Patrick Fejér named CEO of B+H Architects

Global design practice B+H has appointed senior design principal Patrick Fejér as the firm’s new CEO. With more than 20 years’ experience leading large-scale design projects across global sectors and markets, Fejér will lead the firm into the future; uncovering new opportunities for growth, innovation, and ushering in a new era of design excellence.

“I’m honoured to become CEO of B+H during this pivotal time. While we’ve long been known as champions of design excellence, I’m motivated to lead B+H in new directions, exploring the breadth and diversity of our team’s ability to produce thoughtful, ambitious design across sectors and all over the world,” says Fejér.

In his new role, and with the full support from B+H’s global leadership team, Fejér will be accompanied by a newly formed task force of leaders across all studios. Establishing a culture that both values and is rooted in varied perspectives, B+H aims to be increasingly adept at responding to changing global conditions and design needs, while also fostering a culture of empowerment for employees of all levels.

Fejér will continue to oversee client and project work while taking over firm leadership responsibilities from outgoing CEO Bill Nankivell, who is stepping down after more than 25 years at B+H.

Nankivell first joined the firm as partner in 1996 before becoming CEO in 2006. Under Nankivell’s leadership, B+H enjoyed a period of great success. He proved integral to growing the firm into the integrated, multi-disciplinary design practice that it is today, and he leaves behind a portfolio of award-winning projects that have positively impacted communities around the globe.

“My years at B+H have been the highlight of my career, and I’m proud of what we’ve accomplished. I’m ready to step back and make room for the future and for new voices,” says Nankivell. “I will be working closely with Patrick to help ready the firm for this pivot towards new, exciting markets and design sectors”.

Digging into land assemblies

The Golden Horseshoe of South Central Ontario has some of the most valuable land in Canada. For years, the region’s developers focused on single-family suburban housing and spread-out commercial plazas. As the population grew, that style of development continued. This led to the urban sprawl that defines much of South Central Ontario today.

But that style of development is running into barriers. Some barriers, like Lake Ontario and the U.S.A / Canada border to the south, and Georgian Bay to the north, are physical. Others, like the Greenbelt and a growing opposition to urban sprawl, are political. With space to build out starting to running short, Ontario is increasingly building up.

What is land assembly?

Land assembly is the joining of multiple adjacent parcels of land to form a single site that can be used to construct a larger property. Because vacant land is scarce in urban areas, land assembly is a key tool for developers looking to build higher and bigger properties.

Most people, especially in Ontario, associate land assembly with high-rise condo projects. That’s a fair association, but land assembly also includes projects like residential subdivisions, retail complexes, schools, hospitals, airports, and government use.

How does land assembly work?

Usually, a developer approaches the owners in the block they want to build on and makes each owner an offer, often for well above their property’s value. A group of property owners can also agree to approach a developer and market all their properties together.

As land price is at a premium in cities, property owners with houses grouped together can demand much higher prices than they could by selling individually. Any contiguous group of properties can become part of a land assembly, but most often land assemblies include properties along or near a major transport conduit.

Older districts with single-family homes are a prime location for this kind of development. One example of a condo or mixed-use land assembly area is the Eglinton corridor in midtown Toronto, with its blocks of small residential properties all grouped together right along the new Eglinton LRT.

The properties involved in a land assembly deal aren’t always treated equally, depending on the circumstances and groups involved. The sale price could be an equal share for each owner, or might be per square foot, or even based on where in the assembly that property is located.

To use the Eglinton corridor example again, a developer would probably value a property bordering Eglinton Avenue higher than one further from the main road, especially if it would form a corner of the new property.

Is it possible to get left out of a land assembly deal?

Yes it is. The property owners have high selling power because the developer can only assemble the land if they buy several adjacent properties, but there are limits to that power.

Once the developer has a few properties together, pressure starts mounting on their end to start construction because of how much they’ve already invested. Delays can motivate the developer to change their plans for the site. They might just build the project around holdout properties instead of waiting for a deal.

What challenges do land assemblies face?

A land assembly has many of the same potential issues as any property purchase, with the added challenge of dealing with multiple vendors. Problems that can arise include:

errors in the legal descriptions;
gaps between the lots being assembled;
encroachments from lots not being purchased;
old easements or rights of way;
old undischarged mortgages or leases; and
orphaned laneways.

Land assemblies are complex deals, involving the merger of several different titles. Each of the assembled properties may have title or off-title risks that the developer needs to account for. Proper planning, including title insurance, can be key to a project’s success. Every land assembly project is unique, and smart developers are using every tool at their disposal.

Brendan Fagan is FCT’s Chief Underwriter with 14 years of industry expertise. Brendan assesses and advises on developing trends in risk and underwriting, also providing input into the development and implementation of initiatives across the company. Brendan holds a Master of Laws degree from the University of Montreal and has been called to the bars of Ontario and Quebec.

Starlight Investments acquires 10 Ontario assets

Starlight Investments announced it has completed the acquisition of 10 Ontario assets located in Ottawa, Kingston, London and Welland. In all, the acquisition brings 1,178 new units to Starlight’s residential rental portfolio.

