Airbnb shifts towards longer-term rental strategy

With the pandemic putting an abrupt halt to travel and tourism, short-term vacation rentals have seen a sharp decline in bookings. As a result, changes are afoot at Airbnb with a longer-term rental strategy now underway.

These changes come shortly after the company announced it had raised $1 billion in funds to be used towards three core products: hosts, long-term stays and Airbnb online experiences. As more Airbnb hosts are unable to fill units to vacationing travellers due to COVID-19, a series of new tools have been launched by the company to entice those seeking extended accommodations – including a new alert and on-boarding process to make their listings more widely available to long-term guests.

According to Airbnb, around 80 per cent of hosts now accept longer-term stays and about half of the company’s active listings now provide discounts for stays of one month or longer. It is now seeing more people, including students, doctors and nurses in residency, or those in long-term work assignment turning to Airbnb to find housing for stays of six- to nine-months.

In late March, Airbnb also announced a new global initiative to help connect those responding to the COVID-19 pandemic with safe and convenient places to stay while carrying out their critical work. According to a recent press release, the company’s goal is to help house 100,000 healthcare professionals, relief workers, and first responders around the world and will waive all fees for stays arranged through this initiative.

“Medical workers and first responders are providing lifesaving support during the coronavirus outbreak and we want to help,” said Airbnb’s Co-founder Joe Gebbia. “We’ve heard from countless hosts around the world who want to provide a comforting home to heroic first responders. We are connecting our nonprofit partners, government agencies and others with our incredible host community to work together in these extraordinary times.”

Showcasing trend elements in kitchens and baths

It has been long known that social media, and access to ever increasing design inspiration avenues has affected trends. Different trends are continually cropping up, some of which have staying power, and some which are subject to becoming dated much faster. These are constants that just about every designer has had experience with.

With the volume of pictures and media showcasing the latest and greatest, keeping projects in line with what is currently trending can be a big stressor for many homeowners. Questions that designers are asked so frequently are: “Is what I like trendy?” or “I saw this on Pinterest (or Instagram, or Houzz), is this on trend?” and, “Where else can I go to find out what is trending now?” These are questions that likely should not be at the forefront of a homeowner’s design journey. Many homeowners fear that their design aesthetic will not be in line with current trends, or that their project will reflect trends when it is completed.

So, what should homeowners be thinking about when it comes to design? The first consideration should be how long they are planning on residing in the home. Shorter term residencies can take full advantage of designing on trend. Focus on resale is high, and these projects may benefit from a design that reflects current trends that will attract potential buyers. For homeowners planning on staying in the home long-term, it would be beneficial to look more at design styles in terms of what is appealing to them specifically and that they can enjoy for a long time.

Design can be pushed, and a lot of fun can be had when clients are focused on their personal design aesthetic. A bold mid-century modern inspired kitchen perfectly suits a family that has a love of colour and shape. Embracing strong colours and patterns for cabinetry opens the possibilities of many unique features such as a large custom-built island that showcases interesting angles and dimensions. Keeping design principles in mind, the bold selections should be housed in spaces that allow for it. A large area with high vaults in the ceiling opens the space and gives lots of room for strong design elements.

All-white kitchens are extremely trendy; however, they are not realistic for all families and have been starting to see some resistance. Softening the white in the cabinetry and countertops will help bring this design style more in reach to achieve a timeless design. Selecting a warmer coloured base such as flooring, can allow alternate whites to be used for cabinets and countertops and still achieve a fresh, bright space. Adjusting the main white elements allow for bolder coloured elements such as islands or other features. A play on an all-white kitchen can be a good way to blend longevity and trend to design a space that is specific to a homeowner and their family. Incorporating and showcasing appliances can also help bring out a homeowner’s personal tastes.

While not every kitchen or bath project has the appropriate space for trends, there is a place for them in the everyday kitchen and bath. Selecting hardware or fixtures that reflect current trends, for example, gold or black handles, lighting fixtures or plumbing fixtures, are a simple way for the homeowner that is still wanting some current trends reflected in their project. These elements are typically simpler to change in the future if an update is needed. Adding décor pieces can also bring in trends and are fluid enough to renew over the years. When looking at the overall design itself, powder rooms, are often a great place to showcase trends, and to push those trends. Smaller in scale and typically public spaces in a home, homeowners can push their design aesthetic and request designs that are right on trend. Using different shapes, colours, and finishes, homeowners can select their favourite trends and incorporate them into their homes. While these spaces can be more costly to update in the future, they can really make an impact in any project.

Homeowners have many options for what design aesthetic their home renovation or build project will follow. Part of a designer’s responsibilities to the homeowner is to guide them through this decision process. Designs need to not only perform functionally and safely, but also need to be beautiful and unique to each home. Building trust and a good relationship with a homeowner allows designers to help alleviate any stressors around staying on trend. It is after those stressors have been removed that a unique design can be presented that will be enjoyed by the homeowner for as long as they are in their home.

Vanessa Palframan is a registered interior designer and design lead at Kenorah Design + Build.

