Study finds ‘serious difference’ in viability of different masks

A new study from the University of Waterloo found the most common masks, primarily due to problems with fit, filter about 10 per cent of exhaled aerosol droplets. The remaining aerosols are redirected, mostly out the top of the mask where it fits over the nose, and escape into the ambient air unfiltered.

By contrast, higher-quality, more expensive N95 and KN95 masks filtered more than 50 per cent of the exhaled aerosols that can accumulate indoors and spread the COVID-19 virus when inhaled by other people.

The study, Experimental investigation of indoor aerosol dispersion and accumulation in the context of COVID-19: Effects of masks and ventilation, appears in the journal Physics of Fluids.

Engineering researchers performed experiments using a mannequin to simulate a seated person breathing in a large room. The studies showed a significant buildup over time of aerosol droplets – exhaled droplets so tiny they remain suspended and travel through the air – despite the use of common cloth and blue surgical masks.

“There is no question it is beneficial to wear any face covering, both for protection in close proximity and at a distance in a room,” Serhiy Yarusevych, a professor of mechanical and mechatronics engineering and the leader of the study, said in a press release. “However, there is a very serious difference in the effectiveness of different masks when it comes to controlling aerosols.”

Previous research has found that aerosols dispersed by infected people are a source of transmission of the SARS-CoV-2 virus that causes COVID-19, even outside the two-metre social distancing zone widely recommended by public health officials.

Yarusevych, principal investigator in the Fluid Mechanics Research Lab, said the much greater effectiveness of N95 and KN95 masks versus cloth and surgical masks makes a compelling case they should be worn in indoor settings, such as schools and workplaces, as much as possible.

“A lot of this may seem like common sense,” he said. “There is a reason, for instance, that medical practitioners wear N95 masks – they work much better. The novelty here is that we have provided solid numbers and rigorous analysis to support that assumption.”

Ventilation systems

Experiments also quantified the impact of ventilation systems, which circulate and replace air in rooms, on the accumulation of aerosols. Even modest ventilation rates were found to be as effective as the best masks in reducing the risk of transmission.

Ideally, Yarusevych said, the evidence shows that high-quality masks and proper ventilation should be used in combination to mitigate the threat posed by indoor aerosol accumulation as much as possible.

Yarusevych collaborated with Sean Peterson, also a Waterloo professor of mechanical and mechatronics engineering, and engineering PhD students Yash Shah and John Kurelek.

Office workers taking precautions action as COVID-19 concerns persist

As office workers continue returning to their places of employment, concerns over COVID-19 persist, especially as new variants continue to wreak havoc.

Bradley Corp.’s latest Healthy Handwashing Survey found that in response, employees are taking preventive actions.

86 per cent are bringing a mask with them to work and 73 per cent have been fully vaccinated. In addition to masks, office workers are packing a few other personal protection items: 66 per cent have their own hand sanitizer, 39 per cent are taking cleaning wipes, and 29 per cent are coming with disinfectant spray.

The survey also revealed that, compared to the general population, office workers are significantly more conscious about coming in contact with germs and more concerned about contracting the coronavirus.

73 per cent of office workers worry about getting the coronavirus versus 67 per cent of the general population. And, due to the rise in new strains of the virus, 70 per cent of office workers have implemented a more rigorous handwashing regimen versus 59 per cent of the general population.

Changes in work interactions

The ongoing pandemic has also led to changes in the work environment – namely how workers interact with their colleagues.

At the office, 51 per cent avoid shaking hands, 42 per cent sit further away in meetings, and 36 per cent use a video call instead of meeting in person.

In terms of hand hygiene, approximately two out of three office workers are washing their hands more frequently since returning to the office, with half washing six or more times a day.

“Office workers are returning to the workplace cautiously—particularly now with the prevalence of the Delta variant—and are personally taking steps to avoid germs and the virus,” says Jon Dommisse, vice president of marketing and corporate communication, Bradley Corp. “The coronavirus has notched up the need for cleaner workspaces, limited contact and increased handwashing.”

Concerns boost hand hygiene

With office workers washing their hands more frequently, 62 per cent report their employers have made changes or improvements to workplace restrooms in response to the pandemic, including more frequent cleanings. And, in a sign of today’s pandemic times, 79 per cent of office workers believe touchless restroom fixtures are important.

Case in point, when using their workplace restroom, two-thirds reach for a paper towel to avoid touching restroom door handles, the toilet flusher and faucet handles. Another one-third use their foot to operate the toilet flusher.

Within the workspace, employers have added hand sanitizing stations and encouraged employees to stay home when sick. Those actions haven’t gone unnoticed or unappreciated by employees. 53 per cent of office workers say their employer’s response to the pandemic and implementation of safety measures makes them feel more valued and 35 per cent say it makes them feel more positive about the company they work for.

Majority of businesses plan mandatory vaccination

As many employers gear up to return employees to the workplace, 62 per cent of Canadian small- and medium-sized businesses are making or plan to make COVID-19 vaccinations mandatory for their employees, according to a new poll by KPMG in Canada.

“Businesses are grappling with how to navigate the issue of mandatory vaccination and determine whether or not they are legally permitted to require their employees and, in some cases, their customers, to provide proof of vaccination,” says Norm Keith, partner, employment and labour law, KPMG Law LLP. “Our poll found a wide consensus among employers that vaccination is the most effective way to protect workers and customers and key to avoiding a new wave of infections and lockdowns.”

