Vestcor forges further bond with Crown Realty

Vestcor Inc. has acquired a minority interest in Crown Realty Partners, further advancing the relationship between the real estate investment manager and public sector pension plan administrator. Vestcor, which is jointly owned by the New Brunswick Public Service Pension Plan and New Brunswick Teachers Pension Plan, is already an investor in Crown’s limited partnership funds.

“We anticipate that this strategic relationship with Vestcor will strengthen Crown’s ability to be the manager of choice for institutional investors in commercial real estate,” submits Les Miller, a managing partner with Crown. “An institutional partner also reinforces Crown’s commitment to its fiduciary duties, good governance and ESG.”

Miller and fellow operating partners — Jamie Christie, Mark Dimmell, Emily Hanna, Gary Summers and Scott Watson — will continue to hold the majority of Crown’s shares.

“We are pleased to partner with such an experienced team,” says Dan Goguen, vice president, private markets at Vestcor. “Crown, with its value-add focus, is well positioned to benefit from potential dislocations in the commercial real estate market. We look forward to a long-term relationship of continued success.”

Vestcor currently oversees about $19 billion in assets under management, providing administrative services to 15 public sector pension plans and four employee benefit plans.

Leckie Studio earns Emerging Architectural Practice Award

Leckie Studio Architecture + Design, a Vancouver-based firm, is the recipient of the RAIC Emerging Architectural Practice Award for 2021.

Founded in 2015, Leckie Studio is a 20-person practice, led by principal architect and founder Michael Leckie.

The studio is understood as a vehicle for creative speculation — expanding the boundaries of traditional architecture practice through research, client commissions, and self-initiated projects that combine practice with creative entrepreneurship. Rooted in a rigorous architectural methodology, the work of Leckie Studio spans a range of scales and typology – including buildings, installations, product design, and environmental design.

The studio’s current portfolio is intentionally diversified in both typology and scale across Canada, the United States, and Mexico. Leckie Studio’s design philosophy is deeply rooted in mindfulness practice and an essentialist approach to life and work.

A selective sample of their architectural work includes:

UBC Arts Student Centre, Vancouver (photo above)
Camera House, Pemberton
Ridge House, Portland, OR
Full House, Vancouver.

“In a short time, Leckie Studio Architecture + Design has produced a diverse collection of exquisite projects which demonstrate their extraordinary commitment to regionalism and their skillful understanding of materials, all evidenced by the enthusiastic support of their clients. Their work demonstrates careful attention to craft, materiality, and the specificity of place. The various projects enter an elegant dialogue with nature, and the use of wood contributes to this integration,” said the jury.

The RAIC Emerging Architectural Practice Award was established to recognize an emerging architectural practice that has consistently produced distinguished architecture.

The award recognizes the achievements of the practice for the quality of their built work, service to their clients, innovations in practice, and public recognition. Eligible firms need to be practicing and licensed in Canada, and they can be no more than 10-years-old. This is to celebrate exciting new voices entering the architectural landscape of Canada.

Combatting Legionnaires’ disease in water restoration jobs

An unusual outbreak of a pneumonia-like lung infection caused by a previously unknown bacterium occurred in July 1976 among people who went to a convention of the American Legion in Philadelphia, Pennsylvania. A total of 182 people were infected, and 29 of those cases were fatal. The spread of the bacterium appeared to be airborne. This illness eventually became known as Legionnaires’ disease.

Legionnaires’ disease is a severe form of pneumonia-type lung inflammation usually caused by a bacterium known as Legionella, which infects the respiratory system if it is inhaled. Legionella is a type of bacterium found naturally in freshwater environments, like lakes and streams. Once Legionella bacteria is protected by a biofilm, it is difficult to destroy and can become aerosolized. It becomes a health concern when it grows and spreads in human-made building water systems such as:

Showers, showerheads, and sink faucets
Sump pumps and sump pump pits
Cooling towers (structures that contain water and a fan as part of centralized air cooling systems for building or industrial processes)
Hot tubs that are not drained after each use
Decorative fountains and water features
Hot water tanks and heaters
Large plumbing systems and pipe dead legs
Evaporative coolers
Nebulizers
Humidifiers
Windshield washers
Central air conditioning drip pans and condensation outlets
Ice-making machines
Misting systems typically found in grocery-store produce sections.

Ongoing issues with Legionella bacteria

Unfortunately, during the ongoing coronavirus pandemic, many buildings were completely closed or shut down. One result from building shutdowns and vacancies is that stagnant water could be present in the buildings’ water systems and water sources, which can lead to Legionella bacteria outbreaks.

After Legionella bacteria grows and multiplies in a building’s water system, water containing this bacteria can spread in droplets tiny enough for people to breathe in. People can be infected with Legionnaires’ disease or Pontiac fever when they inhale small droplets/aerosolized water or contaminated soil that contains the bacteria.

Occasionally, people can get sick by aspiration of drinking water containing Legionella bacteria. This happens when water accidentally goes into the lungs while drinking. People at increased risk of aspiration include those with swallowing difficulties.

In general, people do not spread Legionnaires’ disease and Pontiac fever to other people; however, this may be possible under rare circumstances.

Legionella bacteria and the restoration industry

In the restoration industry, the Institute of Inspection Cleaning and Restoration Certification (IICRC) is the organization that sets the restoration industry’s standards and practices. The IICRC’s standards and practices ensure every water mitigation and remediation project is completed safely and correctly. There are three levels of water sanitation when approaching a water restoration job:

Category 1: “Clean water” is from a source that poses no substantial harm to people. Water that overflowed while running your bath water or leaked from a supply line for an ice maker, dishwasher, or clothes washer are good examples. This assumes that the surfaces being flooded are reasonably clean. Flooding from clean water is usually treated by extracting standing water. Air movers are set up to create evaporation and dehumidifiers to remove the moisture from the air. After 48 hours, a Category 1 can become a Category 2.

