Retail vacancy rates reach historical low

Retail vacancy rates reach a record low – 2.3 per cent – in key markets as inventory grows according to JLL’s Mid-Year Retail Outlook. The average asking rent growth has decelerated from its peak last year but remains positive.

General retail reached the highest net absorption in the first half of the year with over 2.2 million square feet, followed by shopping centres with 1.4 million square feet of net absorption. In contrast, malls have seen a slightly negative net absorption and a corresponding marginal increase in vacancy rates. This is particularly prevalent in Western Canada, where landlords are keen on redeveloping retail spaces, repositioning existing tenants or bringing new options to become more competitive in the marketplace.

Growth Drivers

The top contributors to sales growth are grocery, beer, wine and liquor, jewellery, luggage and leather goods; as well as furniture sales.
Cannabis sales have also seen exponential growth with its recent legalization.
International migration has been a major driver of Canada’s population growth. Since the government introduced a more transparent and streamlined immigration system in 2015 — Express Entry — there have been new ambitious admission targets.
Canada has felt the impact of North American chains consolidating or closing stores but to a lesser extent than in the U.S.
There are several other indicators that show Canada’s luxury market continues to grow and thrive. Last month, it was reported that Toronto’s Bloor-Yorkville retail corridor is the most expensive in Canada and the fifth priciest in North America.

Cities at a glance:

Toronto
The Toronto retail market remains strong and vacancy rates continue to tighten, reaching a record low of 1.9 per cent in the second quarter of 2019. Average asking rents have continued to increase this year in both the GTA and downtown Toronto at 3.2 and 3.4 per cent respectively. The outlook for the metro is positive as new construction is delivered with high pre-lease rates.

Toronto continues to be a North American point of entry for both European and Asian retailers and a natural expansion city for U.S. businesses.

Montreal
Montreal is the second-fastest-growing metro area in Canada, and the sixth in North America and set to become a world-class foodie destination. The city saw the greatest increase in retail sales in the past 10 years – just shy of 10 per cent.

Vancouver
The Vancouver retail market continues to be tight across all property types: retail vacancy rates have reached a record low of 1.3 percent, and average asking rents grew by 2.0 per cent this year. Historic low deliveries coupled with demolitions have kept the city’s total retail inventory relatively static.

Edmonton
As part of the city’s effort to revitalize the downtown core Loblaw City Market announced it will open a 22,000 square foot store in the ICE District – set to become the largest mixed-use sports and entertainment district in Canada. Amazon is also expected to open its second fulfillment centre in 2020, near Edmonton International Airport.

Download the full report here.

October marks global ergonomics month

October is Global Ergonomics Month, an initiative aimed at advancing safer and more comfortable environments in the workplace and beyond.

Front and centre for the awareness campaign is the prevention of musculoskeletal disorders (MDSs), which are classified as painful injuries to muscles, ligaments, tendons, and nerves caused by repetitive strain or injuries. According to Ontario’s Workers Health and Safety Centre (WHSC), MSDs are common in the workplace and can come at a high cost to employees and employers alike.

“The most common response to suggestions for ergonomic change in the workplace is ‘It’s too expensive.’ With the economic burden of musculoskeletal disorders (MSDs) in Canada estimated to be $22 billion annually and a significant number of these disorders attributed to related workplace hazards, nothing could be further from the truth,” WHSC states in a 2016 report.

Global Ergonomics Month is being observed by numerous organizations throughout Canada. WorkSafeBC’s 2019 Ergonomics Forum, for example, is set to take place on October 10 at the WorkSafeBC Auditorium in Richmond. This year’s theme, Prevention through Design, will highlight “the importance and benefits of considering the health and safety of workers before the design of a project or task. In this early stage, there’s an opportunity to create an inherently safer work environment to reduce the likelihood of injury.”

Ontario’s Ministry of Labour is also partnering with health and safety partners across the province to present ergonomic-themed events. Several highlights include:

October 2-3 (Sudbury): Physical and Cognitive Job Demands and Health in an Aging Workforce, a conference sponsored by the Centre of Research Expertise for the Prevention of Musculoskeletal Disorders (CRE-MSD)
October 3 (Toronto) / Oct. 17 (Oshawa) / Oct. 29 (Ottawa): Conducting Office Ergonomics Assessments, a training event sponsored by Workplace Safety and Prevention Services (WSPS)
October 16 (Online): Developing a Comprehensive Safe Patient Handling Program, a webinar sponsored by (CRE-MSD)
October 21 (Waterloo) Adverse Outcomes Associated with Occupational Exposure to Whole Body Vibration: Making a Health, Safety and Business Case, a lecture at the University of Waterloo sponsored by CRE-MSD
October 23 (Kitchener): Ergonomics Explained, a conference sponsored by WSPS.

Teams shortlisted for $1.9B St. Paul’s Hospital

The new St. Paul’s Hospital is one step closer to starting construction, with two qualified teams short-listed to participate in the next stage of the competition to design, build and partially finance the new St. Paul’s.