“This is a robust portfolio and will be a strong addition to our multifamily residential platform,“ said Daniel Drimmer, Starlight Founder and Chief Executive Officer. “Ottawa, Kingston, London and Welland are all growing communities and some of the province’s strongest markets. We are thrilled to be able to continue expanding our offerings and provide quality homes with this well-maintained portfolio.”

All 10 Ontario assets are equipped with on-site laundry and parking, while some of the properties have electric vehicle (EV) charging stations. Several of the properties include commercial retail units, providing added value for residents. The portfolio consists of low-, mid-, and high-rise buildings with a mix of layouts and sizes ranging from bachelors units to three bedrooms.

According to Starlight, all 10 Ontario assets are located in lively, thriving communities near major highways and public transport, providing residents with easy access to high-quality schools, restaurants, grocery and retail amenities.

In late August, Starlight announced it had purchased a new 120-unit purpose-built rental property in Nanaimo, BC, known as “Cascade Residences.”

For more information on these transactions, visit: https://www.starlightinvest.com/

Upgrade your facility with 2022’s biggest technology trends

Facility managers across all sectors are using industry innovation to improve productivity, streamline processes, and boost profits. From smart warehouses to cleaning with drones, making the most of this year’s top technology trends can make your business better.

Here’s a look at some of 2022’s biggest technology trends:

Use artificial intelligence

Despite its futuristic feel, AI gives you a broad look at your whole building for better budgeting and asset management. Data like peak-hour demands, equipment life cycles, and maintenance schedules give you the insight you need to stay on top of your building’s needs.

Look into drone use

Automation is a growing trend to increase efficiency and optimize worker safety. Drones help get to those hard-to-reach places, can safely keep an eye on your building at night, or can gauge when your gutters need cleaning. This technology provides the opportunity to get a quick and easy bird’s-eye view of your building.

Adopt mobile software

Do you manage multiple buildings? Mobile software allows you to minimize travel time between locations, compare building stats easily, and keep your data all in one place. Consolidating information will simplify your processes and save you valuable time.

Digitize your workflow

Automation is streamlining the ordering process, from order-taking to picking and packing to transporting products to your loading dock. Making your workflow more manageable allows managers to simplify complicated tasks, increase speed and productivity, and limit costly mistakes. Some automation even uses predictive technology for more accurate budgeting and a better handle on your customers’ needs.

Upgrade your inventory management

Faster than traditional barcodes and scanners, radio frequency identification (RFID) can detect tags from a greater distance, so no more travelling from item to item to scan things in (or out). Use this technology to identify items, locate packages, and manage your inventory easily.

Innovation is constantly simplifying warehouse processes, improving inventory management, and increasing productivity. These top technology trends will get your facility on a more efficient, more profitable path.

Rising interest rates alter slant on CRE values

Rising interest rates have commercial real estate players adjusting their expectations about cap rates and internal rates of return. A majority of participants in Altus Group’s recent survey of industry insiders foretold yesterday’s 75 basis point (bps) increase in the Bank of Canada’s overnight rate, taking it up to 3.25 per cent, and nearly one quarter anticipate a further uptick before the end of 2022.

The survey distills input from 126 respondents, including investors, developers, lenders and brokers/consultants, who were queried last month for their readings on how market trends are flowing through to real estate values. Generally, survey participants perceive a riskier environment, with 88 per cent of respondents concluding a recession is somewhat or very likely within the next six months, but there is ongoing consistency in the assessment of stronger and weaker performing asset types.

“Respondents overwhelmingly indicated that they believed cap rates will increase for office and retail assets in both major urban and secondary markets as a result of rising interest rates, while they were less sure when it came to industrial and multifamily residential assets, particularly in major urban markets,” states the summary of survey findings. “Survey respondents also agreed that assets in secondary markets are more vulnerable to rising cap rates as a result of increases in interest rates.”

Among investors, lenders and broker/consultants, 90 per cent of respondents foresee higher cap rates on office assets in major urban markets, while 97 per cent project higher office caps in suburban and secondary markets. A more sizeable minority predict stable cap rates for industrial (41 per cent) and multifamily (35 per cent) located in major markets. They also show more confidence in these asset types, versus office and retail, within secondary markets, with 20 per cent suggesting industrial cap rates will hold steady and 17 per cent voicing that expectation for multifamily cap rates. Meanwhile, 80 per cent anticipate rising cap rates on retail assets in major urban markets and 95 per cent make that prediction for secondary markets.

Most investors and lenders concurred they now apply a higher internal rate of return to assess the viability of an asset, but, again, are more likely to do so for office and retail properties, and in secondary markets. Notably, 39 per cent of respondents report they have not adjusted internal rate of return expectations upwards for industrial and multifamily properties in prime markets.

Developers express the most confidence in multifamily rental and mixed-use projects in prime markets with around two-thirds of those surveyed saying they have not adjusted discount rates for those types of initiatives. That slips to 57 per cent for condominiums in prime markets and down to 50 per cent for new condo projects in secondary markets.

