CCMP to acquire facilities management company for $1B

CCMP Capital Advisors, LP (CCMP) will acquire BGIS, an integrated facilities management (IFM) company for approximately US$1 billion.

According to the press release, the transaction is expected to close in the second quarter of 2019, subject to customary closing conditions.

BGIS provides a full spectrum of customized facility management services, project delivery services, energy and sustainability solutions, asset management, workplace advisory and management, and real estate services to real estate and infrastructure owners and occupiers. Supported by a team of over 7,000 globally, BGIS manages over 320 million square feet of client portfolios across over 30,000 locations in Australia, Asia, North America and Europe.

“We have been very impressed by the industry-leading business the experienced BGIS management team has built over the years, rooted in a strong culture of caring, innovation and high-performance,” said Greg Brenneman, executive chairman of CCMP in the press release. “We are excited to partner with Gord and his team to continue to grow BGIS for the benefit of customers and employees.”

BGIS CEO, Gordon Hicks said he looks forward to continuing to build BGIS in partnership with CCMP. The management team will remain in place and support the company’s next phase of growth.

“BGIS has developed into a world-class integrated facility management services business by always putting the interests of our customers and communities first, constantly innovating and searching for new opportunities to create value for all stakeholders, and implementing sustainable operating practices that contribute to creating a better world. We’ve never been stronger as an organization, and I look forward to continuing to build BGIS in partnership with CCMP,” Hick said.

Morgan Stanley is serving as financial advisor to CCMP and Ropes & Gray LLP and McCarthy Tétrault LLP are acting as legal counsel with assistance from Australian counsel, Clayton Utz.

B.C. Builders Code to improve worker retention

A new initiative called Builders Code aims to address B.C.’s skilled labour shortage by reducing harassment, bullying and hazing on construction worksites.

The Builders Code was launched on International Women’s Day by the provincial government and industry partners including the BC Construction Association (BCCA), Industry Training Authority, WorkSafeBC and LNG Canada.

A key goal is to have women make up 10 per cent of B.C.’s construction trades by 2028, a standard not yet reached by any province in Canada. Currently, women comprise only 4.7 per cent of B.C.’s construction trades.

The Builders Code, which includes a voluntary standard code of conduct for all workers on construction sites in B.C, expands the definition of construction safety beyond physical hazards to include stress or distraction caused by discrimination, bullying, hazing or harassment. A Builders Code worksite will seek to be free from behaviour that threatens the stability of work conditions including job performance, health, well-being, safety, productivity and the efficiency of workers.

The Builders Code will be a valuable opportunity and asset for contractors looking for competitive ways to attract and retain skilled tradespeople at a time when B.C. faces a skills shortage of 7,900 workers. Although women, youth, and other equity-seeking groups are entering construction trades at a higher rate than in the past, retention rates remain low. First year retention rates for women apprentices have anecdotally been estimated at less than 50 per cent. By comparison, first year retention rates for men are estimated at 70 per cent.

“A skilled tradesperson is a valuable asset, not a gender or demographic,” said Chris Atchison, president, BCCA. “Worksite behaviour is not a women’s issue, it’s a business issue. The resources are available to all construction employers and we’re confident they will be utilized.”

Reaching the 10 per cent goal will equate to adding another 9,500 women into the skilled trades in B.C.’s construction industry. That achievement would be especially significant as it would effectively erase B.C.’s projected skills gap of 7,900 workers.

The Builders Code pilot will highlight the business and safety implications of worksite behaviour and provide employers with the tools they need to improve retention. Employers can access no-cost posters and policies, training, and advice from experts with experience in human resources management, including mediation and conflict resolution.

Throughout 2019, the Builders Code partners will continue to make equity and diversity a corporate leadership priority for construction employers, rolling out expanded resources and services in every region of the province.

For more information, visit: www.builderscode.ca

IFMA and Macau Institute of Management sign strategic agreement

The International Facility Management Association (IFMA) has signed a strategic partnership agreement with the Macau Institute of Management (MIM) in order to expand the availability of facility management (FM) resources and professional training in the Macau, China region.

MIM will also assist cleaning professionals in the region with achieving IFMA credential designations.

According to a press release, the agreement was signed on March 6 at the Macau Military Club by Paul Tse, chairman of the MIM board of directors, and Graham Tier chair of IFMA’s global board of directors.

The agreement marks the first formal user adoption of the IFMA Foundation’s FM Training and Development Framework as the basis for property and facility management industry training.

“It’s a great honour to continue IFMA’s tradition of international co-operation by formally launching a strategic agreement with MIM in the spirit of our long and productive relationship,” Tier said .

Tse added that the strategic partnership agreement will create value for members of both organizations, particularly in the area of FM training and professional development.

It will also provide international and local dialogue and networking between the organization’s professional members while developing and maintaining high standards of professional conduct. Together, IFMA and MIM will support the FM field with information and education while expanding public understanding of FM and its role in organizations.

OREA names Kim Clouthier new provincial director

The Ontario Real Estate Association (OREA) has elected Kim Clouthier, a Sault Ste. Marie-based real estate broker, as provincial director. The appointment was announced following OREA’s annual conference, which took place from Feb. 27 to March 1, 2019.

In this role, Clouthier will serve a two-year term on the OREA Board of Directors, representing realtors in North Bay, Sault Ste. Marie, Sudbury, Thunder Bay and Timmins, Cochrane and Timiskaming real estate boards.