Category 2: “Gray water” poses health risks due to significant levels of contamination of bacteria, mould, and/or chemicals. This includes dirty water from washing machines and dishwashers, as well as leaks from water beds, broken aquariums, and urine. The water restoration technician should wear some personal protection equipment (PPE). The carpet padding is usually removed and replaced because its sponge-like structure offers the perfect environment for bacterial and mould growth. A Category 2 can become a Category 3 situation if left untreated for two days or more due to rampant bacterial breeding and microbial growth.

Category 3: “Black water” contains disease-causing organisms, toxins, is grossly unsanitary, and is a biohazard. Typical black water conditions occur from a sewer backup, a broken toilet bowl containing feces, and rising floodwaters. (Rising floodwater is considered Category 3 because of the possibility of chemicals and organisms found in lawn chemicals, fertilizers, animal feces, decaying ground debris, and overfilled sewer and septic systems.) Serious diseases are likely to be present in rising floodwaters. The water restoration technician must wear full-body PPE. Affected objects such as carpet, padding, and Sheetrock must be removed and disposed of safely and properly. A virucide, biocide, and/or fungicide must be applied to kill microorganisms on site.

Regarding Legionella bacterium, a person might assume an ordinary freshwater source, such as a hot water heater, shower leak, fountain leak, HVAC condensation line, or sprinkler pipe system, might be a Category 1 water damage restoration project. However, if the water source has been stagnant for several days, weeks, months, or years, it may contain Legionella bacterium, which is considered a biohazard. This can be the case for both commercial and residential buildings.

As a result, the assumed Category 1 freshwater source could actually be a Category 3 water damage restoration project. A new plan of action, preparation of personnel, and safe execution of the project must now be properly implemented to protect workers and occupants.

Best practices for water restoration

Here are some best practices for water damage restoration projects with a possible Legionella bacteria contamination:

Always assume the freshwater source is contaminated unless testing is completed for safety.
Commercial and residential properties that were vacant or shut down for some time need to be inspected and have sample swab or bottled testing of the water sources. Sample testing can occur onsite with the correct testing kits.
Once the water testing results are completed, then the proper plan of action and remediation occurs, personnel are prepared and instructed, and PPE is implemented.
Documentation, including creating building sketches, floor plans, building diagrams, emergency evacuation maps, emergency shut-off locations, pictures, videos, water testing results, and data logs, are necessary.

These best practices will help safely plan and execute commercial and residential water damage restoration projects that may involve Legionella bacterium.

Jon A. Barrett is the marketing manager of SERVPRO of Blackwood and Gloucester Township, N.J., which is a veteran-owned small business, an independent franchise, and a registered government contractor. Barrett has over 30 years of remediation and restoration cleaning experience in the government, industrial, manufacturing, commercial, residential, and insurance industry sectors. He is a Certified Mould Remediator (CMR) and has certified training from (OSHA), the EPA, The Institute of Inspection, Cleaning and Restoration Certification, American Bio Recovery Association, EMSL Analytical Inc., Chilworth Technology Inc., Criterion Laboratories Inc., and the International Kitchen Exhaust Association.

This article originally appeared in Cleanfax Insider, part of ISSA Media.

BOMA Canada pilots smart buildings certification

The Building Owners and Managers Association of Canada (BOMA Canada) has launched the BOMA BEST Smart Buildings Certification Program’s Pilot Project.

This certification sets a global standard for how smart buildings are measured, while also providing users with a roadmap to drive further asset enhancement and investment.

BOMA BEST Smart Buildings aims to drive tenant experience, sustainability and the bottom line by considering six key indicators: artificial intelligence; cyber and physical security; data management; connectivity; health and well-being; and sustainability.

“BOMA BEST Smart Buildings fills a gap in the market,” said Thano Lambrinos, vice-president, smart building technology and digital innovation at QuadReal and chair of the BOMA BEST Smart Buildings Advisory Council. “Nothing exists quite like this exciting new program which is poised to organize and standardize the very notion of a smart building and, thereby, enable us to measure how our buildings are performing, and how they can perform in the future.”

Drawing on BOMA BEST Sustainable Buildings, which includes 3,100 certifications around the world, the program will kick off with more than a dozen premier buildings across North America as pilot certification sites. They include:

Avison Young – 390 Bay Street, Toronto;
BentallGreenOak – Sun Life Financial Centre, Ottawa;
Dream – 80 Richmond Street West, Toronto;
Epic Investment Services – TBA;
GWL Realty Advisors – The Livmore, Toronto;
Ivanhoé Cambridge – Place Ville Marie, Montreal;
Morguard – Penn West Plaza, Calgary;
QuadReal Property Group – 745 Thurlow, Vancouver;
Triovest – Gateway Centre, Mississauga; and
USAA Real Estate – 9830 Colonnade Blvd, San Antonio.

“Like everything we do, this program really is by the industry, for the industry, and the fact that we have some of the biggest commercial real estate companies in the world lining up to support it speaks volumes about the value we expect to deliver to our membership,” said BOMA Canada President and CEO Benjamin Shinewald .

Dumas named president, CEO of WSP Canada

Marie-Claude Dumas has been named WSP Canada’s new president and CEO, replacing Ryan Brain.

“After witnessing firsthand, the undeniable talent and level of expertise of WSP in Canada over the past year, I am proud to continue to work alongside the Canadian leadership team as we pursue the organization’s strategic ambitions to further our client centric approach and people development initiatives,” said Dumas.

A member of the Ordre des ingénieurs du Québec, Dumas brings a proven track record as a global engineering and senior construction executive with more than 20 years of consulting and multi-disciplinary management experience.

Prior to this appointment, Dumas held the role of global director, major projects & programs/executive market leader – Quebec for WSP, a role she began in January 2020. In her previous role, she was responsible for the performance and positioning of WSP’s major projects, project managers and programs on a global scale.

In addition to her role as president and CEO of WSP Canada, Dumas will serve as the global leader for inclusion and diversity for WSP.

According to the company, Dumas’ track record both in the Canadian and global market, as well as the calibre of her work in her time at WSP, make her the ideal industry leader to navigate WSP Canada through this time of transition, as the company welcomes the team from Golder to its thriving operation.

