somewhat slower than annual growth rates registered in Q1-2023 (13.6%) and Q4-2022 (16.9%), it represented the seventh straight quarter of double-digit rent inflation. Over the past two years, rents for vacant GTA condos have risen by a total of 31.7 per cent.

Meanwhile, available units in newer purpose-built rental projects completed since 2005 experienced a similar annual rent growth of 13.3 per cent, with average rents rising to $2,944.

“The GTA rental market has been on a tear for two years now, with little relief in sight,” said Shaun Hildebrand, President of Urbanation. “Starting off as a recovery from the pandemic, rents are now being driven to new highs on interest rates hitting their highest level in 22 years, the population increasing by a record pace, near record-low unemployment, and scarce supply.”

Of the 17,542 newly completed condominiums that were registered during the 12 months ending June 2023, a record-high 36.5 per cent share of units were leased through the real estate board, rising from a 31.4 per cent share for the period ending June 2022. This occurred despite the surge in interest rates causing the majority of investors to fall into a negative cash flow position where rents do not cover monthly ownership costs (as reported in the 2023 Condo Investment Report recently released by Urbanation and CIBC Economics).

According to Hildebrand, investors have likely been encouraged to hold their units given the strong upward momentum in the rental market and positive market outlook from record-high population growth occurring.

Smallest units see fastest rent growth

As GTA rents continued to escalate to new highs, demand for smaller and less expensive units soared. Condos under 400 square feet experienced the fastest annual rent growth of 15.1 per cent in Q2, with average rents reaching $2,121. The second fastest annual rent increase was for 400-499 square-foot units at 14.0 per cent, with rents rising to an average of $2,309. By comparison, the largest units over 1,000 square saw rents increase 10.2 per cent annually to an average of $3,991.

Rental construction remains minimal

The vacancy rate in purpose-built rental buildings completed in the GTA since 2005 was 1.9 per cent in Q2-2023, edging up from 1.5 per cent a year ago, but remaining below 2 per cent for the sixth consecutive quarter. Meanwhile, only two purpose-built rental projects started construction in Q2 totaling 798 units, down 49 per cent from Q1 (1,555 starts) and falling 32 per cent below the quarterly average since 2018 (1,174 starts). The total number of rental units under construction in the GTA was 19,263 units in Q2, decreasing from the multi-decade high of 19,686 units in Q1.

Ontario invests $166 million in digital justice system

The Ontario government is investing $166 million toward replacing outdated paper-based procedures with a digital platform to support access to the Superior Court of Justice and the Ontario Court of Justice and deliver more legal services online.

“Ontario is one step closer to a digital justice system that helps people resolve legal matters easier and faster,” said Doug Downey, Attorney General of Ontario. “Today marks a significant new chapter in our government’s plan to build a more modern, accessible and effective justice system now and into the future.”

Thomson Reuters has been awarded the contract to deliver the new digital justice platform, which will allow court users to:

file documents quickly and easily online
digitally access court case information online
pay fees online
connect virtually to hearings
manage court appearances online
receive decisions electronically

The move toward a digital justice system was first announced in November 2021 and is part of the province’s Justice Accelerated Strategy, a multi-year plan to harness new and existing technology to break down barriers and speed up access to services remotely, in-person and online.

As of June 2023, court users can electronically submit over 700 different types of court documents for family, civil, divisional and small claims court matters.

“Together, Ontario and Thomson Reuters will transform Ontario’s courts into one of the most modern and accessible justice systems in North America,” said David Wong, Chief Product Officer, Thomas Reuter. “As a Canadian company, we are proud that our technology will help improve access to justice in our home province.”

For more info on the digital justice system and Ontario’s strategy to improve Court services, visit Ontario Unveils Plans to Accelerate Access to the Justice System | Ontario Newsroom

Ontario eyes purchase agreements for new builds

The Ontario government is considering whether to mandate the legal review of purchase agreements for units in new condominium developments. A recently released discussion paper outlines two possible approaches for implementing such a requirement and seeks input from prospective purchasers, the legal community and residential builders.

