Metro Vancouver identifies key issues for B.C. election

Metro Vancouver has identified key regional challenges to be addressed by provincial parties through the Local Government Matters 2020 platform, a non-partisan election initiative to elicit solutions to challenges facing local governments and residents ahead of the 2020 BC election.

“We are bringing attention to the issues that are most significant to Metro Vancouver residents and our member jurisdictions,” said Sav Dhaliwal, chair of the Metro Vancouver board of directors. “This campaign allows us to get a better understanding of the parties’ priorities and is a resource for voters to learn about regional issues and how they may be addressed.”

Thirteen questions in four key issue areas have been sent to the three major parties contesting the 2020 provincial election. The issue areas relate directly to the region’s long-term livability, sustainability and prosperity:

Pandemic response, resilience and equity,
Critical investments in infrastructure funding and economic recovery,
Housing and affordability,
Climate change and environment.

“Infrastructure is critical to protecting quality of life and well-being. According to a recent survey, the vast majority of residents strongly believe that infrastructure investment must be part of B.C.’s and Canada’s plans to build back better from COVID-19,” said Linda Buchanan, vice chair of the Metro Vancouver board of directors. “Metro Vancouver is well positioned to partner with the Province of B.C. to realize shared objectives to spur economic growth, address climate change, protect natural habitats and create more affordable and inclusive communities.”

Metro Vancouver has earmarked more than $6 billion in shovel-ready critical infrastructure investments over the next five years to strengthen systems for drinking water, liquid waste, housing and regional parks. These projects have the potential to create thousands of long-term family-supporting jobs while protecting the environment and making the region more resilient to climate change.

“The COVID-19 pandemic has exposed social inequities that must be addressed to ensure our collective long-term livability and resilience,” added Dhaliwal. “We believe it is critical that government policies at all levels be examined through an equity and resilience lens to ensure that all residents can access social supports and that everyone may benefit from a recovery that advances economic, environmental and societal objectives.”

Jack Tennant Memorial Bridge opens in Cochrane

The Jack Tennant Memorial Bridge in Cochrane, AB has officially opened. Named after the longtime Cochrane resident, the new bridge does what he was best known for: connecting the community.

The new three-span bridge, about 160 m in total length, provides a second connection across the Bow River, offering an alternative route for Cochrane residents traveling from the north and south sides of the town.

The bridge is designed with a single pier in the river, and the second pier adjacent to the river. The outer spans are about 51m (165 ft) each with the central span being about 58m (190 ft). The piers have been designed with two columns to improve visibility for users beneath the bridge and the overall bridge aesthetics. The deck is about 14m above the normal water level in the river at its highest point.

“This $53 million bridge and roadway project was made possible, in part, because of the great partnerships the Town of Cochrane has with organizations such as PCL Construction,” said Cochrane Mayor Jeff Genung.

PCL Construction broke ground in 2018. The bridge is the largest capital project in the Town’s history.

“I am truly proud of the project team,” said Ankur Talwar, PCL manager civil operations in Calgary. “Their ingenuity and dedication to the Jack Tennant Memorial Bridge have been evident throughout the project, and this is the perfect opportunity to celebrate the Town of Cochrane and its newest addition.”

To ensure the successful construction of the Jack Tennant Memorial Bridge, the project team took to the water. The team installed in-river berms and cofferdams to accommodate the wildlife and changing seasons during construction.

The Jack Tennant Memorial Bridge won a 2020 Award of Merit from the Consulting Engineers of Alberta in the Project Management category for the innovative approach to procurement. RJC was the bridge engineer for the project and Urban Systems was prime consultant and civil engineer for the roadway.

Employees absorb most home workspace costs

Facilities managers at many large corporations foresee they’ll be accommodating the needs of a smaller on-site workforce during the next eight to nine months. The majority of corporate real estate professionals responding to a recent CoreNet Global survey expect their companies’ formal office space will remain more than half empty until at least June 2021.

It’s also expected that employees will most often return when they need to work collaboratively with colleagues and then retreat to home offices or decentralized co-working spaces for individual tasks. Although companies may realize operational savings as their office footprint shrinks — 86 per cent of survey respondents predict that outcome over the next two years — expenditures to help staff outfit productive home offices remain fairly modest.

Thus far, more than one third of survey respondents report no per-employee allocation has been established for furnishings or technological support in the home workspaces where it’s projected staff will spend at least 42 per cent of their formal work hours. Another seven per cent of represented companies have offered less than USD $100, while only 22 per cent have provided more than USD $250.

The Canada Revenue Agency (CRA) is now working through the details of how employees can claim tax credits for home workspace costs on their 2020 income tax returns. As revealed during a public consultation last month, the tax credit will be available to claimants who fulfilled at least 50 per cent of their employment hours in their homes for continuous periods of at least four weeks due to COVID-19-related circumstances.