The KPMG poll also found that the vast majority of businesses support mandatory vaccinations and vaccine passports to avoid another lockdown.

“With so many different approaches across the country, Canadian companies are seeking legal guidance and advice on vaccination policies for their workplaces,” says Keith. “While some workplaces have taken steps to make proof of vaccination mandatory, others feel that unless mandated by government, it may be too onerous for them to make it a condition of continued employment. Overall, employers need to balance their health and safety legal duties with an employee’s privacy interests and human rights law protections.”

When implementing a mandatory proof of vaccination policy, a key legal consideration for employers is the actual safety risks in their workplace, particularly where there is close contact with co-workers or vulnerable people. As well, some workplaces are a higher safety risk, such as health care or long-term care for the elderly, education, childcare and emergency services.

Key poll findings:

62 per cent are implementing or plan to implement mandatory COVID-19 vaccination for employees.
84 per cent agree that vaccines are key to avoiding another lockdown and should be mandatory.
84 per cent support vaccine passports to perform certain jobs or enter certain places.
85 per cent of male respondents support vaccine passports vs. 79 per cent of women; Support for mandatory vaccination was also slightly higher among men (85 per cent) vs. women (81 per cent).
90 per cent feel they are well-prepared and organized in bringing employees back to the workplace safely

Workplace vaccine policies recommended

Keith points out a challenging situation may arise when an existing employee is unwilling to vaccinate or provide proof of their vaccination status. Employers have legal duties and responsibilities and, depending on their specific circumstances, need to exercise reasonableness to avoid constructive dismissal claims. Here are some key considerations for employers:

Employers have a legal obligation to keep workers safe;
Recognize and accommodate exemptions based on disability and religious beliefs protected by human rights law and the duty to accommodate;
Assess whether alternative measures such as rapid testing, social distancing, and minimizing time worked in close proximity to others should be considered;
Know that workers also have a legal duty to not work in a manner that may endanger others;
Protect the confidentiality of employee vaccination data;
Be flexible, listen to employee concerns, and enlist workplace joint health and safety committees in developing and implementing policies.

“In general, we recommend that employers receive legal advice when putting in place any COVID-19 safety measures to reduce a wide range of risks. This includes implementation of a vaccination policy that clearly communicates employer commitments and expectations for employee safety,” said Keith.

BentallGreenOak sets record with Fitwel Viral Response

BentallGreenOak (BGO) received Fitwel Viral Response Certification for 50 of its office and retail assets in Canada, which represents the largest portfolio of commercial real estate properties in Canada to achieve the certification.

BGO’s managed portfolio includes the first buildings to achieve the Fitwel Viral Response Module (VRM) standard, located in Montreal, Winnipeg, Mississauga, Ont., and Gatineau, Que.

“Across Canada, BentallGreenOak’s investment management and real estate management teams have mobilized to deliver the highest standard of best practices and policies to our properties and the tenants who rely on us to enable a safe and healthy return to the workplace,” said Keith Major, managing partner and head of Canadian real estate management for BentallGreenOak. “We are investing in upgrades and adapting to the best science-driven guidance available to us to earn the trust of our tenants and become an active, engaged and empathetic partner in their return to our BGO-managed properties.”

Fitwel’s VRM was developed in coordination with leading public health experts and real estate companies to effectively address the unique challenges associated with COVID-19 pandemic and other infectious respiratory diseases.

The VRM allows building owners, companies, and commercial tenants to demonstrate compliance with evidence-based, cost-effective strategies that mitigate viral transmission and build trust to create healthy and resilient environments for all occupants.

BGO has been on the frontlines of driving property-level progress in confronting the challenges of COVID-19 through the firm’s involvement as an industry advisor and early adopter of these strategies.

“BGO’s continued progress in achieving VRM certification throughout its portfolio demonstrates an unwavering commitment to tenant health and well-being,” said Joanna Frank, president and CEO of the Center for Active Design. “We applaud BGO for understanding the important role property owners have in safeguarding occupant health and cultivating tenant trust.”

HQ Capital Real Estate announces rebranding

HQ Capital Real Estate, a U.S. real estate manager specializing in multifamily investments, announced it has closed on its transaction with Concord Pacific and Paragon Real Estate Advisors and has been rebranded to CP Capital.

The new partnership transfers the majority interest of the business to Concord Pacific and HB Management.

“It was a pleasure to work with HQ Capital through this successful transaction. We are delighted to have HQ as our ongoing partner to continue this wonderful venture on multiple dimensions. We are also convinced this partnership will create an enormous amount of synergy and value for our investors. The future of CP Capital will continue its anchor in the U.S. multifamily sector with added dimensions in Canada, Europe and Asia,” said David Ju, vice president at Concord Pacific.

Jon Breiner of Paragon Real Estate Advisors added, “The new partnership allows for the combination of a deep team of experts with vast knowledge and experience across all areas of the fast-evolving multifamily sector. We are incredibly excited to launch this new brand and look forward to working alongside CP Capital as it continues to generate strong returns for its clients and reinforce its position as a leader in the U.S. multifamily investment market.”

The management team remains in place and will continue to execute the company’s investment strategy and other operations. A newly formed board of directors will include members from all three companies under its new brand.