“For the first time in history, home ownership is on the decline. Now more than ever, we need to keep the dream of home ownership alive for future generations,” said Clouthier, in a press release. “I’m looking forward to helping OREA forge ahead as we push for increased housing supply, higher professional standards, and more affordable home ownership.”

With 18 years of real estate experience to her name, Clouthier is a broker for Royal LePage Northern Advantage Brokerage in Sault Ste. Marie. She has been a member of the Sault Ste. Marie Real Estate Board since 2011, serving as a Director in 2015 and President in 2017.

She has also served as member and chair of OREA’s Young Professional Network Committee, and currently serves on OREA’s Media and Communications committee.

Pace of change still sluggish for women in CRE

Commercial real estate is a notable multidisciplinary industry that increasingly risks a notorious reputation for the largely uniform composition of its leadership ranks. International Women’s Day provides a timely peg for contemplating how to recruit and open the paths of advancement to a workforce that is more broadly reflective of the 21st century cities, tenancies and investors that drive growth and prosperity.

Almost invariably, that begins with an acknowledgment of the less than breathtaking pace of change to date. Commercial real estate is consistently on the low side of already unimpressive economy-wide averages for women in senior executive and board of director roles.

“Over the last 20 years, there’s been a circular conversation around gender equity with very little progressive action. The conversation is stagnant and counterproductive,” asserts Chandran Fernando, managing partner with the human resources consulting firm, Matrix360, which hosted a panel discussion on women in commercial real earlier this week. “We have observed that the stagnation is caused by a lack of understanding, dialogue that is not solutions-driven and where men are left out of the conversations.”

Aiming for an antidote to that stalemate, the evening’s discussion drew on a range of perspectives and experiences gleaned from brokerage and investment services, the real estate arms of two of Canada’s largest pension funds and organizations specifically advocating for gender equity. All panellists agreed that deliberate, active strategies are needed to rebalance commercial real estate’s workforce, but that momentum can build from a few painless adjustments and flow seamlessly into the next stage of progress.

“The issue can be that the pipeline (of entrants to the industry) comes from places that are not diverse,” observed Paul Morassutti, vice chair, valuation and advisory services, at CBRE Canada. “Just a slight change in how you identify talent can have an immediate impact.”

Career paths, pressures and goals

Both Morassutti and Scott Addison, president of brokerage services at Colliers Canada, conceded that their business domains, which are heavily focused on deal-making and commission-based earnings, tend to be overwhelmingly male. After 30+ years of market cycles, technological innovation and shifting social values, the demographic profile of staff and contemporaries could be one of the few constants of Addison’s career.

“There has been very little change on the brokerage side,” he told the predominantly female gathering in Toronto. “I look around the table at our sales meetings — there are a lot of people who look like me.”

The panel’s contingent of female executives came to commercial real estate through the professions of engineering and law. Veronica Maggisano, senior director, development, at Oxford Properties, and Sunita Mahant, senior director, legal affairs, with Ivanhoé Cambridge, underscored their ambitions as mentors and role models in addition to their weighty corporate responsibilities.

“I want women to have a say at the table. I want them to have a say in how cities are built,” Maggisano said.

Mahant pointed to her parents’ experience as immigrants to Canada as another important influence. “My parents came here for a better opportunity. I feel like I have a responsibility,” she reiterated. “I have a voice at the table and I want to keep the door open for all women and minorities who come through.”

Efforts to prop that door open might include: steps to help decision-makers recognize and neutralize unconscious biases that can influence who gets hired and/or promoted; flexibility and support for parents of young children; and harnessing data to measure diversity performance. Panellists endorsed all three measures — offering some personal context and a mea culpa or two.

Strategies and tools to support diversity

Addison recounted how he formerly looked to job candidates’ participation in team sports as an indicator of competitive drive and collaborative capacity without necessarily considering health, social and/or economic factors that might keep many keen, ambitious individuals off the playing fields. Whether it’s hiring staff, choosing service providers or forming friendships, decision-makers draw from their own experiences and comfort zones.

“People aren’t aware of how they are making decisions. I don’t think people who look like me are consciously trying to hold people back,” he submitted.

“Most people, truthfully, want to work with a team where they don’t have to constantly explain themselves,” added Stephanie Dei, coordinator of the United Nations’ Women program in Canada.

However, the paybacks of a broadened perspective have been enumerated, with gender and ethnically diverse organizations generally achieving higher profitability. Mahant equated unconscious biases to drivers’ blind spots, which are detectable only with tools (a mirror) and purposeful action. Overlooking a blind spot can be catastrophic for drivers and pedestrians and, similarly, a lost opportunity in business and life.

“You really have to look at yourself or get a coach to help you,” Addison advised. “Change your process and get more applicants.”

Sharing an anecdote from the bad old days of not so long ago, Morassutti also stressed that men must speak up when they see transgressions and work to change environments that can be unwelcoming or outright hostile to women. “I’d say the men in this room are part of the problem. Implicit and explicit biases can get crossed and a little bit blurred,” he maintained.

Maggisano recommended harnessing commercial real estate’s zeal for competition and data. The benchmarking and key performance indicators that now guide so much of management, operational and investment strategy could be expanded to include diversity metrics, even drilling all the way down to team-level dashboards.

“Reflect on what the data tells you and how you would feel if that data was released to your customers. What would they say?” she asked.