As part of the consultation, CRA revealed a proposed abbreviated version of the T2200 form, which employers must complete to enable workers to claim the credit. This would affirm that the employee was required to work from home and report the amount of reimbursement, if any, the employer provided for home workspace costs. However, tax law specialists with Borden Ladner Gervais LLP maintain CRA could collect the same information via two added boxes on the standard T4 form.

“While this revised form may help reduce administrative work slightly, those providing input during the consultation emphasized that it is still a burdensome requirement that will result in significant costs for large employers,” they observe in a recent newsletter. “In addition, we expect to see further guidance and examples on the requirements that must be met and the expense claims that can be made by employees for work-space-in-the-home expenses incurred during COVID-19.”

Cadillac Fairview unveils plans for Pointe Claire Mall redevelopment

Cadillac Fairview is one step closer to transforming the site at Montreal’s Pointe Claire Mall on West Island into a bustling new downtown core, connected to the city by transit.

According to newly revealed plans, the developer intends to transform the five million square-foot Pointe Claire Mall site into a “work, live, play” hub featuring offices, residential apartments, a seniors residence, a boutique hotel, parks, additional retail, and a new REM light-rail transit station and bus terminal.

The City of Pointe Claire issued a statement supporting the new REM station and STM bus terminal, stating that it will “contribute to create an important multimodal hub in this sector.”

Cadillac Fairview has been entrenched in the area since 1965, having invested hundreds of millions of dollars over the years in expansions and renovations at the mall.

The first phase of the multi-phase project was announced in 2018, involving the redevelopment of the former Sears store into a two-level Simons department store and food court. The new Simons is expected to open next year.

Phase 2 and Phase 3 will include the addition of offices, a 150-room hotel, a 21-storey seniors residence, and two 10-storey rental towers each containing 150 to 200 units. Additional residential units will be added to the Secteur du Parc, featuring a mix of condominiums and rentals in high-rise and mid-rise buildings, townhouses and stacked townhouses.

Superior dispensers, superior protection with Cascades PRO

78% of Americans are concerned about touching surfaces in public restrooms during the coronavirus pandemic. And 67% mention paper towels as their preferred method of drying hands in a public restroom.

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Four long-lasting D batteries, as well as an AC adaptor, offer peace of mind, reduced labor costs and a reduced environmental impact for facilities. The Tandem Electronic Dispenser also saves time for custodial staff, with quick-load technology, a quick-check design and two smart LED indicator lights that identify when paper rolls and batteries are running low, resulting in greater productivity and efficiency.

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Visit our webpage to learn more about it and/or download the white paper on hand hygiene here.

New Red Crow College campus construction starts

Red Crow Community College in southern Alberta will see construction of a new 106,000 square foot campus at Kainai, replacing one destroyed by fire in 2015.

“I’m thrilled funding has been approved for the Red Crow Community College rebuild. Better access to higher education for Indigenous communities is essential. Students will have the chance to study closer to home, connecting the modern with traditions passed through generations and helping keep the community and province strong through the skills they gain,” said Rick Wilson, Minister of Indigenous Relations.

The total project cost for the new college is $48 million, with $20 million being funded by the Government of Canada through the Investing in Canada Infrastructure Program. The remaining funding is being provided by Kainai and the Red Crow Community College.

“Construction of the new Red Crow Community College supports Alberta’s Recovery Plan by creating almost 300 local construction-related jobs which also promotes healthy economic spinoff activity throughout the area. Over the long term, the new college will benefit Indigenous and non-Indigenous students alike by providing the tailor-designed, modern learning facility and programs they need to succeed,” said Prasad Panda, Minister of Infrastructure.

The new campus at Red Crow Community College will provide education and training, and create a new talent pipeline for key industries in southern Alberta, such as agriculture and agri-business, to support the promotion of long-term economic development of the region. It will offer a high-quality, culturally infused, Blackfoot language-based learning environment for Indigenous and non-Indigenous students.

“The new campus facility will provide access to learning resources, and spaces to gather, collaborate and learn with peers, teachers and elders,” said Roy Weasel Fat, Red Crow Community College president. “It will provide spaces that support listening, mutual respect, open discussion and relationship building. It will ground students to nature, our language and Blackfoot culture.”

Downtown Toronto’s startling rise in vacancies

A new survey from Urbanation looking at rental projects constructed after 2005 paints a startling picture for owners and managers of once-coveted downtown properties: within the former City of Toronto, the sharp rise in vacancies from 0.7 per cent last year to to 2.8 per cent today underscores just how detrimental the ongoing pandemic has been.