The proposal is a part of a public consultation related to Ontario’s New Home Construction Licensing Act, which also explores mechanisms to limit builders’ ability to increase prices above the original purchase agreement and the feasibility of establishing a cooling off period that would allow purchasers of new freehold homes to withdraw from the agreement without penalty. A mandatory legal review is framed as a consumer protection measure that could help identify ambiguous provisions in purchase agreements that leave buyers open to price increases, delayed closing or contract cancellation.

“New home purchase agreements are complex legal contracts and may expose the buyer to certain risks,” the discussion paper states. “A legal review could help the buyer understand the risks associated with the purchase agreement and how a buyer may wish to negotiate changes to it.”

It’s suggested that could occur as a post-purchase review, in which the buyer would have a specified period to provide proof that a legal review had been conducted before the agreement could become binding. Or, it could entail a pre-purchase review, in which the buyer would have to submit evidence that a legal review had been conducted before entering into a purchase agreement.

The discussion paper poses questions about: the potential costs of required legal services and administrative costs for builders; whether purchasers should have an option to waive the legal review; and how to guard against pressure tactics to do so, particularly in the pre-purchase review scenario. Interested parties can submit comments until August 13, 2023.

Swimming pool safety and liability

In the hot, hazy days of summer, swimming pools are a great source of fun and relaxation, but they also bring a host of risks and responsibilities for property owners. While rental developments with swimming pools are known to attract more tenants, building owners may be held liable for any injuries or deaths that occur in the vicinity of a pool. As such, building owners are advised to keep up with their jurisdiction’s pool-related by-laws and remain vigilant about safety.

Matthew Rynen, personal injury and litigation lawyer at Cohen Highley LLP, warns that if an injury can be linked to a lack of security around a swimming pool, failure to comply with local by-laws and regulations, or a failure by management to supervise and maintain the swimming area, a liability suit is likely to follow.

“While municipal by-laws have their own rules about fencing and enclosures, the primary source for safety and signage requirements for multi-residential pools are found in provincial legislation and regulations,” he says. “In either case, a failure to comply with these ordinances puts the building owner and the tenants at risk.”

In Ontario, pool operators must adhere to their local municipal fence and enclosure by-laws and ensure the Ontario Building Code requirements are met; they should also consult the Ontario Public Pools regulation for signage and safety measures, which applies to multi-res complexes with six or more units. In B.C., pool operators can refer to the B.C. Guidelines for Pool Operations for a cohesive representation of the generally accepted standards of safe pool practices in that province.

“But overall, it’s best to ensure the pool area complies with the maintenance, safety, equipment and operation requirements of any provincial regulations,” Rynen says.

Slip & fall accidents

It goes without saying that wet, slippery surfaces increase the risk of slip and fall accidents and should be approached with caution — still, according to Canada’s Public Health agency, these account for thousands of hospital-visits each year. A leading cause of head trauma, broken bones, and soft tissue tears, most slip and fall pool-related accidents are linked to “a hazard being present” such as wet pavement, objects in the way, or cracked cement or tiles. If an injury arises due to a slip and fall accident, the injured party must establish that either the pool owner was negligent or that they somehow failed to keep pool-goers reasonably safe.

“Having an appropriate system in place for pool area maintenance, as well as appropriate safety check systems, such as someone to come and visually inspect the pool area periodically for any slip and fall hazards, will help prevent injuries,” says Rynen. “This can include having anti-slip surfaces around the pool area as well as clear signage alerting pool-users to hazards, like shallow water. It’s also a good idea to have a set of safety rules posted in the pool area, and a system in place to communicate and enforce those rules.”

Rynen adds that under Ontario’s Occupier’s Liability Act, the owner of a pool has an obligation to ensure that anyone on the premises is reasonably safe. This means ensuring the area has adequate lighting, is clear of trip hazards, and has properly installed and functioning equipment. And slip and fall injuries are just the tip of the iceberg. In Canada, 918 drownings reportedly occurred between 2011 and 2021 — more than half of which (55 per cent) were in swimming pools. Sadly, 53 per cent of those tragedies involved young children under the age of four, likely due to a lack of safeguards and/or inadequate supervision.