For his part, Addison would welcome such specifications from clients, noting that that institutional players, such as Oxford, are well placed to make the demand and brokerage services are predisposed to deliver. “If we know that’s part of our scorecard, we are addicted to competition,” he said.

Parental experiences

Panellists’ dual role as parents added another layer of insight to the discussion. Moderator Robyn Gooding, senior manager of strategy and engagement with Matrix360, cited statistics that gender pay and equity gaps are most prominent in the cities with the highest daycare costs.

Dei noted that men’s careers tend to take priority in family decision-making, while high daycare costs can effectively push mothers out of their careers to stay at home with children. “In Canada, where women earn 80 cents for every dollar a man makes, you are already disadvantaged in that conversation,” she said.

As the mother of two young children, ages three and five, Maggisano has relatively recent experience with maternity leave, along with the current intensity of juggling work and childcare. Interestingly, from the development perspective, the process of birthing a new building is considerably lengthier than what’s allowed for a child, so work on big projects could be bookended around mothers’ time at home with newborns.

Morassutti outlined some of CBRE’s efforts to provide more home office support, both for women to maintain contact with key clients during maternity leave and for more flexibility for parents with young families. All panellists commended the Canadian government’s pledged introduction of a “use it or lose it” parental leave option for men, expected to be the similar to the five-week option already available in Quebec.

“In Quebec, 80 per cent of eligible fathers take it,” advised Jake Stika, co-founder and executive director of Next Gen Men. “Consequently, you can’t take for granted anymore that it’s only women taking leave.”

“That starts to make it easier for the macho male to say: I have to take it; I’d be foolish not to take the government’s money,” Addison agreed. Meanwhile, his parental focus is on two adult daughters, including one who is considering a career in commercial real estate.

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

Renewed sports complex opens in Dartmouth, N.S.

The Zatzman Sportsplex, formerly named Dartmouth Sportsplex, has reopened its doors following a $28 million renovation and expansion designed by Diamond Schmitt Architects and Abbott Brown Architects. The sports complex, located in Dartmouth, N.S., now features new amenities and services.

The purpose of the revitalization was to create activity, transparency and connection in the 100,000-square-foot facility, which now features a more open plan within the building and new views to the adjacent Halifax harbour and Dartmouth Common. A central triangular atrium, bright with natural light, links the levels of the facility.

New features added to the facility include a new entry, a larger fitness and cardio area and a new double gymnasium. A central café adjacent to the gym, a childcare area with views to the Common and new studios comprise the core of the building. The aquatics area now features a splash area for kids, new water slides, a therapy pool, universal changing facilities and accessibility improvements to the teaching pool.

“The fitness rooms now overlook the pool and the harbour, so patrons engage with the facility on many levels, are aware of more activities, and ultimately make more connections within the community,” said Jarle Lovlin, principal, Diamond Schmitt Architects, in a press release.

“Improvements in infrastructure make the whole facility more energy efficient and accessible, with better wayfinding and circulation and much more natural light,” said Alec Brown of Abbott Brown Architects.

New artwork, including a major mural by Mi’kmaw artist Jordan Bennett, featuring various metals, traditional Mi’kmaw motifs and colour. The mural explores the histories, traditions and contributions to sport in traditional Mi’kmaw territory. The artist also has another installation, a design across 1,500 square feet of interior glazing, displayed in the facility.

Holloway announces sale of hotels in Moncton

Holloway Lodging Corporation (Holloway) – a real estate corporation focused on acquiring, adding value and operating select service hotels and managing hotels for third parties – has sold the Days Inn and Travelodge hotels located in Moncton, N.B.

The sale price for the hotels was $14 million representing a cap rate of approximately 9.3 per cent and a price per room of $62,000.

According to a press release, Holloway estimates that it will record a gain on sale of approximately $2.5 million in the first quarter of 2019 (after also reversing a $0.7 million impairment on one of the properties in the fourth quarter of 2018). Holloway does not anticipate paying any tax on the sale of this property.

Holloway received approximately $5.9 million of proceeds after closing costs, the repayment of $6.7 million of mortgages secured by the properties and the provision of a $1.0 million second mortgage secured by the properties. Holloway expects to use the net sale proceeds to reduce amounts drawn under its revolving credit facility.

Holloway owns 28 hotels with 3,121 rooms.

CHBA Okanagan appoints first female president

The Canadian Homebuilders’ Association of the Central Okanagan (CHBA-CO) has appointed its first ever female president, Cassidy deVeer, of 3rd Generation Homes.

DeVeer took on the role on February 12th at a CHBA-CO board meeting. There were no other changes to the board or executive.

“I am proud to represent such an outstanding board, executive and members,” says deVeer, “It is an honour to be selected to work for the residential construction industry in the Central Okanagan. With pressures on the residential construction industry from all levels of government, our role to advocate for our members has never been more important.”

DeVeer’s appointment comes as the residential construction industry in the Okanagan faces challenges from new federal mortgage regulations, a provincial speculation tax and potential changes to the local building code. Each of these factors is adding pressure to housing affordability. Government relations and advocacy are top on the new president’s agenda.

The CHBA-CO is part of the Scrap the Speculation Tax campaign along with a coalition of British Columbians including the Kelowna Chamber of Commerce, UDI Okanagan, Okanagan Mainline Real Estate Board and many others. The campaign has been working with industry members, government officials and media to drive awareness of the potential market effect of the tax.