While the outer regions of the GTA are fairing better, Toronto’s vacancy rate as a whole rose considerably to 2.4 per cent—a number three times higher than it was in Q3-2019 (0.8 per cent) and the first time in ten years it surpassed 2 per cent.

“The GTA rental market showed some improvement in the third quarter within more suburban areas,” observed Shaun Hildebrand, President of Urbanation, calling the weakened conditions in the downtown core a result of renters needing to reevaluate their high cost of living. “While it was encouraging to see the large increase in lease activity in the third quarter as renters took advantage of recent discounts, the market will continue to face challenges heading into 2021 from restrained demand caused by COVID-19 and elevated supply levels.”

According to the new data, total occupancy in newer purpose-built rental buildings across the GTA, including recently completed buildings still in their initial lease-up, remained essentially unchanged from a year ago at an average of 90 per cent. However, within the four buildings and 988 units that reached completion so far in 2020, occupancy averaged just 34 per cent; by comparison, the eight projects totaling 3,155 units that reached completion in Q3 last year had an average occupancy rate nearly double that.

Lower monthly rents

For brand new units that became available during the third quarter of 2020, average monthly rents declined by 5.8 per cent year-over-year to $2,373. However, Hildebrand says some of the rent decline could be attributed to a decrease in the average available unit size to a record low 740 square feet from 767 square feet a year ago, indicating that turnover has been relatively stronger for smaller units.

“The rise in unit turnover for smaller units was evident across both the purpose-built rental and condominium rental markets,” Hildebrand says. “This reflects the nature of the economic challenges caused by the pandemic, which have disproportionately impacted young adults who have likely moved back home or to a less expensive rental outside of the city. This is in addition to the loss in student population and lack of new immigrants, which has occurred at the same time as a large number of newly completed small units have hit the market.”

Urbanation research also found that most rental buildings surveyed for Q3 were offering incentives to attract new tenants, which mainly included one month of free rent, move-in bonuses and, to a lesser extent, two months of free rent.

Development and condo activity

Meanwhile on the development side, construction of new rental projects remained elevated in the third quarter compared to previous years, with 13,131 units in the works—down from the recent high of 13,663 units in Q1-2020 but up from a year ago (11,522 units). A total of 5,276 new rental units are scheduled for completion in the GTA in 2021, the highest level in more than 25 years and up from 988 units completed in 2020.

In terms of condominium rentals, total unfurnished, long-term lease transaction volume in the GTA grew 39 per cent year-over-year during the third quarter to a record high 13,140 units. Activity surged due to a doubling in the number of condo rentals listed for lease during the quarter to 23,288 units and an annual reduction in average monthly rents of 9.4 per cent to $2,249 — the lowest rent level since Q1-2018.

While there were some signs of improvement in the market in the last three months as the ratio of leases-to-listings increased to 56 per cent from 45 per cent in Q2, the data suggests that rents will continue to face further downward pressure due to the record amount of supply on the market. At the end of Q3, active condo rental listings totaled 9,154 units, 4.5 times higher than a year earlier.

The 7.5 per cent year-over-year decline in average per square foot condo rents in the GTA in the third quarter to $3.19 psf was heavily weighed down by weakness in the former City of Toronto, where average per square rents fell 12.3 per cent annually to $3.41 psf ($2,290). In the outer 416 region (Scarborough, Etobicoke, North York), the annual decline in rents was 4.5 per cent to $3.03 psf ($2,219), while 905 region rents were down the least by 2.5 per cent annually to $2.73 psf ($2,162).

Also of note, average rents increased 1.1 per cent quarter-over-quarter in both the outer 416 and 905 regions, while continuing to fall in the former City of Toronto with an accelerated quarterly decline of 5 per cent. Within the former City of Toronto, the steepest year-over-year declines in average per square foot rents were found in the East Bloor/The Village submarket near U of T and Ryerson University (-16.8%), the Downtown Core (16.0%), the Entertainment District (-15.9%), and CityPlace (-14.3%).

For more on this report, visit www.urbanation.ca

New grad program at McGill to shape ‘retail leaders of the future’

McGill University’s Bensadoun School of Retail Management is launching a Master of Management in Retailing (MMR) designed to equip students with the tools they need to thrive in the rapidly evolving post-COVID retail industry.

“The MMR will combine analytics, sustainability, creativity and management to prepare students to become retail leaders of the future,” said Professor Morty Yalovsky, dean of McGill’s Desautels Faculty of Management. “It is the only Masters program of its kind to prepare students for the shifting priorities anticipated in tomorrow’s economy enabling students to either transition seamlessly into retail or take their existing retail careers to the next level.”

The COVID-19 pandemic and the rise of e-commerce is driving rapid technological innovations in the retail sector.