Attracting a new generation of construction workers

There is a lot of talk about the future of construction and where the industry is headed. BuildForce Canada predicts the industry will see an influx of 222,600 workers under 30 over the next decade, but that will only fill a portion of the positions required, leaving a gap of more than 80,000 unfilled jobs in the construction sector. According to the Canadian Construction Association, Canada is also due to lose nearly a quarter-million construction workers in the next decade due to retirement alone.

Even in times of uncertainty, demands on the construction industry continue to grow. Though technology plays a crucial role in that development, the industry will always require people. As machines become more intelligent and projects become more complex, the industry will need to ensure it has the necessary workforce in place to meet demand.

This is why the industry needs to rethink how they attract and retain workers and what they can do to encourage millennials to pursue careers in construction.

Using technology to attract a wider pool of talent

With the existing labour shortage, and so many set to leave the industry in the coming years, contractors face extreme pressure to ramp up hiring and encourage the next generation to pursue careers in construction. Technology is providing an opportunity to fill that gap, and companies embracing this new way of doing business are seeing the benefits – not just saving time and money but in attracting a new workforce.

Companies thinking about new ways to attract that potential workforce are already revising their training, apprenticeship and recruitment initiatives, to align with new technologies and changes in the industry. Modifying recruitment strategies include turning to tools like social media and influencers to connect with millennials, and revising job postings to focus on technology and the new skills required for careers in the industry.

Industry evolving through technology

Technology is fast becoming an indispensable part of each and every function in construction – from keeping track of maintenance schedules, records, inventory and parts to the operation and management of equipment. Earthworks, once done manually, can now be done semi-autonomously with extreme accuracy; site surveying took days when done manually and can now be completed in hours or just minutes using drones to fly the site; and GPS technology gives operators instant access to a detailed and accurate view of the terrain. Plus, increasingly, government tenders, large contractors and large projects are demanding the use of certain technologies as a requirement to win jobs, which means contractors not using the technology are no longer able to compete.

There is a growing awareness that those same technology tools that are helping companies keep costs down, operate more effectively and gain an advantage over the competition, can also help make the industry more attractive to the younger generation.

Advancements in equipment can play a key role

Global Navigation Satellite System (GNSS) machine control allows inexperienced operators to effectively operate equipment with a minimum level of instruction. It can also facilitate two-way teaching. Less experienced operators can teach more experienced operators how to use the technology to be more efficient, allowing the more experienced operators time to train new operators on the nuances of general machine operation.

When construction companies invest in leading-edge equipment, it doesn’t just provide improved cost savings and greater efficiency, the machines themselves are much easier to maneuver and don’t require the same physical endurance to operate. On-top of that, technologies such as telematics and remote monitoring help prohibit bad habits like speeding, excessive idling and overloading, which leads to increased safety on the jobsite, reduced wear and tear and increased machine efficiencies.

Improvements in business management tools for those overseeing the jobsite now allow contractors to manage their fleets remotely and utilize the technology to gain efficiencies on the operations side. Technology has also significantly changed management roles, lending additional opportunities for the next generation to apply their skills and follow a different career path in the industry.

Safety a factor in hiring the best talent

Safety has, and will continue to play a major role in attracting employees to any job. Employees want to know first and foremost that their health and wellbeing is their employer’s top priority and their safety is of paramount importance. The construction industry is no different.

With improvements in regulations, personal protection and companies investing in better training, tools and technology, it is making the jobsite a much safer place. Smart cameras mounted on equipment detect dangerous hazards and improve visibility, increasing awareness and safety on site. New developments in fatigue technologies are also playing a role in increased safety. Mounted inside the cab, they work by monitoring eye-closure duration and head poses, sending immediate alarms to operators and site-managers. There are also wearables to alert operators and workers on site of proximity to potential dangers. All contribute to improved safety in the industry and provide assurance companies are vested in their employees.

Today’s advancements in machine technology and increased use of semi-autonomous machines on construction sites are allowing for operators of all abilities, experience and skills to quickly learn to operate the equipment safely and efficiently. Decreasing safety risks and providing better protection for workers on the job demonstrate how heavily invested the construction industry is in employee safety.

Endless opportunities

Advancements in GPS, telematics, artificial intelligence and automation have resulted in projects being built faster, safer, more efficiently, and cost effective with fewer risks involved. But with a large ageing workforce set to leave the industry in the next few years, more needs to be done to stem the labour shortage. Strides have been made in terms of promoting gender diversity and there may be more women in this typically male-dominated industry, but they are still dramatically under-represented. The industry itself needs to continue its work in attracting not only a younger generation but also a more diverse workforce. Some of this could be achieved by rethinking recruitment efforts.

With the construction industry changing – and technology levelling the playing field – it is the ideal time for companies to invest in finding new ways to attract the next generation of workers to construction. Offering challenging and fulfilling jobs creates opportunities for this generation to experience long-term, rewarding careers in the industry which could also lead to success in bridging the labour gap.

Kris Troppmann is regional technology manager at Finning Canada. Finning Canada is a division of Finning International Inc., the world’s largest Caterpillar equipment dealer.

State of emergency allows for planning decisions

As part of its various legislative and regulatory responses to the current COVID-19 pandemic, the Province of Ontario passed Ontario Regulation 73/20 on March 20, 2020. The effect of O. Reg. 73/20 was to suspend limitation periods and procedural timelines under any statute, regulation, rule or by-law in effect in Ontario. The result was a pause on various forms of litigation and administrative proceedings to allow parties, adjudicators, local authorities and the Province to effectively respond to the changing needs of the crisis.

