Fast + Epp receives funding for mass timber office

The new head office for Vancouver structural engineering firm, Fast + Epp, is being recognized by the Canadian Wood Council for its innovation and ingenuity in wood design and building, and for being selected for funding support under Natural Resources Canada’s Green Construction through Wood (GC Wood) Program.

The hybrid mass timber building, located near downtown Vancouver on Yukon Street, is among the first office buildings in Vancouver to use mass timber as a structural material, and will showcase the same structural innovations and technologies that are at the forefront of their consulting practice. The GCWood Program aims to broaden the awareness of wood as a sustainable and renewable construction material and to increase the domestic capacity for wood in Canadian construction.

It’s a really special moment in our Fast + Epp company history to have the opportunity to move into a custom-built mass timber office building. It features a robust, sustainable structure, warm exposed wood interiors and the latest in seismic technology using self-centering, energy absorbing connectors,” explained Paul Fast, partner at Fast + Epp.

“The building will serve as living lab with ongoing thermal, moisture and vibration monitoring. It will also house Fast + Epp’s Concept Lab where physical testing of mass timber components and software development will take place.”

The Fast + Epp home office will showcase how a well-designed mass timber building can be constructed quickly, efficiently and cost effectively. It will feature an exposed hybrid mass timber structure and leading-edge seismic design technology, and will provide the broader construction and design industry with learning opportunities through monitoring performance results.

“This project is an excellent example of an innovative, sustainable and high-performance wood building. It showcases technologically advanced wood products and systems, and how mass timber components work together for optimal designs that can be easily replicated,” said Lynn Embury-Williams, executive director of Wood WORKS! BC. “Projects such as this will address today’s urgent demand for more efficient construction using sustainable building materials, toward a goal of carbon neutral structures that will positively transform our built environment.”

The project received $648,250 under the GCWood program, which was announced as part of the Government of Canada’s Budget 2017 with $39.8 million in funding. The funds support projects and activities that increase the use of wood as a green building material in infrastructure projects.

Short-term rental in a volatile world

Though some industries have accelerated in the COVID-19 era, the majority have not been so lucky. Among them is the short-term rental sector. With cities worldwide in a perpetual cycle of locking down and gently loosening the reins, travelling has been wrought with challenges, making it nearly impossible for anyone to leave home. And now, as Canada and the rest of the world contend with the rapid spread of new COVID variants, and as governments race to roll out their vaccine programs, what will become of the hard-hit sector — and will 2021 offer any respite?

A new report from U.S.-based revenue management platform, Beyond Pricing, sheds some light on the uncertain months ahead. “While we expect the travel industry to have stops and starts in 2021, with different geographies and sectors of the industry reacting, adapting, and recovering at different paces, we see a steady, upward trend in travel and spending moving forward,” says Julie Brinkman, CEO. “In conclusion, we are overall optimistic about the future and growth of the travel industry in general and the short-term rental market in specific.”

A year ago, there was little reason to be so optimistic. When the pandemic first began its deadly sweep across the Asia-Pacific region in February, the travel industry suffered an abnormal rise in cancelations, followed by a significant decrease in booking pace as lockdowns and restrictions were put into place. By mid-March, booking pace plummeted across the globe, all but devastating the short-term rental sector.

Defined by the City of Toronto as “all or part of a dwelling that is rented out for less than 28 consecutive days,” short-term rental units are available everywhere housing exists through sites like Vrbo and Airbnb, which took a major hit last spring.

Fortunately, the summer saw some markets pick up as people sought to escape their confinement. According to Beyond Pricing’s new report, “The first markets to see an uptick were coastal, drive-to, and non-urban markets where consumers could travel and have an entire short-term rental to themselves in order to avoid contact with others.”

In the fall, that demand continued with more households better equipped to work and learn remotely. Additionally, the lower rates typical of September and October helped entice some travellers to extend their short-term stays. But all that changed by the end of the year when another surge in COVID-19 activity forced governments to impose more lockdowns and restrictions.

“The total amount of reservations in Canada in 2021 to date is down 30 to 40 per cent compared to 2019 levels, continuing the trend of depressed demand experienced in 2020,” says Brinkman. “While regional destinations easily accessible by vehicle have been performing really well recently, the near closure of the U.S.-Canada border has brought serious consequences to some of the frequent destinations of U.S. travellers.”

For example, Whistler, which is a hugely popular ski market, has been lagging considerably compared to last year’s bookings. With Americans staying home over Christmas break, occupancy was down 30 percentage points, and coinciding with that, rates dropped by as much as 35 per cent. “Overall, pacing occupancy and average daily rate (ADR), won’t resemble last year’s numbers until July,” she says.

Meanwhile the cities along the U.S.-Canadian border are also suffering from the travel restrictions: “Toronto, Montreal, Vancouver and Quebec are the most sluggish markets in Canada in terms of bookings per listing over the past month, while the less urban areas of Owen Sound, Canmore and Mont-Tremblant are doing the best.”

What’s ahead for the short-term rental market

For those in the business of renting units, there is some good news on the horizon. As more countries successfully execute their vaccination programs, resulting in lower COVID case counts and the easing off of travel restrictions, soon people will be free to re-embrace their jet-setting ways. According to the Short-Term Rental Industry Trends Report, here’s what we can likely expect as 2021 unwinds:

The short-term rental sector will see an increase in demand with remote work and distance learning continuing to prevail.
People will be more likely to choose small rental properties over big hotels to avoid high-traffic public areas.
Lead times between bookings and occupancy will remain far shorter than they used to be. (In 2020, lead times were cut in half).
People will continue to book short-term rentals but at a slower pace than previous years.
Property managers and owners of short-term rentals will need to settle on less profit during the high season due to cancellations and discounts provided in 2020 that will need to be honoured.
Property owners should brace themselves for a possible continuation of cancellations throughout 2021.
If they haven’t already, they should consider adjusting booking projections and cancellation policies (to be more flexible).
Property managers will need to consider diversifying their offerings by providing more long-term stay options to help stabilize their portfolios.