“No matter the size or location of a pool, the courts have established that there must be appropriate safety and maintenance check systems in place,” he says. “Multi-res management must also ensure employees and maintenance staff are adequately trained on utilizing those systems.”

For those looking to reduce the risk of litigation, Rynen recommends keeping detailed records of the staff’s ongoing efforts to maintain the pool area. Being hyper-vigilant about safety rule enforcement and documenting any steps the staff has taken to resolve issues or address a poolside hazard could serve as evidence, if needed, in the future.

The layered approach to safety

All pool operators in Canada have a responsibility to protect public safety, and according to the Pool and Hot Tub Council of Canada, “the layered approach” is the best way to maximize efforts. In “A Model by-law for Canadian Municipalities“, the group recommends putting multiple safeguards in place to prevent injuries and drownings, while also maintaining the pool area to ensure an effective level of protection.

Recommended safeguards include:

Requiring responsible adult supervision within the pool enclosure;
Having the required physical barriers in place, such as fencing, automatic safety covers, doors, and window latches;
Investing in warning systems, such as access alarms, wave detectors and immersion alarms installed;
Ensuring there is supplemental safety equipment within easy access (i.e., shepherd’s hook, ring buoys and other lifelines);
Having posted signs, rules, and painted notices (e.g., ‘No Diving’ or ‘No Running’) in clear sight;
Having a telephone installed poolside with emergency numbers listed.

If you are considering adding a swimming pool to your multi-residential property, be sure to familiarize yourself with your jurisdictions by-laws and guidelines in addition to provincial safety regulations.

For legal advice in Ontario, please visit www.cohenhighley.com

TOD plans for Ottawa multi-res building

Colonnade BridgePort submitted an official plan amendment and zoning by-law amendment with the City of Ottawa to increase density at 2000 City Park Drive.

The application supports the development of a master-planned community featuring more than one million square feet of residential density.

Plans include 1,200 units across five high-rise towers. 2000 City Park Drive is situated along the Highway 174 corridor, 10 minutes east of Ottawa’s downtown.

The site will connect future residents to areas across the city and beyond with access to the Blair LRT and bus station, Highway 417, and the city’s cycling path network.

Since closing on the four-acre parcel of land in March 2023, Colonnade BridgePort has been working with city officials to navigate changing policies and procedures resulting from the Province of Ontario’s Bill 23 – More Homes Built Faster Act, and Bill 109 – More Homes for Everyone Act.

“Although there is provincial direction to tackle the housing crisis, developers are relying heavily on municipalities to provide leadership and collaboration to address the supply shortage in a robust but ever-changing industry,” said Bonnie Martell, development manager for Colonnade BridgePort. “Projects such as 2000 City Park Drive have an ability to effortlessly combine accessibility, integration, and connectivity in existing urban and amenity-rich communities. These types of projects will ultimately contribute to restoring affordability for future generations.”

IDS Vancouver 2023 returns in September

The Interior Design Show Vancouver (IDS Vancouver) will return to the Vancouver Convention Centre West on September 21-24. This year’s event theme, Moving Parts, aims to inspire and challenge attendees.

Presented by Miele, IDS Vancouver 2023 will explore how contemporary designers are creating, sourcing, producing and distributing products in this new landscape. It will highlight innovative and sustainable thinking for this ever-changing design world.

“We’re thrilled that IDS is making its return to Vancouver this September, celebrating innovation, transformative design and forward-thinking creators,” says Will Sorrell, national director at IDS Vancouver. “Our program for Professional Trade Day will explore our 2023 theme, Moving Parts, highlighting industry leaders, local designers, and global brands.”

The IDS Vancouver Professional Trade Day programming will take place on Friday September 22, 9am – 6pm, featuring industry-leading keynote speakers and seminars. IDS Vancouver will have eight CEU accredited trade day seminars.