“As we have entered the last year of our strategic cycle, we are confident that Marie-Claude’s extensive technical background, combined with her track record in major project delivery, will set the foundation for sustained growth at WSP in Canada, in addition to capturing the benefits offered by the Golder acquisition,” said Alexandre L’Heureux, president and CEO of WSP.

Manitoba tax rebate comes with rent freeze

Rental housing landlords in Manitoba will receive a 25 per cent rebate on education property taxes this year, representing the first step in a provincial promise to remove education costs from the property tax base. As announced in the recently released 2021 Manitoba budget, that comes with a halt on allowable rent increases until 2024 in order to ensure that tenants can capture flow-through benefits from the resulting operational savings.

“If material improvements are made to a property, landlords will still be able to apply for an above-guideline rent increase,” the budget document advises. “The education property tax rebate amount received by landlords will be considered prior to approving an above-guideline rent increase.”

The Manitoba government estimates about $248 million from the education levy will be returned to taxpayers this year through 25 per cent rebates to residential/farm ratepayers and 10 per cent rebates to commercial/industrial ratepayers. Tax filers can also still claim existing education property tax credits, but eligible amounts will be reduced by 25 per cent.

Education property tax has additionally been frozen at 2020 levels in tandem with the government’s commitment for an extra $23 million in grants to the province’s various school districts. Ultimately, school districts will give up their taxing authority when the government fully implements its plan to directly fund education.

“Manitoba is the only Canadian jurisdiction that determines school taxes at the local level, which creates an uneven playing field across the province,” Manitoba Premier Brian Pallister noted earlier this month as he outlined the plan. “As we phase out the education property tax, we will ensure a more equitable system is in place to fund Manitoba’s education system and support students.”

Residential/farm ratepayers are also promised a 25 per cent rebate on their 2022 education property taxes, but the budget document is silent on future considerations for commercial ratepayers. For 2021, it explains that the latter group is receiving a proportionally smaller refund due to other offsetting factors including: various new business tax measures in the 2021 budget; the nearly $500 million that has been available through “broad-based and accessible business support programs in response to COVID-19”; and the fact that education property tax is a deductible business expense.

Meanwhile, the budget document presents two slightly different rationales for the two-year freeze on allowable rent increases — linking it to the tax rebate for landlords and framing it as COVID-19 relief. “The annual rent guideline will now be frozen through 2022 and 2023 to help Manitoba renters catch up after the pandemic,” Manitoba Finance Minister Scott Fielding stated in his budget speech.

Elsewhere, the budget document demonstrates the rough equivalency of landlords’ rebates and the savings tenants will realize through the two-year freeze on allowable rent increases, even factoring in the 25 per cent reduction in tax credits that tenants can claim. Applying a 1.6 per cent increase (the allowable amount for 2021) tenants currently paying monthly rent of $1,200 would have seen it rise to $1,219.20 in 2022 and to $1,238.71 in 2023.

The provincial government has pledged to redirect $11.6 million that otherwise would be channelled to education property tax credits into its Rent Assist program to help low-income renters obtain housing in the private market. In total, an additional injection of $22 million is budgeted for the program for 2021-22 , which Finance Minister Fielding describes as “the most generous such program in Canada”. As of March 2021, 7,945 households were enrolled.

“Rent Assist recipients will see an increase in their benefits between 2.4 per cent and 11 per cent, depending on the composition of their household,” Fielding reported in the budget speech.

Are carbon labels coming to professional cleaning?

Shoppers increasingly scrutinize nutrition labels, selecting products that for instance are low in sodium or artificial sweeteners.

But now, and possibly just in time for Earth Day 2021, consumers are scrutinizing product labels looking for another metric: the carbon footprint of a product.

This was the conclusion of Unilever, manufacturers of Dove Soap. According to a recent report in the Wall Street Journal, the company says they found that “brands perceived as sustainable have grown faster than those that aren’t.”

In the past couple of years, several other companies have started putting carbon labels on their products. These include Quorn, a meat substitute; Country Crock butter; restaurant chain Just Salad; L’Oreal; and Logitech International, manufacturers of computer keyboards.

“When a company puts a ‘carbon label’ on one of their products, it’s an assessment of the carbon [greenhouse] emissions released by the product, essentially from the cradle to grave,” says Steve Ashkin, America’s Father of Green Cleaning, and the cleaning industry’s leading advocate for sustainability. “View it as an environmental impact score.”

According to Ashkin, expect more sustainability-focused companies to provide information on the carbon impacts of their products, “especially if these companies find it spurs sales. Then it becomes a win for the company, the consumer, as well as the environment.”

There are, however, some challenges along the way.

For instance, currently, there are no standardized methods to substantiate the carbon emissions of a product. However, the European Union is starting to develop such standards.

“What’s most important is that these standards be accurate,” adds Ashkin. “We can’t have guestimates. Consumers must be confident in the metrics from the start.”

As to carbon labels being placed on cleaning solutions, Ashkin believes that will be coming soon.

“Many cleaning solutions in the professional cleaning industry perform about the same and cost about the same,” he says.

“Carbon labels on cleaning solutions are a differentiator and could shift the way industry professionals select products, similar to the way nutrition labels have changed consumer buying habits.”

The future of green building is retrofit

Canada has set its sights on significant carbon reductions by 2030 and complete decarbonization by 2050. Such ambitious goals will no doubt change how Canadians live, work and get around. As a result, the transition to a low-carbon economy creates apprehension in some, but in others, it drives anticipation of the potential for innovation and economic growth.

Canada’s building sector has the potential to benefit from such a shift. Today, buildings account for about 30 per cent of Canada’s carbon emissions when building operations, construction and materials are considered. It ranks among the top sectors for carbon emissions reduction and as such, is a significant target for policy makers and, increasingly, investors through sustainable finance mechanisms. Over the years, many reports have shown that buildings represent the low hanging fruit when it comes to carbon emissions and it is the only sector where improvements go hand in hand with positive returns on investment.