In the land use planning context, O. Reg. 73/20 had the effect of suspending all timelines under the Planning Act, the Local Planning Appeal Tribunal Act, the Tribunal’s Rules of Practice and Procedure and a number of other related statutes, regulations, rules and by-laws.

Last week, during a limited session of Parliament, the Province moved to change the suspension of timelines in the land use planning context. This intended change was highlighted in an April 9, 2020 letter to the heads of Ontario’s various municipalities advising that the Province was preparing to take legislative steps to ensure that municipal councils would not need to worry about decision timelines under the Planning Act during the state of emergency.

The letter indicated that municipalities would shortly have the comfort of being able to redeploy resources as needed to combat the COVID-19 pandemic without the fear of impending development-related appeals. Equally, where municipalities did wish to proceed with decision-making under the Planning Act during the state of emergency, the Province would be providing a mechanism to allow such decisions to be made.

The changes occurred through the enactment of Bill 189 (titled the Coronavirus (COVID-19) Support and Protection Act, 2020) and the passage of new Ontario Regulation 149/20. Through these enactments, the Province has (a) retroactively exempted the Planning Act from O. Reg. 73/20 and (b) created a new set of rules to govern the timelines for decision-making and appeals under the Planning Act.

New timelines retroactive to March 17

The timeline changes are intended to apply for the duration of the current state of emergency. The changes are retroactive to the start of the emergency (March 17, 2020) and are relatively consistent amongst the various decisions capable of being made under the Planning Act, including official plans and official plan amendments, zoning by-laws and zoning by-law amendments, site plan approvals, minor variances, plans of subdivision and consents. The new rules provided by O. Reg. 149/20 can be summarized as follows:

If a decision was made after February 26, 2020, and a notice was issued before April 15, 2020, the decision stands, but the notice is void. The notice must be re-issued “no later than 15 days after the COVID-19 emergency is terminated or disallowed.”
If a decision was made after March 2, 2020, but a notice had not been issued (or full notice circulation was not completed) before April 15, 2020, the decision stands, and the notice can lawfully be issued up to 15 days after the COVID-19 emergency is terminated or disallowed. Any notices given prior to April 15, 2020 are deemed to have not been given.
If a decision on a pending application was not made prior to April 15, 2020, a decision does not need to be rendered for the duration of the state of emergency. All timelines required by the Planning Act for the processing of an application and the rendering of a decision are suspended until the emergency is over, after which the relevant timeline will resume. The effect of this suspension is that there can be no appeals from non-decisions until after the emergency has ended.
Appeal timelines that would have ended between March 17, 2020 and April 15, 2020 are deemed to have not ended, and any appeals or motions filed within that time period are deemed to have not been made or filed.
Where a Council or Committee does proceed to render a decision during the state of emergency, the usual Planning Act notice obligations and appeal timelines will apply to the decision. However, the timeline for the municipality to prepare a record and forward the appeal to the Local Planning Appeal Tribunal is suspended until the end of the state of emergency.

The rules for Committees of Adjustment differ slightly, but only for decisions made between February 26, 2020 and April 15, 2020. For these decisions, the secretary-treasurer must still give notice of the decision (regardless if notice has already been given), but the notice may be issued up to 10 days after the state of emergency is ended. As well, the appeal period under s. 45(12) is amended to allow appeals to be filed within 20 days after the new notice has been issued.

Local councils to control decision-making

The result of the foregoing is that municipal councils and committees are empowered for the duration of the state of emergency to effectively control the decision-making and appeals process under the Planning Act:

After April 15, where a municipal authority wishes to render a decision and issue notice on a Planning Act matter during the state of emergency, it may do so.
Where a municipal authority is unable, or chooses not, to render a decision on a Planning Act matter during the state of emergency, a decision need not be rendered until after the state of emergency is over. No appeal rights from a non-decision will accrue.
If a decision is rendered during the state of emergency, it will be subject to the usual notice requirements of the Planning Act and will create rights of appeal. If no appeal is filed, the decision is final. If an appeal is filed, the municipal authority is not obligated to forward the appeal record to the Local Planning Appeal Tribunal until after the state of emergency has ended.

Patrick Harrington and Leo F. Longo are Partners practicing with Municipal and Land Use Planning Group at Aird & Berlis LLP.

U of A, AHS to create 3D-printed face shields

University of Alberta faculty and staff are working with Alberta Health Services (AHS) to create thousands of 3D-printed face “shields” for use in the province’s hospitals.

The project, which aims to manufacture up to 2,000 shields for frontline healthcare workers, was started in response to hospitals’ dwindling stocks of personal protective equipment (PPE) amid the current COVID-19 health crisis. An initial batch has already been piloted at the University of Alberta hospital for feedback ahead of final production. The number of COVID-19 cases in Alberta is expected to peak in May.

The team has rushed to receive approval from Health Canada to manufacture the shields, and is working with AHS to develop new protocols for their use. The team is also working with several partners to produce the shields, as well as private citizens and charitable groups who have volunteered the use of their 3D printers.

