Gender-diverse boards produce more innovation

Companies with more women on their boards are more innovative, efficient and successful, new research has found.

A study from the UBC Sauder School of Business examined the makeup of boards across 12,244 firms in 45 countries. Researchers looked at the companies’ level of innovation using measures such as their number of patents, the novelty of their patents and the cost efficiency of that innovation.

They found that firms with more women on their boards produced a greater number of patents — and more groundbreaking ones — and achieved that innovation the most efficiently. Because innovation is the primary engine behind corporate growth, the findings show that greater board diversity can significantly bolster companies’ chances at success.

“Women tend to be more cautious, long-term oriented, and more community-driven, while men might be more driven by reputation, wealth and personal success,” said UBC Sauder professor Kai Li, who co-authored the study with fellow UBC Sauder professor Dale Griffin and Ting Xu from the University of Virginia’s Darden School of Business.

France and Norway, as well as the U.S. State of California, have already legislated quotas for women on boards of publicly traded companies. The country with the highest proportion of women on corporate boards was Norway, with women filling 27 per cent of board positions.

Yet gender diversity in particular, and diversity more generally, is seriously lacking in Canada where women occupied just six per cent of board seats compared to the worldwide average being eight per cent.

“The balancing of women on the board also helps the entire corporation rein in their risk-taking, be more patient and engage in more novel, impactful innovation for the long run,” said Li. “And you get more bang for your buck, because for the same expenditure, you generate more patents.”

Li emphasizes that the study isn’t saying women are inherently better than men; rather, a range of backgrounds, perspectives and approaches is what makes the most business sense.

“If everyone on a board looks like you, thinks like you and talks like you, it leads to one-dimensional thinking, so any dimension of diversity should be cherished, appreciated and encouraged,” said Li. “The point is not to focus on whether one gender is better than another. It’s the mixture that counts.”

SmartCentres and Greenwin enter second joint venture

SmartCentres Real Estate Investment Trust and Greenwin Corporation announced that they have jointly acquired 1.15 acres in Toronto’s Yonge and Davisville neighbourhood for the development of a mixed-use rental property.

The acquisition of the site, which had been part of Greenwin’s holdings for over 60 years, follows on the recent success of the previously announced joint acquisition of 7.8 acres on Barrie’s waterfront. Together the two properties represent a development pipeline of over 2,000 purpose-built rental units and an aggregate development value of in excess of $1 billion.

“We are very pleased to once again partner with Greenwin on this important property located strategically in the heart of Toronto,” said Mitchell Goldhar, Executive Chairman of SmartCentres. “Steps away from the Davisville TTC subway along with an abundance of restaurants and a myriad of amenities along Yonge Street, I am confident that this will become one of the jewels in the SmartCentres REIT portfolio. This acquisition reaffirms our commitment to focus on recurring revenue growth in purpose-built apartments, seniors, office and self-storage.”

SmartCentres, one of Canada’s largest fully integrated REITs with $9.7 billion in assets, continues to expand its focus to include the planning and development of connected, mixed-use communities on its existing retail properties. A publicly announced $12.1 billion intensification program ($5.5 billion at SmartCentres’ share) represents the REIT’s current major development focus. This intensification program consists of rental apartments, condos, seniors’ residences and hotels, to be developed under the SmartLiving banner, and retail, office, and storage facilities, to be developed under the SmartCentres banner.

SmartCentres’ intensification program is expected to produce an additional 27.3 million square feet space; all construction commencing within the next five years, 13.3 million square feet of which is already underway.

“We are looking forward to again partnering with SmartCentres,” said Kevin Green, President of Greenwin. “For Greenwin, this project represents a return to our roots, which stretch back to the 1960s in the Davisville Village. Six decades later, we’re excited to continue that legacy of shaping mid-town Toronto’s skyline. We are confident that this collaboration will lead to the creation of an exceptional rental community.”

Toronto development nabs Google headquarters

Google is set to fully occupy an 18-storey office tower now under construction on Toronto’s King Street East. The newly inked deal with developer, Carttera, will see the digital technology giant consolidate its current offices in the Greater Toronto Area into 400,000 square feet in the city’s St. Lawrence neighbourhood next year.

“We look forward to a long-term collaborative relationship with Google for many years to come,” says Dean Cutting, a partner with Carttera. “Our vision for 65 King East has always been to combine innovative office architecture and an employee-centric workplace design with a dynamic forward-thinking organization.”

Bordering the financial district, the new Google headquarters is located near the downtown’s key public transit hub at Union Station and will provide 196 on-site bicycle stalls. The building is designed to achieve LEED gold certification and has already been certified Wired Score gold. In addition to 18 floors of office space, it will feature 18,000 square feet of outdoor terraces and nearly 11,000 square feet of retail space.

“Google’s decision to make 65 King East its new Toronto headquarters underscores the degree to which Toronto’s downtown core continues to expand,” maintains Jeff Friedman, executive vice president, office leasing, with CBRE Limited, which brokered the deal. “This is a significant statement of confidence in Toronto’s tech market and talent pool.”

Public sector pension plans, OPTrust, Manitoba Civil Service Superannuation Board and Investment Management Corporation of Ontario are co-investors in the project, which is slated for completion and occupancy in 2021, and plan to hold the asset for the long term. “At OPTrust, our focus is the security and stability of our members’ retirements and we invest and manage our portfolio in alignment with those long-term interests,” affirms Rob Douglas, managing director of real estate investments for the pension plan.