In keeping with that finding, just 6 per cent of developers said they might respond to future pressures by increasing the portion of condos relative to rental units that they’ll bring onto the market. However, 17 per cent would consider increasing their planned quotient of rental units relative to condos.

“Some of the most interesting data to emerge was learning what strategies developers may deploy as a result of the rising cost of new real estate development associated with interest rate hikes and a possible recession, including that almost one-fifth (17 per cent) of developer respondents have yet to form a strategy at all, ” the survey summary reiterates.

Passing costs through to buyers was the most cited tactic with 44 per cent of developers saying they would increase unit prices. Upwards of one-third suggest they’ll pull back on development activities — pausing projects, reducing the number of projects or cutting back on land acquisition — while others said they’d attempt to maintain current prices for buyers through reduced unit sizes (29 per cent) or lower quality construction (11 per cent).

H Mart will anchor M2M community in North York

Aoyuan International’s upcoming M2M mixed-use community of nearly nine acres in North York will welcome Asian supermarket H Mart as its anchor tenant.

The Toronto outpost of the world’s largest Korean-American supermarket chain will span 36,000 square feet and offer authentic Asian and international groceries. A food hall will feature ready-to-eat dishes and baked goods like taiyaki – the popular fish shaped pastry with sweet red bean filling. H Mart, which stands for Han Ah Reum, a Korean phrase meaning “one arm full of groceries,” will also be stocked with K-beauty brands and other cosmetics that are difficult to find at more conventional drugstores. This will also be H Mart’s flagship Canadian location.

As plans unfold for M2M’s five residential towers, a community centre, public park and a daycare, the store will ultimately immerse locals in Korean culture and cuisines.

Fan Yang, general manager of Aoyuan Canada, says he’s thrilled to be welcoming H Mart to the site. “We are seeing increasing demand for cultural diversity in retail, and M2M is a very diverse community,” he says. “This flagship location will offer fresh produce, multicultural goods, and authentic ready-to-eat meals.

“Our vision for M2M is to encourage an active and healthy lifestyle and part of how we make this accessible for our residents and to the broader North York community is by partnering with a leading grocer like H Mart.”

Aoyuan International is transforming a dated shopping plaza and parking lot near the intersection of Yonge St. and Finch Ave.

ISSA elects Bunzl leader to Board as Canada Director

ISSA, the worldwide cleaning industry association, has announced it has appointed Bunzl Canada General Manager Brock Tully as its new Canada Director.

Tully is one of several newly elected members who will serve on the 2023 ISSA Board of Directors, to be led by incoming ISSA President Matt Vonachen of Vonachen Group:

Vice President/President-Elect: Matthew J. Schenk, Midlab
Executive Officer: Tom Friedl, Hospeco Brands Group
Manufacturer Director: Nicole Goulet, Diversey
Distributor Director: Laura Ann Craven, Imperial Dade
Canada Director: Brock Tully, Bunzl Canada

Returning Board Members

In addition to Vonachen, the following 2023 members are returning from the 2022 Board:

Past President/International Director: Harry Dochelli, Essendant
Secretary: Scott Stevenson, KleenMark
Treasurer: Mercer Stanfield, Brame Specialty Company
Distributor Director: Michael Chiappe, California Janitorial Supply
Manufacturer Reps’ Director: Jay Shearer, J.J. Shearer Company
Manufacturer Director: Matthew Urmanski, Essity Professional Hygiene, North America
BSC Director: Valerie Burd, ABM

Outgoing Board Members

The following individuals complete their service on the board in 2022:

Steve Lewis, Golden Star, Inc.
Brendan Cherry, Bobrick Washroom Equipment, Inc.
Amir Karim, Polykar
Ailene Grego, SouthEast LINK

ISSA invites all members to greet the new board members when they officially take office at ISSA General Business Meeting on October 13, which will be hosted at ISSA Show North America 2022 in Chicago, Illinois. Additional details will be announced soon.

For more information about ISSA Show North America 2022, visit issashow.com.

Vancouver rental housing crisis deemed municipal election priority

LandlordBC, BC Housing, and Chard Development are hosting an informative educational event for Metro Vancouver mayoral and council candidates on September 20, 2022, to discuss the Vancouver rental housing shortage. The event will provide insight into the opportunities and challenges facing the city’s purpose-built rental housing sector, with a deep dive into the process—from early stages of land acquisition, through project design and construction. Emphasis will be on financial considerations and the critical role municipalities and their political leaders play in getting new rental housing built. This event is only open to declared mayoral or council candidates running in the upcoming October 15 election.

“Elected municipal representatives have many responsibilities, but the choices they make on land-use and housing development are perhaps the most impactful and longest lasting decisions for the entire community,” wrote David Hutniak, CEO at LandlordBC. “This is especially true in municipalities with very low vacancy rates and a high demand for new purpose-built rental housing, such as in Metro Vancouver. Despite that, some community members and groups are determined to maintain the status quo and hinder construction of much needed new homes for our growing population, even when it results in serious negative consequences for renters today and tomorrow.”