“We look forward to working together with Concord Pacific and Paragon Real Estate Advisors, who share our values as well as a strong understanding of the residential market. Their wide-ranging experience and capital positions us for long-term growth and will help us identify new opportunities for our investors and business partners. With this new partnership, we are well-equipped to build on our 30+-year track record of delivering attractive, risk-adjusted returns to our investors,” said Jeremy Katz, co-head of CP Capital.

Student housing in a post-COVID world

Fall is here, and university towns are about to get busy. This is great news for local business owners who’ve been fighting to stay afloat through the pandemic, but for residents wary of COVID-carrying newcomers, it’s nothing to rejoice about—and nor was it for the unlucky students who arrived to a barrage of “No Vacancy” signs.

“This is a real issue,” says David Hutniak, CEO of LandlordBC. “Finding suitable off-campus housing has been a serious struggle this year for post-secondary students, particularly in Victoria. In Vancouver, we’re not hearing about the same level of challenges as what we’re seeing in Victoria, but there is still a real need for more rental housing.”

Adding to the list of issues, University of Victoria’s long-held practice of guaranteeing on-campus housing to first-year students had to be put on hold due to uncertain provincial guidelines when the application process first opened. “Then there was the unexpected growth in UVIC’s student population, which now sits at roughly 20,000,” says Hutniak. “With close to 80 per cent of that number coming from outside Victoria—a city that’s had persistently low vacancy rates for many years prior to the pandemic—there’s simply not enough off-campus housing to fill the need.”

Hindered by nimbyism, municipal inertia, and what Hutniak refers to as “a city council that does not appreciate the significant costs and risks that go with building and operating rental housing,” rental developers and lenders have been hesitant to commit to future purpose-built rental developments. Additionally, the secondary market (i.e., basements suites and single-family homes) represents a huge proportion of the rental universe.

“We’ve seen shrinkage in that market as many homeowners with secondary suites or revenue properties have increasingly chosen to capitalize on the ridiculously hot sales market and sell,” he says. “Combine that with what appears to be an unfolding phenomenon that the new buyers of these homes are not interested in being landlords and there’s less of this rental than there used to be.”

Meanwhile, COVID posed additional challenges for landlords who were suddenly faced with an eviction moratorium, rent increase freeze, and constantly changing health and safety guidelines. When balanced against exponentially increasing costs, including taxes, insurance, utilities, and maintenance, it all conspired to push them out of the industry for good.

“When they looked at the risks and rewards associated with being a landlord, there were better places to invest their money without as many challenges,” Hutniak says. “This is a very concerning trend, especially in a small market like Victoria that’s so dependent upon the secondary market and not creating anywhere near enough new purpose-built rental.”

Student housing: the bigger picture

Rental housing shortages certainly aren’t confined to Western Canada, and some experts argue that more purpose-built student accommodations (PBSAs) are needed wherever colleges and universities exist. According to a recent market report by BONARD on behalf of Alignvest Student Housing, proportionately Canada has far less student-geared housing than other comparable nations, despite being one of the fastest-growing destinations for international students.

Exceeding both the U.K. and the U.S. in terms of annual growth, full-time enrollment in Canadian institutions has grown by 18 per cent since 2010/2011. In 2018/2019, the country hosted 2,155,425 post-secondary students in total, including 1,655,286 full-time, and all signs indicate it will continue to attract foreigners seeking a quality education.

“There is definitely room for more development,” says Trish MacPherson, Partner at Alignvest Student Housing. “Purpose-built student accommodations are highly desirable versus generic rental housing because they are tailored to students and typically located within a ten-minute walk of campus—or as we like to put it, the duration of three songs.”

Unlike generic apartments, PBSA buildings offer residents the opportunity for privacy and community, with single rooms in a shared suite ranging from two to six bedrooms. The student-geared amenities include common kitchens, laundry rooms, games rooms, bicycle sheds, car parking, outdoor areas, party rooms and gyms, and residents can choose en-suite or shared bathrooms depending on their budget and preference.

“The pandemic situation strongly affected student socialization, which is an important part of the added value offered at PBSAs,” says MacPherson. “Second-year students coming out of residence, or for those who missed out on the first-year experience in 2020/2021, will benefit from being close to school in a new building surrounded by their peers where they can access built-in services and supports.”

Though off-campus PBSAs are traditionally more expensive than on-campus and other non-commercial student residences, MacPherson says their added value is reflected in continued high occupancy levels and the ever-increasing interest shown by investors. Currently, Alignvest’s properties are over 95 per cent occupied, and all tolled, account for about 4,700 beds. Despite COVID, the company recently expanded with three major acquisitions since March 2021: THEO in Ottawa (507 beds), Preston House in Waterloo (310 beds) and Bridgeport House, also in Waterloo (485 beds).

Common room at THEO in Ottawa

“This is a stable, resilient sector that has really proven itself,” concludes MacPherson. “COVID created a lot of challenges, but students still wanted to be near each other, safely partaking in normal activities. Our properties were able to facilitate that.”

Whether it’s to offset housing need in areas lacking in rental units, or to deliver that coveted student-life experience, the consensus according to the BONARD report, is that the Canadian off-campus PBSA market is poised for growth: “Despite the prevailing uncertainty around the education sector over the past year, it is thought that Canada’s position as an established education market and its low student housing provision rate will allow the sector to grow substantially once the pandemic is curtailed.”

For more on Canada’s Student Housing Market, click here.

Seismic upgrades begins on Cambie Street Bridge

The Cambie Street Bridge is undergoing structural repairs as part of a complete seismic retrofit and upgrade, along with lighting upgrades.