However, new green building construction alone won’t deliver on Canada’s 2030 greenhouse gas (GHG) reduction targets. CaGBC research found that national targets can only be reached if the emissions from the large existing institutional, commercial, and multi-residential buildings are reduced at scale. While builders and developers are increasingly adopting green building approaches, owners and managers are not yet broadly retrofitting existing properties at a level that would yield meaningful carbon emissions reductions. Increasing the scope, scale, and speed of improving the carbon performance of existing buildings is crucial.

To slash building sector GHG emissions by 17 per cent below 2005 levels, Canada would have to have constructed all new large buildings to zero carbon performance starting in 2017 and through to 2030. In the same time frame, the industry could capture a maximum 51 per cent reduction by retrofitting existing buildings to low carbon.

Smart investments

As pressures to meet mandated carbon targets by 2030 and 2050 increase, the cost of inaction will continue to grow. The Supreme Court ruled in favour of the federal government’s carbon pricing plan on March 25, which will increase the price of carbon to $50 per tonne in 2022 and $170 by 2030. Further, every new building that is not built to zero carbon today will inevitably require major investments to upgrade its mechanical equipment, ventilation system, and potentially building envelope in the next 30 years.

With the right market signals and incentives, Canada can create a retrofit economy now that would yield skilled jobs for the Canadian economy, operational savings from energy and carbon reduction and better, healthier buildings for Canadians. The recent allocation of $2 billion from the Canada Infrastructure Bank for building retrofits, for example, provides a pathway for financing large scale renewal of existing buildings. Industry-trusted standards, methodologies, and certification will have to come into play to verify performance and ensure we are making progress.

Tools such as the Investor Confidence Project (ICP), and its Investor Ready Energy Efficiency (IREE) certification are helping secure financing to support much-needed energy efficiency upgrades. ICP provides a global underwriting standard for the evaluation of energy efficiency retrofit projects, with the IREE certification providing a third-party assessment that gives investors the confidence that energy savings will materialize. Projects such as Efficiency Capital’s retrofit of WoodGreen Community Housing show how innovative investment approaches can fund much-needed improvements to unlock utility and carbon savings.

Zero carbon closer than presumed

While relatively new in the market, the Zero Carbon Building Standard has received tremendous interest as the building sector looks for ways to eliminate carbon. The standard applies to new and existing buildings and balances the rigour required to ensure zero carbon performance with the flexibility needed to encourage widespread adoption. As a result, a variety of building types and sizes target and achieve zero carbon—from office towers to fire halls and warehouses— across the country. Such divergent projects prove that zero carbon is within reach for existing buildings.

Green building continues to advance new solutions and drive innovation to create the low carbon building stock needed in the future. However, it is the owners and operators of existing buildings and investors that will ultimately have the most significant impact on whether Canada will meet its carbon reduction targets. Reduction of carbon emissions of 30 per cent or more across entire portfolios are required. Owners are well advised to develop investment plans to make that happen over the next 10, 20 and 30 years to address climate risk and improve resiliency of their building stock.

Thomas Mueller is the president and CEO of the Canada Green Building Council.

GTA vacancy rate continues to climb

The GTA vacancy rate reached an all-time high in Q1-2021 according to a new survey by Urbanation looking specifically at purpose-built rental apartment projects completed since 2005.

Rising to 6.6 per cent by the end of Q1-2021, the GTA vacancy rate has climbed from 5.7 per cent in Q4-2020 and 1.1 per cent in Q1-2020. In the City of Toronto, vacancy rates increased to 8.8 per cent in Q1-2021 from 7.3 per cent in Q4-2020 and 1.1 per cent in Q1-2020. Meanwhile in the 905-region, vacancy rates remained low at 1.5 per cent.

“The rental market will continue to contend with COVID-19 as the third wave keeps the GTA in a lockdown during the second quarter,” said Shaun Hildebrand, President of Urbanation. “However, market dynamics were set in motion in the first quarter to generate strengthening rental conditions as the year progresses—particularly later in the second half as the population becomes vaccinated, offices start to reopen, immigration rises, and post-secondary students potentially return to in-class learning. These variables are obviously subject to change and dependent upon exogeneous factors, but as each day passes and housing prices get more expensive, the upside for the rental market rises.”

Methodology

Urbanation’s vacancy calculations exclude buildings still in their initial lease-up period, regardless of how long they have been on the market. This differs from the methodology used by CMHC when calculating vacancy rates, which includes all buildings that have been on the market for at least three months. When applying the CMHC methodology, Urbanation’s survey reveals a vacancy rate of 13.0 per cent at the end of Q1-2021 in the GTA (16.5 per cent in the City of Toronto) for buildings completed since 2005, which compares to a vacancy rate of 8.3 per cent in the GTA (9.5 per cent in the City of Toronto) published by CMHC in their October 2020 survey for the same set of buildings. When examining historical CMHC data back to 1990 for newer buildings, the latest rates of vacancy surveyed by Urbanation represent a record high for the GTA.

Widespread incentives

Average rents for available units within buildings completed since 2005 in the GTA were $2,278 ($3.14 per square foot) during Q1-2021, declining 8.2 per cent (-5.3 per cent per sf) year-over-year. In the City of Toronto, rents were down 10.1 per cent from a year ago to $2,331 (down 7.7 per cent on a per sf basis to $3.41). The decline in rents was additional to widespread incentives being offered in the market. About two-thirds of buildings were offering free rent periods of one to three months to attract new tenants. Urbanation calculated that these free rent periods were equal to a rent reduction of approximately $255 per month when averaged over the course of the initial lease term.

Condo rentals

Condominium lease transaction activity reached a Q1 high of 11,928 units, up 70 per cent from a year ago. Importantly, Urbanation points out that total condo rental listings fell 12 per cent, quarter-over-quarter, which helped the ratio of quarterly condo leases-to-listings improve to a pandemic high of 61 per cent—still 10 percentage points below the 10-year average but reaching the lower boundary of a balanced market.