The two consortiums selected to participate in the Request for Proposal phase are Ellis Don Infrastructure Healthcare and The PCL team. Both teams have worked on major hospital projects. The process is expected to complete in late 2020 with construction stage to follow. Completion is scheduled for 2026.

The provincial government announced the approval of the business plan for the new $1.9B St. Paul’s on February 15, 2019. The new hospital and health campus – to be constructed at a new site at 1002 Station Street in Vancouver’s False Creek Flats – will have capacity for up to 548 beds, which includes 115 net new beds. The site will be the home of several leading provincial programs and referral centres, including for heart and lung care, renal, eating disorders and specialty surgeries and transplants.

The new hospital will also offer a diverse and long list of general and specialized care, including HIV/AIDS, emergency, critical care, mental health, addictions, Indigenous health, maternity, and community care and outreach programs.

Currently, the project is going through the municipal government’s rezoning process, which is expected to reach completion this fall.

Future phases of the healthcare campus are planned including a clinical services and research centre connected to the hospital as well as a new health innovation park with industry partners.

IDIBC shines spotlight on innovative designs

The Interior Designers Institute of B.C. (IDIBC) held its 36th annual Awards of Excellence event on Sept 27 in downtown Vancouver. The Shine Awards celebrate the outstanding achievements of the province’s registered interior designers. This year saw another record number of project entries.

The prestigious Robert Ledingham Award was given to Jay Brooks of Box Interior Design for the Fireside Restaurant at the Arbutus Club. The Interior Designer of the Year Award went to Andrea Greenway of Studio CM for Shoe Store. Both also won an Award of Excellence in their respective categories.

The 2019 Awards of Excellence winners were:

Dialog for Innovative Fitness, hospitality
Area3 Design Studio for Akimbo, multi-residential+sales
Cristina Oberti Interior Design for The Paramount, multi-residential+sales
Evoke International Design for Whistler Residence, residential total
SSDG Interiors for We the Collective, workplace total
BYU Design for Interior Design Studio, workplace total
Perkins+Will for Confidential Gaming Studio, workplace partial; and Miller Titerle Company office interiors, workplace total
Square One Interior Design for COWI and Engine Digital, workplace total

Three Awards of Merit went to False Creek Design Group for 2nd and Main; BYU Design for Deep Cove Renovation; and DRDC – Deborah Ross Design Company for Easy Street.

Look for full coverage of this year’s IDIBC Awards of Excellence winners in the fall 2019 issue of Design Quarterly magazine.

Lawrence Square renamed Lawrence Allen Centre

Lawrence Square renamed Lawrence Allen Centre marks its 30th anniversary with a makeover – including a modernized interior, fully renovated food court and upgraded amenities.

Located directly across from the Lawrence West Subway station, at the corner of the Allen Expressway and Lawrence Avenue West the centre comprises over 373,000 square feet of retail and over 304,000 square feet of office space.

“RioCan recognizes the importance of investing in our assets and communities in which we operate. Lawrence Allen Centre will serve as the hub in this important and rapidly redeveloping Toronto neighbourhood and we look forward to being part of the continued growth and prosperity here,” said Jonathan Gitlin, President and COO, RioCan in the centre’s press release.

“We focused on enhancing the existing spirit of the neighbourhood, ensuring the design, service and retail mix suit the immediate and long-term needs of the community.”

A recladding of the building’s exterior façade is underway and scheduled for completion in Spring 2020.

Images courtesy of RioCan.

RioCan completes acquisition of ePlace apartments in Toronto

RioCan has completed its acquisition of the apartment and retail components at ePlace, a large mixed-use development located at the northeast corner of Yonge and Eglinton in Toronto.

According to a press release issued Friday, the purchase price of $114.1 million was determined based on cost plus $10 million for the apartment component, eCentral, and a seven per cent cap rate on the stabilized NOI for the retail component.

“This acquisition represents another important step forward in our transformation to a major market, mixed-use focused REIT,” said Ed Sonshine, the chief executive officer of RioCan. “RioCan recognizes the thriving, transit-oriented intersection of Yonge and Eglinton has significant income and value growth potential and we are well-positioned as the dominant landlord in the area.”

Residential leasing commenced at eCentral in December 2018 and is progressing ahead of both schedule and anticipated rental rates. As of Sept. 26, 2020, 72 per cent of the units had been leased at an average monthly rent of $3.88 per square foot for market rent units.

The 705,000-square-foot mixed-use development is comprised of 22,000 square feet of retail space, with 20,000 square feet of that space already sold out. Similarly, eCondos – a 58-storey, 623-unit condominium tower is also completely sold. Retail leasing at ePlace, the 36-storey, 466-unit rental residential tower, is now essentially complete with leases in place for a flagship TD Bank and food service tenants.

The development will have direct underground access to both the Yonge/University subway line and the future Eglinton Crosstown LRT. Adjacent to the retail space in ePlace, and across the street from Yonge Eglinton Centre, eCentral residents will have access to extensive retail and service options.

