Canada’s multifamily market is most robust it has ever been: CBRE

Canada’s multifamily market is the most robust it has ever been, with low vacancies from coast to coast and rental rates at or near 10-year highs in almost every city, according to CBRE’s new Canadian Multifamily Mid-Year Update.

The national average multifamily vacancy rate ended 2018 at 2.4 per cent, below the 10-year average of 2.6 per cent. Meanwhile, average rents for purpose-built rental units have grown by 4.4 per cent annually at the national level, and by 5.0 per cent in Toronto and 7.1 per cent in Vancouver.

This rapid rise of rental rates has resulted in outsized investment returns for owners of apartment buildings. Total annualized returns for the Canadian multifamily sector were 9.8 per cent as of Q1 2019, just behind the red-hot industrial sector.

Hefty returns have enticed investors, with multifamily investment volume reaching record levels for four consecutive years, including an all-time high of $8.3 billion in 2018. The multifamily sector also has the lowest average national cap rate of any other asset class in Canada, at 4.41 per cent.

“The multifamily segment’s ability to generate consistent cash flows with low levels of volatility has always made apartment buildings an enticing option for investors, but the combined strength of tenant demand, rental growth, and investor interest is unprecedented,” says CBRE Canada Vice Chairman Paul Morassutti. “Demand drivers, including a growing population and high home ownership costs, coupled with a lack of meaningful rental supply, are fueling income growth at a pace that we have never seen in many Canadian markets.”

Population growth fuelling Canada’s multifamily market

Canada’s population growth is outpacing all other G7 nations. Over 80 per cent of Canada’s population increase comes from immigration, with most newcomers renting before they can purchase a home. The federal government plans to admit one million new immigrants by 2021, which will support rental demand regardless of economic dynamics.

Soaring home ownership costs are also driving rental demand. Vancouver’s benchmark home price as of Q2 2019 was $998,700, while in Toronto it sat just shy of $800,000. Incomes have not kept pace, having risen 30.7 per cent in the past decade, or 2.7 per cent per year. Purpose-built rental rates grew 32.9 per cent in the same period, but home and condo prices increased 74.8 per cent and 78.8 per cent . It requires an annual household income of $115,200 to afford the average Toronto condo; for a semi-detached home, it’s $177,600, and for a single detached home, $211,300. At these prices, just 24 per cent of Toronto households can afford to buy a condo, while only 10per cent and 8per cent of households can afford semi- or fully detached homes.

Relative to other global cities, rental inventories in major Canadian markets are limited. High-rise developers in recent decades have chosen mainly to develop condos versus purpose-built rental units. The high cost of land and other financial considerations have generally made rental projects less profitable. In Calgary, Edmonton, Ottawa and Kitchener-Waterloo, over 50 per cent of all high-rise units under construction are condos. In Toronto, 89 per cent of high-rise units under construction are condos, while in Vancouver it’s 76 per cent.

“Traditionally viewed as a stable, defensive asset class, the multifamily sector is now benefiting from market fundamentals that are arguably as good as they have ever been, and we don’t expect them to change in a material way, recession or not,” said Morassutti. “That’s great news for investors; for renters, not so much, as they will continue to experience higher rents and lower vacancy as supply remains constrained.”

Trade conflict impacts Bank of Canada interest rate

Bank of Canada leaves the key interest rate unchanged at 1.75 per cent. The institution warns the US-China trade conflict is weighing more heavily on the global and Canadian economies than the Bank had projected in its July Monetary Policy Report (MPR).

Since the previous report, the trade conflict has escalated, world trade has contracted and business investment has weakened.

In Canada, housing activity has regained strength more quickly than expected as resales and housing starts catch up to underlying demand, supported by lower mortgage rates. This could add to already-high household debt levels, although mortgage underwriting rules should help to contain the buildup of vulnerabilities.

“In these unusual times, trade policy has a crucial role in monetary policy settings, not only in Canada but globally,” Helmut Pastrick, chief economist, Central 1 says in the credit union’s press release.

“With higher US-China tariff rates scheduled for mid-December, there is more downside ahead to the economy and its prospects.”

The next announcement on the overnight rate target is October 30, 2019.

Canada ranks second for LEED-certified retailers

Canada ranks second in the world for LEED-certified retail projects reveals the U.S. Green Building Council’s LEED in Motion: Retail report. As of May 2019, 3,863 retail spaces are certified worldwide, 604 of which are in Canada.

“These days sustainability is embedded in every part of our daily lives and the business world and retail sector are no exception,” says Mahesh Ramanujam, president and CEO, U.S. Green Building Council and Green Business Certification Inc., in the report’s forward.

“Increasingly, companies recognize that addressing these challenges will require implementing meaningful corporate social responsibility plans.”