In a sign that the urban rental market may be starting a comeback, the City of Toronto outperformed the 905 region in terms of annual growth in lease activity in Q1 by a wide margin of 78 per cent versus 46 per cent.

Evidence of a bottoming-out for rents appeared in the first quarter data. On a quarter-over-quarter basis, average per sf rents decreased 1.4 per cent—a significant improvement compared to the 7.5 per cent quarterly drop recorded in Q4-2020. Furthermore, average monthly rents increased month-over-month in both February and March (each by more than 1%), suggesting that the market reached its low in January at about $2,000 and is already on the path to recovery.

At an average of $2,037, condo rents in the GTA were down 14 per cent year-over-year in Q1. In the City of Toronto, average rents declined 16.2 per cent year-over-year to $2,033, falling below the 905 average of $2,053 (down 6.7% year-over-year) for the first time ever. On a per square foot basis, rents remained higher in the City of Toronto than in the 905 at $2.98 versus $2.67.

GTA rental supply pipeline reaches 100,000 units

New rental construction activity slowed over the past year, but long-term planning for purpose-built rental development continued to escalate. A total of 1,009 new rental units started construction in the year ending Q1-2021, down 73 per cent from 3,735 starts in the year ending Q1-2020. The number of purpose-built rentals under construction across the GTA as of the end of Q1-2021 totaled 13,563 units, which was down slightly from a year ago (13,863) but more than twice as high as the level from five years ago in Q1-2016 (5,833 units). The total number of proposed purpose-built rental units that haven’t started construction reached a recent high of 86,683 units—34 per cent higher than a year ago (64,757 units) and bringing the total pipeline of rental units under construction and planned in the GTA to over 100,000 units.

For the complete report, visit: Urbanation |

No electricity rate reprieve with this lockdown

Ontario’s latest COVID-19-related stay-at-home imperative has not come with an electricity rate reprieve for residential and small business customers. However, the Ontario Energy Board (OEB) has extended the annual prohibition on electricity shut-offs during the cold months to cover much of May. This ensures residential customers with hydro bill arrears will be protected against disconnection for the duration of lockdown measures.

Time-of-use (TOU) and tiered electricity rates for customers on Ontario’s regulated rate plan (RPP) were frozen at 8.5 cents per kilowatt-hour (kWh) for the first seven weeks of 2021, but returned to the intended rate schedule with the easing of provincial public health control measures on February 23. Those rates have remained in place — with peak-time TOU costs of 17.6 cents/kWh and mid-peak costs of 11.9 cents/kWh — despite the subsequent imposition of COVID-19-related restrictions in early April.

With Ontarians once again asked to stay at home as much as possible, the OEB is now promising indebted residential customers that they can count on continued electricity service for awhile longer. Normally, electricity distributors can deliver disconnection notices April 16, thus providing the required 14 days of advance notice prior to April 30 when the annual disconnection ban comes to and end.

This year, electricity distributors have been directed to serve notices no earlier than May 6, meaning shut-offs could not occur before May 2. The provincial government’s new steps to prolong the stay-at-home period could also push that deadline still further into the future.

“Residential customers will have more time to contact their distributor to arrange a payment plan or see if they are eligible for a support program, if needed,” an April 13 OEB statement advises. “The OEB will continue to monitor the situation and may consider extending the ban on disconnection notices as circumstances warrant.”

To date, there has been no announcement about the looming semi-annual RPP rate adjustment, which will entrench a new price regime for the period from May 1 to October 31. Yet, it is known that the timing of peak are mid-peak hours will switch — making the hours of 11 a.m. to 5 p.m. the most expensive for power use, while mid-peak rates apply from 7 to 11 a.m. and 5 to 7 p.m. For customers who have opted for tiered rates, higher prices will kick in after 600 kWh of consumption for both residential and non-residential customers.

Nexus REIT bumping up industrial weighting

Nexus REIT has entered agreements to acquire five single-tenant industrial buildings, which would add 609,000 square feet of gross leasable area to its portfolio. The four separate deals involve two properties in southwest Ontario, two in Alberta and one in Winnipeg.

TSX approval will be required for proposed partial financing through the issuance of Class B LP units valued at approximately $15.4 million. The remainder is to be covered with cash on hand and new mortgage financing on the properties.

“We continue to execute on our strategy to build our industrial portfolio and will put cash from our recent equity offering to work to fund acquisitions,” reports Kelly Hanczyk, Nexus REIT chief executive officer. “We are currently in various stages of discussions on additional industrial properties and hope to be able to announce that we’ve entered into additional purchase and sale agreements shortly.”

Nexus currently holds 82 properties encompassing 5.7 million square feet of leasable area. If approved, the new acquisitions will bump the portfolio’s industrial weighting to more than 70 per cent.

Foundation pour complete on Victoria’s new fire hall

Crews have completed concrete pours on the foundation of Victoria’s new state-of-the-art, post-seismic Fire Hall and Emergency Operations Centre on Johnson Street.

In a first for the region, the 12-storey building will include 130 purpose-built affordable homes for low- and moderate-income seniors, families and individuals. With funding from BC Housing, Pacifica Housing will own and operate the top eight storeys of the building. This new housing is part of more than 3,000 new affordable homes either completed or underway in the Capital Region by the province, including more than 900 underway in Victoria.

The new 41,700 square-foot downtown facility replaces the current 26,700 square-foot fire headquarters building on Yates Street that has served the citizens of Victoria since 1959. In addition, BC Emergency Health Services (BCEHS) has agreed to lease 3,200-square-feet of space from the city to operate a stand-alone, downtown rest and ready location for paramedics under a planned 20-year co-service agreement.

The new public safety building will meet new B.C. Building Code standards for buildings designed to remain operable post disaster, with the seismic design load is significantly higher than typical commercial buildings. The fire hall features six fire hall apparatus and two ambulance bays.

The new Victoria public safety building is being built under an agreement reached with local developer Dalmatian Developments Limited Partnership, a Jawl Residential and Nadar Holdings Ltd. venture, as part of a new mixed-use development. Dalmatian Developments is working with HCMA Architecture + Design.