New metric to peg portfolio warming potential

A new metric quantifying portfolio warming potential is designed to give investors a readily grasped reference point similar to the global warming potential (GWP) scale for environmental emissions. It’s part of a package of analytical tools that investment advisory firm MSCI has launched to identify and track asset exposure to climate risk, aligned with the steady adoption of the Task Force on Climate-related Financial Disclosures (TCFD) by global financial institutions.

Drawing on national and company data, financial impact modelling and geospatial coordinates of more than 600,000 assets, the tools calculate the potential risk to asset value that climate-related costs may pose. That includes: costs related to national climate policies; transition costs as companies prepare for or fail to adjust to an emerging low-carbon economy; and financial costs related to assets that are physically vulnerable to extreme weather.

Portfolio warming potential is a complementary gauge of a company’s contribution to climate change that could be of particular interest to investors with ESG (environmental, social, governance) compliance imperatives. It computes the total climate-related impact of a company’s activities and assigns a temperature value to express how those activities align with the target to restrain the global temperature to no more than an 1.5 degree Celsius increase.

“Managing climate risk has become an increasingly important tenet of the investment process along with the ability to measure the impact of climate change and build portfolios resilient to climate risk,” says Remy Briand, head of ESG with MSCI. “Investors are now publicly expressing a desire to take action and address the urgent reality of climate change themselves, and they are also urging others in the investment industry to do so.”

Simple changes make apartment buildings more efficient

With operating expenses rising and rent increases capped for 2020, owners of residential rental buildings in B.C. may be feeling a bit squeezed. The good news is that landlords can do something to control energy costs—and getting help is free.

As many of B.C.’s rental apartment buildings are over 30 years old, you may be paying more than necessary to provide heat and hot water for your tenants. FortisBC’s Rental Apartment Efficiency Program is designed to make it easy for busy landlords and property managers to improve the energy efficiency of older buildings, reduce water use and greenhouse gas emissions, and save costs.

Making upgrades easier

Those who sign up for the program receive a free building energy assessment with an engineering consultant, who will provide tips and a report on opportunities to save energy. Contractors will also install water-efficient faucet aerators and showerheads in each apartment (as well as up to 10 LED light bulbs per suite in FortisBC’s electricity service area). Just these free water-saving upgrades can reduce your building’s natural gas use by 12 per cent annually.

If you choose to invest in further energy-efficiency upgrades, you’ll also get free ongoing professional support for implementation and applying for rebates. FortisBC offers rebates on high-efficiency boilers, water heaters, condensing make-up air units, pipe and tank insulation, and more for commercial and multi-unit residential buildings.

“Apartment building owners and managers are typically busy juggling multiple priorities, and most are not experts in how to find and implement cost-effective energy-efficiency strategies,” said Jordan Fisher, president of FRESCo Building Efficiency, which delivers the program for FortisBC. “By bundling FortisBC’s offerings for landlords into one package and providing support, they have found the program very effective in reducing energy use.”

Increasing sustainability of rental apartments

To date, FortisBC and FRESCo have delivered the Rental Apartment Efficiency Program in more than 800 apartment buildings across BC, saving owners an estimated $2 million in utility costs. Together with their tenants, they have saved an estimated 270 million litres of water per year—enough to fill 110 Olympic-sized swimming pools—and reduced greenhouse gas emissions by about 15,000 tonnes.

And with 11,000 older rental apartment buildings out there in BC, there is still plenty of room to sign up and save energy, water and money. There’s no cost, and you could make improvements that maintain important rental housing stock in communities and make your buildings more sustainable and affordable to operate, all while helping BC to meet its climate action goals.

It’s easy to get started

If you own or manage an older purpose-built rental apartment building with nine or more units and receive natural gas and/or electricity from FortisBC, sign up for the Rental Apartment Efficiency Program. You can receive a $100 Amazon gift card for each apartment building you sign up for the program. For full details on eligibility criteria and program terms and conditions, visit fortisbc.com/landlord, call 1-877-327-6137 or email [email protected].

Cadillac Fairview reveals proposed tower design

A development permit application has been submitted to the City of Vancouver for Cadillac Fairview’s proposed office tower, The Crystal at Waterfront Square.

At the core of the new design is the reconfiguration of the building, which minimally touches the overall footprint of the current site. The reconfiguration allows for 85 per cent of the current surface parking lot to be repurposed as an open civic square, enabling the community to enjoy unimpeded harbour and mountain views.

Located at 555 Cordova Street, the Crystal at Waterfront Square has been carefully designed to set a new bar in sustainable office design. Sustainable features include:

Carbon neutral operating systems
Zero new parking stalls created for this project
Direct connectivity to the largest multi-modal transit hub in Vancouver (Waterfront Station)
Significant bicycle storage units with shower/change rooms and onsite maintenance facilities
WELL and LEED Platinum certifications.

“The Crystal at Waterfront Square is another example of Cadillac Fairview’s commitment to designing and operating a world-class building that contributes to a vibrant and sustainable city,” said Tom Knoepfel, senior vice president Western Portfolio, Cadillac Fairview.

“Cadillac Fairview is and has been a long-standing developer, owner, and manager of both retail and office properties in Vancouver and we’re proud to be carrying on that tradition with this landmark development that will bring to market much needed class A office and commercial space in downtown Vancouver.”

The announcement comes weeks after the company declared its intention to introduce a world-leading, luxury lifestyle hotel brand to downtown Vancouver’s CF Pacific Centre. Including this announcement and the concurrent redevelopment of the mall’s rotunda (located at West Georgia and Howe Streets), the company is investing over $600 million in Vancouver for employment and commercial purposes.