“ePlace joins, among others, Yonge Eglinton Centre, Yonge Sheppard Centre, King Portland Centre and The Well, all in Toronto, Ontario, as part of RioCan’s expanding portfolio of dynamic mixed-use urban assets,” said Sonshine.

Quebec’s largest mixed-use residential project breaks ground

Devimco Immobilier, the Fonds immobilier de solidarité FTQ and Fiera Real Estate have broken ground on Maestria, the largest mixed-used residential project ever built in Montréal. Featuring two towers with a combined 1,750 residential units, when complete Maestria is projected to cost more than $700 million. The first tower, rising 57 storeys, is located on the site of the former Spectrum de Montréal, in the heart of the Quartier des Spectacles.

Since the project was announced in November 2018, more than 75 per cent of the first tower’s 438 condominium units have sold, with sales now kicking off for the second 61-storey tower, comprised of 611 condos and 340 rental units.

“The demand is there, and the real estate market is going strong, which is enabling us, with the help of our partners, to develop projects as distinctive and avant-garde as Maestria,” said Serge Goulet, President of Devimco Immobilier. “We are proud to be establishing a presence in this thriving artistic neighbourhood.”

Designed in collaboration with the architecture firm Lemay, the project’s design is intended as a nod to the Quartier des Spectacles cultural district. Featuring two asymmetrical towers and an aerial walkway connecting the buildings at the 26th and 27th floors, residents will have a front-row view of Place des Festivals, the epicentre of this district that claims North America’s highest concentration of arts and culture, with museums, performance venues and galleries.

“We are excited to be playing a role in the accomplishment of this flagship project, with its hugely strategic site and spinoffs that will benefit the entire Québec economy,” added Normand Bélanger, President and CEO of the Fonds immobilier de solidarité FTQ. “The two towers will rise on the skyline and become an emblem for the city, a symbol of real pride for Montrealers.”

“We are pleased to be taking part in this extraordinary project, which honours the area where it will stand. Montréal’s cultural wealth is reflected in its design, and this is what makes it a one-of-a-kind development,” added Pierre Pelletier, Fund Manager and Senior Vice-President, Opportunity and Development, at Fiera Real Estate:

With the aim of obtaining LEED certification, the project will apply best practices in sustainable development and environmental responsibility. With its green spaces, retail gallery, leisure areas and sports facilities, Maestria will provide its residents with a stylish and elegant living environment.

A small public plaza will be accessible to all. The partners are seeking to bring in select restaurants, entertainment venues and neighbourhood shops and services, as well as office space.

Together with the District Griffin, Square Children’s, MAA and Onessy projects, this brings Devimco Immobilier’s housing starts to 6,300 units on the Island of Montréal alone, for a total investment of $2.4 billion.

Maestria project highlights:

Nearly 1,750 residential units
Units ranging from 300 to 2,200 square feet
Green spaces developed to promote urban biodiversity
A small public plaza accessible to retail customers
An indoor pool
An outdoor pool with spa
A top-quality fitness room
Two Skylounges with terraces on the 26th and 27th floors, providing access to the SkyBox, a first for downtown Montréal and a true private lounge with a terrace overlooking the entire Esplanade de la Place des Arts, as well as connecting the two towers at these floors
A virtual-golf room
A playroom for children
A library and business centre
A movie theatre, multipurpose room and games room
Indoor parking areas
A retail gallery covering nearly 50,000 square feet
Restaurants, cafés and neighbourhood shops

Report: The state of mass-timber design

Mass-timber construction is gaining traction across Canada thanks to new product technologies, advanced techniques, and changes within the 2020 National Building Code of Canada (NBCC). With British Columbia already adopting provisions within the 2020 NPCC that allow for the construction of wood buildings up to 12 storeys (up from 6 storeys), and other provinces set to follow suit, the conversation around mass-timber building design is evolving.

Toronto’s IA Interior Architects is among those leading the discussion. Recently, the global interior design firm released a white paper outlining the challenges and opportunities ahead for mass-timber projects, entitled Timber Towers: A new generation of mass-timber buildings is sparking complex design challenges—and innovative solutions.

“The age-old methodology of heavy-timber construction is becoming an increasingly popular and viable alternative to steel framing for high-rise commercial projects,” the report states. “Mass-timber structures offer numerous benefits to both developers and occupants, from sustainability to biophilic beauty … End users, meanwhile, enjoy the superior acoustic performance and woodsy, decidedly non-corporate feel of the interiors.”

The paper outlines the numerous advantages of such buildings, as well as interior design challenges that require due consideration by tenants and a “more deliberate coordination of trades and more time for the build-out.” Top among these are issues posed by denser column grids, minimal allowance for drop ceilings, mechanical system visibility issues, and building code interpretation complications.

Additionally, the report turns a spotlight on innovators within the mass-timber construction field, as well as notable mass-timber projects throughout North America.

“Despite significant press and informational coverage of the mass-timber typology from a construction and architecture standpoint, there’s been less such discussion of the interiors of said buildings, which offer unique attributes as well as significant challenges,” the white paper offers, adding, “But when approached from an informed perspective, these complexities are in fact opportunities that can be exploited and celebrated.”