The construction industry in the Okanagan provides more than 25,310 jobs and is looking to grow year over year by 0.4 per cent, according to the 2018 B.C. Labour Market Outlook report. Construction sits in the top three industries in the region, which is home to 11 per cent of all B.C. residents or one in 10 workers.

The CHBA has set the goal of driving a high standard of quality control, service, affordability and innovation through the CHBA contractor certification. Certification provides consumers with the knowledge to choose suppliers confidently.

Ontario top province for hotel investment: report

Toronto has been displaced as the most preferred hotel investment market for 2019, states Hotel INNvestment Canada Report Q4 2018. Ontario – which excludes Toronto and Ottawa – is Canada’s most desirable market for the next 12 months. Followed by Vancouver then Other British Columbia (excluding Vancouver and Alberta Mountain Resorts).

According to the report, 2018 saw “fluid” trading in secondary/tertiary markets with a national transaction volume of $1.5 billion, down from $3.5 billion in 2017 and saw more than 130 hotels sold across Canada during the year, down from more than 150 sold the previous year. Despite lower sales and revenue, strong national demand trends continue to support Canada’s lodging sector and investors remain optimistic about the industry in 2019.

The report also revealed results from the 2019 Canadian Hotel Investor Sentiment Survey – an annual survey that aims to address the most relevant questions impacting lodging investment decisions.

As laid out in the report, here are some of the survey’s highlights:

New hotel acquisitions remained the dominant investment strategy for nearly a third of those surveyed (31 per cent);
Primary strategy investment intentions shifted from a predominantly acquisitions focus – Fourty-one per cent reported a hold, renovate or expand strategy – the highest indication since Colliers began collecting data in 2010
Almost 88 per cent of survey respondents say the cost of debt has become more expensive in the past 12 months and 78 per cent indicated they expect the trend will continue in 2019;
When asked for the most preferred international brand for new hotel investments or developments, respondents indicated Marriott branded product as their top choice for both full-service and focused/ select-service segments.;
Best Western ranked as the top choice in the limited-service segment (20 per cent) followed by Hilton (16 per cent) and Choice brands families (12 per cent.)

Visit www.collierscanada.com/en/commercial-property-research/2018/hotel-innvestment-canada-report-q4-2018#.XIEz2SJKiUk to download the report.

Schneider Electric joins Cybersecurity Coalition

Schneider Electric has announced its membership in the Washington-based Cybersecurity Coalition.

According to a press release joining the coalition affirms Schneider’s commitment to being open, transparent, and collaborative so it can better detect, prevent, and respond to cyber threats across its extended enterprise.

The Cybersecurity Coalition brings together leading companies to assist government policymakers in developing consensus-driven solutions that:

Promote a vibrant and robust cybersecurity ecosystem;
Support the development and adoption of cybersecurity innovations; and
Encourage organizations of all sizes to take steps to improve their cybersecurity.

“Joining the Coalition demonstrates that Schneider Electric takes cybersecurity challenges seriously and that we are committed to playing a foremost role in developing solutions,” said Hervé Coureil, chief digital officer, Schneider Electric.

“Our membership ensures we have a focused seat at the table to initiate open, transparent, and collaborative conversations that advance the adoption of cybersecurity policies and laws for the benefit of our customers, partners, and all stakeholders across our extended enterprise, including the communities and environments we mutually serve.”

As a member of the coalition, Schneider Electric will explore and help improve how government agencies and regulatory bodies, international standards bodies, security researchers, vendors, partners, and customers work together to tackle cybersecurity risks.

For more information about Schneider Electric’s cybersecurity strategy, download the Cybersecurity at Schneider Electric white paper.

Tim Hortons’ new HQ champions sustainability

Panels of Canadian maple form a fitting background for a large, red-lit maple leaf in the cafeteria of Tim Hortons’ new head office, providing a visual representation of the company’s homegrown origins.

Tim Hortons, now one of North America’s largest quick-service restaurant chains, was founded in 1964 with a single location in Hamilton. For over 50 years, the company’s headquarters were located in Oakville, Ont., but the recent decision to move the office into downtown Toronto’s Exchange Tower was largely made to attract and retain top talent, including millennials and Gen-Zers. These demographic cohorts value walkability to neighbouring shops, restaurants and services, as well as access to public transit.

“It’s where the next generation of talent is and we recognize that. People want to live downtown and be close to transit and amenities, so that’s where we need to be. It’s something we’d been thinking about for some time and we finally made the move in early November,” said Jane Almeida, lead, brand communications at Restaurant Brands International, which owns the coffee chain.

Workplace social

Tim Hortons has embraced a collaborative mentality in the new office, with cafés featuring community seating located throughout both floors of the 65,000-square-foot, Gensler-designed space. The café tables, chairs and booths, upholstered in the company’s signature red, white and dark grey palette, are identical to those found in restaurants and were crafted by Canadian suppliers using local materials. The mirroring of the restaurant’s design extends to the energy-efficient Viso LED lighting fixtures.

Workstation configuration was also selected to promote collaboration, as none of the approximately 400 employees, including executives, have offices. Instead, the bullpen is a bright, open-concept space arranged to welcome teamwork.

“We find a lot of team members take to tabletops for their meeting, or if they need quiet space to work, we find more and more that we’re moving away from desks and talking over coffee, ping-pong or foosball, and really using this open space,” observed Almeida.