In order to meet the increasing demand on the commercial real estate industry to apply sustainable practices to greener design, construction and operations LEED-certified retail projects implement:

Energy management
Alessandro Bisagni, founder and president, BEE Incorporations suggests retailers implement and use smart indoor air quality and energy monitoring solutions to track the performance of their buildings. This way retailers lower demand for energy in their spaces by employing strategies to reduce usage, designing for efficiency and supplementing the energy supply with renewables. Other energy management strategies include optimized energy performance, advanced energy metering, tenant-level energy performance and refrigerant management systems.

Water Efficiency
Retail facilities can drastically cut down on water consumption by addressing indoor and process water usage for fixtures and appliances, accounting for unique floor plans and occupancy calculations as well as water metering. Appliance and process water use addresses water conservation uses in areas where significant water savings can be employed and recognized.

Green building and materials
Retailers are encouraged to use products and materials for which life-cycle information is available and that have environmentally, economically and socially preferable life-cycle impact. Storage and collection of recyclables aim to reduce waste that is generated by building occupants, and subsequently hauled to and disposed of in landfills. Furthermore, tenant-space long term commitment encourages choices that conserve resources and reduce environmental harm from the production and transport of materials associated with tenants’ relocation. Frequent tenant turnover entails major remodelling and replacement of materials before the end of their useful life.

Health and well-being
Retail projects that prioritize good indoor environmental quality – including enhanced indoor air quality (IAQ) and thermal, visual and acoustic comfort – help protect the health and well-being of employees and customers alike. High-Quality interior lighting can also improve comfort and productivity by reducing or eliminating distraction, creating visual interest and a sense of place, and supporting occupant interaction and communication.

Location and site
LEED also encourages retail projects to consider compact development, alternative transportation and connection with amenities, as well as the vital relationships between buildings and ecosystems.

To learn more about sustainability in the retail industry access the LEED in Motion: Retail report.

Spending your condo security budget wisely

Condominiums have several choices when it comes to addressing security concerns within the building. As is often is the case, these choices come with concerns about making the wrong choice. On occasion, this “paralysis by analysis” can turn into a lack of progression as decisions get delayed in order to research each option thoroughly, thereby stalling the issue. Here, then, are some considerations for managing your condo security budget wisely.

A united front
One of the most important points that a condominium should keep in mind is that their security systems must be integrated. This means that all the different components of the security system (e.g., lighting, security cameras, access control, key procedures, etc.) must be harmonized so they are in sync with one another.

A basic (and common) example of security systems not integrated with each other is when a security camera is situated in a location with insufficient lighting. Although the camera may be of proper resolution and position, the lighting prevents the camera from operating at its optimum efficiency level.

Knowing where you stand
The first step in ensuring that the condominium has an integrated security system is to fully evaluate the security measures that are in place. This is usually done through a security audit. A security audit is defined as “an independent review of the effectiveness of the existing security measures by a qualified, impartial party.”

During this review, the security system will be evaluated and ranked according to risk, and you will receive recommendations to both reduce the risk and ensure that the security solutions are integrated. It is important to note that each facility should have an independent review. The leading reference guides on security is ASIS’s Protection of Assets series.

In the Physical Security section, it speaks to this topic and unequivocally states that each facility should have its own security plan. It is not recommended that facilities blindly copy what other buildings are doing, as it may be wrong or, at the very least, not effective for that particular property. Security solutions should be tailored to the individual condominium to ensure maximum protection.

Top security considerations
When condominiums are looking at different security solutions that they may wish to integrate, there are three basic categories that they may choose from: Human Resources, technology, and policies/procedures. As one may expect, the effectiveness of the security solutions is directly related to the cost of that security measure.

Human resources. This is most effective, and expansive, security solution and is usually in the form of a security guard or concierge posted on-site. Having a guard will allow the condominium to react in real-time to security events and will act as a security deterrent. A popular question that is often posed during the security audit is the effectiveness of the individual guards on site. The answer to this question is often a review of the training that the security company provides to their employees. For a condominium that is investing a significant budget in having a guard on site, it is critical to ensure that the security company understands condominiums. As well, it is equally important for the board of directors/property manager to review the post orders, which are a set of written instructions that detail the duties and expectations of the guards/concierge when on-site. No property should ever be without updated Post Orders.

Another option for condominiums which may not have the budget for a full-time security presence, is to have security on site during high-risk hours (approximately 10:00 PM to 6:00 AM) or even to contract with a company that provides mobile patrols. Once again, in order to achieve maximum return on the security investment, the expectations of the guards should be clearly defined, and a written report should be submitted after each patrol shift. In this manner, management can track the expenses, as well as identify reoccurring problems/security concerns.

Technology: The second most effective security measure, with a corresponding price tag, is the utilization of technology. Like all technology, as new equipment/devices are introduced, the costs of the older models are reduced. As a result, technologies like intrusion detection systems hat were currently beyond the budget of most condominiums are now readily available and are being implemented in condominiums with great success.