“We are incredibly proud of our construction and design team. They deserve a lot of credit as they’ve not missed a day of construction, even though we broke ground just weeks before a global pandemic hit. The hardworking crew members on site, who can’t work from home, have adapted to these challenges and continue to move the project forward safely and efficiently,” said David Jawl, director of development, Dalmatian Developments.

Construction is anticipated to be completed by early 2023.

Winnipeg multifamily manager named DISI leader

Adeayomi Adeyemi, a community manager with Hazelview Properties in Winnipeg, has been named one of 10 leaders for 2021 through the Institute of Real Estate Management’s (IREM) diversity and inclusion succession initiative (DISI). This recognizes IREM members from underrepresented groups within the industry who bring an enriching scope of backgrounds and experiences to their professional roles and peer interactions.

“Strength comes from our differences,” affirms Chip Watts, 2021 IREM president. “These exceptional members have demonstrated leadership within IREM at their chapters and within their organizations.”

Adeyemi began his career in Lagos, Nigeria, and worked in several commercial real estate disciplines including appraisal, property and facility management and asset management, rising to managerial roles with Standard Chartered Bank and Broll Property Group. Since his 2019 arrival in Winnipeg, he has transitioned to multifamily residential management.

He is an Associate of the Nigerian Institute of Estate Surveyors (ANIVS), a Registered Surveyor and Valuer (RSV) and is currently pursuing the Certified Property Manager (CPM) designation through the Real Estate Institute of Canada (REIC). He now joins nine DISI leader contemporaries based in the United States.

“I am passionate about excellent service delivery and I enjoy solving problems,” Adeyemi says. “I continue to associate myself with individuals and leading organizations, who can help me grow personally and professionally.”

He should find opportunities to do so as an IREM DISI leader. The initiative provides mentorship, training and education, and complimentary registration for the 2021 IREM Global Summit, set for Las Vegas, Nevada, October 11 to 14.

Raising the alarm: The need for certified fire safety support

Avoidable disasters and regulatory changes have underscored the need for stronger fire prevention measures in recent years. And for building owners and property managers, this means applying extra due diligence when adopting the fire safety systems, training, and certified professionals to keep occupants safe.

It’s a risk that can hit close to home. In February 2020, for example, an eighth-floor fire at a Toronto apartment led to the tragic death of a tenant, the hospitalization of six occupants, and the destruction of 29 units. Upon investigation, The Office of the Fire Marshal (OFM) concluded that the initial smoke alarm had been dismissed as fake and – despite best intentions – occupants did not follow the correct evacuation process.

“This tragic fire reinforces the need for those who live in high-rises, and other occupancies where tenants live, to learn what to do if a fire occurs in your building,” said Jon Pegg, Ontario Fire Marshal, in a follow-up statement to press. “[It’s important to] learn about the fire safety features in your building and the emergency procedures outlined in the building’s fire safety plan.”

Yet, while awareness and training are crucial to fire safety, they are not the complete solution. In fact, had the above-mentioned alarm not triggered the apartment’s monitoring system, the story could have been much worse. As such, this incident demonstrates how critical it is to combine fire response training with fire safety systems that are correctly installed, tested, and maintained.

“Both sides of the fire equation put their life on that fire alarm system,” says Essa Fire Chief and president of the Ontario Association of Fire Chiefs, Cynthia Ross Tustin. “The people in the building rely on it for themselves and their children to be notified to get out of the building, and the fire department relies on the quality of that fire alarm system – that it’s installed and maintained properly.”

“For us, it’s easier to fight a fire in a building that’s empty,” she adds. “We want to arrive when everyone’s been notified and waiting on the lawn for us.”

Certified support

Ontario’s building owners and property managers are not alone in managing crucial fire safety responsibilities. Today, they have access to certified fire safety system installation and maintenance professionals who can help ensure systems will perform to expectation and that buildings (and their teams) are meeting the most up-to-date Fire Code regulations.

“That’s where our Certi-Fire program comes in,” says Cathy Frederickson, a spokesperson with Electrical Contractors Association of Ontario (ECAO). “The fire alarm and protection industry is continually changing, and one of the key changes has been in legislation regarding the installation and testing of fire alarm systems. It is important to keep up with technology by undergoing comprehensive training with new skills and standards. Hence, we are proud of our certified fire alarm electricians, and to provide them with the professional training and certification approved by the OFM to meet the requirements and resolve all types of fire alarm concerns.”

The Certi-Fire Program has evolved over 20 years to meet the requirements of the Ontario Fire Code O. Reg. 213/07. It is also one of only two fire system certification courses of its kind recognized by the Ontario Fire Marshal. Through the four-level program, 309A licensed electricians undergo 160 hours of intense academic and hands-on training covering all facets of fire system installation, testing, verification, and maintenance, as well as Fire Code regulations. Recertification (Level 5) is mandatory every five years to stay current with changes of the code and standard.

“Typical life safety systems — your smoke detectors to your carbon monoxide detectors – that’s all you see. But how it was installed, and how it was wired behind the walls, is what makes the system function and keep you safe,” says Dave Kester, Certi-Fire electrician with ProWave Electric, adding, “Certi-Fire ensures not only that your [building’s] life safety outside of your walls is in good working order, but ensures the installation itself is good.”

“Fire alarm systems are complicated and different from typical electric work,” adds Mark Llyod, T. Lloyd Electric, an ECAO Registered Fire Alarm Contractor. “Participating Certi-Fire ensures our clients have a fully functional, code-compliant system.”

With required re-certification every five years, the intent of ECAO’s Cert-Fire program is to produce electricians who can not only provide a full breadth of electrical services but tackle a building’s full fire safety needs. And to date, the program has certified nearly 2450 professionals to do just that.

It takes a team

Fire safety is as much about systems as it is people. It’s programs like ECAO’s Certi-Fire and the Association’s additional building owners and property managers awareness training initiatives that are working to unite all building stakeholders in turning down the heat.