For the full report, visit www.beyondpricing.com

Six women shaping Canada’s residential spaces

They are developers, architects and interior designers helping to manifest some of the country’s most dynamic condos and master-planned communities. During a time when women are bearing the brunt of real estate job losses—in Ontario, it’s 14,300 of the roughly 16,000 positions the real estate sector cut last year—here are just a few of the women pushing industry standards forward to create more habitable and sustainable spaces.

Roya Khaleeli, director, sustainability and innovation at Minto Communities. Current projects: North Oak, Oakvillage, Union Village

One of my earliest experiences with sustainability was at 12 years old when I was told that the reason factories dump chemicals into rivers was just the cost of business, and that just didn’t make any sense to me. Now, years later in my career, I am driven by a commitment to shift our industry to do better in a way that is still good for business. We’re at an exciting time where we know that residential is ripe for change to improve comfort, resilience and health and expect home performance to continue to improve both for single-family and high-rise homes. However, we’re also at a point where we need to think bigger than marginal improvements to our existing systems – we need to implement significant changes to improve energy efficiency and reduce carbon emissions.

Now, new business models for renewable energy technologies mean they are more viable to integrate into new communities. An example of this is ground source energy, which leverages the consistent temperatures underground to deliver heating and cooling more efficiently. Minto is exploring how we can incorporate ground source energy into communities we are planning today. We’re also focusing on making net-zero energy homes more widely available in our communities. Net-zero energy homes (as certified by the CHBA) are built to use significantly less energy through a well-insulated air-tight envelope and better performing HVAC systems. They also generate energy—perhaps through solar panels—enabling the home to produce as much energy as it consumes. We are committed to continue to pursue the best of green building practices in the homes we build.

Krystal Koo, head of sales and marketing, Dream Unlimited. Current projects: Canary House, Brightwater, Zibi, Gehry Project

My role is to lead and strategically advise on all facets of the marketing and sales processes across our portfolio. It’s an exciting, fast-paced job where no two days are the same, and I get the opportunity to work alongside talented people within our company and across the industry.

At Dream, I play a role in creating environments that are inclusive for all and promote positive change in the world for people of all ages and backgrounds. I’m personally motivated to implement these values across our portfolio including Zibi, our 34-acre interprovincial master-planned community. It’s one of the most sustainable communities in Canada, developed in close consultation with Indigenous communities. Throughout this entire project we have been working hard to ensure the site is a place for all and creates positive social outcomes for our future.

I recognize that as a woman in this industry, I am very fortunate to be in the position I am in today. We’ve always worked hard to raise women up in our company – currently 50 per cent of our board, 45 per cent of management, and 31 per cent of executives consist of women, and we’re actively working on further supporting diversity and inclusion within our organization and through our work. I know our industry still has a long way to go, but my hope is that I can motivate young women. Real estate development is an exciting, dynamic career where you can have real, tangible impacts on the built environment and people’s lives. It’s an extremely rewarding and fulfilling career choice.

Christina Giannone, vice-president of development for the Brightwater team, representing Kilmer Group, DiamondCorp, Dream and Fram+Slokker

Having exposure at a young age from my own family in the industry, I quickly learned the significance and responsibility of the role developers play. Homes are the single biggest purchase that an individual makes, and they become the spaces where life happens and so many memories are made. Being a part of that process with the Brightwater team and creating that opportunity for someone is what really drew me to real estate development, and to this day, I am honoured and proud to be part of it.

As a community builder, I see an immense responsibility for smart planning, as we are shaping the future of not only a future resident, but also that of a neighbourhood, a village and a city, and what it means to live, work, learn, visit and play there. We are developing and offering lifestyle choices, so careful thought in planning and design are critical in new developments to foster and support the health of a community.

Adèle Rankin, managing principal, B+H’s Vancouver Studio. Current projects: Hollybridge at Rivergreen, Telford on the Walk, Parkside at Lynn, Verante Hotel, Westin Bear Mountain

Now, more than ever before, we are all focused intently on the home. The importance of home and the desire for design-driven personal spaces have seen the two main focuses of my career at B+H intersect: hospitality and residential. Both sectors continue to inform each other, from hotel-inspired amenity spaces in multi-residential to personalized hotel rooms.

Canada’s robust housing market has provided a lot of opportunity for architects and designers to get creative and entrepreneurial within this intersection. Currently, our team is working with many prominent developers to differentiate and upturn the typical expectations of tower living. I’m helping to provide residents with exciting, comfortable, and design-forward homes that draw from a deep well of experience and love of hotel and hospitality design. My goal is to help deliver homes that can adapt, flex and grow with each resident as their lifestyle evolves.

Laura Abanil, studio director, Elastic Interiors. Current projects: Canary House, Toronto; Durmitor Resort Montenegro Hotel & Villas, Durmitor, Montenegro; Marriott Hotel, Milan, Italy

As a proud Canadian interior designer, I love this field because it has enabled me to dream. Our thoughts and visions allow others to dream and their aspirations come to life. The creative field is a passion that gives me a sense of purpose, knowing that I can develop environments that allow for meaningful experiences, true connections and new memories to be made.

My profession has given me opportunities to travel the globe extensively. International work has enabled me to have a unique perspective on why coming home feels so special. I was humbled by the opportunity to be a part of an amazing project team that allows us to create within our very own hometown. Canary House (our first Toronto project), in Canary District, is an opportunity to play a vital part of influencing the energy and vibe of this upcoming neighbourhood—one that was already embedded with so much character. Using my passion and strong background in luxury hospitality, I apply those same principles in the residential market. My personal philosophy aligns with Elastic’s—really looking at the end user as a main source of inspiration; promoting inclusivity and providing beautifully authentic spaces for people to socialize, recharge and rest.

