Two Studio TK designs receive Good Design Awards

Two of Studio TK’s latest furniture designs for social spaces, the Borough Collection of Modular Lounge Seating, Tables & Screens by Christophe Pillet, and the Cesto Seating & Table Elements Collection by Khodi Feiz, earned 2018 Good Design Awards. Both collections were winners in the Furniture category.

The Borough Collection is comprised of hospitality-oriented elements that feature soft, residential elements. The modular lounge seating features a visual floating platform, while the wood table series adds an element of comfort. The natural rattan screens in the collection bring a sense of the outdoors to an office landscape.

The Cesto Collection features interacting seating and table elements designed to address the dynamic collaborative and social behaviours that are typically found in today’s work environment. The collection features an upholstered base element and a variety of different functional “tops”. The lower element can be finished in a knit mesh or fabric, offering the option of contrasting textures and colours for extensive personalization. Tabletop surfaces are also available in a variety of materials. The collection provides the new social office landscape with options to enable collaboration at different heights.

“We share the honor and prestige of winning these important Good Design Awards with Borough designer Christophe Pillet and Cesto designer Khodi Feiz,” said Charlie Bell, president of Studio TK, in a press release. “Together, with our exclusive focus on social applications, we are creating spaces that are responsive to all the ways we work and all that our work demands.”

The Good Design program covers new consumer products, graphics and packaging designed and manufactured in Europe, Asia, Africa and North and South America. The annual program is organized by the Chicago Athenaeum Museum of Architecture and Design in cooperation with the European Centre for Architecture, Art, Design and Urban Studies.

Federal policies have negative impacts on housing markets: Report

Federal policy changes made with the intent to cool housing prices and demand continue to impact housing markets across Canada with cascading consequences and pressures, according to the Annual State of the Mortgage Market report from Mortgage Professionals Canada (MPC).

According to Paul Taylor, president and CEO of MPC, the slowdown experienced in various housing markets across the country is more pronounced than anticipated. “We are seeing downward trends and/or depressions in areas like the resale market, the outlook on employment in the housing construction sector, and a continued decline in rental vacancy rates,” said Taylor, in a press release. “Federal policy changes are disqualifying potential first-time homebuyers and creating immense pressures on the rental market which is in turn driving rental prices higher. It is a spiralling problem.”

The report finds that improper policy levers can continue to depress the market, and finds that a more reasonable stress test level and lending restriction reforms are now necessary to provide more balance for borrowers and policymakers, thereby improving housing affordability, as well as the country’s economy.

“While the government has been focused on borrowers and interest rates, the reduction of activity in the housing market and extremely low rental vacancy rates will impact not only costs to first-time homebuyers and all renters, but also impact employment and the overall economy,” added Will Dunning, chief economist for Mortgage Professionals Canada and author of the report. “As a result of these policies, the economy will be weaker than it needs to be.”

Morguard to invest in The Centre Mall upgrade

One of the major shopping centres in Saskatoon, The Centre Mall, is getting a $43 million makeover with an investment from Morguard Real Estate Investment Trust.

According to a press release, the renovation projects for the shopping centre include modernizing the interior and exterior of the property, including new flooring and ceilings, expansive skylights and an updated colour scheme. continuing development of the new Cineplex pad and continuing the refit of the former Target space.

There will also be continuing development of the new Cineplex pad and the refit of the former Target space as well as upgrades to the food court and the creation of a new guest service kiosk.

“We’re happy to make this significant investment in The Centre and show our commitment to the City of Saskatoon,” said Andrew Tamlin, chief financial officer of the Trust. “Morguard is dedicated to providing a best-in-class experience that reinforces The Centre’s position as a leading retail and entertainment destination in the community.”

The Centre’s transformation project will be performed in phases and is expected to begin in early 2019 and be completed in 2020.

Ontario invests in hospital upgrades and repairs

The Ontario government is providing an investment of $175 million towards upgrades, repairs and maintenance at 128 hospitals across the province. The investment is being provided through the Health Infrastructure Renewal Fund.

“This funding will help ensure hospitals across Ontario are able to make the needed upgrades, improvements and maintenance so patients and families have access to reliable, quality care,” said Christine Elliott, Deputy Premier and Minister of Health and Long-Term Care, in a press release.

The provincial government aims to move quickly to develop a long-term transformational healthcare strategy to address challenges facing the healthcare system, including ending hallway healthcare. The funding will be used to address urgent facility issues, including upgrades or replacements of roofs, windows, heating and air conditioning systems, fire alarms and back-up generators.

Among the hospitals receiving funding is the Children’s Hospital of Eastern Ontario, which will receive over $1.9 million to repair its facility, including modernizing the elevators.