Notable speakers from across the design industry and beyond will take to the IDS Vancouver main Caesarstone Stage.

HIGHLIGHTS

The Future of Design on the West Coast:

This panel will welcome industry experts to discuss the future of design on the West Coast.

Speakers: Ming-Lee Yuan (Olson Kundig), Brent Comber (Brent Comber Studio), Andrea McLean (Andrea McLean Studio), Bao-Nghi Nhan (McKinley Studios)

Ligne Roset & 50 Years of Togo, Presented by Livingspace:

Celebrating the 50th anniversary of the Togo, first designed by Michel Ducaroy in 1973 for Ligne Roset, this talk on the Caesarstone stage will explore the legacy of the design house and their plans for the future.

Speaker: Simone Vingerhoets-Ziesmann (Executive Vice President, Roset USA Corporation)

Architectural Keynote: Wellness-Focused Design:

This panel will explore topics such as design innovation, sustainable practices, design contributions to the climate crisis, regenerative and circular practices, and more.

Speakers: Cedric Burgers (Burgers Architecture) and Ellie Niakan (Introba)

ESG and the commercial cleaning industry

More and more companies are looking for ways to increase their sustainability efforts, and commercial cleaners can help businesses reach their environmental, social, and governance (ESG) goals. In fact, recent surveys indicate that facility managers ranked cleaning third in importance for reaching some of their main targets, including water and energy consumption.

Standards and reporting of environmental, social, and governance elements are rapidly becoming critical for many businesses, so commercial cleaning companies need to know how to help support these priorities to keep providing the best value they can for their customers.

Environment

In a recent episode of Straight Talk! with Jeff Cross, Randy Burke, CEO of DCS Global, talks about focusing on helping businesses reduce their environmental impact. Using environmentally friendly products is a great option, as is adopting greener practices. But cleaners need to think beyond these options. Things like day cleaning, for example, means that cleaners may not need to turn the lights on as they clean certain areas, relying on daylight as they work.

71 per cent of cleaning companies are already focused on sustainability, whether or not their clients have made that request. While there is certainly value in facility managers upgrading equipment like smart toilets (and more) to go greener, cleaning companies can help boost sustainability without breaking the bank – because they’re already doing it.

Social responsibility

Part of social responsibility is keeping building occupants safe and cleaning for health is certainly a contributing factor. But Burke says it goes beyond that, extending to the way that staff are being treated, employment practices, fair wages, and more. Developing relationships with building operators where cleaners can communicate their practices and make sure they align with their customers is a step in fulfilling that part of their “social contract.”

Governance

Third-party experts are an important part of maintaining governance, but it’s vital for cleaners to have something set up within their protocols to ensure that oversight is occurring. Burke recommends that you “get granular,” staying on top of your operations to make sure that you are handling everything according to protocols, your teams are trained, and you have adequate measures in place to handle it when things go wrong.

Not only is it important that cleaning companies recognize the importance of ESG, but they need to let their clients know that they are on the same page by record-keeping, creating standards, and training their teams to communicate these goals with their customers.

Climate change adaptation efforts unfolding

Canada’s newly finalized climate change adaptation strategy sets out objectives and attaches mid- to near-term targets for five key action areas: disaster resilience; health and well-being; nature and biodiversity; infrastructure; and the economy and workforce. Collectively, they encompass a broad sweep of human, natural and structural assets to be reinforced for a wide range of increasingly extreme and volatile climate-related possibilities.

“Although climate change affects communities differently, it is undeniable that our new climate reality is affecting us all,” asserts Canada’s Minister of Environment and Climate Change, Steven Guilbeault. “In the context of record-breaking wildfires across the country, record hurricanes like Fiona and record floods in British Columbia, this strategy is needed now, more than ever, to establish a shared vision of our future.”