Suzanne Wilkinson, principal at Figure3. Current Projects: Transit City, The Well, 8 Wellesley

It’s amazing how much the residential landscape has changed in the last decade. Figure3 won its first residential project in 2010. I was a senior team leader in our workplace studio at the time and was designated as the project owner. It was a success, and thus our residential studio was born. Three years later we brought on an industry leader who specialized in residential, and we’ve since built it into an in-demand practice.

The quickly changing needs of residents today means we have to adapt and reimagine the living experience, which is an amazing challenge and opportunity for our multi-sector team. While I don’t focus specifically on being a woman in business or this industry, it is definitely great to see the industry becoming much more fairly balanced. There is a lot more diversity now within the construction and development industry, including architectural and engineering practices, which I am very pleased to see.

One of the main challenges developers face is differentiating their projects from the competition. I’ve always been proud that Figure3 doesn’t come with a prescribed look. It’s not simply about designing beautiful spaces, but understanding what is important to the client and tailoring the designs to each specific project. We design in workplace, residential, hospitality and retail; so lots of knowledge and insight is shared across these studios.

CERS rate structure holds steady until June 5

The Canada Emergency Rent Subsidy (CERS) and associated top-up support will remain at the current rate structure until June 5, Finance Minister Chrystia Freeland confirmed today. The federal government had reserved the option to adjust the funding levels after March 13 when it introduced the relief program in November 2020. She also pledged a continued stable level of funding for employers eligible for the Canada Emergency Wage Subsidy.

“Workers and businesses have showed incredible resilience over the past year, especially through this difficult winter,” Freeland says. “With variants in Canada and many regions still under lockdown, we are giving workers and businesses the certainty they need.”

CERS subsidizes up to 65 per cent of fixed property costs, while businesses facing further constraints due to more stringent public health measures in some locales can qualify for an additional 25 per cent allocation — resulting in a 90 per cent subsidy. As of February 21, the government estimates more than 129,000 businesses and not-for-profit organizations had collectively received more than $1.6 billion to help cover costs such as rent, mortgage, utilities and insurance, while program costs for March 14 to June 5 are projected at $2.1 billion.

Pandemic-related scams skew consumer complaints

Landlord-tenant disputes ranked a distant third in the tally of consumer complaints lodged with the New York State Attorney General last year. In her annual breakdown of the 10 most common sources of grievance, Attorney General Letitia James reports COVID-19 gave rise to questionable business conduct and opened opportunities for criminal activity in 2020.

“Consumers who have helped identify and report issues to our office have been invaluable partners in our efforts to stop deceptive scams,” she says. “The havoc unleashed by the COVID-19 pandemic, in addition to the numerous other ways consumers were defrauded in 2020, sadly resulted in my office receiving a record number of consumer fraud complaints in 2020.”

Internet-related issues, including disputes with service providers, data privacy/security breaches and web-based fraud, sparked more than 9,800 complaints to emerge as the top area of concern for appellants. Next, there were more than 7,700 complaints about price gouging on goods such as hand sanitizer and masks that were in high demand due to the COVID-19 pandemic.

Clashes between landlord and tenants, typically related to security deposits or accusations of harassment, engendered 2,750 complaints. That’s just slightly ahead of the 2,620 quests for redress from health clubs that continued to charge fees during COVID-19-triggered shutdowns or refused to reimburse membership fees upon cancellation. Similarly, 1,250 disgruntled consumers sought recompense from transportation and travel enterprises that would not provide refunds for cancellations due to COVID-19 — the 10th most common category of complaint.

In addition to enumerating the top categories of consumer complaints, James cautioned against several frauds COVID-19 is fuelling, including:

products falsely presented as cures or vaccines;
phony vaccine booking services asking for advance payment;
counterfeit proof-of-vaccine cards marketed to those trying to avoid vaccination; and
puppy scams.

Clark Builders breaks ground on Bridgeland centre

Alberta has awarded the contract for the new Bridgeland Riverside Continuing Care Centre to Clark Builders. Construction is underway on site with the project expected to complete in 2023. The total approved budget for this project is $130.5 million.

“Projects like the Bridgeland Riverside Continuing Care Centre protect the livelihoods of tradespeople and others employed in the construction industry. Investments in infrastructure projects now are laying the foundation for the private sector to grow and create thousands of additional good-paying jobs for Albertans, which is crucial to our economic recovery,” sad Prasad Panda, Minister of Infrastructure.

The five-storey Bridgeland Continuing Care Centre will be a combination of seniors day programs and continuing care units. The day programs will be located on the main floor podium and 198 individual resident rooms will be located over the four upper level floors.

Designed by FWBA Architects, the facility will support the residents through patient and family centered care concepts that include incorporating natural light, pathways and gardens.

The Bridgeland Riverside Continuing Care Centre will help address a shortage of spaces for Calgarians requiring continuing and complex care. The new centre will also free up hospital beds for patients requiring active treatment.

This is an important project that will help in the delivery of quality continuing care for Calgarians. It will provide a safe, comfortable and supportive home for seniors with chronic health needs and persons with disabilities and help reduce the number of people waiting in hospital for the appropriate level of continuing care,” said Dr. Verna Yiu, AHS president and CEO, Alberta Health Service.

Entry call for EIFS 2021 Architectural Design Awards

The EIFS Council of Canada announces the opening of its 2021 Architectural Design Awards Program. Now in their fourth consecutive year, the ECC Design Awards honour design professionals which incorporate EIFS into innovative and creative built projects.

The ECC’s annual Awards Program showcases outstanding EIFS projects completed in Canada during a defined criteria period. Last year’s Grand Prize was awarded to the mid-rise residential project ‘Sage 10,’ by IBI Group. The Sage 10 was selected by the esteemed jury panel from amongst the seven excellent category finalists.