This funding comes following the provincial government’s investment of $90 million towards healthcare infrastructure in 2018-19.

Vanc. Island transportation strategy launched

A complete, comprehensive and co-ordinated look into improving traffic flow on southern Vancouver Island is the focus of a new transportation strategy being launched by the Ministry of Transportation and Infrastructure.

“We know that southern Vancouver Island is one of the fastest-growing regions in the province,” said Claire Trevena, Minister of Transportation and Infrastructure. “For too long, the infrastructure needs of the communities there have been ignored. It is time we start investing in long-term, innovative, multi-modal solutions to address congestion, while respecting and honouring the wishes and rights of local First Nations.”

The strategy will aim to move people more efficiently, so they can spend less time sitting in traffic and more time at home with their families. A request for qualifications has been posted on BC Bid to identify a short list of three qualified consultants to design a multi-modal transportation plan for the region. These three shortlisted consultants will then be sent a request for proposals in February 2019, with the successful proponent being identified by end of March 2019.

The area of focus will be existing and future multi-modal infrastructure projects on southern Vancouver Island, going as far north as the Duncan area and as far west as the Sooke area. It will look at current transportation demands and develop a roadmap for future investments across all modes of travel.

In relation to this work, the ministry is exploring potential emergency detour routes that could be activated in the event of a Malahat road closure. The ministry continues to work with stakeholders, including the Capital Regional District (CRD), to ensure all possible detour options are explored, while making sure that environmental, First Nations and local community interests are understood.

“The board appreciates the efforts to address transportation needs and assist people getting around faster on the South Island,” said Colin Plant, CRD board chair. “The CRD will want to ensure the protection of the integrity of the regional water supply lands, which provide drinking water for much of our region.”

A report on the feasibility of a temporary activated emergency detour route is expected to be ready by spring 2019. If a suitable detour alignment is identified, future engineering work could begin in summer 2019.

The ministry is also in the process of awarding a contract to begin the design phase of the Malahat Goldstream Park median barrier project. Design work is scheduled to start shortly and will explore building an additional 1.5 kilometres of median barrier north of the West Shore Parkway to just north of Finlayson Arm Road.

India and China dominate city momentum index

India and China dominate JLL’s newly released 2019 city momentum index, pegging urban markets with a combination of economic and real estate dynamics likely to deliver robust returns over the next three years. Indian cities, Bengaluru, Hyderabad, Delhi and Pune occupy four of the top five spots on the list of 20 cities enjoying the most vibrant growth, with Chennai positioned in seventh.

Although mostly lumped in the back half of the list, nine Chinese cities are also flagged. Nairobi, at number six, is the only identified city outside Asia Pacific. The Vietnamese markets, Hanoi and Ho Chi Minh City, round out the list, along with Manila and Bangkok.

“A common theme this year is that many of the top-performing cities have strong links to the technology and innovation sector,” JLL’s accompanying analysis notes. “The technology sector is a key driver of both real estate and economic momentum, and is propelled not only by the large dominant tech firms, but also by a robust start-up culture.”

Assessments of momentum are based on: socio-economic evidence, such as growth in population, GDP, retail sales, air passengers and presence of corporate headquarters; and real estate market data, such as net office space absorption, rents and investment volume, to gauge the pace at which cities are attracting people, companies and capital. In total, 131 markets are analyzed, worldwide.

Among other cities drawing JLL’s attention are Osaka and Fukuoka, Japan, as emergent secondary markets capturing investors priced out of Tokyo. Somewhat similarly, Austin and Charlotte are medium-sized cities benefiting from in-migration in the United States, particularly due to growth in the digital economy and arrival of younger workers. Athens, Budapest, Amsterdam and Madrid are named cities to watch in Europe.

Ultimately, the report advises that urban livability, market transparency and sustainability will be key to fostering longer-term momentum. “In the world’s most rapidly developing cities with the fastest momentum, real estate is typically associated with bold super-sized projects and impressive skylines; yet the true value of real estate is in providing the infrastructure and environment that facilitates creativity, collaboration, innovation and entrepreneurship,” it maintains.

IFMA issues new FM benchmarking report

The International Facility Management Association (IFMA) has released the latest product from its FM Research and Benchmarking Institute (RBI), the 2018 Operations and Maintenance: Qualitative Analysis Benchmarking Report.

The report is a wide-ranging analysis of the most recent operations and maintenance benchmarking survey of over 2,000 individual responses, representing 98,000 buildings in 35 industries. The report also contains a section exploring facility management (FM) strategies for organizational agility and change management. FM professionals will be able to refer to the report to determine competitive performance standing and identify best practices in operations and maintenance.