Read IA’s white paper.

Edmonton’s Stantec Tower sale makes history

The commercial portion of Edmonton’s tallest building – Stantec Tower – has been sold to the German company, Deka Immobilien. Facilitated by CBRE, the sale marks the largest office building transaction in Edmonton’s history in terms of dollar value.

Developed through a joint venture between Katz Group and ONE Properties, the 69-storey mixed-use tower is the tallest commercial building in Canada outside of Toronto. Tenants include Stantec, PwC Canada and Dentons.

The SKY Residences, occupying floors 30 to 66 above Stantec Tower, are not included in the sale.

Deka Immobilien is the specialist for real estate investments within Deka Group, and one of Germany’s largest globally active real estate fund companies. The German investor is the first to make a commercial property acquisition of this scale in Edmonton.

“World-class cities need world-class developers with vision to attract world-class investors,” said David Young, managing director for CBRE Edmonton in the group’s press release.

“Deka Immobilien’s purchase of Stantec Tower speaks to this international firm’s confidence in the importance of ICE District and the positive impact it will have on the rest of this city’s downtown core moving forward.”

ICE District Properties has begun the development process for Phase II of the project which includes approximately 4,500 residential units, more than 300,000 square feet of retail/commercial space, and more than 750,000 sq. ft. of office space. At completion, there will be a total of 4.5 million sq. ft. spread across 12 towers.

Image courtesy of CBRE.

Energy efficiency primed for climate action

There’s nothing exclusive about the Three Percent Club launched earlier this week at the United Nations Climate Action Summit in New York. The new global coalition of nations, businesses and non-governmental organizations (NGOs) is welcoming all joiners to harvest the energy savings achievable through the deployment of existing technology and passive design considerations.

Based on research from the International Energy Agency (IEA), club pledges will be challenged to deliver a three per cent annual increase in energy efficiency. On a global scale, that’s projected to be a low-cost curb on greenhouse gas (GHG) emissions that could meet 40 per cent of the reduction target envisioned in the Paris Agreement.

“Energy efficiency is an energy resource that all countries share in abundance, and it can help reduce emissions while enhancing their peoples’ well-being,” maintains Fatih Birol, executive director of the International Energy Agency.

Few signatories to the Paris Agreement have specifically listed energy efficiency targets in required national plans for meeting their commitments so Three Percent Club founders see plenty of room to capture untapped emissions reductions. They reiterate that easily implementable energy-efficient appliances and lighting, building materials that reduce reliance on energy-intensive heating and cooling systems, and district energy in place of in-building boilers and chillers would reduce operation costs and create economic benefits through job creation and avoided spending on additional power generation capacity and other more costly interventions to mitigate climate change. It’s projected the targeted energy efficiency advancements could translate into USD $500 billion in annual energy savings for households worldwide by 2040.

“If it’s 3 per cent on each prior year’s saving, 10 years from now the reduction would be 26 per cent from today. In 30 years, it would be a 60 per cent reduction from today,” advises Andrew Pride, an engineer who consults on energy management, sustainability and strategic conservation planning. “It’s a big target, but it is needed and it could be achieved cost-effectively in Canada.”

Provincial governments play key role in Canada

Neither Canada nor the United States are among the 15 countries that have signed on thus far, but industry associations and public interest groups in both countries are aligned with supporting NGOs like Alliance to Save Energy and EE Global Alliance. That includes Efficiency Canada, a non-governmental organization promoting the dual economic and environmental benefits of energy and water conservation.

Prominent business members of the coalition include: Johnson Controls; Signify (formerly Philips Lighting); two major HVAC players, Danfoss and Trane; Portugal’s national electricity utility, EDP; Italian electricity and gas provider, Enel; and Inter-America Development Bank, which provides financing to Latin America and the Caribbean. Honduras, Argentina and Colombia comprise the western hemisphere contingent in the initial list of nation members, making the commitment along with India, seven European and four African countries.

Canada’s constitutional quirks limit the scope of federal action on energy efficiency largely to: setting standards for equipment and appliances; devising the model national energy code; offering tax incentives; and dispersing funds for other levels of government and agencies such as the Federation of Canadian Municipalities to administer. Although revenues collected from carbon pricing have been earmarked for energy efficiency upgrades in Ontario, Manitoba, Saskatchewan and New Brunswick, that’s only in the absence of those four provinces invoking their own carbon pricing strategies.

Provincial/territorial governments devise programs and set targets, creating a cross-Canada patchwork of mandates and oversight. Various agencies — such as Ontario’s Independent Electricity System Operator, Energy Efficiency Alberta, Nova Scotia’s EfficiencyOne, Efficiency Manitoba and dedicated divisions of some provincial electricity and gas utilities — front the task, but receive instructions from their applicable Ministry of Energy.