According to LandlordBC website, elected councillors can help solve the Vancouver rental housing crisis by proactively creating municipal plans that incentivize building purpose-built rentals and voting on land-use policies and zoning bylaws that promote growth and development. “Elected local representatives therefore need to understand the basics of the development process, including financial considerations, in order to make educated decisions when voting on new rental developments and approving zoning changes,” the website states.

For more information on the Vancouver rental housing crisis and the upcoming municipal election, visit www.landlordbc.ca/election

Offshore single-family rental REITs sidelined

Canada will become a temporary no-go zone for offshore single-family rental REITs on January 1, 2023, when a two-year ban on foreign investors acquiring single residential dwellings, duplexes or triplexes is set to begin. The federal government is currently seeking public input on some of the allowed exemptions and enforcement details for the enabling legislation before the final regulations are published later this fall.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, which was passed in the House of Commons in late June, generally stipulates that only Canadian citizens, permanent residents, refugees deemed “protected persons” and Indigenous people with Section 35 rights under the Constitution Act will be able to purchase homes or vacant land zoned for residential uses during the hiatus period. Nor can non-resident investors acquire the prescribed properties through business entities incorporated in Canada unless they are publicly traded on a Canadian exchange.

However, international students and foreign nationals with work permits in Canada could qualify if they meet established criteria. Foreign nationals attached to other countries’ embassies and consular offices would additionally be exempt from the prohibition.

Real estate agents and related parties will have a duty to inform prospective clients of the prohibition. Ineligible purchasers and service providers assisting them will be subject to maximum fines of $10,000 for illicit transaction activities during the two-year period. The Act also gives Courts the authority to order the sale of properties, from which owners could receive no more than the original purchase price after other costs of the required proceedings had been recouped.

As proposed, international students enrolled in an authorized institution could purchase a residential dwelling with a maximum value of $500,000 if they are eligible for a work permit and have filed tax returns and spent a minimum of 275 days annually in Canada during the five years preceding the purchase. Foreign nationals could purchase a dwelling if they hold a valid work permit, have worked in Canada for a minimum continuous period of three years and filed income tax in three of four years preceding the purchase.

The government’s consultation document notes that both groups are considered likely to pursue permanent residency and have already contributed to society and the economy through their professional/technical output or amplified tuition that “supports and enriches Canadian learning institutions”. Similarly, the prohibition will not apply on recreational properties located outside the boundaries of cities and towns where such investment “plays an important role in supporting local economies and maintaining cross-border ties”.

The public can submit comments until September 16, 2022.

Canada offering $64 million for accessibility upgrades

Organizations have until November 1, 2022, to apply for a new round of funding that focuses on infrastructure improvements that boost disability inclusion and accessibility. Canada recently earmarked $64 million for communities, workplaces and early learning and child care facilities.

The call for proposals was announced under the Enabling Accessibility Fund (EAF) Small Projects component. Potential projects could include the renovation, construction or retrofit of ramps, accessible doors, accessible washrooms, elevators and lifts, accessible communications technology, accessible playgrounds, and multi-sensory rooms and stations.

Nearly $58 million will be allocated to support about 580 small projects in workplaces and communities, and up to $6.5 million will support about 65 projects in early learning and childcare facilities.

Eligible projects could receive up to $100,000 per project. Priority will be given to those involving workplaces, Indigenous organizations, shelters that provide services to those experiencing violence (including gender-based), and early learning and child care centres.

The previous EAF Small Projects component call for proposals, launched in 2020, distributed a total of $82.6M in funding to support 1,177 projects.

Online information sessions for this round of proposals will be offered to support organizations through the application process. Organizations can apply online.

Designing the shopping experience of the future

Shopping has conventionally been tied to consumer need or desire for material goods, but retailers are now considering how people spend their time, not just the money in their pockets. New theories centre on how experiences, convenience and a sense of community can draw people to a physical site.

A seminar earlier this year at the Toronto Interior Design Show tackled some of those issues. Electric vehicle charging stations, omnichannel shopping and better use of outdoor spaces were all flagged as potential influences.

Roadside reimagining

Ilana Weitzman, Vice President of Strategic Development at Electric Autonomy Canada, identified the transition to electric vehicles and associated evolving travel patterns as a prompt for new designs. Gas stations along the highway have mostly been stop-and-go spots where people fuel up within five minutes, whereas charging can take 20 to 40 minutes.

“These vehicles now have a range of 480 kilometres, but you do need to rest and stop, and where do you do that? This is an incredible opportunity to completely reimagine what that could look like,” she observed.

With this in mind, Electric Autonomy co-sponsored a global architecture competition for a purpose-built roadside oasis for EVs. Scottish architect James Silvester submitted the winning design concept, “More With Less,” featuring inner courtyards for relaxation and a timber-framed canopy that hangs over charging zones to shelter cars and people from harsh elements.