The team has created a GoFundMe page to help finance production costs.

IES releases free report on GUV disinfection

U.S.-based Illuminating Engineering Society has released a report by their photobiology committee explaining germicidal ultraviolet (GUV) disinfection and its potential to safely reduce the transmission of COVID-19, in response to a wave of conflicting statements and opinions on the topic. The report is available for free download on the IES website.

GUV can be utilized safely and successfully in a number of ways: for disinfecting air in occupied hospital spaces such as waiting or operating rooms; as a supplemental measure to disinfect surfaces in unoccupied controlled-access environments to reduce healthcare-associated infections; and to disinfect some personal protective equipment for limited reuse during the COVID-19 pandemic.

The IES report draws on information from the Centers for Disease Control and Prevention, the Food and Drug Administration, Harvard Medical School, the Icahn School of Medicine at Mount Sinai Medical Centre, and from germicidal UV manufacturing and research organizations. The IES has also released a tutorial video explaining GUV technology and its safety considerations.

The report emphasizes the importance of GUV being applied correctly and monitored for output and safety, as well as the importance of proper training on the operation and maintenance of GUV systems. The report also cautions against the use of ultraviolet disinfecting “wands” or other ultraviolet products for residential use, as these products are inadequately proven, unregulated, and may pose a safety hazard.

Stantec designs Alberta’s first COVID-19 treatment centre

Stantec, along with fellow Alberta-based Companies Sprung Structures and CANA Construction, has been selected by Alberta Health Services (AHS) and the Government of Alberta to design and construct Alberta’s first temporary COVID-19 treatment Centre at the Peter Lougheed Centre in Calgary.

Located in the parking lot next to the Peter Lougheed Centre, the facility will house up to 70 patients and will add more than 8,000 square feet of treatment space. The temporary treatment facility will be turned over to AHS on April 27, 2020 to begin equipment installation, and patient intake preparation.

Sprung Structures has generously donated the structure, valued at approximately $235,000. The structure is a tensioned membrane building solution combining an aluminum substructure with highly tensioned membrane panels.

“When the province needs help in a time of crisis, we want to step up and do our part. We hope the donation of this structure will help ease capacity pressures on the health-care system and give our province’s health-care providers the space they need to care for Albertans during this global pandemic,” said Tim Sprung, vice-president, Sprung Structures.

Stantec is providing design and engineering services for the temporary pandemic response facility. In addition to leading the architecture and interior design support (furniture and equipment sourcing), Stantec is responsible for electrical, structural, and mechanical engineering. Working directly with key user groups including physicians and nurses, Stantec has led health care planning services to ensure the temporary centre supports AHS treatment practice while keeping patients and health care providers safe.

“We are a proud, Alberta-based company and have long-standing relationships with our partners at the Government of Alberta, and AHS,” says Todd Hartley, senior principal, Stantec. “As part of a private sector team, which included Sprung Structures and CANA construction, who collectively brought this concept to AHS, we came together working at rapid pace to execute the design, procurement, and construction in an unprecedented manner. We all want to do our part in supporting the COVID-19 response and recovery, and I know our teams feel privileged to support Albertans when they need us the most.”

The Calgary Zone has 63 per cent of Alberta’s confirmed COVID-19 cases. The temporary facility at Peter Lougheed Centre will be ready to accept patients in advance of the predicted COVID-19 peak in mid-May.

Black swan triggers business continuity plans

The modellers didn’t precisely foresee a global pandemic upending the economy in the early months of 2020, but analysts and strategic planners have long assumed that an event like the COVID-19 outbreak could occur. Now in its grips, they’re looking to a range of tools and resources to both respond to the immediate crisis and help chart the way forward.

“For a forecaster, it’s a black swan,” acknowledges Adam White, chief executive officer of the energy management analytics and advisory firm, Powerconsumer Inc., evoking the term for sudden, unexpected upheaval with severe consequences. “I would never have guessed they would have ever evacuated and shut down so much of the economy.”

However, predictive modelling now provides insight into what might lie ahead. In White’s case, that’s calculating potential electricity cost repercussions for many larger commercial customers and small manufacturers in Ontario — information that can guide those sectors’ decision-making and perhaps be leveraged to lobby the Ontario government for intervention and aid.

Commercial real estate operators are seeking similar kinds of advice across a wide spectrum of expertise as they deploy their crisis management, business continuity and recovery plans. Discussing the issue during a REMI Network-sponsored webinar last week, Rob Wesley, lead, real estate and construction services, with the business consulting firm, MNP, noted that many questions are arising around lease obligations, rent deferrals, security and cleaning requirements that call for extra legal, insurance, financial, IT and building services acumen.

“I would lean on, rely on and make sure you are communicating with your advisor team,” he urged.

He tallied the many demands building owners/managers are now juggling as they: confront disruption to their own service delivery models and supply chains; deal with their tenants’ similar business concerns; accommodate essential personnel and contractors who still need to be on-site in buildings; and coordinate the efforts of scattered staff working from their homes. Management teams are facing often unfamiliar financial, technical and social challenges, discovering the strengths and weaknesses of their preparedness planning and learning lessons along the way.