When Ontario increased the minimum wage, there were suppliers promoting technology as the primary alternative solution to the rising cost of having a guard/concierge on site. While technology has a definitive place in the overall security plan, it is only a critical piece of the puzzle and should be supported by other security measures. There are concerns about reaction time to cameras that are monitored. For example, it is not uncommon for perpetrators to ignore security cameras and wear hoodies to prevent themselves from being easily identified.

When it comes to technology, a condominium can ensure a proper return on their security dollars by confirming that the technology in place is operating at effective performance levels, as well as being integrated with other security solutions within the property. As with all equipment in the condominium, security technology has a useful life and will eventually need to be replaced. For this reason, many condominiums commission a security audit in advance of the updating of their Reserve Fund Study (RFS). By having this report in advance, the condominium is able to direct the organization completing the RFS to incorporate any required replacements of the security equipment into the future funding schedule. This is a much more preferable solution as it is a proactive approach rather than a reactive one, such as in cases where a condominium waits for the equipment to fail and then scrambles to replace it before a security event takes place.

Policies/procedures: This category usually has the lowest (or no) cost, but it is generally judged as the least effective/reliable. The reason for this is that the effectiveness relies on the proper implementation by personnel. Once the human factor enters into the equation, there is the possibility of human error which, in turn, reduces the perception of effective security.

Despite this limitation, proper security policies/procedures are critical to a condominium’s overall security rating. They may be as simple as educating owners/residents on the dangers of letting a stranger “tailgate” (follow through an already open door) into the property. This can be done through condominium newsletters, signage on the doors, reminders at the Annual General Meeting, etc.The more buy-in from the owners on these procedures, the safer the condominium becomes as there are more eyes watching. A note of caution is that residents should be instructed not to confront anyone attempting to enter the building, but instead retreat to a safe place and call the proper authorities (security guard on site, police, etc.).

Another policy that a condominium may wish to implement is regular audits of their access control system (Fob Audit). During many security audits, it is reported that management often does not know how many old fobs/keys are still in circulation (e.g., from residents who have moved or sold their units). A regularly scheduled Fob Audit is a process that can be implemented to ensure that only registered users are accessing the building.

Investing in peace of mind
Within a condominium budget, security solutions compete with many other expenses – particularly when they are called from the operating budget. For this reason alone, condominium management should always ensure that the allocated security budget is being spent wisely and in the right areas. An audit of the existing security systems will prioritize the current risks that the condominium may be exposed to and identify the areas that need to be addressed. Once this has been established, the condominium may implement one of the three categories (or most likely a combination) to address this issue. Ultimately, one thing that will never change is that the condominium will want to ensure that they are getting full value for their security investment.

Scott Hill is a security consultant with 3D Security Services. He has been a practicing RCM with ACMO since 2012, a Physical Security Professional (PSP) with ASIS and a Certified Security Project Manager (CSPM) with the Security Industry Association.

Supreme Group announces restructuring

Supreme Group, a privately owned steel construction company in Canada, has announced plans to consolidate and restructure in response to ongoing tariff uncertainty and a lingering economic downturn.

Supreme Group includes Supreme Steel, Supreme Construction Management, Canron Western Constructors and Midwest Constructors.

The restructuring includes a realignment of the management team, the closure of two fabrication plants, and a reduction in the workforce across all locations. Supreme Group’s Winnipeg, Manitoba fabrication facility will close effective September 30, 2019 and the Delta, British Columbia plant will close in September, 2020.

Although this restructuring includes plant closures and job losses, Supreme remains committed to Western Canada and Pacific Northwest markets. Operations will continue under the direction of the management team in the Edmonton area office with no impact to customers.

Future fabrication work will continue from the well-established facilities in Portland, Oregon, Saskatoon, Saskatchewan, and two plants in Edmonton, Alberta. Additionally, the Delta sales office will relocate within the Vancouver, British Columbia region in 2020.

“Supreme has taken unprecedented steps to respond to current market conditions”, says Kevin Guile, president of Supreme Group. “We did not make these decisions lightly. We recognize the impact that plant closures and lay-offs have on our people and we are doing all we can to assist them with the transition. Over its nearly 50-year history, Supreme has responded to many challenges. These recent changes will allow Supreme to operate more efficiently and drive better value to our clients across all of our markets.”

W Toronto slated to open in 2020

Marriot International’s W Toronto will make its debut in 2020 in partnership with Larco Hospitality.

Located at 90 Bloor Street East in Toronto’s Yorkville neighbourhood, the nine-storey, 255-room property will undergo a $40-million transformation.