Work will begin with the installation of new lighting along the bridge. This work will require small areas of the bridge to be intermittently closed as crews replace each lamp.

The main bridge deck work will start in early September and will require closing the sidewalk and cycle lane on one side. Walking and cycling access will remain in place on the non-working side of the bridge. During this early stage of work, drivers will continue to have two travel lanes in each direction.

Upcoming work includes:

Lighting upgrades;
Bridge deck repairs (September to December 2021);
South pedestrian staircase repairs;
Seismic upgrades under the south side of the bridge (August to spring 2022).

Built in 1985, the Cambie Street Bridge was constructed before the introduction of more stringent and comprehensive earthquake requirements in the Canadian Highway Bridge Design Code.

As such, Vancouver is planning a complete seismic retrofit and rehabilitation of the bridge to ensure it continues to offer a safe means of transportation for the public. Similar work has been underway on the Granville Bridge, which is scheduled to be completed by mid-September.

The Cambie Street Bridge deck work is scheduled to be completed in December 2021, and the work under the bridge is scheduled to be completed by end of spring 2022.

Canadian art installations win international award

Three Canadian public art installations in Vancouver, Edmonton and Toronto have won 2021 CODAawards. The international art and design competition recognizes outstanding projects that integrate commissioned art into interior, architectural, or public spaces.

This year, Jill Anholt Studio won in the transportation category and Marc Fornes/THEVERYMANY won in the institutional category. Dialogue 39 won in the People’s Choice category.

Transportation: Sea Change (North Vancouver, BC) by Jill Anholt Studio

Sea Change is an interactive light-based artwork that activates the pedestrian experience within a bus exchange transit tunnel in North Vancouver. The work celebrates the area’s connection to its waterfront by marking the location of the historic tideline within the site and by serving as a symbolic reminder of the importance of water to humanity.

Transforming a dark and menacing underpass into a dynamic and engaging experience for viewers, the artwork mimics the ephemeral and magical feeling of being immersed within a body of water as if light rays were penetrating an undersea world through water ripples above the tunnel.

Institutional: Agent Crystalline (Edmonton, AB) by Marc Fornes / THEVERYMANY

A streaking beacon resting where the sky meets the earth, Agent Crystalline perches in front of the Northwest Campus building of the Edmonton Police Center. Standing at attention to Edmonton’s Police Service, Agent Crystalline emphasizes a sense of vigilance and acuity through its graphic associations.

The work speaks assertively in the language of traffic. In the lexicon of traffic, hues that demand awareness are vital. The vibrant array strikes a balance between safety orange and a sweeter tangerine. Adopting the colouring of the construction offers the structure the ethos of protection and productivity; as well as a bold timeless feeling.

People’s Choice: YU Seafood Yorkdale Mall (Toronto, ON) by Dialogue 38

Yu Seafood restaurant is an established refined dining brand at the newly opened location in Canada’s premier luxury shopping centre. To appeal to the cultural diversity of the location, the design elements reflect a marriage of traditional and modern aesthetics. The space incorporates natural finishes to create a warm and inviting atmosphere.

LSE offering targets supported housing ventures

A new offering on the London Stock Exchange (LSE) is targeting £250 million (CAD $435 million) for supported housing ventures in the United Kingdom. Responsible Housing REIT has launched the initial public offering (IPO) with plans to acquire and develop a portfolio that will both generate sustainable investment returns and pioneer an alternative model for financing and delivering affordable, assisted housing.

“Responsible Housing REIT offers the opportunity to invest in a much-needed social resource where demand is on an upward trajectory,” says the REIT’s chair, Robin Minter Kemp. “This will be an impact-led strategy with a peer leading ESG framework that also offers an attractive dividend underpinned by inflation-linked income supported by sustainable rents.”

Three arms of BMO Asset Management will act as the investment, asset and property managers for the REIT. They promise a “fit-for-purpose” portfolio to accommodate a wide range of potential tenants including: adults and youth with learning disabilities, mental health issues, physical disabilities or addictions; the elderly; and other vulnerable individuals requiring long-term support or temporary housing.

Guy Glover, lead manager with BMO, describes the new REIT as “a new and compelling proposition for investors” that will help UK local governments fulfill their statutory obligation to provide housing for tenants in need.

“We have been engaging extensively with stakeholders in the supported housing community,” he reports. “The UK faces a shortage of suitable accommodation, underpinning our conviction in a strategy delivering a balance between all stakeholders to create a truly sustainable model.”

Reserve funds ignore climate target impacts

Canada signed into the Paris climate accord that sets targets for greenhouse gas emissions being 30 per cent lower than 2005 levels by 2030 and net-zero by 2050. Many of us believe this is a high-level statement that has no bearing on how condominiums are managed today. After all, 2030 and 2050 are a long way off and we have to tend to our day-to-day obligations, never mind those far into the future. Right?

Here’s the hard truth that many of us have not faced yet: our reserve fund studies with 30-, 45- and 60-year projections for expenses take us past the 2030 targets (just nine years from now) and smack dab into the 2050 net-zero emissions targets. How does this affect condominiums? Good question.

The condominium industry is not taking steps to prepare condo corporations for the inevitable effects of the targets. Buildings are one of the top sources of greenhouse gas emissions in Canada, so there’s no way condominiums will escape scrutiny. In 2019, buildings accounted for 12 per cent of emissions— more than the heavy industrial sector.