“I don’t think we are all the way out of our crisis management plan even though we have already transitioned to contingency,” revealed Justin Taylor, chief operating officer with Greenrock Real Estate Advisors.

“Crisis management tends to be (thought of as) the short term, but we are certainly not seeing that in this situation,” concurred Cheryl Gray, head, special projects, operational excellence, with QuadReal Property Group and the moderator of the discussion.

More to cash flow management than downsizing

Cash flow ranks high among the most immediate and pressing concerns for landlords and their tenants. Panellists reiterated it’s important to stay on top of the steady announcements of federal and provincial/territorial programs and ensure tenants know about available supports. Offloading discretionary expenses can be a prudent way to find funds to redeploy to business continuity and recovery.

“The cash flow side is a big and ongoing component of your continuity plan,” Wesley submitted. “It may not all be downsizing. There may be places where you’re spending more.”

For example, he reminded webinar attendees that largely vacant buildings and fragmented online management involving dozens, or hundreds, of connections from staff homes are vulnerable to both physical and cyber breaches. “A lot of us are not as focused on this as we might need to be,” Wesley cautioned.

Extra cleaning and IT expenditures are likely showing up in many operating budgets. Looking to recovery, Wesley suggests new funds may also be directed to marketing. Meanwhile, the impact on leasing has been another frustration for cash flow.

“Any deals that we had closing, those people can’t move in, they can’t get their permits,” Taylor recounted. “A lot of deals are not falling off the table, but they are certainly being delayed.”

Eye-opening perspectives on remote work

Sketching out what’s been relatively easy, Taylor reported that Greenrock’s management staff was already equipped to work from home or other remote locations. The company has since rolled out a few extra supports, such as delivering office chairs to staff members’ homes and introducing some online social and personal reflection opportunities, including a weekly meditation session and a Friday afternoon virtual happy hour.

Even so, the scale of the remote workforce — some also sharing quarters with online-learners — is not something most flex-hour plans have contemplated. “We were fortunate, I think, that we had a lot of things already in place, but the dynamic of having partners, kids or roommates all in one place has confounded it,” Taylor reflected.

Ironically, one of his more positive discoveries from a staff manager’s perspective is not necessarily such good news for a real estate provider. Reporting a new appreciation for online meetings and one-on-one communication with staff, he speculates that many others have experienced the same “eye opener.”

“I think I have spent more time with people individually than when I’m in the office, and this is something I didn’t imagine,” Taylor recounted. “I also sense companies (now) realize they can work remotely to a much larger degree than they have.”

Wesley likewise agreed that COVID-19 has accelerated what was already robust adoption of remote work and flex space, perhaps by as much as five years. On the flipside, however, it may have placed a brake on open floorplans and the steady densification of office space that’s been occurring over the past decade or more. “It may return to more private (office) space,” he hypothesized.

As a second month of the work-from-home regimen unfolds, there’s also plenty of anecdotal evidence that many people are weary of social distancing.

“I think we will all have a heightened appetite for the social aspects (of office environments),” Wesley said. “For all of this, there is a sense that the longer this goes on, the more different the new normal is going to be.”

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

Mega plans for McMaster Innovation Park

Plans for a 2.5 million-square-foot expansion at McMaster Innovation Park (MIP) in Hamilton, Ontario will see new spaces added to the innovation and research facility that already houses close to 100 companies in sectors like manufacturing and life sciences.

This will include the redevelopment of an office and production complex, new facilities dedicated to commercialization and entrepreneurship, and a ‘megahub’ for the life sciences sector—an industry that has positioned the GTA-Buffalo region as a global leader, with MIP said to be at the epicentre.

“From a life sciences standpoint, we are at the threshold of tremendous discoveries which hold the potential to radically transform our understanding of human health, disease and treatment,” says Ty Shattuck, CEO of MIP. “This is occurring rapidly and on a global scale. Within that global context MIP is situated in a highly productive region of scientific investigation and exchange, contributing materially to the life sciences nationally and internationally.”

Once the whole expansion is complete, 5000 employees are expected to be working at the park, which is also targeting carbon-neutral status. Architecture firm mcCallumSather is leading the master planning process.

“It was important that the plan met long-term objectives to create a desirable destination that positions MIP as a dynamic leader in the field,” says Christina Karney, project manager and associate. “The mix of uses provides users with inspirational, connected spaces that foster collaboration while providing a design framework that manages infrastructure challenges and opportunities.”

Canada’s rental market in a post-COVID-19 world

Uncertainty rules Canada’s rental market as the novel coronavirus continues to spread, forcing business closures and stay-at-home orders to persist beyond initial forecasts. Although it might be too early to assess COVID-19’s true impact on the rental-housing sector, March listings data from Rentals.ca combined with new data from Urbanation and Altus Group indicate that some rent decline is likely, but it won’t be overly significant.

Variables include: job lay-offs; pay cuts; rent deferrals and delinquencies; the inability to change residences; school closures; and would-be home buyers choosing to keep on renting in light of the ongoing pandemic. Add in fewer evictions per government decree, less immigration, fewer students starting new jobs, and more young adults moving back home with their parents, and the uncertainty of the coming months escalates even further.