“The exciting evolution of this property into Toronto’s first W hotel is consistent with the ongoing evolution of this Toronto neighbourhood whose vibrancy, sophistication, and density continues to grow. This is a strategic location for the brand, and we foresee it welcoming international business and leisure travellers, but also becoming a destination for urban thrill-seekers,” said Paul Cahill, area vice-president, Eastern Canada for Marriott International in the hotel group’s press release

The modernized W Toronto will feature:

3,300 square foot fitness facility
4,800 square feet of meeting space
Multiple food and beverage venues including an indoor/outdoor lobby bar and lounge equipped with a DJ booth/recording studio for collaborating, broadcasting and recording podcasts; a specialty restaurant and a ninth-floor rooftop restaurant, accessible from street level with a glass exterior elevator; and a unique coffee and cocktail bar.

Marriott now has seven open luxury hotels in Canada along with additional luxury hotel projects expected to be announced before year-end.

W Toronto is set to open in summer 2020.

Remembering industry veteran Brian Martin

Brian Martin, a long time voice and familiar face in the Vancouver construction industry, passed away on Aug. 30, 2019. He was 74 years old.

Martin retired as publisher of the Journal of Commerce (JOC) in 2002 where he began as a reporter in 1973. He served as editor, then associate publisher before assuming the publisher role in 1990.

His weekly opinion column was a reader favourite, often prompting debate in the construction industry and at all levels of government.

In 1988, Martin and the JOC founded what would become the Vancouver Regional Construction Association’s (VRCA) Awards of Excellence, recognizing outstanding achievements by the construction industry. He served as the chairman of the awards committee for many years. He was also a VRCA Life Member.

After retirement, he remained active in the industry, especially with the Vancouver Regional Construction Association. He also continued to write many articles for various publications.

Many in the industry have worked with him, and knew him professionally and personally, including Dan Gnocato, publisher of Construction Business.

“I had the great pleasure of working with Brian for more than 20 years. He was certainly a friend and mentor to me in my early construction publishing career. Brian had an incredible talent for storytelling and presenting topics in a forthright manner. He always stood up for the construction industry. He was also an avid gardener and reader. He was one of a kind and I’m grateful for having known him. He will be missed for sure,” says Gnocato.

“I began my construction writing career with Brian as JOC publisher. I remember he took me to cover my first industry forum held by the Public Construction Council of BC on contract award procedures. Being new to construction, it was definitely trial by fire,” recalls Cheryl Mah, managing editor of Construction Business. “I enjoyed staying in touch with Brian – assigning him articles – and seeing him at industry events. He will be missed.”

A celebration of Brian’s life for friends and family will be held at the Northwood United Church at 8855-156th Avenue Surrey on Dec 7th at 1:00pm.

Canadian Urban Institute names new president and CEO

Canadian Urban Institute (CUI) has appointed urban advocate and civil society leader, Mary R. Rowe as its president and chief executive officer effective September 9, 2019.

“We are excited to have Mary leading CUI, as we head into our 30th anniversary,” said Board Chair Andréa Calla in the press release. “Canada is one of the most urbanized countries in the world, and it’s a pivotal moment to make sure our cities are both livable for the residents of today and resilient to the economic, environmental and social challenges we anticipate for tomorrow.”

Rowe holds senior fellowships with Evergreen and Future Cities Canada, Shorefast, PlacemakingX and Massey College. She is the lead facilitator with the Urban Project, an initiative of the Federation of Canadian Municipalities and Maytree. She serves on the Board of Directors of the Bentway (Toronto) and the Nature of Cities (New York City). Rowe has been a frequent contributor to national and international city-building programs, including UN Habitat and the World Urban Forum.

“CUI brings together all the crucial stakeholders – researchers, planning and design professionals, the development industry, local communities and their leaders and government – each important to ensuring Canada’s global leadership in building great cities,” Rowe said.

“I’m delighted to be joining the staff team and look forward to working with the Board and our partners to advance Canada’s unique forms of urbanism.”

New app simplifies norovirus detection

A team of University of Arizona researchers has created a simple, portable and inexpensive method for norovirus detection. The smartphone app can detect extremely low levels of the contagious virus.

The team consists of Jeong-Yeol Yoon, Soo Chung, Kelly A. Reynolds, Christina Morrison, Walter Betancourt, Lane Breshears, and Sean Perea.

“You don’t have to be a scientist or an engineer to run the device,” Professor Yoon said. “Analysis will be done automatically by the smartphone app, so all you have to worry about is loading a sample of water onto the chip.”

According to the report published in ACS Omega, the process starts with adding potentially contaminated water to one end of a paper microfluidic chip. To the other end, a tester adds tiny, fluorescent polystyrene beads (picture the little white balls inside of a bean bag – these are the same material, but much smaller). Each bead is attached to an antibody against norovirus. If norovirus is present, several of the antibodies attach to each virus particle, creating a little clump of fluorescent beads.

“Norovirus particles are too small to be imaged by a smartphone microscope, and so are antibodies,” Yoon added. “But when you have two or three or more of these beads joined together, that indicates that the norovirus is there, causing the beads to aggregate.”