“You can imagine, if you’re getting out of one of these vehicles with a dog or toddler, how much more comfortable it is to not have to cross a vast parking lot along your way,” Weitzman suggested.

In the design, “More with Less,” the EV-fueling station is also a place to relax and enjoy. Photo courtesy of Electric Autonomy Canada.

Silvester’s design will be built in the next two years by the Canadian convenience store operator and independent fuel retailing company, Parkland Corporation, the competition’s other co-sponsor. The design is also modular so it can also be scaled to other types and sizes of retail venues.

Other concepts submitted to the competition integrated outdoor public spaces, incorporated rooftop solar to augment the power supply, or included leisure space with shopping pavilions, stations to view internet streaming and somewhat more upscale restaurants than a gas station’s typical fast-food offerings. Meanwhile, the transition to EVs is expected to broaden the base of fuel retailers since it will no longer be tied to the storage and dispersal of flammable substances containing hydrocarbon contaminants.

“We’re not just talking about the vehicles themselves. We’re talking about the built environment and how that built environment is going to change, adapt and pivot for this new technology,” Weitzman asserted. “Now, smart retailers can get into this space.”

Omnichannel collisions

Stanley Sun, design principal and co-founder of Mason Studio, sketched out the potential for mobile retail and how it might bridge bricks-and-mortar with online purchasing, while filling a community support function. It’s part of an ongoing effort, undertaken with his studio partner, Ashley Rumsey, to explore how physical spaces can create enhanced experiences for omnichannel shopping.

For example, the Calgary retailer, Fresh Fruits, has re-purposed retired city buses to take purchasing opportunities to areas of the city that lack physical food retailers or segments of the population that don’t have access to online shopping. As well, Sun proposes underused parking lots as venues for pop-up retail and “curated windows” from which passersby could choose and order products.

A resilient retail experience by Mason Studio.

“When you’re scrolling your phones, as you’re lying in bed shopping, what is that physical experience around you to actually facilitate that?” Sun mused. “Right now, we are talking about digital environments, but you’re also in a space, so how do we create spaces that actually facilitate digital interactions?”

The design partners envision what they term the “omnichannel collision” through spaces that offer connections to retail, but not necessarily in an explicit way. That space could also help create social and community connections — drawing people into a situation where they can talk about their needs and preferences, and discover common objectives.

“Retail has so much more value than we are giving it,” Sun maintained. “It’s an opportunity to bind people. It becomes the social glue and an opportunity for collision.”

Shopping centre shift

Demalling is the buzzword for transforming and reanimating shopping centres. Supreet Barhay, principal at WZMH Architects, shared some examples from her firm’s work.

That includes Promenade Shopping Centre, located in the Thornhill suburb of Toronto’s neighbouring city, Vaughan, where a phased intensification project is slated to add 18 infill residential/mixed-use towers over the next 20 years. Within Toronto city boundaries, Shops at Don Mills — the now teenaged redevelopment of a former enclosed mall into an open-air concept — represents another future-proofing option.

“Shopping centres are becoming new community hubs,” Barhay remarked.

At Shops at Don Mills that’s seen in summer concerts, winter skating and the many restaurants that pull in local patrons. Yet, where demalling is not necessary or feasible, shopping centres are still evolving with changing times and consumer demands.

Barhay suggests food and experiential retail have become even more of an attraction as society eases out of the COVID-19 pandemic and many mall operators are expanding what was conventionally about 15 to 18 per cent of the retail offerings. They are also harnessing digital technologies to gather more insight into shoppers’ routines and preferences, and to offer a new range of services.

For example, WZMH Architects recently partnered with Microsoft Research’s Urban Futures Workshop through its Sparkbird innovation lab to retrofit a portable trailer where neighbourhood residents can directly learn about their local air quality. Wayfinding apps also help shoppers effectively use their time, providing route guidance and real-time information about store occupancy levels.

Other trends are carryovers from the pandemic when empty parking lots became catalysts for outdoor commerce and engagement such as drive-through entertainment, food trucks with temporary seating or a hub for pick-up and return of products. Parking lots might also contribute to the mall’s energy supply, such is now being tested in a demonstration project where solar canopies integrated with battery storage have been installed.

Barhay cited a Deloitte survey on post-COVID attitudes that found customers are increasingly looking for green features. They want biophilic designs, good air quality and natural light. They also want to see more local Canadian products and parking options for bikes and EV chargers. She suggests there could be positive results from welcoming bike paths to traverse the site and positioning the mall as a destination on those routes.

“Creating variation will attract customers back into the shopping centres,” Barhay submits. “We need to take it to a completely different level.”

Feature photo: Architect James Silvester imagines the electric fueling station of the future. His design, “More with Less,” received first place in Electric Autonomy Canada’s global competition.

Squamish Nation housing project breaks ground

The federal government is providing a $1.4-billion loan to the Squamish First Nation to build 3,000 homes on traditional lands in Vancouver’s Kitsilano neighbourhood.