While infrastructure may be the most obvious adaptation concern for commercial real estate, other elements of the strategy have implications for risk management, building operations, development lands and the industry’s many professional services. For example, hazard mapping and insurance contingencies fall under disaster resilience; cooling and air filtration align with health and well-being; urban tree canopy is prioritized in nature and biodiversity; and the responsive expertise needed across real estate’s property management, operations, leasing/brokerage and investment functions is embedded in the economy and workforce.

In his introduction to the strategy, Guilbeault calls it “a whole-of-society blueprint” for identifying climate-related vulnerabilities and preparing to respond, but it contains many aspirational components earmarked for yet-to-be-confirmed delivery agents. The federal government has set out its own list of 73 measures to guide and prompt adaptation in a companion plan, while the strategy calls for complementary provincial/territorial efforts and suggests roles for municipal governments, Indigenous communities, the private sector and non-governmental organizations.

“By working together, we can mitigate, prepare for, respond to and expedite recovery from emergencies as we continue to strengthen our resilience,” urges Bill Blair, Canada’s Minister of Emergency Preparedness.

The federal government reports it has invested about $6.5 billion in climate change adaptation since 2015. That includes a $2 billion injection of funding committed in November 2022 when the preliminary version of the national adaptation strategy was released for consultation. The final version, released in late June, comes with some tweaks to the government’s initial slate of 68 action measures, including added emphasis on: infrastructure and related codes and standards; supply chain issues; resilience to wildfires; flood risk awareness; and health impacts of extreme heat.

Convincing paybacks foreseen for investments in the built environment

Improved resilience of the built environment is one of the strategy’s fundamental goals. That’s connected to upgrades to critical public infrastructure, policies and regulations to govern the performance and location of buildings, and rules or enticements to shape private investors’ decision-making.

Near-term targets include ensuring that climate change resilience is factored into all new federal infrastructure funding programs by next year, and incorporating resilience considerations into the National Building Code, Canadian Highway Bridge Design Code and Canadian Electrical Code by 2026. Among the broader objectives, the strategy envisions that public and private asset managers will come to rely on a range of guidance about climate change risks and resilience considerations in their development, acquisition, repositioning and dispositioning plans.

The federal government highlights seven initiatives related to climate resilience in the built environment. The disaster mitigation and adaptation fund (DMAF) to support infrastructure upgrade projects, and the national trades corridor fund, which more specifically applies to airports, ports, railways and transportation facilities, account for a large chunk of the promised spending. As well, there are funds targeted to infrastructure, facilities and capital maintenance in Indigenous communities.

Other funding is allocated for research and pilot projects “to integrate and accelerate the uptake of climate resilience in building and infrastructure design, asset management tools, guides, codes and standards” and for the development of standards to support wider understanding and uptake of climate change resilience in building and infrastructure design. The National Research Council and the Standards Council of Canada are tasked with developing “practical and targeted guidance” related to mitigating flooding risks, along with “interactive knowledge products” and training for municipal building officials, design professionals and procurement teams.

The strategy cites the Canadian Climate Institute’s estimates that $1 invested in climate change adaptation yields up to $15 in avoided expense related to climate change impacts. Notably, the benefit-cost ratio for the implementation of climate-resilient building codes is pegged at 12 to 1, equating to a 1,100 per cent return on investment.

“Adaptation actions are cost-effective and a positive investment for today and for the future. Climate change adaptation is essential and will generate many benefits, including spurring innovative solutions, technologies and jobs that can help minimize damages to communities, retain ecosystem services, reduce economic shocks to supply chains, sustain livelihoods and maintain social cohesion, and most importantly, save lives,” the strategy states.

A range of implications for commercial real estate

Looking at other climate adaptation objectives and targets potentially of interest to the commercial real estate sector, the adaptation strategy envisions development of, or updates to, at least 200 flood hazard maps, prioritizing “higher risk” areas, by 2028. The timeline for getting wildfire prevention and mitigation plans in place is set farther out — at 2030 — since that initiative would depend on the provinces/territories designating high-risk communities, but it’s suggested that at least 15 per cent should be implemented two years before that date.