These clumps of beads are large enough for a smartphone microscope to detect and photograph. Then, a smartphone app counts the number of illuminated pixels in the image to identify the number of aggregated beads, and subsequently, the number of norovirus particles in the sample.

In the future, the team hopes to develop methods for norovirus detection in patients even earlier and to expand its smartphone monitoring platform to detect other hazards, such as potentially cancer-causing chemicals.

Funding for the benchmarking initiative was provided by The National Science Foundation Water and Environmental Technology Center at the UA and Tucson Water.

First look at Toronto’s 11 Yorkville project

A new mixed-use building is coming to Toronto’s Yorkville Avenue. Called 11 Yorkville, the 62-storey development is a joint venture between RioCan Living, Metropia, and Capital Developments, and will introduce 593 suites and retail outlets to the iconic street on a site between Yonge Street and Bay Street.

New mixed-use development on Toronto Yorkville Avenue

“There is only one Yorkville Ave. in Canada, and we have a responsibility to deliver a project that lives up to its surroundings,” says Edward Sonshine, Founder and CEO of RioCan REIT. Yorkville has always been synonymous with prestige in Toronto, and it is experiencing a retail renaissance. It’s an exciting time to be contributing to the vitality and longevity of this neighbourhood.”

Zoning for the development was approved in July 2019, clearing the way for what RioCan and its partners believe will be a striking addition to the historic district.

Designed by Sweeny&Co Architects Inc., the slender, limestone-clad design is meant to reflect the “gothic architecture of the 1920s” while its interior suites, designed by Cecconi Simone, will feature modern, high-end furnishings and materials.

“Every detail in the building from the quality of materials, texture and lighting has been meticulously thought through. Our approach carefully considered the interplay of drama and warmth in order to bring Yorkville’s legacy indoors, and to create a sense of ‘home’ that is both singular and personal,” says Elaine Cecconi, Partner at Cecconi Simone Inc.

Key features of 11 Yorkville include an indoor-outdoor infinity pool, hammam spa, multiple social lounges, and a 14-metre-wide park designed by landscape architect Janet Rosenberg and Studio.

Unit sales are expected to begin in fall 2019.

Boardwalk and RioCan announce plans for new mixed-use development

In late August, Boardwalk and RioCan announced plans for another mixed-use development, this one to be located in Mississauga, Ontario. The 25- and 16-storey apartment towers will offer an estimated 470 residential rental units that will be connected by a lavish retail podium.

The property runs along the new Hurontario LRT line, and will connect the Port Credit Go Station in Mississauga to the Gateway Bus Terminal in southern Brampton. Boardwalk and RioCan are currently finalizing development plans.

“We’re really excited about this new development in Mississauga,” said Sam Kolias, Chairman and Chief Executive Officer of Boardwalk REIT commented. “This is all about our long-term strategy to reduce the average age of our rental properties and to diversify our portfolio on a balanced, measured basis.”

Zoning approval is anticipated in early 2020 and aligns with the completion of the first Boardwalk and RioCan joint venture, BRIO, located in Calgary, Alberta.

This development will be Boardwalk’s second in the Greater Toronto Area. Earlier this year, Boardwalk announced a joint-venture arrangement with Redwood Properties in Brampton, Ontario. The two-tower apartment building is anticipated to be completed in 2023.

“Boardwalk’s portfolio growth will primarily focus on opportunistic value creation opportunities in major markets over the next 10 to 15 years,” said Kolias. “To accomplish this, the trust intends to strategically partner, acquire and develop apartment units in high growth, undersupplied markets including, but not limited to, the Greater Toronto Area, Vancouver, Ottawa, Montreal, Quebec City, Winnipeg, and Halifax.”

Multi-suite rental sales sustained record pace in Q2

The strong pace of Canadian commercial investment property sales and record-high levels in the multi-suite rental sector defined the second quarter of 2019, according to the latest Canadian Economic Outlook and Market Fundamentals Report issued by Morguard Corporation.

The pace of commercial investment property sales picked up at the end of the second quarter, indicating strong closing volumes for the three-month period on a quarter-over-quarter comparison. The multi-suite residential rental sector was again the strongest contributor to the record transaction activity during this period.

“Investor confidence in property sectors with strong historical performance, apartments in particular, has been demonstrated recently with sales activity remaining at the record high despite growing economic uncertainty,” said Keith Reading, Director of Research at Morguard. “Investors are looking for safer investments as they become more cautious and question where Canada and the United States are situated in their respective economic cycles.”

In the multi-suite residential rental market, investors looked to increase their exposure to sectors that had performed relatively well during times of economic weakness. Investment in the sector surpassed the $2.0 billion mark.

In the office leasing space, the overall health of the Canadian market was sustained through to the end of the second quarter. Technology-based businesses and shared workspace companies remained at the forefront of Canada’s office space demand cycle and the challenge of finding available properties sharpened the focus on fewer high-quality assets available.