“With the national economy partially on pause, a significant portion of tenants have been laid off or unable to work. They will not be looking for apartments, and in many cases won’t be able to pay their current rent,” observes Ben Myers, president of Bullpen Research & Consulting. “Our expectation is that rental rates will decline in the coming months, but some of that decline will not be captured due to a big increase in upfront incentives.”

Employment down

Given housing demand is heavily tied to job growth, it’s not surprising that fewer people are buying houses as lockdowns persist across the nation. Data from Statistics Canada’s March Labour Force Survey (conducted during the week of March 15 to 21, 2020) shows a decline of more than a million jobs in March compared to February, with part-time jobs taking a bigger hit than full-time jobs (down 16 per cent and three per cent, respectively).

With fewer people buying homes and more continuing to rent, Altus Group predicts the multi-residential sector will remain relatively stable and opportunistic in the coming months, but may face medium-term challenges with deal closures, leasing disruptions due to economic and employment uncertainty, and delayed building completions or renovations.

Purpose-built rental market: GTA

According to Urbanation’s quarterly rental survey, the number of purpose-built rentals under construction in the Greater Toronto Area (GTA) reached 13,580 units in Q1 2020—up from 11,557 a year ago to hit the highest level since the 1970s when modern rent controls were enacted.

Within the 72 purpose-built rental buildings completed since 2005, the average surveyed rent for available units was $2,481 per month. The vacancy rate averaged 1.0 per cent, rising slightly from 0.8 per cent a year earlier.

But, as Shaun Hildebrand, President of Urbanation points out, Q1 was made up of two distinct phases: pre-COVID-19, accounting for January through the first half of March; and post-COVID-19, accounting for the remaining two-week lock-down period.

“As rental demand declines as job losses mount, incomes are reduced, and immigration shrinks, the slowing in the GTA rental market that appeared in the last half of March will progress for at least the next few quarters given the current economic outlook,” he says. “The impact on rents will be something to watch, which will also be influenced by the timing of the record number of units that were expected to complete this year.”

Canada’s rental market by region

In terms of monthly payments, Rentals.ca listings data shows that the average rent for all properties in Canada for the month of March increased 1 per cent from February to $1,842, but decreased by 1.2 per cent annually.

Eight of the top 10 priciest municipalities for renters were in Ontario. Urban centres experiencing highest rent growth year-over-year included: Kitchener, up 23 per cent; Hamilton, up 22 per cent; Scarborough, up 18 per cent; and North York, up 12 per cent.

Vancouver also saw rents increase by 3.5 per cent month-over-month, despite an annual decline, while Saskatoon rents dropped by 24 per cent overall.

Rental-housing analysts agree that with the market “not operating normally” since the beginning of March, the seasonally strong activity typical in the early spring will be disrupted. This is especially true in municipalities with a higher concentration of students, who will likely be required to finish the school year off at home.

Other notable trends

According to both Rentals.ca and Urbanation data, COVID-19 has led to an increase in long-term rental listings in March. With tourism and business travel having ground to a halt, both groups speculate that owners of previously furnished Airbnb units are repurposing them for long-term rental use. Rentals.ca data shows a month-over-month increase in March listings of above 12 per cent.

Meanwhile, the number of page views for rental listings and online portals has increased in six of the seven major provinces in Canada. Rentals.ca says part of the reason is that potential tenants no longer have the ability to enter the units for an in-person tour, leading to a surge in virtual viewings.

“Despite the global pandemic, we still experienced an increase in search activity on Rentals.ca in March,” says Matt Danison, CEO of Rentals.ca. “Even with financial uncertainty, people with stable employment will be looking for deals in many of the markets that were strong before the COVID-19 crisis.”

Concerts digitized for long-term care facilities

Concerts in Care Ontario is working with its network of professional musicians to record a digital series of live concert videos and audio tracks for long-term care facilities across the province.

In 2020, more than 250 musicians were scheduled to perform 400 live concerts in 72 facilities to 20,000 seniors in Ottawa, Pembroke, Toronto, London, Sudbury, and Windsor. Due to COVID-19, some of those performances will be able to be seen and heard digitally, helping isolated viewers feel more connected to their communities.

According to Concerts in Care Ontario, research shows that music engages powerful emotions, which can activate memory and improve mood for seniors in care who may be isolated and withdrawn.

Programs range from classical, jazz to American songbook and culturally specific genres.

For more information, contact Debra Chandler at 416-571-6170 or [email protected]

Municipalities, businesses get new B.C. COVID relief

The B.C. government is providing enhanced relief for businesses by reducing most commercial property tax bills by an average of 25 per cent, along with new measures to support local governments facing temporary revenue shortfalls as a result of COVID-19.

“The COVID-19 pandemic is having significant financial impacts on all levels of government. It’s going to take hard work from both municipalities and the provincial government, but working together we will get through this,” said Selina Robinson, Minister of Municipal Affairs and Housing. “With these new measures, we are giving local governments new tools as a first step to ease their financial burdens and that of businesses in their communities now, and as we look to recovery in the months to come.”