Net-zero is defined as our economy either emitting no greenhouse gas emissions or offsetting emissions. For condos, we only have to look at heating boilers and domestic hot water heating boilers, or any other gas burning appliance to find large emissions contributors. Did I mention the emergency generators?

Recently, we saw carbon taxes applied to natural gas and gasoline and we can only predict that these carbon taxes will increase as we get closer to 2030 and then again as we near 2050, making gas far too expensive for condominiums.

No longer is it reasonable to disregard the post-climate-target economy by choosing to ignore the foreseeable reality that natural gas will simply be too expensive for condominium owners to use as fuel. Today’s reserve fund expenses contain “like-for-like” costs that account for end-of-life replacement of various boilers. But looking forward, we can’t afford to simply accrue funds for replacing the current heating systems with newer gas-burning appliances. This means that our current projected replacement costs for gas-burning appliances is dreadfully underfunded.

Will it be electric boilers supported by geothermal heat storage? Deep water supply for cooling and heating? Renewable energy sources? It’s simply too soon to predict what we will replace our gas-burning, greenhouse-gas-producing appliances with. The question we should be asking is, “Is it too early to start accruing funds for the 2030 and 2050 new net-zero world?”

With just 29 years to accrue funds and search out new lower emission appliances and building systems, we should be having these conversations now. I will also bet that not a single reserve fund study in place today has taken the position to accrue funds for what will surely be an expensive change to alternate heating systems.

We should be asking our reserve fund planners to look at the Paris accord target dates and compare the end-of-life replacement of our gas-burning appliances against the target dates. As we near 2030, and again in 2050, we need to ensure that we are accruing funds that will leave us in a good financial position to look at alternate heating sources without placing the full burden on future residents.

Make no mistake, there is large international momentum around reducing greenhouse gas emissions. Close to 200 countries have committed to fighting climate change. Further, economic damage from the COVID pandemic has motivated governments to look at this as an opportunity to create high-value jobs in high-tech, engineering, and construction sectors. In the fall of 2020, the Canada Infrastructure bank announced a $2-billion initiative as one component of a $10-billion strategy to stimulate green economic growth to help meet Canada’s commitment to reduce emissions.

The choices are clear: do nothing and see the devastating effects on condominiums when they are forced to pay large sums of money (not accrued) to switch out gas-burning and greenhouse gas-emitting appliances or live with exorbitant carbon taxes, placing the cost of living in a condominium out of reach for most people. Or, prudent boards of directors can start accruing for the inevitable now so that funds are available when needed, thereby keeping the cost of living and the cost of purchasing a condominium affordable relative to neighbouring buildings today and in the future.

Let’s start by asking our reserve fund planners to address the 2030 and 2050 targets in the next reserve fund study update. We all better hurry; time is running out.

Murray Johnson is vice president of client operations at Crossbridge Condominium Services Ltd and the president of CCI Toronto.

Realtors scrutinize proposed blind bidding ban

Home buyers looking for a perfect home in markets with slim pickings are facing a deluge of election proposals that promise more affordable choices. One of the more contentious policies to surface over the past week is a subscribed end to blind bidding.

Last week, the Liberal government committed to criminalizing the process that blocks bidders from officially knowing specific details of other competing offers, but associations representing realtors disagree with the move.

The Canadian Real Estate Association said a ban is no magic bullet for affordability and would take away liberties for homeowners to sell the way they want. A response from TREBB echoes the sentiment, stating: “Punishing home buyers and sellers for wanting to keep their financial decisions private for the largest transaction of their lives is a substantial overreach of the government.”

David Oikle, president of the Ontario Real Estate Association, rebutted that the current reality of bidding wars is ultimately an issue of supply and the plan would have the opposite effect — “negatively impacting Canada’s housing market and making home ownership even more unaffordable.”

Contrary to popular belief, a ban wouldn’t necessarily equate to a cooler market, adds John Lusink, president of  Right at Home Realty. As he says, blind binding doesn’t create or impact the housing demand that already exists.

“It is a function of supply-side shortage and an increased demand, which is fueled by low interest rates, higher degree of savings, the continuing influx of foreign capital, and the “pandemic effect,” he says. “A major trend we are observing is that consumers are looking to move, whether it be to upgrade, downsize or take advantage of the current price points.”

Christopher Alexander, the EVP and regional director at RE/MAX, agreed, in a statement, that rising prices attributed to low supply and high demand have given sellers the advantage.

“While RE/MAX has advocated for a fair bidding process for all, the proposal to ban blind bidding with an amendment to the criminal code is concerning,” he said. “It pits homebuyer against seller and may even intensify the housing supply shortage, by putting sellers at a disadvantage and discouraging them from listing their home, creating even more competition in the market.

“In order to improve the affordability crisis, a newly appointed federal government needs to lead a collaborative national housing strategy across all levels of government, to create more homes for Canadians.”

Canada has the lowest number of housing units per 1,000 residents of any G7 country, a recent report from Scotiabank finds. This number has been declining since 2016 as the population intensifies. Richard Lyall, president of the Residential Construction Council of Ontario, recently said a “dire shortage” like this needs immediate attention or else it will derail economic recovery.

“There is a lot that could be improved at the local municipal levels such as reducing the red tape and the costs to develop new builds,” says Lusink. “It takes years to go from land acquisition through to actual construction and it requires an increasingly larger upfront investment.