“Many provinces are currently attaining from just under 0.5 to almost 2 per cent annual gains in energy efficiency through very cost-effective measures. It would be feasible to push that up to 3 per cent,” Pride submits. “And that comes with significant job creation and domestic economic growth.”

For example, Toronto-based energy management consultant Scott Rouse points to commercial office clients enrolled in an Ontario incentive program with a prerequisite for annual energy savings of at least 5 per cent.

“We have surpassed $700,000 in verified electricity savings alone across 12 properties and without capital investment,” he reports. “Future savings will grow exponentially as capital investments are made, creating greater efficiency and local jobs to support our economy.”

Confronting capital expenditure and the costs of inaction

Looking to the United States, Lindsay Audin, an engineer and energy management consultant with a 40-year career history of promoting energy efficiency, contemplates the potential and the challenges.

“Overcoming the capital expenditure barrier has always been the first step to securing the resulting savings,” he reflects. “The discussion needs to address the dollars that will be involved in securing that $500 billion in annual savings by 2040. Estimates to zero out just the U.S. carbon footprint may require upfront spending in the range of USD $10 to $20 trillion. Programs already suggested by several presidential candidates ranged from $5 trillion to over $16 trillion. We have to honestly confront that level of spending if we are to avoid the impending damage from climate change.”

Perhaps helping to make the case, that damage is projected to be considerably more costly. Accelerating annual climate-related insured losses — hitting a global record peak of USD $140 billion in 2017 — are just one incomplete marker since it’s estimated the same year saw $200 billion in uninsured losses.

Strategists are striving to grasp and respond to potential direct, indirect and induced impacts in every sector of the economy. Supporters of the Task Force on Climate-related Financial Disclosures (TFCD), including banks, asset managers, pension funds, credit rating agencies, accounting firms and shareholder’ advisory services worldwide, represent USD $120 trillion in financial interests and are working to avert what’s been termed a “climate-driven Minsky moment” triggering the sudden collapse of asset prices.

Founders of the Three Percent Club are promising immediate action to adopt, promote and continue to innovate energy-saving measures and practices. “We are proud to have achieved energy intensity improvements exceeding four per cent annually since 2002 and look forward to sharing our best practices, technologies and solutions with participating countries and partners,” says George Oliver, chairman and chief executive officer of Johnson Controls.

“Energy efficiency is the stealthy hero of climate action,” suggests Three Percent Club member, Andrew Steer, the president and chief executive officer of the World Resources Institute. However, other proponents now favour the overt.

“We know that energy efficiency accounts for more than 40 per cent of the carbon reductions required to meet the Paris Agreement,” reiterates Efficiency Canada’s executive director, Corey Diamond. “It’s time to get more aggressive.”

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

Greater Victoria 2030 Resiliency District launches

The City of Victoria and District of Saanich are partnering with the Building Owners and Managers Association of British Columbia (BOMA BC) to create the Greater Victoria 2030 Resiliency District.

The 2030 Resilient District will facilitate a partnership between municipalities and the commercial real estate industry to achieve aggressive energy and emissions reductions targets, while also enhancing the resilience of buildings. Participating building owners and managers will voluntarily commit to reduce their buildings’ energy use, water and emissions by 50 per cent by the year 2030 from 2007 baseline levels.

“This is an important opportunity for the city to partner with progressive building owners and managers, to help drive efficient, high-performance, and low-carbon improvements in our large building stock,” said Victoria Mayor Lisa Helps. “Over 30 per cent of Victoria’s greenhouse gas emissions come from large buildings, so we are very excited to partner with BOMA’s 2030 District program, which will bring local leaders together to collaborate and take action to eliminate building GHG’s and improve sustainability.”

2030 District initiatives are gaining momentum across North America. Greater Victoria will be only the second District in Canada, after Toronto but there are currently 21 established Districts across the U.S.

The Greater Victoria 2030 Resiliency District will be unique across North America by adding building seismic resiliency to its mandate.

“It is critical we continue to address long-term climate adaptation and seismic upgrading as components of a responsible environmental sustainability strategy for the commercial real estate industry. We are working with innovators in our industry to set an example on how the commercial real estate sector can work with partners to take steps to fight climate change,” said Damian Stathonikos, president of BOMA BC. “District 2030 brings these issues to the forefront.”

To achieve these targets, BOMA BC will provide support to members of the District including:

• Education and assistance on optimizing retrofits at the time of planned building renewals;
• Tracking, aggregating and reporting on building performance metrics;
• Securing group purchasing discounts for new and emerging building technologies and professional services; and,
• Advancing seismic safety upgrades and resilience to extreme weather events.

For more information on 2030 Districts visit: https://www.2030districts.org/districts

Affordable housing for all

As Canada’s federal election inches closer, and hopeful candidates criss-cross the nation making bold declarations about future reform, affordable housing remains a hot-button issue for citizens and industry stakeholders alike.

From Charlottetown to Vancouver, and virtually every city in between, inadequate housing supply has reached critical levels. Year-after-year, words like “crisis” and “severe deficit” have been used to describe the dearth of affordable housing in our cities — yet here we are in 2019, still looking for solutions.