Once municipal approvals are received, Cadillac expects construction to start in 2020.

Manager’s guide to electrical system maintenance

Canadians are lucky to enjoy a relatively robust and reliable electrical power infrastructure. Most of the time, we flick a switch and the lights turn on. The citizens of many other countries who experience frequent outages or fluctuating supply, however, are not so lucky. The stable nature of our infrastructure brings a certain predictable (yet inadvisable) complacency which quickly evaporates as soon as an emergency takes our grid off-line (not to mention, adults and kids alike break into a cold sweat over the spectre of a dead cell phone).

Still, the impact of electrical power outages is considerably more profound than inconvenient in condo property management. An absence of light and power can pose health and safety risks to residents, some of whom may need to be evacuated. This can disrupt lives and force unexpected expenses.

Individually, we can’t do much to ensure our electrical grid remains functional. Of course, reducing our electrical demand goes a long way to reducing strain on the grid, which can significantly lower the risk of utility equipment overloads, fires, and brown- and black-outs.

Electrical maintenance 101

At the building level, managers and board members have an essential role to play in keeping the system operating safely and the current flowing. Paramount to this is ensuring your electrical system is well maintained.

To plan for electrical system maintenance, it’s helpful to understand how power is delivered to and distributed around the building.

Main transformer

The utility’s power supply grid operates at high voltage, which reduces cost and improves efficiency. This could be 25,000V or more. Before power can be sent to the user, the voltage must be lowered to useful levels. Transformers are used to reduce the high voltage down to safer levels. Transformers are everywhere; you probably have several in your pocket or purse as the cube of a cell phone charger is one. Newer buildings are typically supplied with power at 600V.

This is useful for supplying large equipment such as chillers or elevators but is still high enough to be a significant safety risk. Much of a building’s needs will be handled by 120/208V (or 240V). For an individual suite or home, usable voltage is 120/240V (or 208V).

The main transformer for a building is often either in a below-ground vault or on-grade outside on a concrete pad. It is most often owned and maintained by the utility. In these cases, the condominium will not have access to the vault.

It is important to note that if a vault is within the condominium’s property lines, the condition of the vault is likely the condominium’s responsibility, even if the equipment in the vault belongs to the utility. It is important to be aware, then, that leakage into a vault or structural deterioration of a vault can damage the utility’s transformer, which can shut down power to the building or cause a fire. The condominium should arrange for access to the vault with the utility and their engineer at least once a year to check its condition. Look for water leakage, structural damage, flooding, overheating, or vermin.

For an exterior pad-mounted unit, the corporation typically owns the concrete pad upon which the transformer sits and the cables which travel underground to the building. Staff should check the pad for settlement or deterioration as the severe movement of the pad could stress cable connections, leading to loss of power, arcing, and/or fire.

It is becoming increasingly common for new condominiums to house and even own the high-voltage switchgear and the main transformer within the building. As a benefit, the utility will typically discount the hydro rate charged to the corporation.

Main distribution

Power from the main transformer is delivered to the main switchgear, which is a large building’s equivalent of the main breaker panel for a house. The switchgear consists of metal cabinets with internal power bars carrying electricity, and it breaks down the main service into smaller chunks for use by the building. Fuses or breakers act as safety switches. The main switchgear for a condominium building often includes switches for suite power risers, main mechanical equipment, elevators, generators, lighting, and motor starter centers.

If the main switchgear operates at 600V, the condominium will include additional transformers to reduce the power down to 120/208V for general use such as lights, plugs, etc. These are typically located in main and sub electrical rooms, as well as in-service areas such as the elevator machine room and a mechanical penthouse.

From the main switchgear, electricity for common area (“house”) loads is sent to splitter boxes, disconnects, and panelboards which contain circuit breakers (or fuses) supplying discrete loads such as lighting, receptacles, electric water heaters, and the like.

In a condominium tower, power from the switchgear is often split into risers, which distribute it vertically through stacked electrical closets on the floors. A typical closet includes a main panelboard, which contains the suite breakers.

Electrical system maintenance

Maintenance of the main distribution equipment should include both regular inspections by building staff, and annual or bi-annual interventions by electrical professionals.

Elements of regular maintenance include the following:

Visual review

Regular visual inspections of all electrical rooms and electrical closets are important. This can be done by the property manager, superintendent, or another qualified person and is recommended monthly. Consider the following when conducting this review:

Ensure access to the area is effectively locked and that the lock is tamper-proof.
Keep storage out of electrical rooms, maintain at least a 1m free-clearance space in front of distribution equipment, and keep storage off transformers.
Ensure the room is not leaking or damaged; add drip pans below pipes and drains to stop leaks from dripping onto live electrical equipment.
Check your equipment for rust, water stains, scorch marks, overheating, dust, and dirt.
Note the room temperature, as it should not be excessively hot. If the room has an exhaust fan, test its operation (look for a switch or thermostat on the wall).
Ensure that covers on electrical panels are present, secure, and free of gaps or openings into which fingers can be inserted or out of which fire can escape.

Remember, this is a visual review. Stay a few feet back, and don’t touch anything.

Thermal Scans

In normal operation, electrical equipment may be warm but should not be hot. Periodic scans by a qualified infrared thermographer can reveal which parts of a switchgear, panelboard, and similar components are running hot. This allows the problem to be diagnosed and repairs made before they escalate into equipment damage or fire. While the cost-vs-benefit is easily defendable to allow this to be an annual exercise, buildings under 20 years of age can reasonably defer to every two or three years.