The wave of change that has unfolded in the retail industry served to bring vacancy levels progressively higher over the past few years. After seeing single-digit vacancy levels for more than 15 years, the sector has continued to post double-digit vacancy levels since the end of the third quarter of 2018, prompting investors to exercise increased scrutiny when looking at potential acquisitions.

“As the late stages of the Canadian commercial investment property cycle continue throughout 2019, investors will try to balance capitalizing on late-cycle growth and increasing positions in assets that offer greater downside protection,” continued Reading.

The Bank of Canada’s decision to maintain the overnight rate at 1.75 per cent in July helped to maintain investor activity and appetite for real estate across property asset classes. Despite growing economic uncertainty – as the ongoing trade conflict between the U.S. and China continued to have a negative impact on the global economy – investor confidence in the commercial real estate sector remained strong in the second quarter of 2019.

In the same period, the national unemployment rate fell to a near four-decade low as a result of April’s surge of 106,500 new positions, further stimulating overall investor and business confidence.

The Second Quarter Update of the 2019 Economic Outlook and Market Fundamentals Research Report, released today by Morguard, provides a detailed analysis of the 2019 real estate investment trends to watch in Canada. The full report is available at morguard.com/research.

Sheraton Laval to get $13-mill renovation

The Groupe Hotelier Grand Château (GHGC) will be undertaking major renovation work on its Sheraton Laval hotel.

This $13 million investment is going towards:

expanding the convention centre by more than 10,000 square feet, including large windows, and it’s multimedia tools, Wi-Fi systems, lighting, automated soundproof partitions and a modernized sound system.
redesigning both the interior and exterior ergonomics of the reception to the administrative offices and the entirety of its banquet halls in collaboration with the architecture firm, Provencher Roy and the interior design firm Massarelli Design

According to the hotels’ press release the GHGC ‘s goal is to provide a “lodging and event experience that perfectly aligns with the changing needs of the customers and the community while embodying the latest trends in design and amenities.”

The redevelopment is expected to be completed in the next two years.

Timber is top of the class

Located seventy kilometres east of Vancouver in the Fraser Valley, Abbotsford Senior Secondary School features wood as part of a major rehabilitation and replacement project.

Central to its design, and crowning the school’s three-storey structure, is an intricate and impressive timber rotunda roof built of exposed glue-laminated timber and wood decking. School principal and educator Rob Comeau shares how wood is making the school a place where students feel at home, whether they’re enjoying a piano concert in the rotunda or getting hands-on experience building a tiny wood house as part of their green technology program.

Q: Why did you pursue a career in education?

A: I was born and raised in Alberta on a farm. I did my undergrad in agriculture and came out at the wrong time to be a farmer and rancher in the early 1980s. I went to my second love, which was teaching.

Q: Describe your connection to wood as a building material.

A: When working on the farm, wood was a tool. It was a fence post, it was a crossbeam, it was the outside of a grain bin. It was simply functional. On the farm, it wasn’t meant to create an emotion, but here in B.C. you see the craftsmanship that people can put into the design of a building and how beautiful wood can look.

Q: What makes a school well designed?

A: Open spaces and light are some of the best design qualities in a school. If you’re in a dark, dingy cubicle, you’re not feeling very good about where you are. When you can see light and the natural craftsmanship of wood that exists here, those are good design features. That’s B.C. architecture—light, wood, and space.

Q: Abbotsford Senior Secondary School underwent a major rehabilitation and replacement project. Can you elaborate on how wood was used in the structural and finishing components?

A: It’s a blend of old meets new and it’s done in a classy way. When you walk in, you’re immediately drawn to the grandeur of the rotunda. There are some very interesting design pieces that catch your eye when you come in. Aesthetically, wood is beautiful, and it speaks to who we are as British Columbians.

Q: How did the new design of the school reuse some of the existing wood from the original structure?

A: When they took the ceiling out, they found beautiful rafters. They looked at them and they said, “We can’t destroy this.” We’ve exposed those rafters, stained them, and it is the most gorgeous, inviting gym that you’d ever want to walk into. And some of the older parents still recognize the wood from beams we’ve repurposed as seats in our rotunda. It’s a conversation starter of their memories and time in the school. Now our international baccalaureate business class is going to open up a coffee shop and we’re going to take those remaining reclaimed beams and make them into the countertops and high-top tables— refashioning that wood one more time to create another wonderful part of the building. Wood has a way of speaking to you, years, even decades later.

Q: Research is demonstrating that the visual presence of wood indoors can significantly reduce stress levels. Do you experience this in your school?

A: I think you definitely feel better once you’ve been in a space that incorporates wood. It clears your head. We often have students that just come to the rotunda to be there, enjoy the space, and hang out. It’s open and the wood beams are beautiful and inviting. I think it helps with anxiety.

Q: What other benefits do you think the wood and architecture provide?