In Ontario, some positive headway has been made. A new report by Urbanation reveals that the pipeline for new rental supply is currently 50 per cent higher than it was two years ago. This progress, according to the Federation of Rental-housing Providers (FRPO), is a direct result of recent legislative changes implemented by the Ford government.

“The removal of rent control on new projects completed after November 15, 2018, was a great first step to restoring confidence and encouraging investment in purpose-built rental,” said Tony Irwin, FRPO president and CEO. “The massive growth in applications can hardly be a coincidence.”

But even with this pipeline of new units in the works, will there be enough affordable housing options for everyone? As Canada’s population grows fuelled by heightened immigration, and as housing patterns shift, the pool of renters is only getting bigger. Policy changes that incentivize rental housing development, and programs that make investing in energy retrofits more viable are critical to maintaining the flow.

“Renters need increased confidence that private sector rental-housing providers — the single largest cohort of rental-housing providers in the country — will be better positioned to enhance the existing rental stock and undertake the significant risk and investment necessary to build much needed supply of new secure purpose-built rental housing,” said David Hutniak, CEO of LandordBC. “We need action now! The stakes are very high.”

Underscoring this urgency, the Canadian Federation of Apartment Associations (CFAA) has been lobbying for key reforms since January, hoping that some, if not all, their proposed changes will find their way to the forefront of the parties’ election platforms.

“To varying degrees, all the parties support more rental housing development by the private sector, especially where it is needed,” said John Dickie, President of CFAA. “Similarly, each party also understands the impact rental industry costs have on rental supply and affordability.”

As such, CFAA’s proposals are pitched as ways to increase housing supply in order to improve housing affordability. Some of the proposed reforms are linked to the environment, given it’s such a key issue for all.

“We always need to be selective about what we ask for, since the finance officials are opposed to any sweeping reforms that would cost the federal treasury substantial amounts of money,” said Dickie. “However, various modest changes would improve the situation for many rental providers, and thus increase rental supply, addressing housing affordability.”

For CFAA, those changes include:

Taking advantage of the move-up effect by reducing the GST/HST charged on new rental construction;
Gaining active business tax treatment for rental providers to allow some deferral of recapture on sale and reinvestment, to allow investors to access the standard corporate tax rate (rather than the current high rate, which is close to 50 per cent in most provinces), and to allow small corporate landlords to access the small business tax rate;
Clarifying and expanding the ability to claim expensive building improvement work as repairs (rather than capital improvements), even though the work provides a better item at the building than the item that was replaced (e.g. replacing mid-efficiency boilers with high efficiency boilers).

Expanding on this list, LandlordBC recently addressed “All Federal Parties” in a public blog post itemizing the action steps it hopes Canada’s incoming (or re-elected) government will undertake. The list includes: maintaining funding for the Rental Construction Financing Initiative (or introducing an equivalent stimulus for purpose-built rental construction); working with the provinces to reduce regulatory barriers; funding the Portable Housing Benefit to target those in greatest need; offering programs to assist with the cost of energy retrofits and the adoption of energy-saving technologies; holding the line on income taxes and capital gains taxes, and more.

So, with the election fast-approaching, is there any evidence that the parties have been listening? The answer appears to be yes. According to each parties’ official website, here are some of the campaign promises impacting the rental housing industry and Canada’s housing market at large:

Liberal

Justin Trudeau’s Liberal party has developed a $55-billion plan to build 100,000 affordable housing units over the next decade. Its highly publicized housing mandate is to “make it easier for Canadians to find an affordable place to call home.” In addition to launching the new First-Time Home Buyers incentive earlier this fall, moving forward, the Liberal Party says it will support rental development by increasing the new residential rental property rebate on the GST to 100 per cent, thereby eliminating all GST on new capital investments in affordable rental housing. This, it says, will provide $125 million per year in tax incentives to increase and substantially renovate the supply of rental housing across Canada.

Conservative

Conservative Leader Andrew Scheer has pledged to ease regulations in order to “help get new homes built.” At a press conference on September 24th, Scheer announced he would repeal Justin Trudeau’s tax increases on small business owners, while cutting unnecessary red tape. His government is proposing a 4-point plan to make home-ownership more affordable, which includes “fixing” the prohibitive mortgage stress test and making surplus federal real estate available for development to increase the supply of housing. Scheer has also stated that, if elected, his party will implement a green homes tax credit to help pay for energy-saving renovations.

New Democrat

Exceeding the Liberal party’s goal of 100,000 new affordable units, NDP leader Jagmeet Singh has pledged to build 500,000 units in an equivalent timeframe. The party also plans to abolish the federal portion of the GST/HST for those constructing new affordable units. Additionally, it would reintroduce 30-year terms to mortgages insured by CMHC for first-time home buyers, and give “low-interest loans repayable through energy savings” to retrofit outdated properties.