“Now more than ever it is important to understand how big data, machine learning, artificial intelligence and smart infrastructure are changing the supply chains of tomorrow,” said Professor Saibal Ray, academic director of the Bensadoun School of Retail Management. “To meet the retail industry’s ever-changing needs, MMR students will exit the program not only with solid academic credentials but with invaluable practical experience.”

Offered in twelve or sixteen-month options, the program is designed to prepare students from any academic background and experience level for a variety of careers in retail such as marketing, strategy, operations, data science, tech/consulting, and supply chain management. There is no other program in the world which looks at management in retailing from end to end.

The MMR features a comprehensive curriculum that integrates advanced retail concepts and real-world experiential learning opportunities in various sectors such as fashion/beauty, food/grocery, financial services, hospitality/entertainment, intelligent mobility, among others. MMR students have the opportunity to participate in internships with the school’s major retail partners, learn about managing all levels of a retail operation using the latest technologies offered in the school’s Retail Innovation Lab, and take part in an optional international study trip to learn about retail operations in a booming metropolis abroad.

Students can apply to be part of the first cohort of the Master of Management in Retailing at McGill. To attend an upcoming information session, register online.

New CCOHS tool kit helps workplaces customize COVID-19 health and safety

The Canadian Centre for Occupational Health and Safety (CCOHS) has launched a new customizable CCOHS tool kit resource to help workplaces across Canada operate safely and prevent the spread of infection during the COVID-19 pandemic.

Anchored by the COVID-19: Workplace Health and Safety Guide, the online hub provides one-stop access to more than 40 free resources to reduce the spread and protect everyone in the workplace. The guide includes information on the responsibilities of employers and workers, and what workplaces should do to control risks. Topics covered include how the coronavirus spreads, employers’ duties, handling work refusals, hazard and risk assessment identification for COVID-19, and how to control the risk and apply the hierarchy of controls in the workplace.

Workplaces can download the guide on its own or bundle other industry and workplace-specific tip sheets, infographics, and posters to create a customized and comprehensive COVID-19 tool kit tailored to their industry or specific workplace needs.

“Every workplace has unique challenges and risks associated with operating during the pandemic,” said Anne Tennier, President and Chief Executive Officer of CCOHS. “It’s important that workplaces have the comprehensive guidance they need to operate safely and prevent the spread of infection regardless of what stage of reopening or working they are in.”

The COVID-19 tool kit of health and safety resources can be found on the CCOHS website: www.ccohs.ca/products/publications/covid19-tool-kit/.

SOURCE: CCOHS

GRHC and RCABC offer new green roof training

Green Roofs for Healthy Cities (GRHC), the North American industry association for professionals working in the green roof and wall industry and the Roofing Contractors Association of British Columbia (RCABC) have signed an agreement to develop and pilot three new training and certification programs to complement the existing Green Roof Professional (GRP) training program run by GRHC.

“The development of practical, hands-on training for green roof installation, maintenance and quality assurance with the RCABC will complete the core green roof professional development and certification program, started more than 10 years ago with the Green Roof Professional,” said Steven Peck, GRP, founder and president, Green Roofs for Healthy Cities.

The successful Green Roof Professional accreditation started in 2009 and since has seen more than 1500 professionals go through the program. The courses, now available online, focus on green roof design and installation, plants and growing media and waterproofing and drainage systems. The GRP accreditation program has been crucial to the success of the green roof industry because it has disseminated best practices widely.

The new training program will introduce more professionals to green roofs and sustainable building practices and create a skilled workforce. The development of the program will be lead by Ed Snodgrass, president, Green Roof Plants and an advisory committee of experts.

“RCABC has a long history of standards development and training to support quality roofing by its members. The new training materials will help ensure high-quality performance of green roof systems across British Columbia and mitigate risk for owners. We look forward to working with GRHC and the advisory committee,” said Bryan Wallner, CEO, RCABC.

Rebate extension postpones hydro cost hit

Many condominium corporations and rental housing landlords in Ontario received a six-month reprieve from a looming hydro cost hit earlier this week when Minister of Energy Greg Rickford announced that large accounts specifically linked to electricity used in buildings’ common areas will remain eligible for the Ontario Electricity Rebate (OER) until April 30, 2021. Common area accounts registering more than 50 kilowatts (kW) of demand or 250,000 kilowatt-hours (kWh) of annual consumption had been scheduled to lose the benefit — currently a 31.8 per cent pre-tax discount on electricity consumption and regulated transmission/distribution charges — on November 1.

Now, they’ve been granted an extension that comes with an improved rate since the provincial government intends to increase the rebate apportionment to 33.2 per cent on November 1. That’s likely to be particularly welcome, at least in the short term, as hydro rates for all residential, farm and small commercial customers are slated to rise on the same date.