Switchgear maintenance

Most large buildings have at least one main switchgear and may have several suite power riser transformers. Some also include high-voltage gear and the main power transformer. Maintenance of this equipment, in addition to regular thermal scans, includes visual inspection for immediate problems, testing trip setpoints, exercising and lubricating switches, cleaning the interior of the gear, and tightening connections to manufacturer’s specifications. The frequency of this hands-on servicing is dependent on equipment age, site history, and ownership risk tolerance, from every three to five years for newer sites up to annually as the equipment ages beyond about 20 years.

Arc-flash studies

Arcing is the unwanted flow of electricity across air, due to damage or ground faults. Arcing is very destructive, leading to shock and fire. People working around or on live electrical equipment, especially if the equipment is at high voltage, are at risk of arc-flashes. The Canadian Standards Association (CSA) has implemented a new CSA Z462 Workplace Electrical Safety Standard. CSA Z462 is based on NFPA 70E, and provides guidance on the assessment of electrical hazards and design of safe workspaces around electrical power systems. An arc flash study categorizes electrical equipment by risk level and allows workers to choose appropriate protective gear. The study should be reviewed every five years or when major changes are made to the system. While arguably not mandatory for condominiums to perform, having the system’s arc flash risk base-lined reduces risk to workers and the corporation.

Reserve fund

Proactive maintenance of electrical equipment helps maximize equipment lifespan. Eventually, the replacement of old equipment will be required, typically, after about 35 to 45 years of use. Smaller components can fail sooner since disconnects, breakers, or panelboards may only last 15 to 25 years. Owners should ensure their reserve fund has ample allowances for replacement of large, discrete equipment such as transformers, switchgear, MCCs, and related equipment. Owners would also do well to undertake these projects proactively as planning for replacement of the main transformer, for example, will allow arranging for temporary power and getting competitive pricing via specification and tender. The opposite approach is to wait until the equipment fails, which will guarantee much more considerable inconvenience and significantly higher costs.

Have a plan

Establishing a comprehensive maintenance plan with your electrical professional ensures a condominium’s power system operates safely and reliably and will maximize its lifespan. Perhaps most importantly, it will reduce the risk of sudden, catastrophic failure, a disruptive and potentially dangerous occurrence.

Gerard Gransaull, P. Eng. is Director, Building Science – Building Condition Assessment, for WSP in Canada.

New safety specs for robotic lawn mowers

A new safety standard for robotic lawn mowers is expected to bolster an expanding market for technology-enabled, remote-controlled grounds-keeping equipment. The Outdoor Power Equipment Institute (OPEI) is a key proponent of the first-ever specifications for design, manufacture and power supply connections of the robotic devices to be approved by the American National Standards Institute (ANSI).

“We expect to see more competition in this product category as manufacturers design equipment to meet the industry standard,” says Kris Kiser, the OPEI’s president and chief executive officer.

The standard applies to both commercial and household robotic lawn mowers, addressing potential hazards “when they are used as intended and under conditions of misuse which are reasonably foreseeable” including: protection against moving parts and electrical shocks; traction on surfaces and slopes; detection of obstructions; shutdown controls; and child- specific safety measures. It does not address potential environmental impacts, with the exception of noise.

“Consumers and commercial users are getting more comfortable with the idea of using new tech,” Kiser maintains. “They want to have smart yard maintenance that can be easily managed with an app.”

Q Management LP deploys $350-million of capital

Q Management LP announced that the $350 million of capital in its Q Residential Property Income Fund V (RES 5) has now been fully deployed.

The Fund’s portfolio contains 2,568 rental suites across 18 high-rise buildings, two low-rise buildings and four townhouse complexes, all located around the Greater Toronto Area. The capital was deployed over a 15-month period.

Investors in the Fund are from Canada and Europe, with most of the European investors located in Germany.

“We are pleased we were able to assemble a portfolio of quality assets in a relatively short period of time,” said Dan Argiros, President & CEO of Q Management LP.

The RES 5 deployment occurred through four transactions:

St Catharines – 12 buildings with 1,157 suites in October 2018;
Oshawa – three high-rise buildings, two low-rise buildings and four townhouse complexes totalling 911 suites in June 2019;
Toronto – two separate transactions in October 2019 and Jan 2020 for a total of three buildings containing 500 suites

In December 2019, Q Management LP announced it had sold a portfolio of 44 buildings containing 6,721 suites to Starlight Investments for $1.732 billion. At the time of the transaction, the company held a total of 89 buildings, 11,505 suites representing approximately $3.0 billion in assets.

“We continue to see great opportunities in the multifamily rental market in and around Ontario’s major urban centres,” said Argiros. “We are now introducing our sixth multifamily Fund to our investors, with a goal of raising $500 million in capital. Our intension is to have a first close for this Fund in May.”

Q Management LP is a real estate asset and property management entity actively engaged in the multifamily residential sector in the southern Ontario market. As of January 2020, Q Management LP owns and manages two multi-residential Funds, which combined have 45 buildings containing 5,234 suites, and AUM of approximately $1.3 billion.

Pomerleau first to use Spot robot on worksite

Quebec-based Pomerleau is conducting a six-month field usage of a fully-automated, battery-operated moving robot, on one of its worksites near Montreal.

Spot as the device is called is equipped with a 360-degree HD camera attached to its back which is linked with HoloBuilder. The documentation platform allows comparisons with virtual design and construction software, enabling a full site view from a remote connection. The photos will be used to track the project’s progress and adherence to budget, schedule and quality standards.