A: The acoustics in the rotunda are pretty amazing. We recently had an assembly with a baby grand piano in the middle of the rotunda and it was a rich, concert-hall kind of sound in there. I don’t think it was necessarily designed to be an acoustic hall but it’s certainly a richer sound than you would ever get in a gymnasium. Also, any time you can get quality product right in your backyard, why not use it? It creates jobs in B.C. all throughout the forest industry.

Q: How is wood contributing to sustainability and environmental stewardship at your school?

A: Each of us needs to adjust our carbon footprint and as a naturally renewable material, wood has a role to play. We also have a green technology program for students, along with our own wood program, and this year we’re going to be building a tiny house, constructed of local wood.

Q: How is wood part of our cultural identity as British Columbians?

A: There’s nothing more majestic than a cedar tree and witnessing what an artist can make out of that. We have First Nations carvers come in every couple of years and do a piece for us. The carvers speak about the cultural aspects of the piece they’re working on and what it means. The students get an opportunity to watch them carve and also be able to learn how to carve. We have a totem pole right at the front of the heritage room and a few other commissioned pieces. They all tell a story, and I believe there is great value in sharing that with students, passing it on from generation to generation.

Download Naturally Wood digital copy here.

Feds invest in Indigenous entrepreneurship hub

FedDev Ontario invests $5 million in Toronto’s Indigenous Centre for Innovation and Entrepreneurship – the first entrepreneurship hub of its kind in southern Ontario. According to the City of Toronto, the purpose of the ICIE is to provide space and support for Indigenous entrepreneurs looking to build businesses and social enterprises.

“The ICIE will work exclusively with the Indigenous community to help build a stronger entrepreneurial ecosystem that stimulates economic opportunities across southern Ontario and the entire country,” said Navdeep Bains, minister of innovation, science and economic development in the government’s press release. Bains is the minister responsible for FedDev Ontario.

Located at 200 Dundas Street East, the 20,000 square foot centre will offer business skills training, collaborative workspaces, access to funding, mentorship and peer support networks based on approaches designed by the Indigenous community.

The City is working closely with the local Indigenous community to develop the ICIE. Through FedDev Ontario’s investment, the entrepreneurship hub expects to support close to 420 Indigenous businesses and create 500 new jobs for Indigenous Peoples across the province.

“The centre will provide a space for Indigenous entrepreneurs to create, expand and excel in business ventures and help continue the momentum and contribution of a strong Indigenous economy in Canada’s largest city,” added JP Gladu, President & CEO, Canadian Council for Aboriginal Business in the release.

Construction of the ICIE is currently underway, with the centre expected to open by the end of 2020.

Image courtesy of the City of Toronto.

Upgrading for Seismic Resilience

For building owners and operators on the west coast of Canada, retrofitting for seismic resilience is nothing new. It refers to the modification of existing building structures to make them more resistant to strong ground motion and soil failure due to earthquakes. In most other parts of Canada, the practice is far less common given that the expected level of ground shaking is much lower. But, as history has shown us time and time again, no one is ever completely safe from a major natural disaster.

Dennis Gam, MEng, P.Eng., Principal at RJC Engineers’ Vancouver office, is a wealth of knowledge on the unsettling topic of earthquakes. He and his group provide a range of consulting services related to existing building projects, from seismic assessment and structural upgrades to risk mitigation planning and post-event damage evaluation.

“In Vancouver, municipal pressure to improve seismic resilience is stronger than ever,” he observes. “For the last 20 years, regulatory bodies have been pushing building owners to undertake seismic upgrades whenever significant renovations are taking place, typically triggered by a change of major occupancy. This has been the approach for building structure upgrades for quite some time. Only more recently has the City been pushing for non-structural, building component upgrades, particularly in the context of protecting exits. In most other jurisdictions, however, existing building components are still not explicitly being addressed.”

Chances are, it won’t remain that way for long. According to Natural Resources Canada, Southwestern British Columbia is one of the most seismically active regions in the country. Approximately 400 earthquakes occur in the vicinity extending from the north end of Vancouver Island to Seattle, Washington each year—however, only a dozen of those are felt by people, as many of the larger earthquakes occur offshore, and often at a great depth. Earthquakes capable of causing structural damage happen about once every decade. (By comparison, only three earthquakes over 2.5 in magnitude have been recorded in the southern Great Lakes region of Ontario in the past 30 years, with none resulting in damage.)

“Buildings are designed to resist the worst-case wind and snow event that can occur over a 50 year period,” explains Gam. “Statistically, there is a 2% chance in a given year that we will experience an extreme snow or wind storm. But unlike snow and wind, earthquakes are unpredictable in terms of both frequency and strength. This increases the need to design for and anticipate rarer and potentially more damaging seismic events.”

Gam points to the 1994 Northridge Earthquake in San Fernando Valley, California. At a magnitude of 6.7, the 20-second earthquake caused the collapse of several buildings and the closure of multiple acute care facilities, the bulk of the damage resulting from structures with unbraced or poorly braced building systems.