“The EIFS Council of Canada continues to recognize and honour designers who have utilized EIFS in resilient and technically advanced projects,” remarked John M. Garbin, president/ CEO of the EIFS Council of Canada, “We developed this Awards Program with the objective of creating a new recognition platform for EIFS design and building science deliverables. Our finalists and Grand Prize winners from past years stand as proud benchmarks in the Canadian building industry’s pursuit of resilient, sustainable and aesthetically pleasing infrastructure.”

The Awards Program is open to all architects, architectural firms, builders or design professionals that have designed and completed a project located in Canada that utilizes EIFS. Eligible projects must be occupied no sooner than January 1st, 2019 and no later than January 31st, 2021.

All applicants may submit their projects in one of seven categories: 1) low rise residential, 2) mid-rise residential, 3) high rise residential, 4) commercial/retail, 5) recreational/institutional, 6) hospitality, and 7) renovation.

Registrations to determine eligibility are open until March 31^st 2021. All eligible applicants will have until April 30^th, 2021 to prepare their electronic submission packages. Final submission packages must be received no later than 11:59 PM, April 30^th, 2021.

Award finalists will be announced on May 23^rd, 2021. The recipients will be selected by a renowned jury of industry experts from a variety of building industry disciplines. The jury will consider the submissions in relation to a range of established criteria to select the winning projects.

Finalists and Grand Prize recipient will be recognized and honoured at the EIFS Council of Canada Annual General Meeting and Awards Dinner in June 2021.

Nova Scotia offers targeted property tax rebate

Nova Scotia restaurateurs, barkeepers and personal service business operators cam claim a property tax rebate if they’ve experienced COVID-19-related revenue loss and business disruptions. A newly announced $7-million provincial fund is expected to compensate up to 3,300 small commercial ratepayers who can choose between a one-time payout of $1,000 or 50 per cent of the fees they’ve submitted for the final six months of the 2020-21 tax year.

“The rebate may be based on property taxes, but is designed to be used by business owners to support any aspect of their business, including hiring staff or paying down debt, paying utilities or ordering supplies,” advises Nova Scotia Premier Iain Rankin.

Eligible businesses include dine-in restaurants, drinking establishments, gyms and fitness facilities, hair and nail salons, barbershops, spas and body art services. Additionally, they must have previously received funds through Nova Scotia’s Small Business Impact Grant program or sustained at least a 30 per cent year-over-year drop in revenue in the period from April 30, 2020 to January 31, 2021 or have launched their businesses since January 1, 2020. An application portal is promised for mid-March.

“The property tax rebate will assist operators, who are in survival mode, and represents a step forward in the recovery process,” acknowledges Gordon Stewart, executive director of the Restaurant Association of Nova Scotia (RANS).

The whys and hows of COVID-19 vaccination

With multiple COVID-19 vaccines now approved by the FDA for emergency use, many businesses are deciding what their role in the rollout is and how the process of COVID-19 vaccination could affect them.

Many companies report customers who are hesitant to let technicians into their homes, employees absent and companies temporarily shutting down due to exposure, and concerns over the health and safety of their people. So, it’s easy to see the benefit of requiring employees to get vaccinated.

However, much of the population has expressed fear of the vaccine, both due to its rapid production speed and the conspiracy theories that emerged about it. Polls show 30-50 per cent of the population is unlikely to take a vaccine. So, it’s also easy to see how requiring COVID-19 vaccines of employees could decrease morale and even cause potential legal problems.

Is it legal?

The short answer is yes. According to the National Law Review, no laws exist that would prevent an employer from making COVID-19 vaccination a condition of employment and suggests that the requirement can be viewed in the same light as mandatory flu vaccinations. Since most states in the U.S. are “at-will” states, an employer could mandate that employees get vaccinated or lose their jobs.

There are exceptions, of course. Those with disabilities under the Americans with Disabilities Act and those with sincere, established religious beliefs protected under the Civil Rights Act (Title VII) that conflict with COVID-19 vaccination may be exempt from the requirement unless it causes extreme hardship for the employer. But extreme hardship only exists if reasonable accommodations cannot be made, like wearing a mask or working from home.

However, some have raised concerns with the fact that the vaccines are currently only approved for emergency use. There is the potential, therefore, that lawyers could argue that requiring the COVID-19 vaccine while it is approved for emergency use is different from requiring a flu vaccine, which is fully FDA approved. According to The Guardian, Pfizer will apply for full approval in April, and when approved, it will render the emergency-use argument moot—and likely before vaccinations are widely available.

Require COVID-19 vaccines: Why do it

According to infectious disease experts, we need approximately 75 per cent of the population to take the vaccine in order to achieve success with it. Until we hit that 75 per cent mark, theatres, restaurants, sporting events, etc. will have to remain under the current pandemic regulations, meaning the economy is dependent upon vaccinations ending the virus’ spread and dominance. With so many people deciding not to take the vaccine, having businesses backing the vaccine would, no doubt, help boost the COVID-19 vaccination rate.

Requiring vaccinations also has the obvious benefit of protecting your employees, their families, your customers, and your own family. That also means reducing employee callouts and company downtime due to outbreaks or exposure. Not to mention being able to advertise that your technicians are all vaccinated offers a hefty competitive advantage.

Require COVID-19 vaccines: Why not to do it

In our most recent poll, 52 per cent of respondents said they will neither require nor recommend employees get a vaccine. The reasons are varied but come down to risk.

A major reason employers are against mandating vaccinations is they feel they are encroaching on employees’ freedoms and rights to choose what they do with their bodies. At the same time, if we require an employee to be vaccinated and that employee has a bad reaction to the shot, we risk not only feeling responsible for harming them, but also risk the employee attempting to prove us legally responsible.