The province is taking significant new steps to support B.C. businesses, non-profits and other organizations through the COVID-19 pandemic by:

further reducing the school property tax rate for commercial properties to achieve an average 25 per cent reduction in the total property tax bill for most businesses, providing up to $700 million in relief. This enhances the 50 per cent reduction to the provincial school property tax rate that was originally announced for classes 4, 5, and 6 as part of B.C.’s COVID-19 Action Plan.
Postponing the date that late payment penalties apply for commercial properties in classes 4,5,6,7 and 8 to Oct. 1, 2020, to give businesses and landlords more time to pay their reduced property tax, without penalty.

Responding to key concerns from local governments, the province is addressing cash flow and revenue shortfalls with new measures that include providing municipalities with greater flexibility to carry debt for an additional year.

Other measures include allowing local governments to borrow, interest-free, from their existing capital reserves to help pay for operating expenses, such as employee salaries. Government will also delay provincial school tax remittances until the end of the year to address cash flow issues. This will provide significant relief to local governments facing cash flow issues.

“Local governments across B.C. are working hard to support the implementation of COVID-19 orders, while ensuring residents have access to the services they need in these challenging times,” said Maja Tait, Union of B.C. Municipalities president. “The measures announced today provide additional relief to small business and will free up funds for local government. UBCM will monitor the impact of these measures on the state of local governments finances, and work with the province to ensure that local governments have the resources to sustain their communities.”

Commercial rent assistance pledged

Prime Minister Justin Trudeau revealed early details of a planned Canada Emergency Commercial Rent Assistance (CECRA) program in his daily COVID-19 briefing this morning. The envisioned loan program for commercial property owners would enable them to provide small business tenants with rent discounts or forgiveness for the months of April, May and June. Some of the loans could be forgivable.

“Implementation of the program will require a partnership between the federal government and provincial and territorial governments, which are responsible for property owner-tenant relationships. We are working with the provinces and territories to increase rent support for businesses that are most impacted by the pandemic and we will have more details to share soon,” an accompanying statement from the Prime Minister’s office notes.

The parameters of the Canada Emergency Business Account (CEBA) have also been broadened to include businesses with payrolls in the range of $20,000 to $1.5 million. This adds both smaller and larger businesses than the loan program originally targeted.

“Expanding the Canada Emergency Business Account and making sure businesses can afford their rent is the smart thing to do,” Trudeau maintains. “Small businesses are the backbone of our communities, and will keep our economy strong in this uncertain time.”

Minto Apartment REIT confirms vast majority paid rent

Minto Apartment REIT has issued an update pertaining to April rent collections, liquidity and changes to operations due to the ongoing COVID-19 crisis.

According to the statement, the REIT’s portfolio of apartment properties in urban locations has performed well since the onset of the pandemic. In April, the vast majority of Minto’s tenants paid their full rent, with 97 per cent of rental revenue received by April 14, 2020—a level it says is consistent with the normal collection cycle.

Recognizing the burden placed on many of its tenants related to the decline in economic activity, Minto Apartment REIT says it will not implement the rent increases that were scheduled to come into effect between April and June. It has also created payment plans that defer rental payments for residents who are unable to pay as a result of the outbreak. As at April 14, it says fewer than 1 per cent of tenants had entered into a deferred payment plan.

Occupancy of available unfurnished suites was 97.34 per cent at March 31, 2020 compared to 98.67 per cent at March 31, 2019. Occupancy in April 2020 remains strong.

Liquidity

On March 31, 2020 Minto Apartment REIT completed a $100 million mortgage financing secured by one of its Ottawa properties, adding significantly to the REIT’s liquidity. The proceeds from this financing were used to pay down outstanding amounts on the REIT’s revolving credit facility. As at April 15, 2020 the REIT has approximately $196 million in funds available through a combination of cash and undrawn lines of credit, which is sufficient to fund all of its obligations for the foreseeable future.

COVID-19 measures

Since the COVID-19 outbreak began, Minto says it has implemented a number of initiatives to prioritize the health and well-being of its tenants, employees, and the communities it operates in, including:

Operating with limited on-site personnel and ensuring adherence to Health Canada guidelines on personal hygiene and social distancing at all times;
Closure of all common areas, party rooms and fitness facilities in the REIT’s buildings;
Regular sanitization of shared surfaces and areas, including doors, railings, foyers and elevators;
Limiting leasing activities to appointment only, with the use of online tools prioritized;
Tenants’ requests for repairs and maintenance are to be submitted online or by phone;
Closure of the REIT’s corporate offices, with all employees that are able to work from home doing so; and
Ensuring that all critical vendors have business continuity plans in place in the event that the COVID-19 situation worsens.

“We will continue to exercise care and consideration in respect of all of our residents and stakeholders and the REIT will provide further updates and information relating to the impact of COVID-19 when it releases its financial results for the first quarter of 2020 on May 6, 2020,” the statement said.

Foster + Partners shares prototype visor design

To aid the fight against Covid-19, Foster + Partners has designed a general-purpose prototype face visor, suitable for cleaning and reuse. It is specifically aimed at fast mass production.

The firm is sharing the design templates and material specifications as an open-source design asset. This is to encourage both designers and in particular large-scale manufacturers to investigate the potential of digital and laser cutting machines as an alternative to 3D printing technology.