“In some areas, municipal services and infrastructure have not been maintained or upgraded to the point where development is at a standstill due to lack of capacity. York Region is a perfect example. “[It] needs more sewage capacity to handle the current growth trends and ensure developments can continue in the coming years.”

Other key issues said to rock the housing market are speculation and foreign capital money laundering. Lusink points out that the Canada Revenue Agency, Financial Transactions and Reports Analysis Centre and Real Estate Council of Ontario have legislation in place that could support action on the matter, but have been “woefully inactive” and are “a major reason” these issues are pervading.

On the blind bidding front, when it comes to large-scale actions like a ban, the industry flags urgent gaps. Alexander states that federal candidates should reach out to localized real estate experts to gather a deeper understanding of how to remedy the affordability crisis.

Lusink says the Real Estate and Business Brokers Act Code of ethics has several rules to help the buying process unfold in a more clear manner; they just need to be better enforced and adapted to require agents to be more transparent. He points to a section of the code on “conveying offers,” which gives direction on how that process is supposed to occur.

“There are many tools agents are now using to assist in this process, but the challenge is that the consumer is often unaware and uninformed as to how this is supposed to be handled according to law,” he says. “This is where RECO has fallen well short both in their education of realtors as well as providing clarity and/or forcing agents to provide their clients with a clear and comprehensive overview of the rules and process.”

One outcome that would occur with a ban are open auctions, or what would become “a three-ring circus on front lawns,” as OREA President David Oikle suggested in his statement. He added that open offers are the norm in Australia and New Zealand—where competition can be rife with rush decisions and prices are still rising despite the regulation.

In Canada, open auctions of properties are already available and real estate agents already have the means to conduct open bidding, says Lusink.

“The issues that make this challenging are the current rules requiring all buyers and the seller to agree to sharing the terms of their offers,” he says. “Another approach that many brokerages already take is to have a manager handle the offer process, especially if the listing salesperson has their own buyer for the property as well. Government could provide some extra guidance around how multiple offers are managed by adding to or amending the existing legislation to beef up these procedural rules.”

How would a ban affect buyers and sellers of condos?

Foreign investors are flocking back to the new condo market where ownership is rising again in cities like Toronto, and even more in Vancouver.

“Students are returning to school; employers are calling their staff back to the office and this means the condo market is rebounding fast,” says Lusink. “There are also many developers who offer “turnkey” condo investments. This means they sell the new condo to a foreign or local investor who has never physically seen the property and they manage the rental process for a fee.”

That said, he notes that changing the blind bidding process isn’t going to impact this segment of the condo market; rather, it will affect only existing inventory on MLS.

Ontario proposes new RPP price-setting regimen

Electricity prices could become more responsive to fluctuating commodity costs if proposed regulatory amendments are adopted in Ontario. However, affected residential and small business customers won’t necessarily see a significant change in the customary billing practices since distinct rate schedules for the warm and cold weather months would still be implemented on May 1 and November 1 every year.

As proposed, the Ontario Energy Board would assess market conditions, prepare forecasts and set electricity rates for the low-volume customers covered by the provincial regulated price plan (RPP) once annually rather than on the current semi-annual timetable. To prevent any large discrepancies between the OEB’s price and the actual cost of electricity accumulating over that longer 12-month period, the proposed amendments would also authorize new price-setting if or when the variance hits a designated threshold.

“This threshold would be determined in consultation with the OEB to avoid the rate volatility that could occur due to the clearing of large variance account balances,” the summary of the proposed amendments states.

The Ontario government is accepting comments on the proposed changes until October 2, 2021. If adopted, the annual RPP price-setting regimen would be in place for the next planned rate change.

“New RPP rates would take effect each November 1st, beginning on November 1, 2021,” the amendment summary confirms. “Seasonal (i.e., summer and winter) time-of-use (TOU) hours, as well as the monthly consumption threshold that applies to residential RPP customers paying tiered prices, would continue to change each May 1st and November 1st.”

B.C. awards Highway 99 improvement contracts

Contracts for work on Highway 99 improvement projects on either side of the George Massey Tunnel in B.C. have been awarded. Work will begin later this year.

M2K Construction Ltd. of Coquitlam has been awarded a $12.8-million contract for construction of bus-on-shoulder transit lanes on Highway 99, south of the tunnel. The project includes the creation of southbound bus-on-shoulder transit lanes between Highway 17A and the Ladner Trunk Road off-ramp, and northbound from Ladner Trunk Road to the existing start of the high-occupancy vehicle lane on Highway 99.

The new bus-on-shoulder lanes will tie into dedicated transit lanes through the new tunnel to bring free-flowing transit across the river, improving the quality and reliability of public transit in the region.

A $5.28-million contract has been awarded to Lafarge Canada Inc. of Port Coquitlam for construction of the Bridgeport Road bus connection and improvements to the Highway 99/17A interchange. This new bus-only access will be created from Bridgeport Road to Highway 99 southbound. This will improve access to the highway for transit and make for a faster commute from Bridgeport Station and the Canada Line.

This contract also includes the creation of a new multi-use pathway from the Oak Street Bridge into the Richmond cycling and pedestrian network, improvements to the bicycle shuttle pullout on Highway 17A and improvements to cycling facilities along Highway 17A, including new ramp crossings and better connection into the existing network.