By mandating vaccines, we also risk losing employees’ trust and lowering morale at a time when morale is universally low. As NORMI’s Doug Hoffman tells us in his State of the Industry interview, despite the current record unemployment levels, finding quality employees is still a struggle, and even rehired employees who were laid off during the shutdown are struggling to rise to their former productivity levels. Hoffman says, “They’re coming back into a different industry in some ways,” and forcing them to take a vaccine they do not trust, is not likely to instill loyalty to the company.

Where do we go?

Our best path is likely educating employees about the science behind the vaccine; explaining why it is important to the safety and wellbeing of the staff, the company, and the greater community; and recommending the vaccine rather than requiring it. This is the recommendation of the Equal Employment Opportunity Commission as well as many lawyers and business experts, including Scott Tackett of Violand Management Associates, who recently discussed the issue in an episode of Straight Talk! with Jeff Cross.

With so many not wanting the vaccine, Tackett says, “The employer is going to be in the middle, so [we must] be very cognoscente of what this is going to create in our workplaces.

“My suggestion is that we, as employers, begin now, today, to communicate and discuss both the pros and cons of getting the vaccination. I would be very careful about using the term ‘mandate’ right now,” Tackett adds. “Hopefully we can provide good, timely, accurate information to all of our employees, get them involved, talk about the apparent lack of significant risk, and talk about the vaccination.”

If business leaders work to educate employees and lead them to vaccinating, it will, no doubt, help increase the COVID-19 vaccination rates across the board, which, in turn, will build back our economy, keep our people safe, and get us that much more quickly back to a sense of normalcy.

Until then, take care of yourselves and stay safe.

Amanda Hosey is the managing editor of Cleanfax. She has worked as an editor and writer for more than six years, including four years with Cleanfax. Reach her at [email protected].

This article was originally published at ISSA’s Cleanfax.

Designing buildings to the highest sustainability

The coronavirus pandemic has affected nearly everything, including building design. The obvious focus with buildings is now on indoor air quality, according to John Peterson the director of sustainable design and building innovation for MacLennan Jaunkalns Miller Architects (MJMA).

“This allows us to rethink ventilation entirely in our buildings, bringing in more fresh air and having more operable windows,” he said during his presentation at the Fenestration and Glazing Industry Alliance (FGIA) virtual annual conference held in February.

Peterson explained that his company is seeing more and more high-rise natural ventilation needs, which means looking at more complex automation systems, hinges and closing mechanisms, and airlocks that ensure air leakage is controlled as much as possible. “Designers are moving more toward operable components,” he said.

In his presentation entitled “Inspired Design Trends for Commercial and Residential Construction,” he discussed the latest on sustainability demands and the popular ways buildings are being designed to surpass the highest sustainability and energy-efficiency benchmarks.

A popular industry topic is bird-friendly glass. “Within our cities and tall buildings made of glass, our buildings do have an impact on the bird population,” he said. “What this means in terms of design trends is, first surface coatings are becoming more prevalent. This signals to birds that [the glass] is not a clear path to fly.”

Some trends Peterson has seen in the market include moving toward more corrosion- and oxidation-resistant pigments, often silver in colour, sometimes acid etched. The design of the stripes can be customized in width, typically between two and four inches.

Peterson also brought up the concept of “enhancing biophilia” or embracing the therapeutic effects of nature, including visual connection with nature, dynamic and diffused light and place-based relationships. “This means selective coatings, allowing for the highest degree of light to solar gain,” he said.

Passive House Principles, or Passivhaus, is a voluntary program for energy efficiency in building. It focuses on “super insulation,” as well as ensuring buildings have as much heat recovery and are as airtight a space as possible.

According to Peterson, high performance framing is one way to allow for commercial glazing systems to achieve, Passivhaus-certified, non-combustible construction with a conventional curtain wall appearance. “Passivhaus is about minimizing the demand on heating and cooling,” he said.

Another trend Peterson reported seeing is closed cavity facades, which take double facades and hermetically seal them so dirt cannot accumulate within. “This facade is connected into a closed ventilation system with conditioned air, allowing for ultra-high thermal performance and offering exterior shading.”

A related trend is vacuum insulated glazing (VIG), an insulating glass unit (IGU) with a 0.1 to 0.3 mm vacuum gap between thin glass panes instead of air or inert gas. “This innovation has made for incredible performance gains,” he said.

Peterson said MJMA is also hearing requests from clients for buildings to not only perform well, but also generate power on site to reduce demands on electrical and gas grids. Enter the transparent photovoltaic: a glass solar panel with selective transmission and absorption or conversion.

“Embodied carbon is becoming codified in some areas; it’s becoming a bit of an obsession,” said Peterson. “We can’t just look at operational carbon anymore, we have to look at how we make things and how they are constructed on site.”

Some of the best ways to reduce one’s carbon in a new or renovated building is to try to understand the durability and effect of a product, urged Peterson. “Circular design suggests when you create a product, you don’t just look at implementation. You look at end of life as well.” For example, he suggested, organizations like Habitat for Humanity can use products from decommissioned buildings and to design in a way that allows for future upgrades or easy deconstruction.

Finally, other trends in design include jumbo vision glass, jumbo operables, big glass and curved glass. Peterson also cited the use of many fluid forms of glass in homes.

“It’s interesting to see the ability of the glass industry to make these large, curved glass IGUs and their framing systems,” said Peterson. “It’s making our lives as designers easier.”

Climate risk infuses investment agendas

Canadian commercial real estate assets are comparatively less exposed to the dire physical threats that extreme weather poses or has already served up in other global regions. Industry insiders suggest that could make the COVID-19 pandemic an even more instructive trial run for the ancillary risks the sector is likely to face due to climate change. Brewing calamities will bring economic and social upheaval far beyond their meteorological track, and a growing pool of investors is looking for evidence that asset and property managers are prepared to respond.