From late spring to early fall, a private outdoor terrace furnished with Muskoka chairs will likely provide a change of scenery to the typical employee huddle. “A unique element to workplace design that is becoming more desired is access to the outdoors,” said Steven Burgos, design director at Gensler. “In the warmer months, employees will be able to use the terrace as an extension of the workplace, with outdoor meeting tables, lounge seating and Wi-Fi.”

Sustainable wellness

During the colder months, employees are still connected to nature year-round through plant boxes incorporated throughout the space. “Biophilic design elements help promote wellbeing in the workplace. Studies have shown this boosts productivity and health for employees,” noted Burgos.

For those employees wishing for more privacy, board rooms and focus rooms with names like Double-Double or Chocolate Dip can be booked through an online reservation system. These rooms were kept off the window line to provide all employees with access to natural daylight and outdoor views from their workstations, which has been shown to increase productivity, engagement and overall wellness.

Visitors to the office, which is located on the former TSX trading floor of the building, are greeted with an exposed brick wall in dark grey behind the reception desk, reminiscent of a modern, well-designed home, complete with coordinating Teknion lounge seating.

Teknion, which also supplied all the employee workstations, manufactures its products in Toronto out of approximately 70 per cent recycled content. Workstations are topped off with ergonomic task chairs by Knoll, which contain about 40 per cent recycled content.

Gensler enlisted Interface, which uses a high degree of recycled material in its products, to supply the majority of the flooring for the office, including the carpeting in the lobby.

A wood and glass staircase forms a centrepiece of the reception area. “An existing staircase became a new feature element in the space with a little paint and re-finishing. By retaining the stair, employees are encouraged to walk between floors, promoting movement and wellness and reducing demand on the elevators,” said Burgos.

The move from the Oakville office saw employees move into a greener mindset. For one, the organization has, for the most part, gone paperless. For any employees that require a printed document, there are designated copy and print locations on the floor.

Although the Tim Hortons name is synonymous with coffee served in trademark red paper cups, the company has made moves to cut down on other waste it produces by providing all employees with their own branded water bottles and mugs to refill hot and cold beverages from over 20 coffee and tea stations dotting the space. Further, trash, recycling and composting (for coffee grounds) areas are offered in centralized locations to discourage needless waste.

“By centralizing services such as trash and recycling, coffee points and the creation of a large communal café, this promotes a culture of movement within the space and creates opportunities for chance encounters and socialization amongst employees, which we have found in our workplace survey research boosts productivity and innovation,” added Burgos.

Creating connections

Furthering its references to its hockey origins, the office was designed in the shape of an ice rink. Located right at ‘centre ice,’ the heart of the office, sits a state-of-the-art test kitchen. Its central location allows employees to feel a connection to the products being developed. In addition, all the food and beverage technology and equipment in the office is exactly what can be found at the restaurants.

“It would be crazy to have a Tim Hortons headquarters in downtown Toronto and not have a test kitchen,” said Almeida. “This is where all the flavours come to life.”

Tributes to the company’s heritage and its founder, as well as touchpoints illustrating the company’s bean-to-cup story and community outreach initiatives, are peppered throughout the entire office, ranging from Tim Horton’s original Toronto Maple Leafs hockey jersey hanging on a lattice wall in the main lobby, to vintage photos featuring Horton himself from the first restaurant in Hamilton.

Near the test kitchen is a wall dedicated to social media posts from restaurant guests, which is one of Almeida’s favourite features of the new office. The social media wall provides a tangible demonstration of how Tim Hortons’ consumers connect with the brand.

“It represents the connection Canadians and our guests have with Tim Hortons from coast to coast to coast,” said Almeida. “The photos celebrate the role that Tim’s has played in Canadians’ special moments and memories across the country.”

Kavita Sabharwal-Chomiuk is the editor of Canadian Facility Management & Design.

B.C. honours wood innovation and design

Inspired architecture and innovative structural engineering were honoured at the 15th annual 2019 Wood Design Awards in BC, sponsored by Wood WORKS! BC in Vancouver.

There were 103 nominations in 14 categories from many locations in B.C. as well as the US and Asia, with international projects in China, Korea and Tajikistan.

“Over the last 15 years of the Wood Design Awards, and through involvement in hundreds of projects, Wood WORKS! BC has been privileged to observe remarkable leaps forward in wood building and design in B.C. The advances have been truly transformative,” said Lynn Embury‐Williams, executive director of Wood WORKS! BC.

“We’re seeing much larger, taller and more complex structures and new building types that have been made possible with wood product research and development, advanced engineering and construction practices. The bold visionaries and early adopters in the B.C. design community have made B.C. a global leader in wood design and construction.”

Winners include:

Wood Champion Award: Shelley Craig, principal of Urban Arts Architecture, Vancouver
Engineer Award: Darryl Bowers, principal of Weiler Smith Bowers Structure Engineers, Burnaby
Architect Award: James Tuer, principal of JWT Architecture and Planning, Bowen Island
Wood Innovation Award: Patkau Architects for Temple of Light, Kootenay Bay
Environmental Performance Award: Stantec Architecture Ltd. for UNBC Wood Innovation Research Laboratory, Prince George.