Designed and built by Boston Dynamics, the Spot robot is equipped with autonomous tracking systems that enable it to identify and avoid obstacles and people, pick itself up after a fall, move in any direction, and quickly change directions. Its tracking systems will enable the robot to explore confined or dangerous areas, improving safety for workers.

According to Pomerleau, they are the first general contractor in the world to use Spot on its worksites. “We are consistently trying out new technologies, tools and ways of working that will ultimately add value to our projects and benefit our clients,” said Eric Lessard, chief digital officer, Pomerleau.

The curation, integration and access to accurate site data is a key enabler of collaboration: “This initiative is in line with Pomerleau’s mission of identifying, leveraging, and championing innovation. Our industry is undergoing a profound transformation,” says Ian Kirouac, head of transformation at Pomerleau. “We foresee robotics playing a large role in it.”

ASHRAE outstanding achievers named

Canadian engineers are among ASHRAE outstanding achievers recognized at the Society’s 2020 winter conference in Orlando, Florida, earlier this week.

Nicolas Lemire, president of Montreal-based Pageau Morel et associés inc., was one of 33 members worldwide elevated to ASHRAE Fellow standing for their contributions to the built environment and actions through research, engineering design, teaching, professional outreach and/or mentoring to advance heating, ventilation, air conditioning and refrigeration (HVAC&R). Lemire, who also holds an ASHRAE Healthcare Facility Design Professional (HFDP) designation, is the only Canadian in the new slate of Fellows, which includes honourees from Brazil, Columbia, India, Italy, Lebanon, Romania, Serbia, Sri Lanka and the United States.

Kurt Monteiro and Kevin Sharples were named winners of the ASHRAE Technology Award in the new health care facilities category for application of innovative building design at Peel Memorial Centre in Brampton, Ontario. Their work on the now three-year-old component of the William Osler Health System previously earned the Technology Award from the ASHRAE Toronto chapter, putting them in contention for the international competition. Peel Memorial Centre accommodates urgent care, day surgery, out-patient, diagnostic and mental health services, along with community space.

The late Richard Perry, who served as ASHRAE president in 1983-84, was named to the ASHRAE Hall of Fame. This rare honour is conferred for the “milestone” influences of historical contributors to the Society and HVAC&R disciplines. A World War Two fighter pilot who immigrated to Canada from New Zealand in the early 1950s, Perry earned a mechanical engineering degree and launched his professional career in Vancouver.

He was founder/president of Perry Engineering and a longstanding member of the ASHRAE Vancouver chapter. Through ASHRAE board and committee work, he was a key supporter of the forerunners to widely referenced standards such as ASHRAE 90.1 for energy management and ASHRAE 62.1 for indoor air quality, as well as an early and strategically important proponent of energy efficiency. Perry died in 2013 at age 90.

“We congratulate each of ASHRAE’s Honours and Awards recipients for their leadership in advancing the future of our industry and our Society,” affirmed Darryl Boyce, ASHRAE president for 2019-20.

Ontario workplace inspectors launch safety blitz

Workplace inspectors are now visiting construction sites across the province until March 13, 2020, following four weeks of outreach to educate and assist in safety compliance.

Inspectors will be targeting personal protective equipment, including high visibility clothing, skin protection (like gloves), face shields, eye protection, and hearing protectors. Without this equipment, workers can suffer cuts, punctures, chemical burns, electric shocks, exposure to excessive noise or vibration, and many other harmful risks.

The blitz responds to growing concern among construction workers. According to a recent survey, 25 per cent felt their workplace was not safe during the previous 12 months compared to 19 per cent across all sectors.

“One death on a jobsite is one too many,” Minister of Labour, Training and Skills Development Monte McNaughton said in a press release. “I want everyone in this province to know we’re doing our best to ensure that their loved ones come home safe after a hard day’s work.”

The ministry issued 7,483 orders from January 1, 2017 to December 31, 2017 for lack of personal protective equipment on projects. This was the second highest Occupational Health and Safety Act violation in construction workplaces for 2017.

In addition to construction sites, inspectors will also visit roadwork projects.

Steps for conducting a green cleaning audit

There are many reasons to establish a green cleaning program. A facility may be required as part of green building certification or staff and patrons may prefer a space that employs green cleaning. Whatever the reason, buildings with a green cleaning program have a higher cleanliness standard, enjoy better indoor air quality and their assets, such as floors, wall substrates and mechanical equipment, tend to last longer.

Before embarking on a green cleaning program, it’s important to conduct a facility-wide green cleaning audit to fully understand current cleaning practices and to identify areas that can be improved. From here, benchmarks can be set, which allow a company to measure the success of their green cleaning program once it has been implemented for a specific period of time.

The first step in the audit process is to determine if there’s a green cleaning policy presently in place. The policy should clearly establish in writing the standard operating procedures for effective green cleaning, including what products and tools will be utilized and frequency of cleaning, as well as detail how the green cleaning program will be managed and evaluated.

The policy should also include a way to collect feedback and measure the effectiveness of green cleaning technologies, procedures and processes on a regular basis. Of greatest importance is that the policy is endorsed by all levels of management. Without buy-in, compliance will not be achieved.

The second step is to evaluate the training process. For a green cleaning program to be effectively managed, all supervisors must receive adequate training in green/high-performance cleaning. Educational information should be provided in either written or electronic form.

Supervisors are then responsible for training workers and documenting when each has completed this task. Training should include all aspects of a green/high-performance cleaning program, as well as chemical handling, storage and disposal. Understanding why it is important to use green/high-performance cleaning principles is key to getting workers to adopt new products and processes quickly.