Other major objectives in the strategy’s disaster resilience category focus on insurance and an overhaul of the Disaster Financial Assistance Arrangement program, which sees the federal and provincial governments step in to help cover uninsurable losses sustained in natural disasters. That’s exploring mechanisms to encourage relocation away from vulnerable zones. As well, the government is developing an online portal, which will draw on flood modelling and hazard mapping to help users gauge their risk exposure.

The adaptation strategy targets 2027 as benchmark year for getting a significant majority of at-risk businesses and economic sectors on board with resilience planning and implementation. By then, it foresees that 60 per cent of businesses located in coastal regions will have embraced adaptation actions and 80 per cent of “highly exposed” businesses will consider impacts of climate change in both their existing operations and future plans.

Commercial real estate is not identified as part of the latter group, which taps the agriculture, fisheries, energy, mining, transportation and tourism sectors. However, drilling down to real estate’s multidisciplinary workforce, 70 per cent of the members of “relevant professional associations” are counselled to likewise “have the capacity to apply climate change adaptation tools” by 2027 and to convey the importance of climate change adaptation to their clients.

The adaptation strategy also includes indicators for monitoring and evaluating progress. Many relate to the preparedness of infrastructure, agricultural productivity or conservation and resilience of natural resources. However, residential landlords and developers could also be in line for scrutiny through indicators tied to the health and well-being action area. These would measure the percentage of households with cooling systems and the percentage of households with nearby access to parks or green space.

Call for proposals seeks capacity building projects and enabling research

To launch work, the Canadian government has issued a call for proposals for capacity building and research projects. Proponents can receive funding to cover up to 60 per cent of projects related to: guidance and resources for the professional services that will be pivotal in steering climate change adaptation; economic and behavioural change analyses; monitoring and evaluation approaches; and adaptation issues specific to the mining, forestry or energy sectors.

“The impacts associated with climate change — intensified wildfires, devastating flooding, more powerful storm systems and others — are being felt in every region of Canada,” says Canada’s Minister of Natural Resources, Jonathan Wilkinson. “The National Adaptation Strategy makes important investments. This call for proposals supports this vital work.”

Businesses, industry and professional associations, academic institutions, non-governmental organizations, Indigenous governments, communities and associations, and provincial/territorial and municipal governments and their associated agencies are eligible to apply. Territorial government and Indigenous proponents will qualify for funding to cover 100 per cent of project costs.

Up to $15 million will be disbursed to the chosen proponents, with a minimum allocation of $150,000 per project. Projects can commence beginning January 1, 2024 and must be completed by December 31, 2026. Submissions to the call for proposals will be accepted until September 22, 2023.

Work begins on net-zero ready community in Oshawa

A 98-acre community of 800 townhomes and single-family dwellings is taking shape in North Oshawa’s Kedron neighbourhood. The net-zero ready abodes will emit 85 per cent less emissions once complete and include multi-generational housing.

Minto Communities GTA recently celebrated the start of the first phase of The Heights of Harmony, the developer’s second project in Oshawa, which received the 2023 BILD award for Project of the Year (Low-Rise).

The developer, known for its sustainable endeavours, is also introducing a modern farmhouse-style design with large picture windows and contrasting architectural features. A 28-acre park and community pond will enhance the nature feel of the site.

Homebuyers were given the option to upgrade their purchase to net zero during this first phase. Phase two is expected to launch soon, with back-to-back townhomes and rear lane homes for growing families in the Durham Region, which happens to be one of the fastest growing regions in the world. The project is rising at Harmony Road N. and Winchester Road E.—a 30-minute ride on GO transit from downtown Toronto.

Park Road launches in Yorkville

Park Road is a new 27-storey flatiron condo named after the street on which it will rise. Capital Developments recently launched the project in Yorkville, with Diamond Schmitt designing the flatiron-style building that will overlook the Rosedale Ravine.

Renderings reveal a curved south façade of golden bronze metal and a series of stepped cantilevers on the building’s western façade. Wide pedestrian sidewalks, trees and seating also characterize the site, located just off Church and Bloor Streets.