“2020 was a year that saw ESG (environmental, social, governance) reporting move to centre stage. In the same way that, 15 years ago, discussion around LEED certification really morphed from ‘Should we do it?’ to ‘It’s the new norm’ so, too, will ESG reporting become a permanent component of our industry,” observed Paul Morassutti, vice chair, valuation and advisory services, with CBRE Canada, during last week’s online release of the firm’s 2021 Market Outlook. “Let’s talk about how climate risk could impact underwriting and even capital flows. Every institutional investor pays very close attention to the reversionary value and their ability to exit in 10 years, 20 years or 30 years. It (climate risk) will absolutely be on everyone’s radar by then, which means it should probably be on ours now.”

Turning to those institutional investors, MSCI analysis estimates that 6 per cent of the value of the Canada Property Index, or nearly $9.5 billion worth of directly held assets, is vulnerable to the physical forces of climate change or the related stresses of an imperative transition to a low-carbon economy. Speaking during the virtual results presentation of the index’s 2020 investment returns last month, Bryan Reid, executive director of real estate research with MSCI, outlined how the index currently scores on two separate risk matrices.

These matrices gauge: the potential for on-site physical damage and/or operational disruptions tied to the occurrence of an extreme climatic event; and the economic costs and regulatory constraints that could come into play to meet emission reduction targets and other required responses to a climate crisis. Results are then combined to tally the total value at risk.

Overall, Canada’s global latitude and roster of inland cities serve it well. Across the entire index of 2,356 assets predominantly dispersed in nine major urban centres, the vast share of value at risk — nearly 5 per cent of the index’s capital value — is attributable to transition factors.

Favourable physical risk profile comes with transitional unpredictability

Assets located in Halifax stand out for a higher degree of physical risk, equating to nearly 10 per cent of asset value exposed to the possibility of coastal flooding and/or tropical storms, while Vancouver ranks as the next most vulnerable host city with just less than 5 per cent of value at risk to coastal flooding. In contrast, assets in Toronto are most insulated, with 4.43% of value deemed at risk and less than 0.5% of value at physical risk.

“The physical risk for Canada is pretty low relative to some other countries. When we run other countries through this model, what we tend to see is that increased coastal flooding, fluvial flooding and tropical storm risk are the highest drivers of physical value at risk,” Reid reported. “In terms of extreme heat, the potential temperature rises aren’t as high (in Canada) as in some of the other more southerly locations so the costs associated with cooling buildings is not as high as what we might see in places like Phoenix. In fact, the lower prevalence of extreme cold days (with climate change) is also likely to offset a little bit and reduce the running costs of some of the assets.”

Reid characterizes the physical risk analysis as a “high-level snapshot” and notes that additional risks may emerge that will need to be weighed. Morassutti leans to an upside interpretation.

“If you look at any list of the global cities that are most vulnerable to either coastal flooding or warming, you’ll see many familiar places: New York; London; Miami; Boston; Phoenix; Hong Kong; Shanghai; Tokyo; but no Canadian cities,” he reiterated. “That is not to say that we will not be impacted. We will, but the effects of climate change will not be felt evenly. That may result in a recalibration of how global capital views those markets, and that may very well be to the benefit of major Canadian markets.”

However, pointing to other trends outside Canada, Colin Lynch, head of global real estate investments with TD Asset Management, reminded investors, owners and managers that transition risks could arise with little advance notice. “In 2019 and 2020, we’ve seen governments make regulations in reaction to a lot of social pressure around real estate, and that is something that we all have to be cognizant of going forward,” he reflected during last month’s panel discussion on the Canada Property Index investment results.

ESG underscores goals and maps progress for investors, asset and property managers

ESG is steadily gaining traction as a means to steer investors and guide asset and property managers on both physical and transition risks. Also contributing to the panel discussion, Deborah Ng, head of responsible investment and director, total fund management, with the Ontario Teachers’ Pension Plan Board, maintained that both groups have already successfully subscribed to ESG benchmarking and reporting so the next steps are simply to stretch those applications further. She identifies net-zero carbon emission as the logical goal post for quantifying transition risks, while urging more contingency planning around physical risks.

“Real estate made a link between sustainability and managing energy and water use very early on because it was a value driver; because it attracted and retained tenants and actually resulted in the ability to command better rents. There is a lot of empirical evidence to support that,” Ng asserted. “The gaps are in thinking about transition — how are properties preparing themselves for potential regulations to be net-zero or potential pressures from tenants so the tenants themselves can achieve their net-zero goals? — and thinking through physical risks and how they impact property, whether that’s flooding or increased heat that’s going to require more HVAC.”

Ontario Teachers’ and its real estate arm, Cadillac Fairview Corporation, use hazard assessment modelling for the latter exercise to derive 10-, 20- and 30-year projections of the gamut of extreme climatic events that could potentially engulf each asset. Meanwhile, Ng warns that investors and property/asset managers will likely have to respond to regulatory dictates and absorb transition costs sooner still.

“COVID was disruptive for sure, but net-zero and the transition to a low-carbon economy is going to be incredibly disruptive for real estate. Looking forward, there needs to be a lot more understanding from real estate managers of embracing technology. How do you harness technologies — smart metering, battery storage, deep lake cooling — to make buildings more sustainable?” she said.

Ng frames ESG as an increasingly critical tool to both support investment decisions and hold asset managers accountable. “We’ve seen a lot of disclosures — what’s being tracked? what’s being monitored? what’s being targeted? Now, there’s going to be a lot more focus on performance, and how that performance compares relative to peer groups or relative to this low-carbon or net-zero trend mission that is underway,” she submitted.

“Despite the fact that investors are having to deal with a lot of short-term challenges now as a result of COVID, they really haven’t lost any focus on the long-term climate risk. In fact, I’d say that over the last year we’ve even seen increased interest in profiling and understanding climate risk,” Reid concurred. “There isn’t a trade-off between near-term and long-term risks. Risk management is definitely getting a lot more scrutiny across the board.”

Barbara Carss is editor-in-chief of Canadian Property Management.