The project is the largest economic partnership between a First Nation and the federal government, and the largest loan from the Canada Mortgage and Housing Corporation (CMHC) in Canadian history.

In total, the Sen̓áḵw development project will create 6,000 homes when complete. The Government of Canada has committed to financing the first two of the four phases. The on-reserve residential and commercial development will be built at the head of Vancouver’s False Creek, land that was returned to the nation by the courts in 2003.

“Everyone should have a safe and affordable place to call home,” said Prime Minister Justin Trudeau. “Today we’re building more homes for Vancouverites and we’re partnering with the Squamish First Nation on its path to economic independence.”

When complete, the Sen̓áḵw development project will feature striking Coast Salish architecture and design across a ten-acre site, over half of which will be publicly accessible, with green spaces, parks, and plazas.

The development aims to be the largest net-zero residential project in the country. In addition to thousands of rental units, including affordable units, the project is expected to create hundreds of good jobs and long-term economic opportunities for Sḵwx̱wú7mesh Úxwumixw (Squamish Nation).

The Sen̓áḵw development project was proposed by Sḵwx̱wú7mesh Úxwumixw (Squamish Nation), Westbank Corporation, and OP Trust, under a joint venture, working with the Government of Canada.

Construction is already underway, with the first residents expected to move in in 2025. The development will reach full completion by 2033.

New lignin-based asphalt to be tested in Quesnel

The City of Quesnel will be the first location in British Columbia to trial a new lignin-based asphalt on Neighbour Road in South Quesnel.

Bitumen (from petroleum) is the traditional binder in asphalt, but can be replaced by lignin. Known as the “natural wood glue”, lignin binds together the cellulose ﬁbres in plants, and is a by-product of the forestry industry. Using lignin in asphalt may result in a greener, more environmentally-friendly alternative to bitumen. This project will see a ~10 per cent replacement of bitumen with lignin.

In recent years, environmental considerations related to the use of petroleum-based products have led to exploring greener options for reducing the carbon footprint of asphalt roads. Additionally, pavement degradation accelerated by higher traffic and increasing cycles of freeze and thaws due to climate change has had direct impact on municipalities’ paving budgets.

Similar trials took place in Alberta and Ontario over the past two years; all of the trials have been spearheaded by FPInnovations. Quesnel Paving will mix dry powder lignin (the consistency of cinnamon) into the asphalt prior to paving and then apply in the standard method.

In the years to come, project partners will analyze the lignin-based test site on performance, techno-economic feasibility and on environmental benefits through a life cycle assessment.

Preliminary results from other test sites indicate that lignin-based asphalt allows for a substantial reduction of the carbon footprint compared to its fossil-based counterparts as well improves the longevity of the asphalt.

“This is a great opportunity for Quesnel to partner with a not-for-profit company to find innovative ways to reduce our carbon footprint, support the forest industry and improve our roads in the process,” said Mayor Bob Simpson.

GBAC & Allergy Standards Ltd. commit to advancing IAQ education

Fresh off the heels of the inaugural GBAC Symposium on Air Considerations, and with the conversation around indoor air quality (IAQ) continuing in the wake of the COVID-19 pandemic, the Global Biorisk Advisory Council (GBAC) and Allergy Standards Ltd. (ASL) have announced the formation of an educational working group focused on IAQ in the built environment.

While still in its developmental stages, the working group will further expand the existing GBAC-ASL educational partnership that was announced in July. The purpose of the new GBAC-ASL educational group is to develop toolkits and education programs for cleaning professionals responsible for educational, offices, retail, and healthcare facilities. The two organizations anticipate the group’s influence will have particular relevance and impact in communities where health inequity and financial challenges have the highest-burden costs.

“Providing timely and relevant knowledge and information to the industry on proper cleaning actions for improving IAQ is among our top priorities,” said Dr. Gavin Macgregor-Skinner, GBAC Senior Director. “Through our combined GBAC and ASL networks, we will work together to further ISSA’s mission of changing the way the world views cleaning.”

This working group is in part a response to the U.S. Environmental Protection Agency’s (EPA) release of the “Clean Air in Buildings Challenge,” a call to action and concise set of guiding principles and actions to assist building owners and operators with reducing risks from airborne viruses and other contaminants indoors. The working group’s goal is to provide cost-effective, real-world solutions to the cleaning industry to improve IAQ and the health of building occupants.

“The United Nations General Assembly recently adopted a resolution declaring access to a clean, healthy, and sustainable environment as a universal human right,” said Dr. John McKeon, ASL CEO. “This resolution, along with the Sustainable Development Goals (SDGs) and other Environmental, Social, and Governance (ESG) requirements, means that building owners, operators, and managers will need to proactively seek solutions in this area. Our toolkits and education programs will be a powerful resource.”