“As we recover from COVID-19, our government remains focused on supporting Ontarians by keeping the cost of electricity affordable,” Rickford said, as he also outlined a planned new program to improve energy efficiency in low-income households along with expanded eligibility criteria for one-time grants through the COVID-19 Energy Assistance Program.

COVID-19-prompted hiatus of flat rates ends October 31

Nevertheless, the fall/winter schedule of the Regulated Price Plan (RPP), which the Ontario Energy Board likewise revealed this week, reintroduces time-of-use rates at higher price points than prior to the COVID-19-prompted hiatus that will end on October 31. Notably, the peak rate, applying from 7 to 11 a.m. and 5 to 7 p.m., will jump from 20.8 cents per kWh at the beginning of this year to 21.7 cents/kWh for fall 2020/winter 2021. Pending new rates for off-peak hours at 10.5 cents/kWh and the mid-peak period at 15 cents/kWh compare to 10.1 cents/kWh and 14.4 cents/kWh previously.

For the first time, RPP customers can alternatively opt for tiered prices, with higher rates kicking in after the first 1,000 kWh of monthly consumption for residential customers or 750 kWh for non-residential customers. That will be set at 12.6 cents/kWh and 14.6 cents/kWh on either side of those thresholds.

The OEB estimates either choice should result in bills that are about 2 per cent higher for the average residential consumer, even when accounting for the upward adjustment in the rebate. Rate increases are attributed to the need to collect a greater share of the global adjustment — the opaque envelope of locked-in costs for contracted supply, nuclear facility refurbishment and conservation and demand management (CDM) programs — from RPP customers because demand has dropped across the entire electricity system, and also to make up for the shortfall that accumulated over the past 7+ months while customers have been charged flat rates.

“The OEB has decided to spread collection of this shortfall over two years to ease the impact on consumers,” its backgrounder on the new rates reports. “If the collection had been spread over 12 months, as is typically the case, the electricity costs recovered through RPP prices would have been roughly 1.6 per cent higher.”

Rebate withdrawal based on OEB’s interpretation of enabling regulation

Many condo boards and rental housing landlords had been bracing for an upward spike on their hydro bills due to the OEB’s interpretation of how the Ontario Electricity Rebate should be applied. In a memo issued last December, the OEB determined that common area accounts surpassing 50 kW of demand or 250,000 kWh of annual usage would not qualify after the one-year transitional period expired on October 31, 2020, even though the rebate would apply on all the same electricity-using elements for any amount of consumption in bulk-metered buildings where a single account covers all residential suites and common areas.

In a follow-up explanation provided to a rental housing landlord earlier this year, the OEB’s industry relations liaison pointed to the wording of the enabling regulation — enacted in October 2019 to facilitate introduction of the new more substantive replacement for the previous 8 per cent provincial rebate — for the seeming inequitable treatment of buildings with the same functions and types of occupants.

While most readers see the section as an affirmation that occupants of large multi-residential buildings are entitled to the same rebate that hydro account holders in single family dwellings receive, the OEB draws further nuanced distinctions around the regulation’s reference to “solely in respect of a multi-unit complex” that contains at least two qualifying units and in which at least 50 per cent of the units qualify.

“Applying the eligibility criteria set out in the Regulation, the entire building, including the common areas, of a residential condominium building that is bulk-metered by a distributor (whether sub-metered or not) would qualify for the OER as long as there are at least two qualifying units, and that at least 50 per cent of the units in the building are qualifying units,” the OEB’s explanation states. “If the same building was individually metered by the distributor (i.e. unit smart metering), each account would have to be assessed on an individual basis as to whether it meets the eligibility criteria (i.e. the 50 kilowatt demand or 250,000 kWh annual consumption). In this case, if the common area account(s) did not meet the thresholds, these accounts would not qualify for the OER because it does not contain any qualifying units.”

Ramifications flow through to condo fees

For condo owners, the ramifications of that interpretation flow directly to their fees. For example, the common area account for Toronto Standard Condominium Corporation (TSCC) #2112, a 32-storey, 342-unit tower in the city’s north Yonge Street corridor, typically records about 200,000 kWh of monthly consumption — presenting the condo board’s budget committee with the challenge of where to find the funds to cover a 30+ per cent increase on that bill.

“In our case, the hydro cost for common areas represents 7.5 per cent of our total expenses,” reports Maryam Maleki, a member of that committee. “Cutting the rebate would result in a 2.5 per cent increase in our total expenses, if all the other expenses remain constant.”

Many other condo boards throughout the province have been facing similar challenges.