Winners in the wood design categories include:

Residential Wood Design: Measured Architecture, Shift House, Vancouver
Multi‐Unit Residential Wood Design: Adera Development Corporation, Virtuoso, Vancouver
Commercial Wood Design: Asher deGroot, MOTIV Architects Inc., Swallowfield Barn, Langley
Interior Beauty Design: Unison Architecture Ltd., Ts’kw’aylaxw Cultural and Community Health Centre, Lillooet
Institutional Wood Design ‐ Small: Formline Architecture, Indian Residential School History and Dialogue Centre, Vancouver
Institutional Wood Design ‐ Large: DIALOG, UBC Campus Energy Centre, Vancouver
Western Red Cedar: Lubor Trubka Architects, Kwakiutl Wagalus School, Port Hardy
Prefabricated Structural Wood: Evan Williams, Victoria Truss 2007 Ltd., Curved Trusses for Tyron Road, Victoria
International Wood Design: Jie Lee, Challenge Design Pte. Ltd., Chongqing Yuanlu Community Center, Chongqing, China.

For full list of winners, visit www.wood-works.ca/bc

Photo courtesy of WoodWorks! BC

Preserving Older Buildings

Well-restored heritage buildings are tremendously popular among businesses. The spaces created within these structures are often larger than modern offices and have a warmer feeling associated with exposed brick, sawn timbers and steel connections. A retailer located in an iconic heritage building will also benefit from the building itself being an attraction to potential customers and clients.

Heritage buildings, like any building, require continued and increasing maintenance as they age. Many of the materials and techniques used during the original construction are no longer prevalent, and consequently the materials and knowledgeable trades people have become scarce. Owners can no longer rely on trade knowledge alone to preserve the aging materials that form the façade of these buildings. Even the best intentions can be devastating to a building’s historic fabric if the work is poorly executed.

The materials that make up the façades of these old buildings, including terra-cotta, local building stones and brick, are aged and in spite of their robust appearance are quite sensitive. Combine this sensitivity with the often aggressive interventions required to remediate subsurface problems typically found on historic façades, costly or even irreparable damage can be done.

Glade Schoenfeld, a Professional Engineer in the Building Science and Restoration Group of RJC Engineers’ Vancouver office, understands the intricacies of preserving older buildings—and can spot a “restoration fail” from a mile away. Recently, he tweeted about a heritage building he noticed was marred by the tell-tale signs of poorly executed conservation work.

“It was made of Andesite, a type of building stone commonly used in the early to mid part of the last century,” he says. “Like sandstone and limestone, this material is great but it is prone to deterioration in the form of exfoliation over long periods as the moisture moves through the stone and evaporates just beneath the natural patina of the stone, leaving behind a build-up of minerals.” Glade explains that this build-up of minerals exerts localized pressure on the back surface patina causing it to exfoliate. The repetition of the process is the deterioration of the stone.

While the natural wetting-drying process cannot always be avoided, Glade asserts that the best conservation approach is to simply intervene as little as possible. “With andesite, it is difficult to replace whole blocks. The best approach is to scale the loose material off and manage the water by deflecting or applying a water repellent,” he notes.

In the case of the example above, it was obvious to Glade that the contractor had made erroneous use of a cup-stone on an angle grinder operated by hand to resurface the stone, which led to chawed uneven surfaces. “Assuming the stone actually required resurfacing, hand grinding a vertical surface was never going to result in a smooth finish. A smooth finish could have been achieved with a wall mounted jig,” he says.

Least Intervention: Conservation Best Practices

When it comes to heritage conservation, Glade advocates taking the “less is more” approach and only intervening when necessary—and for Andesite the first step is small, localized repairs. Using a scraper to scale away problematic areas and managing the water is what he calls the first level of intervention. After that, some stones may require “Dutchman” repairs, or a step further being whole stone replacement.

“Before launching any repair work, seek out trusted heritage conservation specialists and contractors who are experienced in working with older materials,” he says. “Ask for a mock-up, a sample of the treatment, so you can review the results before committing to a method of repair. It is important to note that the existing stones, having been out in the weather for more than 100 years, will not match for several years.”

In conclusion, Glade asserts that any owner who pays to have repair work done only to end up with unsatisfying results can avoid this outcome by engaging the right team. The team would consist of a qualified consultant to specify the correct repair methods, an experienced contractor to construct the mock-ups and conduct the work, and an owner with the motivation and the means to undertake the work correctly.

“Generally speaking, contractors need to be told what repair method to use or the owner is risking a lot,” he says. “Choosing the right conservation method for your building will not only help maintain its aesthetic appeal, but it will increase its longevity and long-term value.”

Learn more about heritage building restoration at: www.rjc.ca. For more information on repair methods, please contact Glade Schoenfeld P.Eng. CAHP.

Stigma fuels case for rethinking real estate

Prominent real estate analysts are promoting co-living as a potential next big thing in Canada’s ever-tightening rental housing market. CBRE identifies dormitory-style dwellings offering private bedrooms with shared kitchen and living space as an emerging trend in commercial real estate.

“This style of apartment is designed to accommodate a greater number of renters while still responding to rising development costs and increasing rental rate sensitivity,” reports CBRE’s newly released Canadian Real Estate Market Outlook 2019 — which tags co-living as an example of “rethinking real estate” along with co-working, specialized facilities for last-mile delivery, food halls and proptech innovation.

However, a recent study of planning policies in major Canadian cities suggests that local governments may not be so receptive to a concept more traditionally known as rooming houses or single room occupancy (SRO) buildings. Nor is student housing necessarily an effective analogy for selling the idea to decision-makers and prospective neighbours. University of Toronto adjunct professor Philippa Campsie notes that much of the current negative sentiment relates to the emergence of informal rooming houses in predominantly single-family residential areas near suburban post-secondary campuses.