The GBAC-ASL working group will develop modular-based learning to deliver optimum outcomes for trusted advisors. Planned topics include:

The medical impact of poor IAQ
Indoor pathogens; including coronavirus
What are asthma and allergies?
In-building triggers

Key learning objectives include:

Knowing the importance of language such as IAQ, building-related illness (BRI), and indoor environmental quality (IEQ)
How dangerous chemicals, biologicals and allergens get into the air and what keeps them there
Understanding why a “whole of building approach” is needed to reduce the impact of asthma and allergies and how managing a building with IAQ in mind can vastly reduce the impact on building occupants
Developing a systematic approach to identifying, controlling, and even eliminating the sources of indoor pollutants and allergens
How creating healthier offices, schools, and homes can have a huge impact on your business.

“We are pleased to expand our partnership with ASL to help bring advanced knowledge and information to the entire cleaning industry,” said John Barrett, ISSA Executive Director. “As the world continues to recognize the need for IAQ in the built environment, it’s more important than ever for ISSA and GBAC to work with our partners and remain diligent in human health and safety efforts.”

Cement industry joins Net Zero Challenge

Canada’s cement industry is leading the way in the fight to tackle climate change by joining the Net-Zero Challenge as the first industry-wide participant.

The Net-Zero Challenge is a voluntary initiative led by the Government of Canada that encourages businesses to develop and implement credible and effective plans to transition their facilities and operations to net-zero emissions by 2050.

The Cement Association of Canada is one of the 12 founding Canadian organizations that have joined. The Canadian cement industry is a prime example of an entire industry that is in the process of transitioning to net-zero emissions, in close collaboration with the Government of Canada.

“Climate change is our industry’s most significant challenge. It is also our greatest opportunity. By charting a credible, transparent path to net-zero emissions, our industry continues its history of leadership in building the sustainable world of tomorrow. We are proud to be a founding participant in the Net-Zero Challenge as just one example of our pursuit of proactive partnerships with governments, the construction sector and civil society groups to support the ambitious and science based imperative of reducing carbon emissions to net-zero by 2050.” said Adam Auer, president and CEO, Cement Association of Canada.

Concrete is the most used building material on the planet, second only to water. It is found in virtually every class of infrastructure – from bridges to buildings, watermains to hydro-dams, hospitals to schools, sidewalks to subways. Concrete’s strength, durability and resilience will play a critical role in ensuring our infrastructure stands up to extreme weather– heat, flooding, wildfires and wind. Set to be released later this fall, the cement and concrete industry action plan to produce net-zero concrete by 2050 will include significant milestones, including cutting carbon emissions up to 40 per cent by 2030.

Participation in the Net Zero Challenge requires public transparency and disclosure, including a comprehensive net-zero plan, two interim emissions reduction targets consistent with achieving net-zero emissions by 2050 or earlier, and annual progress updates.

Canada’s Student Housing Market

The rental market is surging across Canada with limited supply in key markets contributing to the sky-high cost of rent. For post-secondary students kicking off the fall semester, a lack of student housing combined with the punitive cost of living, has added more pressure to the pursuit of higher education. Reports from across Canada have been largely grim, with many claiming they’ve struggled to find suitable, affordable accommodations in and around campuses. And where most colleges and universities once guaranteed on-campus housing for all incoming first-year students, long waitlists are becoming the norm as more second-year students opt to remain in residence due to the lack of alternatives.

“The shortage of student housing has definitely been highlighted as a large issue across the country for the 2022/23 academic year,” says Trish MacPherson, partner at Alignvest Student Housing. “Essentially, Canada is still behind where it should be. Both the private and public sectors need to make housing a top priority if we are going to remain a top domestic and international destination for higher education.”

Underscoring her point, MacPherson references a 2021 study that places Canada’s provisioning rate—the percentage of full-time students in off-campus student housing beds—at just 3 per cent. Meanwhile, in more developed markets like the U.S. and U.K., provisioning rates are above 10 and 17 per cent respectively.

“The Annex” student housing building in Ottawa, owned and operated by Alignvest Student Housing.

Off-campus PBSA establishments typically range from smaller buildings with a few dozen rooms, to large-scale developments that cater to 1,000-plus students. Suites often have up to six bedrooms, with residents sharing common kitchens and bathrooms. On-site amenities run the gamut from games rooms, gyms, quiet study spaces, and party lounges, making these buildings a popular option for parents and students alike. For Canadian colleges and universities constrained by limited funding and long waitlists for on-campus housing, there is an increasing reliance on the PBSA sector to offset housing need, as soaring rents and historically low vacancy rates squeeze students out of the broader rental market.

“A housing crisis for students”

Calling this “a housing crisis for students,” the Canadian Federation of Students (CFS) and other groups say the rapid expansion of international student enrollment is the main reason supply is so urgently needed. According to Statistics Canada, there were 2,183,973 students enrolled in Canadian post-secondary institutions during the 2019/20 academic year—of which 18 per cent were international. Meanwhile, a recent Cushman & Wakefield report on Canada’s student housing sector indicates that international student enrollment has increased by more than 12 per cent annually throughout the past decade. By contrast, the annual average rate of growth for domestic students was -0.2 per cent, and for this reason, Cushman & Wakefield calls international student enrollment “the primary catalyst for the establishment of the purpose-built student residence market in Canada.”