Training should not be limited to those involved in the cleaning process. Educating all building users that a green cleaning program has been adopted can help quell any concerns. For instance, one of the biggest changes building occupants may notice is the reduced odour of cleaning products. If it has not been conveyed that ‘green has no scent’ and the new cleaning protocols respect those who are scent sensitive while improving indoor air quality, building users may have the perception the facility is not being cleaned.

Next is the assessment of cleaning products and materials purchases. At least 75 per cent of all annual purchases should be certified to an Ecologo, Green Seal or other third party environmental standard. Purchases include cleaning chemicals, plastic trash bags, floor pads, paper towels and napkins, facial and toilet tissue, and hand and kitchen towels. Where possible, mechanisms that reduce waste like dilution control systems for chemicals and controlled paper and hand towel dispensers are ideal.

A green cleaning audit also involves the evaluation of cleaning equipment and tools. A minimum of 40 per cent of auto scrubbers should be equipped with variable speed feed pumps and onboard chemical metering or a dilution control system for filling. When possible, battery-powered equipment should use environmentally friendly lithium-ion, absorbed glass mat or gel cell batteries. It is also important that the correct floor pad is used for the application. Carpet care equipment should have high-efficiency filtration systems, high-performing vacuum systems and decibel ratings that meet health and safety regulations.

On the tool front, microfibre cloths and mops are recommended as the fibres are designed to remove dirt and germs, trapping them until it is time for the cloths to be laundered. This prevents the spread of bacteria from one surface to another.

Superior matting systems of at least 10 to 15 feet should be placed at all entrances and run with foot traffic to trap dirt at the door so it doesn’t enter a building. This can also significantly improve a facility’s indoor air quality. It is 80 per cent less expensive to remove dirt from a matting system than it is to eliminate it once tracked into a building. The green cleaning policy should dictate the frequency of cleaning, maintenance and replacement of all matting systems.

The final step in the audit process is to evaluate recycling initiatives. Finding further ways to divert waste from landfills is the goal of any successful program.

A green cleaning program is about more than simply using ‘green’ products. The real objective is to achieve a cleaner and healthier facility while also having the smallest possible impact on the environment. Green cleaning also protects cleaning staff, building occupants and the facility itself. Completing a green cleaning audit before implementing such a program is the most effective way to achieve the desired end.

Louise Taillon is director of training for the Sani Marc Group, where she is responsible for managing the company’s training program for both employees and clients. Louise has been active in the cleaning industry for more than 30 years and is a frequent guest speaker on green cleaning, cleaning for health and how to successfully implement corporate sustainability programs. She is also a LEED green associate and an ISSA Certification Expert (I.C.E.).

Landa plans mixed-use community in Richmond, B.C.

Landa Global Properties has bought a 3.5 acre property in Richmond, B.C, and plans to turn it into a mixed-use community featuring residential, retail and a hotel.

Located at at Elmbridge Way and Richmond Road, the site is adjacent to the Olympic Oval, part of the Oval Village and in the heart of Richmond City Centre’s waterfront community.
The Vancouver-based developer says the property is in the concept design stage right now, with a rezoning submission planned for this summer.

“We believe this particular site, across from the Olympic Oval, is one of the best locations in the city of Richmond,” says Landa CEO, Kevin Cheung. “And we are confident in the local market and believe that the long-term demand will continue to remain strong.”

This will be the company’s second project in the Richmond Oval Village neighborhood. Photo: Landa Global Properties

This will be the company’s second project in the Richmond Oval Village neighbourhood. Photo: Landa Global Properties.

YVR is Canada’s second busiest airport with high traffic volume. And hotel occupancy rates in Richmond remain higher than downtown Vancouver at 84 per cent, despite the fact that the majority of hotels in the area, especially around the Oval, are dated.

This will be the company’s second project in the Richmond Oval Village neighbourhood. Their condo development, Cascade, is now 85 per cent sold.

Landa hopes to bring some architectural innovation to this development as well.

“We had a great success with Cascade,” says Cheung. “Buyers like the location and the architecture, and we are looking forward to bringing something exciting to the Oval Village again.”

Spotting irrigation system problems early

Irrigation systems play an important role in a facility’s appearance by keeping landscapes looking their best. While the basic components of a commercial system are similar to those of a residential one, it usually has more zones in order to cover a larger area, additional sprinklers and operates at specific times of day when watering can take place. A commercial system is also more prone to vandalism due to its larger size and greater on-site foot traffic.

On closer inspection

It’s important to regularly observe an irrigation system in operation and provide any necessary maintenance as soon as possible to ensure optimal performance and water efficiency. At commercial properties, the system should be inspected twice a month, with sufficient time given to each zone to ensure it’s in top working condition.

During the walk-through, note the system’s overall design and installation to determine whether it follows irrigation best practices. The system should provide head-to-head coverage (sprinklers properly spaced so that a spray or rotor’s throw radius ends where the next one begins); matched precipitation rates (all sprinklers on the same zone emit water at the same rate so that certain areas are not too wet while others are too dry); and hydrozoning (plants with similar water requirements are grouped together).

This walk-through should bring any maintenance issues to light, such as tilted or sunken sprinklers, which can greatly diminish the uniformity of a system’s coverage, or broken sprinklers or pipes.

The system’s operating water pressure should also be evaluated at this time. When too high, sprinklers emit water as mist or fog, which will likely drift away instead of landing on its coverage area. Conversely, when pressure is too low, sprinklers will not spray water the proper distance, resulting in dry areas and what’s commonly referred to as ‘green donuts’ (non-uniform areas of turf).