“When we (city dwellers, city planners, city councillors) talk about rooming houses, we usually talk about how best to regulate them, followed by how to enforce those regulations,” she observes in a research paper released last year through the Neighbourhood Change Research Partnership. “The dilemma for municipalities is to regulate these new kinds of rooming houses in a way that protects tenants who need affordable housing near where they work or study, while placating residents who would prefer not to have rooming houses in their neighbourhoods.”

Her overview of municipal regulations and licensing practices paints a picture of a nationwide stigmatized housing form, but that arguably validates the case for rethinking real estate. Paul Morassutti, vice chair of CBRE Canada, is fittingly philosophical.

“Growth is often synonymous with discomfort. In many Canadian cities, real estate will remain at the forefront in both regards,” he muses.

Accessibility and affordability frustrations

The 2019 Market Outlook tallies market factors that could push local officials to reassess their assumptions and priorities — most notably, continuing low vacancy rates, steep housing costs that hinder rental turnover and intense competition as population growth outpaces new supply. Across the 13 large urban markets it surveys, CBRE projects a slight easing in the vacancy rate over the coming year, bumping upward from 2.4 to 2.5 per cent, but that will be accompanied by an increase of nearly 3 per cent, from $1,238 to $1,274, in average rent for two-bedroom units.

“Availabilities will continue to be almost non-existent in major downtown centres,” CBRE cautions. “This will only add to frustration around housing accessibility and affordability coast-to-coast.”

Drilling down to specific markets, Montreal will capture 35 per cent, or more than 12,100, of the new purpose-built units expected to be completed this year, pushing the city’s vacancy rate up 60 basis points to 2.5 per cent. Even with a projected $10 increase this year, the average rent for two-bedroom units — at $819 — will be well below the national average.

Vancouver can also look forward to nearly 8,300 new purpose-built units and a 30 basis point jump in the vacancy rate, to 1.3 per cent. Meanwhile, about 5,550 new purpose-built units will come onto the Toronto market, but the vacancy rate is projected to slip 10 basis points, down to just 1 per cent. Average rents for two-bedroom units are expected to increase in both cities, to $1,539 in Toronto and $1,724 in Vancouver.

On the landlords’ side of the equation, already record-low cap rates are expected to dip even further this year. Coupled with sluggish turnover that’s hindering opportunity to renovate and raise rents in existing units, CBRE points to “an aggressive appetite from both domestic and international capital” that could potentially finds its way to the envisioned co-living projects.

“The stability of the sector has become increasingly enticing for investors given recent financial volatility, economic uncertainty and increased liquidity, which has placed significant upward pressure on pricing,” observes David Montresssor, executive vice president with CBRE’s national apartment group, “Cap rates in this sector continue to be the lowest of any asset class in Canada and investors are increasingly open to sacrificing going-in yield in exchange for the possibility of future rent growth.”

Even in the hard-hit markets of Calgary and Edmonton, the multifamily sector stands out as a bright spot. CBRE analysts project a slight increase in average rents for 2019, while the vacancy rate hovers around 5 per cent in both cities. New purpose-built rental housing is also due for completion this year, adding about 1,700 units in Calgary and nearly 1,100 in Edmonton.

Some investors are also looking at the pent-up demand for downtown housing options in light of still-rising vacancies in older office stock. “Due to financial inefficiencies, some owners are reviewing conversion opportunities as a viable option to repurpose these obsolete buildings. Recent projects in Edmonton have trended towards multifamily and hospitality conversions,” CBRE reports.

Construction coalition challenges CBA in court

A coalition of British Columbia’s largest construction associations and progressive unions began legal proceedings Feb. 27 in B.C. Supreme Court. The coalition is challenging the new procurement policy imposed by the NDP government on public infrastructure projects under the Community Benefits Agreement (CBA).

The NDP government’s labour framework for building public infrastructure projects violates the rights of 85 per cent of B.C.’s construction workforce and should be struck down, according to the coalition.

“Freezing 85 per cent of construction workers out of taxpayer-funded projects is unfair, discriminatory and just plain wrong,” said Chris Gardner, president of the Independent Contractors and Businesses Association. “Clearly, the Horgan government will stop at nothing to reward it’s Building Trades union buddies, even if it means skirting the law.”

Currently BTU membership is mandatory in order for workers to build public projects in B.C., even though the BTUs constitute just 15 per cent of the province’s construction workforce.

“The Horgan government is robbing workers of their basic constitutional rights, including freedom of association,” said Ryan Bruce, B.C. Manager of Government Relations for CLAC. “Rather than giving the workers the right to choose whether to belong to a union – and which union belong to – this government has made the decision for them.”

“Being discriminated against based on the union I have chosen violates my rights – and many of my fellow members – and makes us mad,” says Dave Fuoco, a CLAC member with over 40 years experience in the construction industry. “How is it that a government that says they stand up for workers rights is willing to violate our rights?”

According to the coalition, B.C.’s framework for building public infrastructure is costly for workers and the public. The concern is this outdated construction model creates more red tape and bureaucracy, increasing construction costs by tens of millions of dollars for B.C. taxpayers.

Four construction associations (the British Columbia Construction Association, the Vancouver Regional Construction Association, the Independent Contractors and Business Association (ICBA), the Progressive Contractors Association of Canada (PCA)) and two progressive unions (Canada West Union and CLAC) have joined the Canadian Federation of Independent Business (CFIB) and several construction companies, professionals and workers in launching the lawsuit aimed at halting restrictive labour policies in B.C.’s construction industry.