“Certi-Fire training is critical,” insists Monte McNaughton, Ontario Minister of Labour, Training and Skills Development. “It’s very important that we protect families, people, and businesses right across the province. It’s all about that consumer protection, and this training is essential to that goal.”

Certi-Fire is supported by the Joint Electrical Promotion Plan (JEPP), which is managed and funded by the Electrical Contractors Association of Ontario (ECAO) together with the International Brotherhood of Electrical Workers Construction Council of Ontario (IBEW CCO). Learn more about ECAO’s Certi-Fire program at www.certifire.org and find more building owner/manager fire safety training initiatives at https://www.ecao.org/all-your-fire-alarm-needs.

Global projects win grants through Elaina’s Sustainability Fund

Elaina’s Sustainability Fund has selected five organizations and individuals to receive the first round of grant funding after reviewing applications from around the globe.

Launched in 2019 through the IREM (Institute of Real Estate Management) Foundation, the purpose of the grants is to encourage innovation or adoption of sustainability and occupant wellness initiatives that impact buildings where people live, work, shop, and play.

“Elaina’s Sustainability Fund is just one of the many ways we’re able to make a difference in the global community,” said IREM Foundation President Julie Scott. “The Foundation has done amazing work over the years, supporting diversity initiatives, and helping aspiring real estate managers earn their IREM certifications. We look forward to seeing the results of the sustainability projects that our recipients from around the world are taking part in.”

The Foundation accepted applications for funding based on three pathways:

Innovate – for individuals and companies that already have a sustainability plan and need funding to execute.
Adopt – for individuals and companies who want to implement a sustainability initiative but aren’t sure where to start.
Research – individuals and companies interested in tracking the impact that comes with sustainability can submit a proposal for a pilot program or study.

Based on this criteria, the IREM Foundation board of directors has selected five initiatives across the categories:

Research: Case Studies in the Implementation of IREM’s Certified Sustainable Property Program – Erin A. Hopkins, PhD, assistant professor of property management at Virginia Tech University will conduct research and develop case studies around best practices when implementing the IREM Certified Sustainable Property (CSP) certification.
Innovate: Wastezon Smart Bin – Wastezon, a cleantech startup based in Rwanda, will produce 30 of their Wastezon Smart Bins, backed by IoT technology. The Smart Bin offers automated sorting, tracks waste decomposition, sterilizes odour, and provides real-time information to enable effective waste collection services. One household utilizing a Smart Bin can provide 20kg of bio-fertilizers to a farmer monthly.
Innovate: The Vietnamese American Community at Austin, Texas (VACAT) education campaign – VACAT aims to produce educational materials to education more than 12,000 Vietnamese residents in Austin how to conserve energy in their home with proper household maintenance, while also promoting household recycling.
Adopt: Zion Christian Academy solar panel installation – Zion Christian Academy, a boarding school for school-aged children, located in Ogbomosho, Nigeria, will use its grant to install 25 to 35 solar panels on the campus, reducing dependance on generators and providing a much-needed energy source for school-aged disadvantaged youth and faculty at the school.
Adopt: Riverview Apartments senior garden beds – Riverview Apartments, Inc., a low-income senior housing community, will build a community garden for the residents to grow their own herbs, vegetables, and flowers.

Elaina’s Sustainability Fund was established through a donation from Cheryl Gray, real estate strategist and IREM immediate past president, and her husband Rick to honour their late daughter’s legacy and commitment to improving the impact that buildings have on the environment.

“Elaina believed that any effort can make a difference and supported any and all attempts to facilitate change in her lifetime,” said Gray. “It makes me so happy to see the projects we’ve supported with the fund and makes me proud to see that we’re supporting initiatives across the globe in Elaina’s name.”

Community buildings targeted for retrofit funds

Two distinct, but complementary new federal programs are promising funds for community buildings. The Green and Inclusive Community Buildings program will provide $1.5 billion over five years for capital upgrades, major retrofits or new construction of buildings that provide non-commercial services to the public. The Community Buildings Retrofit initiative will be administered through the Federation of Canadian Municipalities’ (FCM) Green Municipal Fund, and will make up to $167 million available over six years to improve energy performance and reduce greenhouse gas (GHG) emissions in recreational and cultural facilities owned by local governments or not-for-profit operators.

Together, the programs offer varied project streams for somewhat different but often overlapping proponents, but both are focused on meeting GHG reduction targets and are aligned with the government’s pledge to invest $15 billion in measures to address climate change and boost the green economy. They are also framed as a counterpart to the $2-billion commitment for large-scale commercial building retrofits announced last fall.

“Our community buildings, like arenas, libraries and recreation centres, are important parts of our towns and cities across the country. Upgrading our existing community buildings and building new, green centres will help Canadians create healthier and more vibrant communities,” says Jonathan Wilkinson, Minister of Environment and Climate Change. “By working together, we can cut pollution, help communities save on energy costs and create good jobs.”

Green and inclusive community buildings program

The $1.5 billion fund will be dispersed through two streams: a competitive process for eligible applicants with project costs in the range of $3 million to $25 million; and funds for smaller and medium sized retrofit projects in the range of $100,000 to $3 million, which will be allocated to eligible recipients on a first-come, first-served basis until depleted. Both streams are open to provincial/territorial and local governments, their associated agencies and incorporated not-for-profit organizations, while $150 million is specifically targeted for Indigenous project proponents.

Candidate buildings must be publicly accessible and host services that “play a meaningful role in fostering inclusion in society and combatting systemic inequities”. That includes community culture, recreation, health and wellness facilities, mobile structures such as mobile libraries and health clinics, and Indigenous health, social and education facilities. New construction typically must be net-zero-carbon or net-zero-carbon-ready, but building proponents in remote or Northern communities will also have the option of exceeding requirements of the 2017 National Energy Code if it is too onerous to achieve net-zero-carbon.