The prototype visor, designed by a team of industrial designers, modelmakers, architects and analysts. The mask, is made from three components: a visor made from 0.5mm optically clear PETG, an interlocking soft PP headband, and a surgical silicone rubber head strap that ties the two together.

The mask is made of three components: a visor made from 0.5mm optically clear PETG, an interlocking soft PP headband, and a surgical silicone rubber head strap that ties the two together. Foster + Partners cuts all of these components.

Each visor can be cut from sheets in under 30 seconds and the elements can be assembled in under a minute. The firm is able to use a single cutting machine to cut and assemble components for 1,000 visor masks in a day, representing a reduction of days in the time taken to produce 3D-printed alternatives.

The visors can be produced and assembled or flat-packed and distributed in large quantities in a short span of time. An important advantage is that the visor can be easily disassembled, cleaned, sanitised and reused, addressing the growing shortage of raw materials for visor production.

The firm is also exploring means of getting the design approved for mass production and use by health workers.

See the Foster + Partners website for downloading the design files.

RAIC names 2020 Fellows from across Canada

The Royal Architectural Institute of Canada (RAIC) has announced the 31 individuals named to the RAIC College of Fellows for 2020. There are 13 cities and communities from across Canada represented in the cohort this year.

The College of Fellows of the Royal Architectural Institute of Canada (RAIC) bestows Fellowship to RAIC members in recognition of outstanding achievement. Criteria include design excellence, exceptional scholarly contribution, or distinguished service to the profession or the community.

Representing Canada coast-to-coast, the 31 new Fellows come from Saint John, NB, Montreal, QC, Ottawa, ON, Toronto, ON. Brantford ON, Winnipeg, MB, Calgary AB, Edmonton AB, Vancouver, BC, Regina, SK, Saskatoon SK, Saanichton BC, and Charlottesville Virginia.

Eleven 2020 New Fellows were named in Western Canada:

BC/Yukon

James Carter-Huffman, Vancouver
Joyce Drohan, Vancouver
Melissa Higgs, Vancouver
Richard F. Evans, Vancouver
Tracey Mactavish, Vancouver
Brian Wakelin, Vancouver

Victoria Chapter

Arthur James Finlayson, Saanichton

Alberta/NWT

Coben Christiansen, Calgary
Cynthia Dovell, Edmonton
Jan Pierzchajlo, Edmonton
Patricia Swanson, Edmonton

The RAIC previously announced the Honorary Fellows for 2020 on February 7, 2020. The list of Honorary Fellows for this year include Kevin R. Hydes P. Eng, Lenore Lucey, FAIA, Mariam Kamara, and Mickey Jacob, FAIA.

Due to the current COVID-19 pandemic—which has led to the cancellation of the RAIC 2020 Conference on Architecture, and with it the College of Fellows Convocation—the new Fellows and Honorary Fellows will be honoured at the 2021 convocation. The ceremony will occur during the 2021 RAIC Conference in Montreal from June 6 to 9, 2021.

The full list of 2020 Fellows can be found at RAIC.

Chartwell issues update on impacts of COVID-19

Canada’s largest owner and operator of senior living residences issued a statement addressing the impacts of COVID-19 on tenants, families and staff. With 196 residences and 29,300 suites under management, the organization confirmed there have been positive COVID-19 cases at 18 of Chartwell residences, six of which have now successfully cleared the incubation period.

According to the statement, the top priority of Chartwell continues to be the safety and well-being of its residents. In addition to having strong infection control and management protocols in place, the organization said it recently launched a recruitment campaign to alleviate the increased workload of overburdened staff and enable new operational standards as physical distancing requirements persist.

“Chartwell’s strength is our people and these unprecedented times have brought out the best in them,” commented Vlad Volodarski, Chief Executive Officer. “The commitment and dedication of our staff at all levels of the organization has been inspiring and I am grateful to each and every one of them. The overwhelming support, encouragement and gratitude we receive from our residents and their families every day reinforces our confidence that we will prevail in this crisis and will come out of it stronger.”

In terms of impact of COVID-19 on business, Volodarksi said, “Chartwell has a top-tier operating platform, diversified property portfolio, adequate liquidity and a strong balance sheet. In the current environment our investments are focused on direct resident care, including additional staffing and personal protective equipment and supplies. We are deferring other discretionary investments to preserve liquidity. I am confident that by doing the right thing today, we are setting an even stronger foundation for our future.”

To navigate the situation as effectively as possible, Chartwell has been working extensively with sector associations and all levels of government agencies. The organization says it is continuing its analysis of all relevant funding announcements to determine eligibility.

Government programs currently available to offset impacts of COVID-19 on senior sector:

Ontario long-term care has been allocated $243 million to support long term care as an essential service in managing the pandemic crisis, including surge capacity planning as hospitals are expected to exceed capacity.
Ontario retirement homes have been allocated $20 million to support extraordinary expenses related to COVID-19.
British Columbia has allocated $10 million to assisted living and long term care residences.
Quebec announced various funding initiatives, including funding for temporary pay increases to health care staff totalling $410 million.
Other announcements to support businesses during this pandemic include rate reductions in energy costs, and deferrals of worker’s compensation premiums and realty tax payments.