The good news is universities and private companies are working towards furthering the goal of bringing more off-campus student-geared properties to market, just as several new residences are opening at campuses across Canada. With an impressive 21,000 new residence spaces feeding into the 24 largest student markets by 2025, a 15 per cent increase in total beds is expected.

At McMaster University in Hamilton, two new residences are underway, bringing 2,000 new beds to campus by 2024. In BC, an eight-storey student housing building with 385 beds just opened at the University of Victoria (UVic), offering more living arrangements in a city with one of the lowest rental vacancy rates in the province. At Queen’s University in Kingston, a new residence is set to open this year bringing more than 330 additional beds to campus. The University of Toronto, University of Windsor and Carleton University are also in the process of building new residences to offset some of the projected need.

The question remains, will it be enough? Time will tell, but for those still seeking affordable student housing near their chosen campuses this fall, it sure isn’t coming fast enough.

Highlights from the report:

Total university-owned (on-campus) and privately-owned (off-campus) housing provide about 145,000 beds in the 24 markets surveyed, which represents about 15% of total full-time students. Of this total, about 45,000 beds are located in privately-owned, off-campus student residences.
Comparatively, RealPage reported that U.S. student housing bed supply equated to about 40% of total student enrollments in 2020/21. In the U.K., total bed supply is estimated to make up about 35% of student enrollments. This would indicate that there remains strong investment opportunity in Canada for new student residence development.
In terms of new supply in Canada, Cushman & Wakefield identified approximately 21,000 beds currently in the development pipeline for both university-owned and privately-owned student properties, which are expected to be completed between 2022 and 2025.

For more information of PBSAs and the state of Canada’s student housing sector, click here: Canadian Student Housing Outlook 2022 | Canada | Cushman & Wakefield (cushmanwakefield.com)

Atlantic Canada markets reflect national trends

Atlantic Canada markets were in sync with nationwide trends during the first half of 2022 with a tightening supply of warehouse space and year-over-year increases in average net office rents despite generally rising vacancy rates. Recently released stats from Turner, Drake & Partners finds St. John’s commanding the region’s highest average net rents for both office and warehouse, while Fredericton is the sole market to record a rising warehouse vacancy rate, even as it enjoyed the largest percentage gain in average net rents, at 10 per cent.

Halifax stands out with the most commercial inventory among the six surveyed markets. Its nearly 8 million square feet of warehouse supply is roughly equivalent to the combined total in the five other metros, which include St. John’s, Fredericton, Moncton, Saint John and Charlottetown.

There is about 12.4 million square feet of office space across the Halifax region, with 5.2 million square feet in the city’s downtown. St. John’s is the next largest office market with approximately 3.9 million square feet of stock. Charlottetown, the lone market to post a single-digit vacancy rate, has the smallest complement at just 853,000 square feet.

Halifax’s downtown office vacancy rate fell 140 basis points (bps) to 18.6 per cent from 20 per cent in the first half of 2021. That’s a steeper drop than in the Halifax region as a whole, which saw a 10-bps shrinkage in vacancies, but the regional rate remains lower, at 14.4 per cent. Average net office rents in downtown Halifax rose by slightly more than 2 per cent during the 12-month period to hit $16.23 per square foot (psf); region-wide they climbed 2.8 per cent to $15.05 psf.

St. John’s saw a nominal 4-bps increase in the office vacancy rate, keeping it in the range of 23 to 24 per cent, along with a 0.4 per cent year-over-year increase in average net rent, taking it up to $18.34 psf. New Brunswick’s three cities experienced sharper year-over-year jumps in vacancy, but the rates are still lower than in St. John’s — at 16.8 per cent in Fredericton; 19.8 per cent in Moncton; and 21.8 per cent in Saint John. Average net rents range from a low of $13.26 psf in Saint John to Fredericton’s high of $14.15 psf.

The office vacancy rate dipped 9 bps, down to 8.7 per cent, in Charlottetown, and average net rent rose 3 per cent, to $16.75 psf. There is just 319,000 square feet of warehouse inventory in the city, which posted a stable vacancy rate of 3.7 per cent and no change in year-over-year average net rent, remaining at $10.66 psf.

Moncton experienced a 990-bps slide in warehouse vacancies, pulling the rate down to 5.9 per cent, while average net rent rose nearly 3.5 per cent, to $7.18 psf. The city has Atlantic Canada’s second largest complement of warehouse space, at nearly 3.6 million square feet — significantly surpassing about 670,000 square feet in Saint John and 323,000 square feet in Fredericton.

Halifax’s warehouse vacancy rate fell by 140 bps, down to 3.8 per cent, in tandem with an 8 per cent increase in average net rent, pushing it up to $9.18 psf. About 370 bps were shaved off the warehouse vacancy rate in St. John’s, pushing it down to just below 10 per cent across about 2.9 million square feet of space. Average net rent increased by nearly 1.5 per cent, to $11.90 psf.