The largest share of the funding — up to $860 million — will be directed to retrofits in the categories of small ($100,000 to $250,000), medium ($250,000 to $3 million) and large ($3 to $25 million) projects. To qualify, projects must meet a prescribed threshold for energy performance, and retrofits must be completed during the period between April 1, 2021 and March 31, 2026. Projects that can be quickly underway will receive a scoring advantage.

Generally, a 25 per cent improvement over baseline energy use is expected, although that requirement could be waived in select cases. Proposed projects that can deliver a higher level of energy efficiency and greater GHG reductions through minimization of embodied carbon will have an edge, as will projects that incorporate climate change resilience.

“Making every building greener is critical for Canada’s sustainable development and net-zero emissions future,” submits Thomas Mueller, president and chief executive officer of the Canada Green Building Council. “In addition to the positive environmental outcomes, green building has the power to improve occupant health, promote well-being and support learning outcomes — benefits that all Canadians should enjoy.”

Funding can also cover various accessibility and health and safety upgrades, provided the project also meets energy and sustainability prerequisites. All accessibility measures must meet or surpass the highest published standard within the jurisdiction to qualify.

Underserved or high-needs communities will get preference in allocations for new construction projects. New construction automatically falls into the large project category, along with major retrofits valued at $3 million and $25 million, with funds to be awarded through a competitive process. Funds cannot be used to build new administrative buildings, hospitals, emergency services (police, fire, paramedic) stations for non-Indigenous communities, daycare centres, shelters for non-Indigenous patrons, multifamily housing, hospices or educational facilities for non-Indigenous communities.

Applications can be submitted via Infrastructure Canada’s portal for both streams of the program. Proponents in the competitive stream have until July 6, 2021 to apply.

Community buildings retrofit initiative

The FCM retrofit program will provide grants and grant-loan combos for energy-use monitoring, recommissioning and retro-commissioning, pre-project feasibility studies and capital projects — limited to one per municipality for each program category. That ranges from a maximum of $25,000 to cover up to 80 per cent of the eligible costs of implementing energy-use monitoring to a maximum of $5 million to cover up to 80 per cent of eligible costs of capital projects.

“With community buildings like arenas, pools and recreation centres emitting some of the highest levels of municipal GHGs, successful retrofit projects can have a significant impact on climate change efforts,” maintains Garth Frizzell, president of the Federation of Canadian Municipalities. “Together, we can improve our community infrastructure and work to meet Canada’s climate change goals.”

Two types of capital undertakings will be funded: GHG impact projects involving retrofits that reduce emissions by at least 30 per cent compared to the initial baseline; and GHG reduction pathway projects enabling a phased process toward achieving near-net-zero emissions. Proponents can attain a combined grant and loan of up to $5 million to cover 80 per cent of eligible costs, with a maximum of 25 per cent or $1.25 million in the form of a grant. Recipients of GHG reduction pathway funding must first complete a feasibility study, for which they can also receive grants of up to $65,000 for one building or $200,000 for a portfolio of buildings.

Recommissioning and retro-commissioning grants max out at $55,000 or up to 60 per cent of eligible costs. This could be applied to a single building or a portfolio of buildings.

Seven of Canada’s largest municipalities — Vancouver, Edmonton, Calgary, Toronto, Ottawa, Montreal and Halifax — which have access to a $183-million federal fund through their participation in the Low Carbon Cities Canada initiative, are not eligible for this program. For now, Quebec municipalities are also on hold until an agreement between FCM and the Quebec government is finalized, but it is expected they will be invited to apply in the future.

Otherwise, Canadian municipalities and municipal partners — which might include municipally owned corporations, other agencies delivering municipal services, non-governmental and not-for-profit organizations, private-sector entities, Indigenous communities or research institutes — can apply. Typically, FCM accepts and processes application year-round, until annual fund allocations are depleted. After that, incoming applications will be deferred until the next fiscal year.

T3 Mount Pleasant slated to be built in Vancouver

Vancouver developer PC Urban Properties Corp and Houston-based Hines have entered into partnership to build Western Canada’s largest and tallest mass timber office building in the Mount Pleasant area of Vancouver.

Located at 123 East 6th Avenue, T3 Mount Pleasant will be a new mass-timber, transit-connected, technology and amenity-rich, mixed-use office building that will provide a work environment for businesses seeking to attract and retain the highest quality talent in a post-COVID Vancouver market.

The proposed 10-storey, 196,000-square-foot T3 (Timber, Transit and Technology) office building, Hines’ proprietary mass timber creative office product, will be one of the most environmentally friendly, sustainable and wellness-focused developments in Vancouver and the largest and tallest mass timber office building in Western Canada. The Mount Pleasant neighborhood, one of Vancouver’s most dynamic and creative tech hubs, will further act as an amenity for the office building’s tenants.

“Hines is excited to partner with a premier firm like PC Urban to bring our T3 brand to this creative tech hub in Vancouver,” said Syl Apps, senior managing director at Hines. “As one of the most innovative and forward-thinking office properties in Vancouver, T3 Mount Pleasant is designed to accommodate the needs of firms who seek creative class workers. These workers are opting to work in environments that prioritize health and wellness, and that offer proximity to living, dining, entertainment, recreation, and transit.”

Designed to facilitate collaboration, productivity and wellness, T3 was developed in response to evolving tenant requirements. With mass timber construction and exposed wood throughout, T3 Mount Pleasant will deliver a warm, authentic office space with all the benefits of new construction by providing a flexible, forward-thinking workplace.

State-of-the-art HVAC systems will provide superior Indoor Air Quality (IAQ), and building design maximizes energy efficiency and natural light.

The current site of the T3 Mount Pleasant is on land owned by the City of Vancouver and occupied by the Simon Fraser University Annex, a 1928 heritage structure that will be incorporated into the new office building.

“We were selected by the city to acquire and redevelop the property based on our previous work in the area and our experience with heritage revitalization,” said Brent Sawchyn, CEO of PC Urban. “We looked at the site as a perfect opportunity to bring mass timber office construction to Vancouver, and there is no one in North America with as much experience with this building form as Hines.”

Construction is expected to begin in 2022, and be completed in 2024.