“Giving people options for commuting by improving transit and active transportation choices is a priority for the region,” said Minister of Transportation and Infrastructure Rob Fleming. “Combined with the new crossing to replace the George Massey Tunnel, we’ll improve traffic flow, manage traffic congestion and make travel by transit, walking and cycling more convenient and attractive along this section of Highway 99.”

The project to replace the Steveston Interchange is in the request for qualifications stage, with a request for proposals planned for early fall 2021. With a successful contract award, construction on the Steveston Interchange is anticipated to begin in 2022 and be complete in 2025. The new interchange will improve connections for vehicles, pedestrians and cyclists, while addressing the current bottleneck.

Canadian leader appointed to ISSA Residential Cleaning Council

ISSA, the worldwide cleaning association, has announced that it has appointed new members to the 2021-22 ISSA Residential Cleaning Council.

The Council represents the residential cleaning industry through the Association of Residential Cleaning Services International (ARCSI), a Division of ISSA.

This year’s nominees include one Canadian-based industry leader: Jill Barclay, owner of Goldstar Cleaning Services, based in Fernie, B.C.

Barclay founded Goldstar in 2003 as a housekeeping service provider to a group of property management companies, and the company has since grown to become a full-service cleaning company offering residential and commercial cleaning services.

“Over the last year and a half, professional house cleaning operations have faced new challenges related to cleaning and disinfecting against COVID-19, building trust among customers, protecting their staff members, and more,” said ARCSI Program Manager Erin Lasch.

“We are excited to welcome new faces to the Residential Cleaning Council. They will be instrumental in delivering value to ARCSI members, expanding membership, and changing the way the world views cleaning.”

Joining Barclay as 2021-22 members are:

Jarelle Flibotte, Cleaning by JMF LLC, Barre, Vt.
Pete Glavas, Maid Brigade of Alexandria, Alexandria, Va.
Jeannie Henderson, Jeannie Cleaning, Portage, Mich.
Katherine Lill, Tidewater Cleaning Service, Easton, Md.
Bruce Vance, Town & Country Services, Pittsboro, N.C.

“In addition to welcoming our new council members, we would like to thank our outgoing council members for their continued dedication to the residential cleaning industry at a time when programming, services, and education were needed most to help business owners and employees through the pandemic,” said ISSA Executive Director John Barrett.

Four global design trends impacting tile industry

Tile manufacturer Crossville has released its annual Design Trends Look Book. The digital publication showcases four macro trends that are presently influencing interior design, including accompanying tile collections that answer these trends in interior environments.

Looking at ongoing events in tandem with modern fashion, four notable focus areas are present in contemporary design: 1970s-inspired Bright and Bold, 1970s-inspired Bohemian Spirit, Bio-Feel-‘Ya, and Touch Points.

Bright and Bold – that 70s Show providing not only nostalgia and comfort but also creativity and play with lots of glossy, bold, and bright hues. Style goes prismatic—optimistic in colour, eclectic in pattern, liberal in mix of materials.

Bohemian Spirit – the “other side” of the 70s style, more earth-inspired with natural elements. This style is fluent, unconventional, and comfortable—an idyllic answer to work-from-anywhere sensibilities.

Bio-Feel-‘Ya – much more than just bringing the outdoors in; truly embracing a love for all things natural. Grounded in natural elements, this style converges interiors with the outside environment, creating spaces that are sensory and sincere.

Touch Points – all about texture and tactile experiences. Dimensional handcrafting and the character of touch are key components of experiential spaces.

These macro trends are researched and compiled by Crossville’s vice president of marketing Lindsey Waldrep. In developing the list, Waldrep employed a holistic perspective that considered broad societal and fashion influences that are guiding current aesthetics for both commercial and residential design.

She first presented her findings as part of a global trends presentation at the Coverings Expo in Orlando, Florida, on behalf of the Tile Council of North America.

Concerns as new mortgages jump to record high

New mortgage volumes climbed to more than 410,000 during Q2, the highest volume ever recorded in a single quarter. This is a 60.2 per cent increase compared to the same period in 2020, according to Equifax Canada’s most recent consumer credit trends and insights report.

Soaring home prices have also increased the average loan amount for new mortgages to more than $355,000, a 22.2 per cent increase from Q2 2020.

B.C. saw an exceptional increase in new mortgage volume during the second quarter with a year-over-year increase of 85.7 per cent. Apart from a strong housing market, seasonality and refinancing also played a big role. High mortgage growth and low interest rates have helped home equity lines of credit (HELOCs) rebound. New HELOC volume increased by 56.7 per cent when compared to Q2 2020 — the highest it has been in the last ten years.

Analysts are voicing their concerns about the variable rate of HELOCs and mortgages.

“The HELOC trend is worrisome as often the payments are tied to a variable interest rate,” said Rebecca Oakes, AVP of Advanced Analytics at Equifax Canada. “In 2018 when interest rates went up, we saw a drop in credit card payments, especially among consumers with a HELOC. It also led to higher bankruptcies among older consumers with HELOCs.”

Another concerning trend Oakes points to is the amount of mortgage debt being taken on by consumers with lower credit scores. These consumers form a small percentage of all new mortgages (10 per cent), but their average loan amount has increased at the same rate as consumers with higher credit scores.

With uncertain times due to the pandemic still ahead, these consumers could find themselves less equipped to manage future additional financial stress. Adding to the concern, according to Oakes, is the rate of inflation, up 3.7 per cent in the last 12 months, which is the highest annual increase since May 2011.