Green

The Green party, led by Elizabeth May, has promised to build 25,000 new affordable units and renovate 15,000 more in the next ten years should it be elected. It would also restore tax incentives for building purpose-built rental housing, and provide tax credits for gifts of lands (or buildings) to be used for affordable housing. Other stated plans include: making housing “a legally protected fundamental human right for all Canadians”; appointing a Minister of Housing to oversee the National Housing Strategy; increasing the National Housing Co-investment Fund by $750 million for new builds and the Canada Housing Benefit by $750 million for rent assistance for 125,000 households. The party also plans to finance building retrofits through direct grants and zero-interest loans, and re-focus the core mandate of CMHC to support the development of affordable, non-market and cooperative housing.

Erin Ruddy is the editor of Canadian Apartment Magazine.

B.C. communities adopt mass timber technology

Thirteen B.C. communities are adopting innovative mass timber technology for taller wood buildings this year. The communities include University of BC, City of North Vancouver, Township of Langley, Kelowna, Surrey, Richmond, Mission, Abbotsford and five more on Vancouver Island.

They have all signed on to become early adopters to bring mass timber technology for the construction of new buildings as high as 12-storeys. These communities represent 35 per cent of all housing starts in 2018 in B.C.

“Building with B.C. wood is good for people, communities, our economy and our climate. It will create thousands of jobs, reduce carbon pollution and support forest-dependent communities,” said Premier John Horgan. “These 13 communities will help us get there faster.”

Forest communities throughout B.C. will see economic benefits of increased production from B.C.’s mass timber manufacturers as they develop value-added timber products and revitalize this cornerstone industry.

Abbotsford-based StructureCraft engineers and builds mass timber structures, manufacturing and prefabricating timber products using wood from B.C., including beetle-kill wood.

“We are being approached by developers and architects from all over North America pursuing mass timber for projects that would traditionally be built with steel and concrete,” said Gerald Epp, president, StructureCraft. “And a lot of the wood fibre for this is coming from B.C.”

To be eligible to sign on as early adopters, local governments currently regulated under the B.C. Building Code need to have:

support from their city council and the planning, building and fire departments;
Level 3 certified building officials; and
land use bylaws for buildings higher than six storeys.

The early adopter communities will provide feedback on changes ahead of the next major code change.

The 2020 National Building Code is expected to allow mass timber construction up to 12 storeys. This will be reflected in the next edition of the BC Building Code.

Burden of occupational cancer in Canada

The Occupational Cancer Research Centre’s new report focuses on 13 workplace carcinogens with the largest impact on the occupational cancer burden in Canada. According to the report, these carcinogens are also responsible for over 10,000 newly diagnosed cancer cases in Canada each year.

These carcinogens are arsenic, asbestos, benzene, chromium (VI) compounds, diesel engine exhaust, second-hand smoke, nickel compounds, polycyclic aromatic hydrocarbons (PAHs), radon, night shift work, silica (crystalline), solar ultraviolet radiation, and welding fumes.

The report breaks down the following by industry:

Estimates of occupational exposure and the associated burden of cancer
Exposure reduction strategies for the most common occupational carcinogens in the country
General policy recommendations.

Burden of occupational cancer in Canada: Major workplace carcinogens and prevention of exposure report was produced by the OCRC, with input from experts on scientific content and policy recommendations. The occupational carcinogen exposure estimates were provided by CAREX Canada.

View the full report here.

Erasing Tracks: Tackling the de-icing dilemma

Winter conditions can wreak havoc on any environment; but in the case of commercial properties, it can be a downright headache for cleaning professionals. And while there are any number of extra challenges to deal with during Canada’s frosty season, few beat the hassle of cleaning tracks left by guests coming in from the cold.

“From a janitorial perspective, it can be a bit of a nightmare,” says Nate Clemmer, CEO of Secure Winter Products. “When we ask cleaning crews what the worst part of their day is, many of them say it’s dealing with the mess people track in from the snow, which can leave entrance ways, restaurant lobbies, or ofﬁce ﬂoors looking like an old-school chalkboard.”

“It’s not a good ﬁrst impression,” he adds.

By and large, these visible tracks are a result of using chloride salt de-icing solutions to melt outside ice and snow. Once applied to outdoor walkways and roads, the granular material ﬁnds its way through the front doors where it accumulates on interior ﬂooring.

“It’s a big issue for cleaners,” agrees Mark Warner, CMI Education Manager with ISSA Cleaning Management Institute. “When those salts get tracked into a building, that crystalline material can cause damage in the ﬂooring, whether by cutting up the ﬁbers on carpeting, scratching hard surfaces like terrazzo or marble, or attacking the ﬁnishes on expensive ﬂooring.”

Moreover, he adds, salt particles can damage cleaning equipment from the inside out, leading to costly repairs and replacements: “We all know how corrosive salt can be. So you can imagine what it does to the inside of $2,000 backpack vacuums and $10,000 automatic ﬂoor scrubbers. It just eats them up.”

Safety ﬁrst
Left unchecked, winter tracks can pose considerable health and safety concerns for building occupants and staff.