“We provide our clients with templates that have the OER timing in them. So impacted sites were calling me to say: Hey, I think your template is wrong because our costs look like they are going up like crazy,” recounts Rob Detta Colli, manager of energy and sustainability with Crossbridge Condominium Services. “I’d explain: ‘No, the templates aren’t wrong’, which then leads to another explanation about what’s happening with the OER.”

The newly announced rebate extension does not overturn the OEB’s interpretation, but it does give those who question its logic more time to make their case. That includes a range of stakeholders from condominium boards and unit owners to rental housing landlords and investors to energy efficiency advocates concerned about potential negative impact on the uptake of unit sub-metering.

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

New CBRE survey reveals shift in tenant preferences

In the midst of a pandemic that has confined most residents to their homes, a new CBRE survey of Canadian landlords reveals that multifamily owners and operators have seen big increases in tenant demand for unit features that support work-from-home and social distancing, including in-suite laundry, dens, balconies and walk-up access.

To gauge the impacts of COVID on multifamily properties, CBRE surveyed more than 80 Canadian multifamily owners/operators, representing over 200,000 units nationwide. Participants were asked to provide insights on their portfolio’s performance and the challenges they have faced through the pandemic.

Here are some critical takeaways from the CBRE survey:

47 per cent of landlords report that overall apartment vacancy rates have not been impacted by COVID-19. Alberta is the one outlier, already challenged by an ailing energy sector, where 43 per cent of landlords surveyed said COVID led to a 3-5 per cent increase in vacancy rates within their portfolios this year.
Rent collection has not been significantly impacted by the pandemic. The survey shows that over the first four months of the crisis landlords indicated that rent collection rates within their portfolios had consistently averaged 96 per cent, with no discernible downward trend from month to month.
There has been a significant shift in tenant turnover patterns. Amid financial security concerns, most residents have delayed moves until there’s greater clarity regarding a COVID recovery, with 35 per cent of landlord respondents reporting decreased turnover rates.
While the majority of respondents noted a decrease in turnover, there were some segments which had seen increases as financial issues pushed tenants to seek accommodations with a roommate, downgrade to more affordable building, or move in with family members.
Landlords are seeing increased demand for pandemic-friendly features such as: in-suite laundry, to avoid laundromats and shared laundry rooms; balconies (for outdoor time); walk-up access (to avoid elevators); and dens or small home offices, to facilitate remote work. Landlords also report growing demand for building amenities like outdoor terraces, co-working spaces and private gyms.

“We’ve heard so much about how working-from-home is impacting the office world, but there has been little corresponding discussion about how the home can do a better job of supporting remote workers,” says CBRE Canada Research Director Marc Meehan. “The fact that residents are spending more time than ever in their homes has resulted in noticeable shifts in their preferences and requirements, and landlords are having to adjust accordingly.”

Investment activity

CBRE’s survey shows that investment prospects for Canada’s multifamily sector have been untarnished by COVID. Investment activity started 2020 at a breakneck pace, on course for a new annual record of $11 billion. And while the lockdown curbed that momentum considerably, investment volumes for the multifamily sector have been more resilient than those for other income-producing asset classes.

Multifamily was able to maintain 65.0 per cent of its 5-year trailing quarterly average investment volume in the second quarter of 2020, the smallest decline of any sector, and pricing is now even higher compared to pre-pandemic times for select properties and geographies.

Home prices continue rising into fall season

Even as a second wave loomed in the third quarter, home prices in Canada rose on average by 8.6 per cent compared to last year. It seems 2020 may also end on a higher note than 2019, according to statistics from the Royal LePage House Price Survey and Market Survey Forecast released today.

Right now, an average home costs $692,964, with rates rising mostly in Ontario and Quebec. Royal LePage CEO Phil Soper says the pandemic has motivated Canadians to put more of their money towards saving for a home, driving up housing prices and sales. High demand and low inventory continue to fuel a seller’s market.

Home prices by type

The average price of a condominium also increased year-over-year to $510,365.

“The price of condominiums, the sector hardest hit by the pandemic, has risen 5.3 per cent nationally compared to last year, said Soper. “When a landlord needs to sell a unit after young tenants move back to their parent’s home, and with fewer new immigrants or opportunities for short-term rental income, there are plenty of first-time buyers ready to seize the opportunity to get into the market.”

A two-storey home rose 10 per cent year-over-year to $819,906, while the median price of a bungalow increased seven per cent to $570,701. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.

“Typical consumption patterns have been disrupted in 2020 as the pandemic has driven the household savings rate to levels not seen in decades,” Soper added. “Most Canadians have sharply reduced spending on discretionary goods and services involving a great deal of human interaction, and with mortgage rates at record lows, many have refocused on housing investments, be it renovations to accommodate work-from-home needs, a recreational property or a new property better suited for the times.”