“In the event of a similar earthquake today, older buildings without a well-defined, or purpose-designed lateral force resisting system, would have a higher risk of collapse,” he says. “Among those with more defined lateral force resisting elements, buildings constructed after 1990 are less likely to collapse, but will still be subject to significant damage that could render them unsafe to occupy.”

Safety vs. cost

According to Gam, the building industry runs on a balance of “safety versus cost.” Building life span is often defined as the point where building maintenance costs meet or exceed replacement cost.

Seismic Upgrades - Royal Roads University

The new Sherman Jen Building at Victoria’s Royal Roads University, after 2018 renovations.

“Based on an expected building life span of about 40-50 years, building codes are structured around ‘life safe’ performance as a base line approach,” he explains. “This means that the building will not collapse and will protect and allow for safe egress by building occupants. However, it does not ensure continued occupancy, and there is always the possibility that the building could be irreparable.”

For buildings that are required to survive and function after a major seismic event (i.e. fire stations and hospitals) the “Importance Factor” in most building codes will increase the design forces and apply other restrictions that enhance the building’s performance to help ensure continued occupancy and function.

No matter what type of building you operate, Gam recommends striving for a seismic resilience approach across the following three areas:

• Building Structure – This type of seismic upgrade involves retrofitting major parts of the building to prevent collapse or minimize damage to a point that would facilitate continued normal operation immediately after an event. It is by far the most costly disruptive means of addressing seismic risk. Incremental cost of upgrades can be reduced when the work is combined with other projects such as re-roofing, where critical parts of a building are exposed and more easily accessible for repairs.

• Building Components and Systems – New building equipment installed under today’s codes and bylaws are supposed to be seismically restrained. This is intended to prevent injury and minimize damage to equipment and contents. Damage to building systems can result in post event fire or flooding that may be more damaging than the actual ground shaking. Equipment installed to earlier codes may not be adequately restrained, but are overlooked from a regulatory standpoint. “Grandfathering” assumes that existing equipment installed to the code of the day are exempt from upgrading to current code requirements unless they are being replaced or relocated. Efforts by building owners to improve seismic bracing of equipment and systems can greatly assist with post-earthquake recovery after lesser earthquakes that may not be strong enough to threaten the integrity of the building.

• Occupant Preparedness – The ability to sustain one’s self for 72 hours after an extreme disaster event has been the benchmark that more authorities are asking people to strive for. In addition, education about building risk can also assist to give people a better understanding of whether or not they can shelter in place. Understanding that broken glass or crumbling non-load bearing cinder blocks are not indicators of collapse, could mean the difference between sheltering in place or bearing the brunt of a wet Vancouver winter.

Signs of distress

In the aftermath of an earthquake, building owners will no doubt want to inspect their properties for damage and determine whether the structure is safe. But Gam cautions that every building is different; therefore what may trigger alarm bells on one site, may not be so obvious on another.

“Having an understanding of where the loading bearing elements are is essential,” he says. “If a building performs well during an earthquake, the load bearing structure that supports the floors should remain relatively undamaged. Large cracks in concrete columns supporting the floors, or a visible lean of any sort, are probably the most obvious signs of major distress.”

If there are indications of structural damage, calling in a professional engineer is the only way to ensure the building is safe.

To find out more about seismic retrofitting and your existing building, please visit www.rjc.ca or reach out to Dennis Gam directly.

Canadian students win ASHRAE scholarships

Issac Golumbia of the University of Victoria in British Columbia and Matthew Woods of Carleton University in Ottawa are among 33 recipients of 2019-20 ASHRAE scholarships.

Golumbia, who is studying mechanical engineering was one of three recipients of a $10,000 Reuben Trane Scholarship. Payable over two years, the scholarship was established by the Trane Co. in memory of its founder – an innovative engineer, inventor and business executive – who held 28 patents.

Woods, who is studying sustainable and renewable energy engineering is this year’s recipient of the $3,000 ASHRAE Ottawa Valley Chapter Scholarship.

“We are proud of the hard work and incredible determination of our 2019-20 scholarship recipients as they strive to achieve their academic goals,” said Samir Traboulsi, chair of the ASHRAE scholarship trustees in the organization’s press release.

“One of the objectives of the ASHRAE Scholarship Program is to inspire the next generation of engineering professionals to work towards solving some of the world’s greatest HVAC&R challenges. We are pleased that this program is making such an impactful contribution to the future success of our industry.”

Visit https://www.ashrae.org/about/news/2019/ashrae-announces-2019-20-society-scholarship-recipients for a full list of the 2019-20 society ASHRAE scholarships recipients.

Applications are now being accepted for the 2020-2021 undergraduate engineering, technology, regional/chapter, and university-specific scholarships. The application deadline is Dec. 1, 2019.

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