“Like the businesses they serve, FM professionals are themselves operating in a perpetual state of change,” said Nickolas A. Rocha, director of RBI, in a press release. “Benchmarks have always captured a cross section of time to help inform strategic decisions, provide external validation or reveal operational shortcomings. For that reason alone, this report comes through in a big way, covering tools and tactics that define modern FM. On top of that, we’ve taken an extra step to ask FM professionals about their strategies for organizational agility. This analysis offers insights for how FM is thriving in a dynamic environment of change.”

The previous report, which was published in 2017, focused primarily on financial metrics, while the new report provides data from the United States and Canada on practices and tools commonly used by industry professionals in managing facility services quality, such as outsourcing of in-house maintenance needs and preventive maintenance plans.

The report provides data-based insights that can be used to build operational guidelines for solid waste diversion, legislative mandates, energy management, green janitorial training and programs, maintenance management, planning, work requests and device usage, satisfaction with and perception of information technology services, benchmarking plans, customer satisfaction survey use and frequency and organizational agility.

FM professionals can purchase and immediately download the report at bit.ly/ombenchmarks18 for a fee.

SNC-Lavalin named FM for Saskatchewan hospital

SNC-Lavalin has been selected by Graham Capital Partners LP (Graham) as the facility manager for the Saskatchewan Hospital North Battleford (SHNB), a provincial psychiatric facility, on a 30-year contract.

SNC-Lavalin’s contract includes responsibilities for the building’s electro-mechanical systems, elevators, help desk, utilities management, emergency management, road maintenance, snow removal, landscaping, building automation systems and the replacement and refurbishment of assets, among others.

“The Saskatchewan Hospital North Battleford is significant to the community and SNC-Lavalin is pleased to join the team to help ensure this facility delivers its essential role in mental health care,” said Dale Clarke, executive vice president, operations and maintenance (O&M) at SNC-Lavalin, in a press release. “The community can be confident knowing we have a very experienced team to ensure long-term success and achieve the greater goal of a first-class facility that provides quality health care.”

“As the owner of Access Prairies Partnership, Graham is proud to work in partnership with the Saskatchewan Government and Saskatchewan Health Authority to deliver this modern and innovative facility to the communities in this province,” added Adam Burk, Graham’s vice president, concessions and infrastructure finance.

SHNB is the newest and most advanced mental health treatment centre in the country. The facility houses 284 beds, including 96 secure beds that are reserved for male and female offenders living with mental health issues.

Meridian purchases naming rights to Sony Centre

Ontario’s largest credit union, Meridian, has purchased the naming rights for both The Sony Centre for the Performing Arts (Sony Centre) in downtown Toronto and for North York’s Toronto Centre for the Arts.

The Sony Centre and Toronto Centre for the Arts will respectively become Meridian Hall and Meridian Arts Centre as of Sept. 15, 2019.

Meridian will distribute $30.75-million across both centres over the next 15 years.

According to Civic Theatres Toronto, which operates both venues, the deal also includes fully integrated Meridian branding and content at both venues as well as their digital and promotional platforms. (Effective immediately, Civic Theatres Toronto is rebranding to become TO Live.)

Sony Centre is no stranger to name changes. What opened as the O’Keefe Centre in 1960 became the Hummingbird Centre in 1996, only to become the Sony Centre in 2007 after the electronic company initially purchased the naming rights. This change comes after the expiration of Sony’s 10-year contract with the building.

According to a press release, Meridian has doubled its presence in the Greater Toronto and Hamilton Area over the last four years, opening 19 new locations and significantly driving the organization’s growth. This new partnership amplifies Meridian’s ongoing commitment to supporting culturally rich and diverse communities.

Global flooring market set to see steady growth : report

The global flooring market is anticipated to reach $450 billion by 2026, expanding at a 6.5 per cent CAGR, according to a recent report by Transparency Market Research (TMR).

The global market intelligence company predicts that the global flooring market is likely to reach 32,450 million square metres in terms of volume by 2026-end.

The report said leading vendors in the market such as Boral Limited, Tarkett Group, The Dixie Group, Shaw Industries Group, and Congoleum Corporation, are expected to make large investments towards the research and development of an innovative product portfolio.

TMR said the increasing trend in consumer living space design and interiors has led to the expenditure of consumer furnishings such as carpets and other floor coverings that enhance the aesthetic appeal of the interior. This transformation is supported by increased levels of consumer incomes, changes in lifestyle and the adoption of various cultures, as far as interior decoration is concerned, which has further led to growing consumer concern about home decoration and working space.