Restoration of St Andrews Wesley United Church begins

St Andrews Wesley United Church, one of Vancouver’s most prominent landmark churches and music venue, will undergo a major seismic upgrade and heritage restoration. Ryder Architecture has been retained with RJC Engineers who will provide seismic engineering, building envelope engineering and act as prime consultant on this significant two-year project. Heatherbrae Construction is providing construction management services.

The church stands as a stunning example of the height of Gothic Revival architecture. Known for its glorious interior including vaulted timber roof, impressive French and Italian stained glass windows and angel reliefs, St Andrews functions as a major religious, heritage and cultural focal point for the City of Vancouver.

Located at the corner of Burrard and Nelson Streets, the church was designed and constructed between 1930 and 1933 by architects Twizell and Twizell. Brothers George and Robert Twizell were born in Newcastle upon Tyne, in the northern English county of Northumberland before establishing themselves in Montreal in 1901.

Originally from Newcastle before moving to Canada in 2006, Ryder principal Adam James said, “St Andrews is a special and historic place not only for the church congregation but also the City of Vancouver. The congregation are to be commended for pursuing this project to bring the church up to current seismic safety standards. In doing so the original architecture of Twizell and Twizell will be reinvigorated to provide a home to the congregation for the next 100 years.”

The project will provide a seismic upgrade to the original concrete structure and at the same time reinstate the original plaster interiors, along with a new stone floor, pews and upgraded building services. The heritage designated building exterior will receive a new copper roof and granite facades will be reappointed and restrained. The building is set to reopen in the fall of 2020.

Multi-res property tax rate hits tenants hard

Many among the general public seem to believe that residential rental property owners pay the property tax as part of their operating costs. The truth is, every tenant in every municipality in Ontario pays property tax as part of their rent. These property taxes are a hidden part of each tenant’s living expense obligation to their municipality, which provides them with education, emergency service, garbage collection, roads and more.

That means a significant portion of rental tenants, especially the vulnerable fixed income and affordable housing tenants, are paying taxes that are upwards of two times that of owners of a single family home or condo. The misperception derives from the landlord’s obligation to collect and remit this tax on the tenant’s behalf, much like every retail outlet collecting HST on behalf of the consumer.

A rent reduction is allowed under section 131 of the Residential Tenancies Act (RTA) when the municipal property taxes for the residential complex have decreased by more than 2.49 per cent from one year to the next. Like so many things, this law does not apply to public housing.

It doesn’t matter what the landlord’s property tax rate is. If the building contains seven or more units, then 20 per cent of the landlord’s total lawful rent must be paid back to the tenants. For less than seven units, the decrease is 15 per cent.

All municipalities then send out a letter as required by the RTA directly to every tenant in a building providing legal advice that they are entitled to a rent decrease, and that no permission is required from the Landlord and Tenant Board (LTB) for the tenant to earn this rent decrease.

A landlord can pass on an extraordinary increase, which occurs when the property tax increase is greater than the current rent increase guideline plus 50 per cent of the same guideline. For example, this year the guideline is 1.8 per cent, so an extraordinary increase would be 1.8% + 0.9% (50% of 1.8%) = 2.7%. The landlord must then undertake a grueling and complex LTB application called a Rent Increase Above the Guideline (AGI). It takes an average six months to set an LTB hearing date after the application has been submitted, and another six months for the LTB to render its decision. The decision isn’t automatic like it is for tenants, despite the subject matter being exactly the same.

And, although the landlord paid the tenant’s property tax up front, the landlord must give the tenant a minimum of 90 days’ advance written notice of the rent increase. Furthermore, the rent increase cannot occur until the next anniversary date of each tenant’s annual rent increase. And further to that, the tenant has the right to challenge the AGI application at the LTB hearing.

The Municipal Property Assessment Corporation (MPAC) reassesses a property’s value from time to time, most often when it changes ownership. MPAC doesn’t set the tax rate. It only establishes property value, on which the tax amount is determined. The municipality then sets the property tax rate for each building type. In the City of Oshawa, for example, the rate for single family homes and condos in 2018 is 1.41per cent. Oshawa taxes apartment buildings at 2.48 per cent, almost double.

Based on my own private research conducted in May 2017, all the municipalities of the Region of Durham were in the top 20 ‘worst offenders’ of this tax policy. Oshawa appears to be the third highest in the province, next to Hamilton and Orangeville. Clarington ranks fifth, followed by Whitby, Ajax, Pickering and Scugog. Some municipalities make no distinction between apartment buildings and single family homes including Barrie, Markham, Vaughan (apartment building property taxes are lower than single family homes there), Stouffville, Newmarket and Aurora.

It’s unlikely you’ll find any government documentation that explicitly states that residential rental tenants pay property taxes even though it’s common knowledge that every commercial tenant pays their prorated share of the commercial property tax via TMI – taxes, maintenance and insurance.

Do residential rental property tenants pay property tax? Of course they do. It’s built into the RTA. It’s just cleverly disguised to shield the government from direct accountability when property taxes negatively impact tenants.

Chris Seepe is a published writer and author, ‘landlording’ course instructor, president of the Landlords Association of Durham, and a commercial real estate broker of record at Aztech Realty in Toronto. He can be reached at: (416) 525-1558, [email protected] or by visiting his website: www.drlandlord.ca