Employees willing to take pay cut for better air quality

A new survey of U.S. and Canadian workers has revealed that a majority would take a lower-paying job if it ensured good air quality, greater hygiene, and health-conscious colleagues.

The survey was commissioned by Ambius, the global leader in creating smarter, healthier spaces through hygiene, plants and scenting services. It found that 60 per cent of workers would take a lower-paid job if it had a healthier working environment than their current job, with 35 per cent of those saying they already had found a new job with better hygiene practices.

The survey provides evidence that a shift in the awareness of clean and safe workplaces including air quality will be at the forefront of employee concerns. 70 per cent of those surveyed said they would be more likely to ask future employers about their health and hygiene policies and implementation before accepting future jobs.

“As the COVID-19 pandemic has shifted many of our workplaces to at-home environments, business leaders are trying to figure out how to safely bring back their employees,” said John Myers, President and CEO of Rentokil, parent company of Ambius. “Based on our study, research shows that when workers return to their workplaces, their expectations and priorities have changed. A clean, hygienic and well-ventilated space with efficient air circulation and strategically-place hygiene stations are central to the idea of a safe workplace and will be expected by employees as they return to work. Physical health is important, but these measures also contribute to the mental health and overall well-being of employees.”

The survey of 3,000 people featured employees working in a range of environments, including factory and warehouse floors, hospitals, restaurants, schools and general offices about their most important features of future workplaces. Clean, pure, and healthy air (62 per cent), efficient air circulation (54 per cent), regular disinfecting (52 per cent) and natural lighting (50 per cent) were some of the most popular responses to what these top features are.

Stale and stuffy working rooms (47 per cent), unpleasant odours (42 per cent), and poor ventilation (42 per cent) were all selected as factors that would create a stressful and anxious workplace environment.

Using plants and greenery in workplaces to mark social distancing partitions rather than sterile boards and markings would create a better working environment in general (65 per cent) and improve mental health and wellbeing in the workplace (55 per cent).

With the pandemic causing concerns for the future of workplaces across the world, the research suggests making strong steps to improve certain aspects in the environment, such as air quality, would go a long way in keeping them safe, happy and secure in the future, post-pandemic world.

Dialog design announces new Toronto partners

Charles Marshall is the newest partner at Dialog, a multidisciplinary design practice. With a background in mechanical engineering, he joined the Toronto studio in 2012.

As an influential leader in the sustainability practice area, Marshall has a strong ability to take complex ideas and translate them into coordinated, cohesive solutions. Throughout his career at the firm, he has led the sustainable design of some of the practice’s biggest projects including Royal Alberta Museum, Arthur Meighan Building Rehabilitation and Bill Fisch Forest Stewardship and Education Centre.

He is passionate about maintaining the highest standards for technical excellence and high-performance thinking. Taking a holistic view of sustainability including health of people, communities as a whole and the environment, he believes sustainability means creating communities and spaces that increase equity and are assets for all.

Marshall will bring this expertise to his new leadership role with a sharp focus on purpose, collaboration, and performance. He will continue to be a frequent resource for today’s leading organizations working towards a more sustainable future.

“Dialog believes in the power of design to address some of the world’s most challenging issues. Charles’ collaborative approach and expertise in carbon-neutral design means we can have an even greater impact,” said Jim Anderson, principal and current chair of Dialog.

In January, architect Stuart Elgie joined the firm as a partner in Toronto, where he will focus on healthcare design, projects, and pursuits.

Elgie spent the last two decades building extensive experience in healthcare design and construction, recently as vice president and health sector leader for Canada with Stantec Architecture. Recent career highlights include serving as principal-in-charge for both the $1.3B Cortellucci Vaughan Hospital in Vaughan, ON and Phase 1C of the Centre for Addiction and Mental Health (CAMH) in Toronto.

“I’m very excited to join the Dialog team, which has a long history in Canada and is growing in the US. I’m looking forward to working with a talented group of people who are designing and building world-class healthcare facilities,” he said.

Tricon Residential sells 80% stake in US multifamily portfolio

Tricon Residential announced it has reached an agreement with two institutional investors to invest in its portfolio of 23 U.S. multifamily apartments. Under the agreement, the investors will acquire a combined 80 per cent interest in the existing portfolio, with Tricon retaining a 20 per cent interest. The transaction reflects a total portfolio value of $1.331 billion.

In addition to the joint venture, Tricon and the investors are in discussions to form a separate growth-oriented joint venture to acquire additional multifamily properties in the U.S. Sun Belt, adding scale and diversification to Tricon’s portfolio.

Tricon intends to use the ~$425 million of gross proceeds from the sale of its 80 per cent equity interest primarily to repay outstanding debt and for general corporate purposes. As a result, Tricon expects to reduce its leverage by over 500 basis points to approximately 50 per cent net debt/assets (excluding convertible debentures), significantly enhancing its balance sheet flexibility.

“When we acquired our U.S. multi-family portfolio in 2019, we saw an opportunity to create a platform for growth within the largest investible property type in residential real estate and to explore synergies with our single-family rental business,” said Gary Berman, President and CEO of Tricon Residential. “Our intent has always been to pursue this strategy in partnership with third-party investors, and we are thrilled to work with two leading investors to add scale to our portfolio and to harness operational efficiencies over time.

“Moreover,” he continued “[this] announcement marks a significant step in our commitment to deleveraging our balance sheet. In the midst of a pandemic, we have been able to not only grow our business but also, upon closing this syndication, reduce leverage to ~50 per cent net debt/assets, a reduction of approximately 1100 basis points over the past year.”

Transaction Details

Under the terms of the joint venture, Tricon will control day-to-day matters and the two Investors will invest ~$425 million in aggregate for an 80 per cent interest in Tricon’s U.S. multi-family portfolio. The Joint Venture will have an initial term of ten years.