The inspection should look at plant appearance and health, too, keeping in mind overwatered and underwatered plants can often exhibit the same symptoms. For instance, wilting or yellowing is not a good indication of dehydration; plants that exhibit these signs are more likely to have received too much water. Check the soil in the immediate area to determine whether there’s too much or too little moisture present before making any scheduling adjustments.

Repair aware

When properly maintained, an irrigation system can provide many years of excellent service. However, commercial systems often suffer from a lack of regular maintenance, causing major issues to go unnoticed for a long time. This leads to significant water waste and even site damage when parts of the landscape receive too much or too little water. This damage manifests itself as exceptionally dry areas, soaked areas or erosion.

If, during an inspection, a damaged nozzle or faulty sprinkler seal is discovered, it needs to be replaced. Sprinklers that are simply out of adjustment can be fixed fairly easily. When valves exhibit leaks or other problems, removing any debris that may be affecting its performance is the first course of action. Many valve issues can be resolved simply by taking them apart and cleaning them.

When a sprinkler head needs to be replaced, it’s important to ensure the new head emits the same amount of water as its predecessor. This includes proper nozzle sizing as well as product consistency by using the same model of spray or rotor. If an entire zone could benefit from a spray or rotor upgrade for better coverage and efficiency, all sprinklers in the zone should be changed, not just one.

A wise investment

The timer, or controller, is the irrigation system’s brain. That’s why today’s ‘smart’ or weather-based controllers offer facilities the best solution when it comes to efficient irrigation scheduling. These newer models automatically adjust the irrigation schedule as weather and watering requirements change throughout the year. In fact, they can update schedules every day as needed, something most facility managers and their maintenance teams simply don’t have time to do.

Without weather-based controllers, the best a facility manager can do is make monthly seasonal adjustments to the watering schedule, which is better than nothing. Still, the more often a schedule is adjusted to meet that day’s unique needs, the more efficient the system will become. Many newer controller models can be managed from smart phones or tablets using mobile apps, making it easier than ever to adjust schedules and monitor weather conditions.

However, an irrigation system is only as efficient as its weakest component; having a sophisticated controller will not conserve water or improve system performance if sprays, rotors or drip systems aren’t working efficiently. Regularly inspecting the irrigation system and making any necessary fixes or upgrades is the best way to ensure as little water is being used as possible in the pursuit of a healthy, beautiful landscape.

Craig Otto is a technical trainer for the services division of Rain Bird Corp. He is also owner of Minneapolis-based Irrigation Otto. Rain Bird is a leading global manufacturer and provider of irrigation products and services, including online training on irrigation basics.

B.C. Supreme Court dismisses CBA legal challenge

The B.C. Supreme Court will not hear a challenge to the provincial government’s community benefit agreements (CBA) framework initiated by a coalition opposed to the policy. The court ruled that the applicants’ submissions with respect to union membership requirements under the Charter of Rights and Freedoms did not belong before the court.

“We are disappointed that the government waited almost seven months to seek clarification to the original ruling, thereby creating an undue delay in the proceedings,” said Fiona Famulak, VRCA president. “On the basis that the merits of the case have not yet been heard, we will be appealing to have our case heard by the Court as quickly as possible.”

A coalition of the province’s largest construction associations and progressive unions argue that the NDP government’s labour framework for building public infrastructure projects violates the rights of 85 per cent of B.C.’s construction workforce.

The legal challenge was brought forward by the progressive unions of CWU and CLAC, along with four construction associations – PCA, the Independent Contractors and Businesses Association (ICBA), the Vancouver Regional Construction Association (VRCA) and the British Columbia Construction Association (BCCA). The Canadian Federation of Independent Business and several construction companies, professionals and workers are also involved in trying to halt restrictive labour policies in B.C.’s construction industry.

“What happened is the BC Supreme Court has, for the second time, told the Christian Labour Association, the Independent Contractors and Businesses Association and others that their criticisms of CBAs do not rise to the level of issues heard by the court,” said Andrew Mercier, executive director of the BC Building Trades.

Mercier added that charter arguments in the case had already been struck from the application last July. The court ruled at that time that the BC Labour Relations Board was the proper forum for charter arguments.

According to the BC Building Trades, higher courts have repeatedly dismissed charter challenges to similar labour agreements in place across Canada.

The Merit Contractors Association, which is affiliated to the ICBA through Merit Canada, challenged Manitoba Hydro’s union membership policy in 2012. The case was dismissed by the Queen’s Bench of Manitoba and again on appeal.

Industrial-retail seesaw in play for investors

The industrial-retail seesaw continued to epitomize investment performance last year for the 47 institutional real estate portfolios participating in the MSCI/REALPAC Canada Property Index. Newly released results from the index producer peg the 2019 total return on 2,723 directly held standing assets scattered across eight major markets at 6.65 per cent, but that overarching number cloaks significant variances between property sectors and from market to market.

“It’s a rate that, in general, was maybe a bit lower than people were expecting,” James Harkness, executive director with MSCI, told a gathering in Toronto late last week.

The slip from a 7.3 per cent total return in the previous year is attributed to a decline in capital growth — at 2 per cent versus 2.6 per cent in 2018 — and to the lowest yet recorded income return, which nudged down 10 more basis points to rest at 4.6 per cent. However, Harkness pointed to another unprecedented metric.

“We’ve had 10 years of capital growth being positive and that’s a cycle we have not seen before,” he said.