“Park Road presented the opportunity to introduce a building with a pure and simple sculptural expression that takes advantage of its exceptional location in the city,” said Donald Schmitt, principal, Diamond Schmitt Architects. “We capitalized on the site’s distinct conditions to design a residential experience with a truly singular identity.”

Interior design firm Cecconi Simone used the delicate details and curves of the flatiron design as inspiration for its “monolithic approach” with neutral tones, natural materials.

“Our goal was to evoke a sense of luxury, sophistication, and exclusivity for both residents and visitors of Park Road,” said Elaine Cecconi, principal, Cecconi Simone.

“Everything from the custom vanity mirrors to the millwork add to the luxurious language that is crucial to the building’s character. We aspired to create a living experience that reflects the lifestyle associated with Yorkville, offering a sanctuary amidst the vibrant energy of the city.”

Inside the tower will be a grand lobby with a concierge service, a meditation room with a Himalayan salt wall, sauna, and steam room, a fitness studio, outdoor terrace, and a variety of entertainment rooms. On the 28th floor, two terraces with nature views, fire pits, barbecues and seating connect to the building interiors for communal gatherings.

“This is our second project in Yorkville, and we are thrilled to now contribute a new landmark to Toronto’s most iconic and established neighbourhood,” said Jordan Dermer, Co-Founder and Co-CEO of Capital Developments. “With its distinct flatiron architecture, Park Road will truly be unlike anything else in this area.”

B.C. funds more mass timber projects

The Government of B.C. is providing more than $4 million for 12 new mass-timber demonstration and research projects.

There are eight demonstration building projects and four research projects receiving funding from the third intake of the Mass Timber Demonstration Program (MTDP).

Projects range from a new indoor aquatic centre in Golden to a mixed-use development featuring an 18-storey mass-timber tower in Vancouver’s Killarney neighbourhood. This will help further expand the use of mass timber in B.C.’s construction sector by providing designers and builders with real-world knowledge and experience they can learn from.

“A history of bold steps and achievements in building innovation has established our province as a global leader in the mass-timber sector. As the home of the first mass-timber building on the continent and the tallest hybrid mass-timber building in the world in its day, we know mass timber is the future of sustainable design and construction in B.C,” said Minister of State for Trade, and chair of the Mass Timber Advisory Council Jagrup Brar.

The 12 demonstration and research projects are:

365 Railway Street Inc – 365 Railway ($500,000)
The City of Burnaby – Cameron Community Centre and Library ($500,000)
Wesgroup Properties – River District ($500,000)
More Than A Roof Housing Society – Vienna House ($500,000)
The City of Vancouver – Marpole Community Centre ($500,000):
Columbia Shuswap Regional District – Golden and Area Indoor Aquatic Centre ($441,720)
The Loon Foundation – The Pender Harbour Ocean Discovery Station (PODS) ($388,000)
The Clayoquot Biosphere Trust Society – Clayoquot Sound Biosphere Centre ($300,000).

RESEARCH

FPInnovations – Fire Performance of Modern Mass Timber Connections Testing ($200,000)
FPInnovations – Guide on hygrothermal modelling ($75,000)
National Research Council (NRC) – Intumescent coating for mass-timber buildings ($210,000)
University of British Columbia – Fire-related thermal penetration testing for mass timber ($28,000).

“Having our mixed-use River District project be a part of the Mass Timber Demonstration Program allows us to access valuable experience and learnings, while developing a mass-timber project of this scale,” said Graham Brewster, director of development, Wesgroup Properties. “We look forward to working with and contributing to B.C.’s homegrown, world-class mass-timber knowledge and industries with the shared goals of building greener buildings and better communities.”

Canada’s average asking rents hit record high in June

Average asking rents for all property types in Canada hit a record high of $2,042 in June, surpassing the previous record set in November 2022 by 0.9 per cent. The 1.4 per cent increase from May to June represents the largest month-over-month rise this year, while annually average rents increased 7.5 per cent.