Throughout the term of the JV, Tricon and the Investors will each earn their proportionate share of investment income or net cash flow from the properties. Tricon will also be entitled to receive asset management fees, property management fees and potentially performance fees for managing the JV.

The transaction remains subject to finalizing definitive documentation and customary closing conditions including obtaining the necessary lender consents, and is expected to close this month.

BC Chamber of Commerce appoints new CEO

The BC Chamber of Commerce has announced the appointment of Fiona Famulak as president and chief executive officer. Famulak brings to the role more than three decades of international experience working in both private and not-for-profit sectors.

“I have enormous respect for the BC Chamber of Commerce and am honoured and excited to lead the organization at such a pivotal point in its history,” said Famulak. “The pandemic has reminded us of the importance of community, the power of collaboration and the need for courage to pursue new approaches to business. Our work ahead is to determine how to best serve the network of Chambers of Commerce and Boards of Trade, and the 36,000 businesses they represent, so that they not only navigate through the pandemic but are positioned to compete and thrive beyond it.”

As former president of the Vancouver Regional Construction Association, and CEO of the Whistler Chamber of Commerce, Famulak brings a natural passion for connecting with people and building community around meaningful conversations.

A member of the Institute of Chartered Accountants of Scotland and a former small business owner, Famulak will lead the BC Chamber team as it continues to support building resiliency in businesses across the province.

She will also work closely with the BC Chamber of Commerce board of directors, member Chambers of Commerce and Boards of Trade, government officials, and stakeholders to prioritize the immediate needs of the provincial business network.

“Fiona not only embodies a spirit of collaboration, which is in the DNA of Chambers of Commerce and Boards of Trade, but she brings extensive executive leadership experience, understands the power of our network to advocate for business, and has a proven track record for courageous and innovative change. With Fiona, we enter an exciting new chapter with sound leadership that will further strengthen our network as we work together to emerge stronger after what has been an incredibly challenging year for so many of our members,” said Aleece Laird, board chair, BC Chamber of Commerce.

Laird also acknowledged the BC Chamber board of directors are appreciative of the contributions of Dan Baxter, director of policy development, government, and stakeholder relations who seamlessly stepped into the interim CEO role and provided leadership to guide the organization and continue the momentum of the network during such a critical time.

Kelowna approves tallest tower on Water Street

Kelowna city council has approved Water Street by the Park, a three-tower development that includes 650 homes and 45,000 sq. ft. of retail and restaurant space. Designed by HDR Architecture Associates, the three towers will be 24, 28 and 42 storeys with a mass timber bridge running parallel with Water Street connecting two of the towers.

When complete, the 42 storey tower will reach 442 feet, making it the new tallest tower in B.C.’s interior.

From its location at the eastern end of the William R. Bennett Bridge, only one block from Kelowna City Park and Hot Sands Beach, the project will offer expansive views of Okanagan Lake, as well as mountain and valley views.

At street level, the podium of each tower will provide several levels of street-facing commercial space, which will become home to numerous boutiques, cafes, and other retailers and service providers. This influx of residents and retailers will add further momentum to the growing vibrancy and diversity of Kelowna’s downtown core.

“Having travelled to Kelowna countless times over my life, its easy to see why so many people want to live here, and our goal is to help them realize that dream,” said Anthony Beyrouti, co-founder of Orchard Park Properties, the project’s developer. “As committed as we are to building this project and these beautiful homes, we’re equally committed to being great corporate citizens that will work collaboratively to enhance Kelowna’s status as a great place to live and work.”

Water Street by the Park’s residential units will include a mix of one- and two-bedroom units as well as large three-bedroom corner units facing the lake that will accommodate a deficiency in the current condo market. The project will feature resort-style indoor-outdoor amenities including a year-round heated pool overlooking the Marina.

There will be 727 underground parking stalls and 566 bicycle parking stalls. Construction is expected to begin later this year.

Alberta Budget 2021 invests $20.7B over three years

Alberta Budget 2021 will invest almost $21 billion over three years to boost Alberta’s economy and create 90,000 new jobs. The 2021 Capital Plan invests $20.7 billion over three years.

This is an increase of $1.7 billion in 2021-22 from Budget 2020, reflecting the government’s commitment to getting shovel-ready projects off the ground and Albertans back to work in good-paying jobs.

The plan will support more than 50,000 direct and 40,000 indirect jobs through to 2024. This includes new funding for 41 projects totalling $825.8 million over three years, including:

$288 million for education projects, including14 school projects and an increase to the modular classroom program ($60 million)
$143 million for five health projects, including the La Crete Maternity and Community Health Centre ($35 million)
$177 million for transportation projects.
$48.7 million for environment and parks capital projects, including David Thompson Corridor upgrades, flood mitigation and resiliency projects.
$57.3 million for a new Court of Appeal building in Calgary.

The three-year plan also includes $3 billion for capital maintenance and renewal of existing buildings, roads, bridges and more.

“Alberta’s government continues to build the vital public works projects Albertans rely on, ensuring that we create jobs today, while building the infrastructure that our province will need as we emerge from the COVID-19 pandemic,” said Prasad Panda, Minister of Infrastructure.

The Alberta Construction Association (ACA) welcomes the Budget 2021, which will support construction families across Alberta from more economic uncertainty. ACA also applauds the government’s continued investment in training programs and educational opportunities which will enhance the lives of young people looking to enter the workforce,

Whether new schools for increased student enrolments, transit projects to reduce congestion and get goods to market, and hospitals to meet health care, the provincial government must continue to invest in infrastructure regardless of economic circumstances. The level of investment needs to keep pace with population growth and inflation, according to ACA.

Construction is one of Alberta’s largest employers, directly accounting for approximately 240,000 jobs or one in 10 working Albertans, with thousands of additional jobs in related occupations.

Favourable physical risk profile comes with transitional unpredictability

ESG underscores goals and maps progress for investors, asset and property managers

Heat Happens: Lessons on Cooling and Comfort

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