Statistics Canada reported that in the first quarter of 2020, the household savings rate climbed to 7.6 per cent of disposable income, the highest since 1996. In the second quarter, savings spiked to 28.2 per cent, the highest savings rate since the early 1960s. From 2015 to 2020, the average savings rate was about three per cent.

Bidding Wars?

Competition remains high amongst buyers in many regions. According to a recent Royal LePage Advisor Survey, during the month of September, 95.4 per cent of Royal LePage agents surveyed said detached houses in their region were attracting multiple offers and 54.1 per cent said that condominiums were attracting multiple offers. According to the national survey, 89.4 per cent of agents had to place at least two offers on behalf of their clients to purchase a home during the third quarter. Sixteen per cent had to place more than five offers. In Quebec, the proportion of agents who had to place more than five offers rose to 19.1 per cent, the highest in the country.

Ontario and Quebec by Region

In Q3, Windsor reported the highest spike, with the average price rising 17 per cent year-over-year followed by Oshawa (15.0 per cent), Kitchener/Water/Cambridge (13.9 per cent), Hamilton (13.7per cent), and Mississauga (13.5 per cent). In Quebec, the fastest appreciating regions were in the Greater Montreal Area, where the average price rose 12.5 per cent year-over-year in the third quarter driven by gains made in Montreal Northshore, Montreal East, and Montreal Centre.

In the Greater Toronto Area (GTA), there was an 11 per cent year-over-year increase to $922,421. Condominiums continued to see healthy price appreciation, with the average price rising 6.8 per cent year-over-year to $599,826. A standard two-storey home went up 12.2 per cent to $1,082,502.

The City of Toronto saw similar increases. The average price of a condo grew 4.9 per cent to $644,903, where the median price of a two-storey home increased 15.5 per cent year-over-year to $1,483,510,

“The seasonal slowdown is expected in the coming months, but given the recent strength of September, we will likely see a more brisk fourth quarter market than the previous year,” said Debra Harris, vice-president, Royal LePage Real Estate Services Limited. She added that while active listings are up, the sales to listings ratio and decrease in days on market indicate that properties are being quickly absorbed by demand.

“The detached home market is outperforming the condo market but condo demand is still considered healthy,” she noted. “Condo sales were up 15 per cent in September compared to September 2019. In Toronto, we are used to strong seller markets and a balanced market can seem quiet by comparison.”

Here is the Royal LePage House Price Survey Chart, featuring Canada’s largest 64 housing markets.

Major League Baseball partners with Lysol for cleaner stadiums

Major League Baseball (MLB) is partnering with Lysol and its parent company Reckitt Benckiser (RB) in an attempt to ensure heightened cleanliness and hygiene in its stadiums and training facilities.

The league, represented in Canada by lone franchise the Toronto Blue Jays, announced on October 14 it has entered into a multiyear deal that it says will “help reinforce and promote healthy habits and disinfection protocols for the league’s players, staff, and fans.”

The MLB release says that starting from the outset of the 2021 season, Lysol and MLB will also work together to employ the expertise of microbiologists and germ-kill experts to reinforce ongoing disinfection practices and protocols in ballparks, with a focus on high-touch germ hotspots.

In addition, beginning immediately in the remainder of the 2020 postseason, Lysol will provide professional-grade disinfection solutions to the league which will be made available to players and staff in dugouts, bullpens, and clubhouses, as well as in fan areas of ballparks. Lysol products are also being included in postseason hotel welcome kits for players, staff, and their families.

The partnership is aimed at further strengthening infection control and ensuring that stadiums are offering the safest and cleanest environment possible for players, staff, and the return of spectators.

SOURCE: MLB

SAPL competition calls for equitable, inclusive cities

The School of Architecture, Planning and Landscape (SAPL) at the University of Calgary has launched a design competition intended to spark an international discussion around equitable, inclusive cities.

The CBDX: CITIES FOR ALL competition is an ambitious endeavour, inviting interested participants “to propose design counterpoints to the questions weighing on our collective conscience resulting from the current social and political climate”.

The competition is an extension of a discussion SAPL has actively been hosting, most recently via a livestreamed panel discussion featuring architect-activists from South Africa and the United States. “Space is life,” Dr. Craig Wilkins from the University of Michigan implored. “If you don’t have access to it, if your access to it is unjust or unequal, then your life is going to be that way.”

According to SAPL, the pandemic and the Black Lives Matters movement have created a sense of urgency for addressing a wide-ranging set of inequities that have always existed.

“The climate crisis and social inequality have converged against the backdrop of a pandemic, prompting us to rethink the way cities are being designed, built and operated,” said Dr. John L. Brown, PhD, SAPL dean. “It is an opportunity for architects, planners, landscape architects, and other creative practitioners and students to imagine how we can make our futures better for everyone. The ideas generated from this competition will offer a glimpse into how a city for all might look, how it might operate, and come into being.”