The 2019 total return marginally surpasses the four-year average of 6.5 per cent, while trailing a 10-year average of 9.2 per cent. Drilling down to the component sectors, industrial properties soared above the all-asset average, delivering an average total return of 16.4 per cent. Retail properties slumped in the opposite direction, eking out an average total return of 1.8 per cent, but losing 2.4 per cent of capital value since 2018.

“You can’t sugar-coat this,” Harkness acknowledged — referring to the potpourri of assets, from super-regional malls to neighbourhood food-anchored convenience centres, falling into the retail category.

Regionally, retail was healthiest in Vancouver, Toronto and Ottawa, albeit consistently the weakest performer, trailing generally strong returns for office, residential and industrial in the three cities. Total returns dipped below 1 per cent in Calgary and Montreal, while sliding into negative territory in Edmonton, Winnipeg and Halifax

“For anyone who is long on retail, it’s a tough number,” observed Michael Brooks, chief executive officer of REALPAC, who steered the discussion as a panel of industry insiders was tasked with providing on-the-spot reaction to the results.

Runway for industrial growth

On the upside, Teresa Neto, chief financial officer of Granite REIT, predicted continuing industrial gains as e-commerce flourishes, new types of demand arise and new customers — also known as immigrants — steadily arrive. In the United States, e-commerce boasts a share of retail sales that’s about double its current stake in the Canadian market, and analysts there expect it to expand further.

Already, the strongest industrial returns were found in Canada’s most populous regions: 22.8 per cent in Toronto; 21.4 per cent in Montreal; 15 per cent in Vancouver; and 14.8 per cent in Ottawa. Neto noted that rent typically accounts for 5 per cent of logistics costs, translating into opportunities for industrial landlords positioned to provide distribution space in close proximity to urban customers.

“A two per cent reduction in your transportation costs gives you (room for) a 20 per cent increase in rent,” she advised. “So there’s a lot of runway.”

“There are a lot of areas on the industrial side, like cold storage, for example, where we’re expecting growth,” concurred Jon Ramscar, executive vice president and managing director with CBRE Limited. That’s in support of a predicted boom in food and pharmaceutical e-commerce.

With that comes another possible option for tapping into unused density that could help reposition struggling community shopping centres — an exercise Ramscar called particularly challenging in smaller markets. “You have to get creative,” he said.

“More neighbourhoods (mall operators) are thinking about adding a residential tower on the corner of a retail site. What’s to say that doesn’t get converted into last-mile delivery,” mused Christina Iacoucci, managing director with BentallGreenOak. “It’s often difficult to find sites big enough for these delivery facilities.”

Panellists likewise identified land supply as a key and increasingly scarce ingredient for continued growth. “There is desire for a lot of development. Lack of land is a challenge in Toronto,” Neto reported.

Oxford Properties is currently building Canada’s first multi-level industrial building in Burnaby, British Columbia, and it’s expected to be a spreading trend. “We’re probably going to start seeing that in Toronto,” she said.

For now, index participants’ tight industrial vacancy rates — 0.9 per cent in Toronto; 1.7 per cent in Montreal and 2.8 per cent in Vancouver — are seen as one of the contributors to this year’s low income return. While enthusing, “on the industrial side, rents have just exploded”, Iacoucci noted that turnover has been more of a trickle.

“When you’re in a market that is so low, how are you capturing those rents that are double-digit? Being able to produce that into an income return takes some time,” she submitted.

Halifax on unprecedented pinnacle

Between the widely divergent industrial and retail bookends, residential and office properties stayed more on course with 2018 performance. Both surpassed the all-asset average for 2019, as residential properties delivered an average total return of 11.4 per cent, with the office average total return at 7.1 per cent.

Residential returns were particularly strong in the eastern half of Canada. Notably, a total return of nearly 40 per cent in Halifax was largely responsible for the city’s unprecedented ranking as Canada’s best performing market in 2019 — bumping Toronto and Vancouver into second and third. That’s attributed to a significant deal for a 14-building portfolio last year, reverberating in a market that recorded a 1 per cent negative total return in 2018.

“In a secondary market, one trade can swing the market so much,” Ramscar reiterated.

Even with Halifax retail properties delivering a negative total return of nearly 16 per cent, the chart-topping all-asset average total return shook out to 13.3 per cent. Elsewhere, Toronto registered a 10.1 per cent average total return, followed by Vancouver at 8.4 per cent. Montreal also surpassed the national average, with a total return of 7 per cent.

Looking to the prairies, Calgary, Edmonton and Winnipeg continued to struggle. While Winnipeg was alone in recording a negative total return, all three cities experienced declining capital value. Calgary saw negative total returns for both office and residential properties and also reported the highest office vacancy rate among Canadian markets.

Industrial properties were the strongest performers for index participants in Calgary and Edmonton, but — with total returns of 2.7 per cent and 3 per cent respectively — well off the average national pace. Office was Winnipeg’s strongest sector, delivering an average total return of 1.6 per cent.

“There is clearly not momentum in these markets,” Harkness said.

Comparable fund performance

Meanwhile, the MSCI/REALPAC Property Fund Index shows roughly comparable results on a smaller base. Approximately 1,000 assets — collectively equating to $37-billion of capital value versus the $184-billion collective value of the directly held assets in the Canada Property Index — contributed to an all-property 8.3 per cent total return for 2019.

Industrial was the top performer for the nine participating funds, delivering an average total return of 16.6 per cent. Retail properties in the funds fared slightly better than those that are directly held, recording an average total return of 2.3 per cent. Toronto was the top performing market with an average total return of 13 per cent. Calgary bottomed out the list with a negative total return of 0.6 per cent.

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