“Rent inflation reaccelerated in June as the Canadian rental market entered into the busy summer season, with each of the country’s largest cities positing double-digit annual increases,” said Shaun Hildebrand, president of Urbanation. “It’s no coincidence that cities with the fastest population growth are at the top of the list for rent increases. Expect further upward pressure on rents in the near-term as the market moves through its peak period of the year and demand continues to strongly outstrip new supply.”

For the first time in the National Rent Report’s history, Toronto finished third on the list of 35 cities for average monthly rents in June, having been bumped out of the second spot by Burnaby, BC. Year over year, average monthly rent in June for a one-bedroom in Toronto was up 14.1 per cent and up 8.8 per cent for a two-bedroom.

Calgary’s average rents surpassed $2,000 for the first time for purpose-built and condominium apartments in June, reaching $2,008 and rising 18.4 per cent year over year. Calgary has now overtaken Montreal as the fourth most expensive city for renters in Canada.

Vancouver is still the country’s most expensive rental market with average asking rents of $3,301 and annual rent increases of 15.4 per cent.

Meanwhile, Edmonton has the most affordable rents of Canada’s largest cities, averaging $1,368 in June and increasing 13.5 per cent year over year for both purpose-built and condominium apartments.

For the full report, visit: Rentals.ca July 2023 Rent Report

Funding for nine solar energy projects

Natural Resources Canada announced more than $160 million in federal investments for nine Alberta-based solar energy power projects that will generate significant clean solar power and deploy 163 megawatts (MW) of new solar generation and 48 MW of battery storage capacity.

“We are investing over $160 million in job-creating solar energy projects, which will contribute 163 megawatts of new power generation across Alberta. By working with Indigenous partners and industry, the Government of Canada is helping to unlock the economic potential of our clean technologies as we advance toward a prosperous net-zero future,” said Jonathan Wilkinson, minister of Natural Resources Canada.

The following projects were funded to create good jobs, provide clean power and advance economic reconciliation:

Capstone Infrastructure Corporation and Sawridge First Nation’s Michichi Solar LP and Kneehill Solar LP projects will each deploy a 25-MW solar farm with smart-grid–enabled solar inverters. These projects are supported by an combined $64-million federal investment and are expected to create up to 240 good jobs.
Concord Green Energy (a Concord Pacific Group Company) and the Athabasca Chipewyan First Nation (ACFN) partnered to create the Concord Monarch Partnership, Concord Vulcan Partnership and Concord Coaldale Partnership, each of which will deploy 15 MW/34 megawatt hours (MWh) battery energy storage systems on the sites of existing solar arrays in Alberta, supported by a combined federal investment of over $45.8 million, and are expected to create over 100 good jobs.
Métis Nation Power Authority (MNPA) Inc. will deploy a 4.9-MW solar project in Métis Nation Region 3 in southeastern Alberta, supported by a federal investment of approximately $12.8 million. This is expected to create 24 good jobs, together with training for Indigenous youth.
Chappice Lake Limited Partnership, alongside Cold Lake First Nations, will deploy 14 MW of solar electricity generation equipment paired with 2.9 MW/8.3 MWh of battery energy storage and artificial intelligence (AI) battery dispatch software, supported by a federal investment of approximately $21 million. This is expected to create over 80 good jobs.
Enterprise Solar L.P. will deploy a 65-MW solar energy generation project in Vulcan County, Alberta, supported by a federal investment of approximately $12 million. This is expected to create up to 935 total jobs.
Cardston Spring Coulee Solar Limited Partnership will deploy a 29.5-MW bi-facial solar plant, using single axis trackers, in Cardston County, Alberta, supported by a federal investment of approximately $5.5 million. This is expected to create up to 145 good jobs.

The nine projects funded will deploy 163 MW of new solar generation and 48 MW of battery storage capacity. This will reduce emissions by more than 150,000 tonnes CO₂e per year while creating over 3,000 job years.

Convincing paybacks foreseen for investments in the built environment

A range of implications for commercial real estate

Call for proposals seeks capacity building projects and enabling research

BOMEX 2026

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