Entrants will submit design proposals for places, structures, things, systems, processes or relationships that increase inclusion, belonging, and well-being for a group who is typically underrepresented or undervalued in the prevailing design discourse.

The competition offers $6000 in prizes and the deadline for submissions is December 31, 2020. An international, interdisciplinary jury will identify the winning entries on February 10, 2021. Selected entries will be exhibited in February 2021 and published in Fall 2021.

Competition details can be found at cbdxcitiesforall.com.

How is COVID-19 impacting reserve funds?

When considering the impact of COVID-19 on reserve funds, we need to consider both the here-and-now and the future. In the near term, the impacts are strictly practical. In the long-term, it is more of an intellectual exercise in evaluating the likely impact on long-term inflation and interest rates.

Three Key Near-Term Impacts

Impact on Preparation of Studies

Financial updates have proceeded throughout the lock-down; however, there have been impacts on the timing of site-visit based studies. For three months, most consultants were not visiting sites at all, and many are still reluctant to enter occupied suites. The good news is that there are fewer corporations with summer year ends, so the number of corporations impacted has been modest.

Reserve fund study providers are likely to remain overloaded for the next few months as they attempt to catch up. If your corporation is struggling to finalize the study in time for budgeting for your next fiscal year, the recommendation would be to see what the overall message is in the draft study. If a significant increase is needed, the board should set a contribution level higher than existing. This can be communicated to unit owners via a Notice of Future Funding that explains that the study remains incomplete, but that the board is implementing a preliminary increase based on the knowledge that an increase is needed. When the study is finalized mid-way through the following year, it can be based on that new contribution, setting the required contribution for the following two years. This will necessitate a revised Notice of Future Funding but is a better plan than avoiding an increase until the study is finalized.

Impact on Spending

Many reserve fund projects have not been able to proceed this year. Even now as construction has “opened up,” contractors have backlogs that will allow them to complete only some of the previously planned projects. Corporations should be clear about projects that have true urgency and be willing to accept that non-urgent projects may need to be delayed. They should also consider the impact of projects on stay-at-home workers. This may not be the best year to complete disruptive projects like riser replacements.

COVID-19 Related Costs

Some corporations that have had COVID-19 positive cases in their buildings have seen significant unplanned costs this year related to cleaning. This may have put their operating fund at risk. Their instinct may be to look to reserve funds as a source of cash. Reserve funds can be used only for the major repair and replacement of the common elements and assets of the corporation, so it is not appropriate to use reserve funds to cover operating shortfalls. However, it may be possible to reduce the amount deposited to the reserve fund in the current year (on a one-time basis). This would allow more of the common expenses already being collected to be allocated to operating costs. It is important that the board work with their reserve fund study provider to model the impact and develop a new board funding plan that reflects this one-time reduction.

This must be communicated to unit-owners via a new Notice of Future Funding. It is important to make sure that this new low contribution does not become the “base” from which future contributions are calculated. Instead, the following year contribution must increase to the previously planned level, plus any additional amount required to ensure that the fund remains adequately funded despite the one-time shortfall.

Long-Term Impacts Are More Challenging To Predict

Interest Rates

Since the financial crisis of 2008, we have been waiting for interest and inflation rates to return to historic norms. Now, with the financial hardship presented by the pandemic, it is safe to say that interest rates are likely to stay low for the foreseeable future. Low interest rates protect borrowers and penalize savers and are a painful pill to swallow for reserve funds, particularly in new buildings. It will be a long time before new buildings reach their critical years, so the interest earned on their balances becomes a significant contributor to the fund. Reduced interest rates mean that more money has to come from owners’ pockets, which will be reflected in additional increases at future updates. Older condos live more hand-to-mouth, spending most of what they collect in each year, so low interest rates have a lower impact.

Inflation Rates

It is very hard at this stage to predict where construction costs will go in the future. If supply chains and global trade break down, costs will rise. If spending drops too much, suppliers will be pressured to drop pricing. If governments spend on infrastructure, resources may be strained, and costs may rise. As such, it is difficult to evaluate where inflation rates in reserve fund studies should be set. A conservative assumption is an increase over what has been used in recent years. Each corporation should consider the impact of these assumptions on their study and proceed with caution. As with interest rates, inflation rates have a stronger impact for new buildings. However, newer condos also have many three-year study cycles before major spending occurs, allowing for course correction over time.

We are hopeful that the pain caused by COVID-19 will soon be behind us. This will be dependent on Ontarians stepping up and doing their best to minimize the second wave. Masks on, Ontario.

Sally Thompson is a managing principal at Synergy Partners and past-president of CCI Toronto.