“Prices for consumer goods have risen and if the inflation trend continues, there is potential for an earlier-than-planned interest rate increase to curb this,” she said. “With many consumers now heavily leveraged and the potential for increases on variable rate mortgage and HELOCs, consumers may find themselves not in a position to pay back their debt obligations if interest rates rise. This can lead to higher insolvencies.”

Consumer debt stands at $2.15 trillion

Overall consumer debt now stands at $2.15 trillion, driven by considerable mortgage growth. This is up 3.0 per cent from last quarter and up 7.5 per cent from Q2 2020.

New credit card growth is also picking up pace, doubling the volume seen a year ago when demand was at its lowest.

Despite deferral programs ending, delinquency rates dropped from Q1 2021. Government support and increased disposable income are still helping consumers pay off their debts and improve their credit score. The average Equifax credit score for consumers increased by 12 points in the last two years.

“Lower delinquencies are a good thing, however, insolvency volumes are higher this quarter than the lows of last year,” said Oakes. “We may see surprise insolvencies occur where consumers with no delinquency history on file and a decent credit score end up filing without warning.”

What are the cost savings of efficiency retrofits?

Ask any condo owner in the GTA or in any major city across Canada and they’ll unanimously list astronomical monthly maintenance fees as among their biggest concerns with condo ownership. Add higher vacancy rates as a result of COVID-19 and these high fees also become a major issue for condo boards and building owners, all trying to find a way to reduce or optimize costs that will inevitably be passed down to tenants.

One of the greatest contributors to skyrocketing maintenance fees is inefficient or outdated infrastructure in aging buildings—a preventable expenditure when properly managed. From old boilers providing insufficient heating, to high prices for lighting and bulb replacements, energy inefficiency is a major—and expensive—problem for building owners, and ultimately tenants.

But fixing these issues isn’t always an easy task. Various studies have indicated three main reasons for condo boards/building owners not implementing these efficiency retrofits: lack of capital, certainty of return (risk), and capacity to implement these retrofits in a comprehensive way.

The first issue of capital availability is well known – capital is needed to maintain building assets and fund their repair or replacement – something older condo buildings often lack as they prioritize spending on more urgent repairs and immediate tenant needs, leading to a vicious cycle of disrepair and deferred maintenance. The cost to maintain this cycle is subsequently passed down to condo owners and tenants through increased maintenance costs to help raise the required funds.

The second issue of risk is specific to the category of efficiency retrofits. Every condo dweller and building owner can relate to at least one instance of how a retrofit never achieved the savings it was supposed to achieve. This is partly a function of overzealous (and very avoidable) selling and partly a function of a common baseline. Savings need to be measured properly and in comparison to savings generated in previous years – if this baseline is not measured correctly, there can be very different interpretations of savings.

The third major issue is capacity. Most condos and other buildings are managed by a property manager who has limited capacity to undertake comprehensive retrofits. While it is common practice to fix a broken equipment or replace a non-working bulb, very few buildings even think of undertaking comprehensive retrofits because of this issue.

One way to overcome these issues and prevent increases to maintenance fees—or even decrease these costs for tenants in some cases—is through energy efficiency retrofits. Condos can generate both immediate and long-term value in their buildings, leading to potential savings for everyone involved by partnering with a third-party company that invests, develops and maintains efficiency retrofit projects. This value generation happens because these companies invest all the capital needed for the retrofit, guarantee savings to the condo/building owner and complete a ready-to-go installation. There is a natural in-built check and balance mechanism in this arrangement because the company gets paid only when savings are generated.

When managed, implemented and measured appropriately, comprehensive efficiency retrofits can reduce operating expenses by anywhere between 15-40 per cent, using modern equipment and automation to optimize energy usage. This efficiency leads to lower utility costs through lower energy consumption, cleaner buildings and increased comfort for owners and tenants—all the while reducing greenhouse gas emissions by about 20 per cent or more to support the environment.

By replacing outdated equipment, these investments also reduce the heavy fees needed to increase capital reserves. Savings can then be passed on to unit owners through reduced fees and/or building capital can be reinvested into upgrading amenities and shared spaces.

Efficiency retrofits can also help condos become more competitive in an ever-shifting market. Upgraded equipment creates safer, cleaner and healthier spaces through improved ventilation, lighting and heating/cooling systems, making condos brighter overall for possible tenants and ultimately adding value to the space.

Reinventing savings into the building also brings a competitive advantage through a fresh, modern design upgrade, or the installation of new, coveted amenities. The idea of living in a “green” or environmentally-conscious building has become not only sought after but expected —should buildings forego energy efficiency as a priority, they risk losing out on environmentally-conscious consumers looking to rent or to invest in a new space.

Chandra Ramadurai is the CEO of Efficiency Capital. Chandra brings over two decades of experience in sustainable energy, banking and investment management in Canada, the U.S., Europe, the Middle East and India. He has led or been part of various investment deals worth billions of dollars. Previously, he was the CEO at IT Power, one of the world’s oldest clean energy companies based in the UK and has held senior-level positions at Suzlon Energy, a large wind energy company, Cemex, a Fortune 500 company, Standard Chartered Bank and PWC. Efficiency Capital is a performance-based investment solutions provider that upgrades the energy and environmental performance of buildings with no upfront cost to the owner.

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