“If that material gets tracked in and it’s still in its granular form, it can be like walking across a floor of marbles,” Warner explains. “More importantly, salt-based ice melters are hygroscopic, which means they attract moisture out of the air. So the residues that are on the indoor floor are actually creating an excessive amount of dampness, and because of that, a lot of building owners and cleaners will report that their floors seem excessively slippery.”

New approaches

The cleaning industry has a knack for solving old problems with fresh innovations. And when it comes to tackling winter tracks, Clemmer and his team at Secure Winter Products have developed one such solution called Entry®, a chloride and residue-free, liquid ice melt product. With a pH value similar to water, Entry® is designed to evaporate rapidly upon use and prevent re-freezing to temperatures below 20°C. This affords cleaning professionals a de-icing alternative that not only works quickly when applied, but doesn’t leave visible tracking and all the issues that come with it.

“From both a liability and asset preservation perspective, that’s a big deal,” says Clemmer.

Entry®’s chloride-free formulation makes it particularly appealing to building owners and managers. Over time, chloride salts can cause damage to metals and concrete, as well as pose risk to plants and pets. By contrast, Entry®’s chloride-free composition makes a signiﬁcantly lower impact on its surroundings. This is particularly important for Canadian cleaning crews who must apply (and re-apply) de-icing products ad nauseam during the long winter seasons, but don’t want to do so at the expense of eroding their natural and physical assets.

Asset protection notwithstanding, Entry®is also readily biodegradable. And as the ﬁrst ice melt in the world to receive Green Seal® certiﬁcation, Clemmer notes, “From an environmental perspective, Entry® is considered to be the best environmental de-icing solution out there.”

Cleaning tracks

The cleaning industry is on constant watch for solutions that can get the job done better, safer, and with less strain on both schedules and budgets. By working with ISSA to bring such a solution to market, Clemmer and his team are conﬁdent that Entry® provides a liquid de-icing solution that caters to these needs and facilitates a more eco-friendly cleaning strategy.

“We’ve worked with ISSA’s Cleaning Management Institute to really understand what the best practices are for cleaning up salts inside of buildings and just how much pain there is associated with this activity,” says Clemmer. “Now that Entry® is out there and making a difference, we’re happy to play a role in tackling one of the most demanding winter challenges.”

Nate Clemmer is founder and CEO of Secure Winter Products.

WSIB eliminates unfunded liability charge

Beginning in January 2020, Ontario’s Workplace Safety and Insurance Board (WSIB) is ending its unfunded liability charge also known as Past Claims Cost charge – reducing the employer’s average premium rate to 17 per cent.

According to Minister of Labour Monte McNaughton the elimination of this key charge from WSIB rates will result in approximately $607 million savings to employers. Of this, about $130 million is related to reduced new claims cost and lower administration costs.

“This money will lead to investments in new jobs, technology and health and safety programs,” McNaughton said.

“Canadian Manufacturers & Exporters (CME) congratulates the government and the WSIB for continuing to support Ontario manufacturing by further reducing most premium rates for 2020,” said Dennis Darby, President and CEO, Canadian Manufacturers & Exporters (CME) in the press release.

“This decrease, along with the elimination of the unfunded liability, is critical for helping Ontario manufacturers compete for investment by reducing their operating costs. This continuing trend in rate reductions also reaffirms the tremendous efforts of Ontario manufacturers and their employees to reduce workplace injuries and related claims.”

Workers groups such as OccupyWSIB and Peel Injured Workers, do not welcome this news. According to the activists, the elimination of the fund will take $600-million out of health care and compensation of injured workers.

Back in September 2018, the Ontario government announced the elimination of the unfunded liability, along with an almost 30 per cent decrease in premiums starting in January 2019.

For more information about the WSIB changes and updated rate framework, register for Acclaim Ability Management’s free webinar on October 30, 2019.

Construction of Vancouver Robson plaza begins

Construction has begun in downtown Vancouver to transform 800 Robson Street into a permanent, public plaza. Robson Square is closed until the spring of 2020.

As the downtown continues to grow with more residents, businesses and visitors each year, the demand on public spaces also continues to increase. Creating a permanent plaza at 800 Robson Street, in partnership with the Province of B.C., fills a vital need for public space with important social, cultural, and civic functions.

Once complete, the new plaza will feature a flexible open space for year-round events with moveable seating and tables, additional benches and lighting. A continuous level surface of concrete and pavers will create consistency with the recently renovated šxʷƛ̓ənəq Xwtl’e7énḵ Square (located on the north side of the Vancouver Art Gallery).

The project will provide better separation for people cycling and driving at the intersection of Hornby and Robson Streets.

The $5.38 million capital project has been under discussion at city hall for years. Councillors voted to permanently close 800 Robson Street to vehicle traffic in 2016 and funding was approved this January for the redesign.

During construction, there will be an accessible pedestrian detour directing people to Georgia Street along the north side of the art gallery.

Cities at a glance:

Provincial governments play key role in Canada

Confronting capital expenditure and the costs of inaction

Canadian Asset & Facility Conference

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