In order to boost temperature resistance and enhance energy efficiency, sub-rising demands of residential and commercial buildings promote the growth of the flooring market. Industry growth will be driven by technological developments and product innovations to improve performance. An increase in green buildings is anticipated to amplify the demand for lightweight and environmentally friendly floors. The construction industry will be stimulated by strict regulatory codes for sustainable housing, agricultural construction, plumbing, industrial fire safety and workshops.

However, ecological restrictions on products, including the use of PVC and laminated floor covering, on account of VOC emissions may hinder the growth of the flooring market.

Several types of flooring options are currently offered by the vendors in the market. This fosters intense rivalry among players in the flooring industry. Across the globe, the industrial, commercial, and residential sectors demand innovation in flooring designs and patterns.

Recently, Europe introduced the National Energy Efficiency Action Plans (NEEAPs). This aims to attract investments towards the renovation of commercial as well as residential buildings. The growing focus towards home décor, renovation, and remodelling activities are thus playing a key role in influencing the global floorings market.

Canada invests in Montreal affordable housing

The federal government announced funding commitments for three affordable housing projects in the Montreal area, valued at $27.6 million. One of those projects, Premiere Porte, by the Société de Gestion Querbes, will provide housing for 78 families and individuals, in addition to offering support services to assist newcomers with their integration. These services will be offered in partnership with the Regroupement R.O.M.E.L.

“Through the Government of Canada’s historic National Housing Strategy, more Canadians will find safe, accessible and affordable housing in communities where their families can thrive and their children can learn and grow,” said Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister responsible for CMHC. “The first group of projects announced today through the National Housing Co-Investment Fund, are part of our government’s decade-long commitment to making housing more affordable. I am proud to be part of a government that has a long-term vision and works in a spirit of collaboration with all partners to enable all Canadians to build a better life for themselves and their community.”

“Our government is working to make housing more affordable here in Montreal and across Canada so that families don’t have to choose between paying rent and paying for groceries,” added Mélanie Joly, Minister of Tourism, Official Languages and La Francophonie and Member of Parliament for Ahuntsic-Cartierville. “Première Porte is a great example of this. Families should be able to live, grow and work in a neighbourhood that meets their needs, and have the stability and opportunities enabling them to succeed. Investing in housing is investing in our future – it’s good for the well-being of our families, our communities and our country as a whole.”

The Première Porte project, located in the Ahuntsic-Cartierville neighbourhood of Montréal has a projected construction cost of $16.3 million. The new building will achieve an energy savings of 26.1 per cent and a reduction in greenhouse gas emissions of 26.9 percent compared to 2015. All units and common areas will be accessible through universal design and 17 units will be fully accessible. At least 24 units will be affordable and will have a rent representing 80 per cent of the median market rent.

With a total budget of $13.2 billion, NHCF— a pillar initiative of the National Housing Strategy— gives priority to projects that help those in greatest need, including women and children fleeing family violence, seniors, Indigenous peoples, people with disabilities, those dealing with mental health and addictions, Veterans and young adults
Through the NHCF, the Government of Canada will work with partners to build up to 60,000 new affordable homes and repair up to 240,000 existing affordable and community homes over the next 10 years.

Survey says: Rent in Toronto highest in Canada

A new report from Rentals.ca reveals that rent in Toronto is the highest in Canada for one- and two-bedroom apartments, while Ontario is still the most expensive province when it comes to rental housing.

Average rents in most Canadian cities for one-bedroom apartments were slightly up month over month in December with Ottawa and Calgary leading the way at 5 per cent and 4 per cent respectively.

Low vacancy rates plague most Canadian cities except Edmonton and Calgary. Even though the vacancy rates have dropped in both cities, Edmonton still had a 5.3 per cent vacancy rate in 2018 and Calgary’s settled at 3.9 per cent, according to the Canada Mortgage and Housing Corporation.

To open up some units, Toronto will consider following Vancouver’s lead in restricting the short-term rental market (AirBnBs).

“With near record-high immigration in Canada and record-low unemployment, demand for housing is high, but flat or declining resale house prices due to current and expected future credit tightening has deterred many would-be, first-time buyers from entering the ownership market,” said Matt Danison, CEO of Rentals.ca. “That demand overflow is being felt in the rental market, where very few Canadian markets are offsetting demand with new rental supply.”

“Based on recent economic data, it looks less likely that there will be multiple interest rate hikes in 2019, this should provide some comfort for first-time buyers and nudge them into homeownership,” added Ben Myers, president of Bullpen Research and Consulting. “Even if we see more ownership household formation this year, immigration is expected to stay strong. Canada’s population increased by nearly 185,000 in the third quarter. Statistics Canada said this was the largest quarterly increase in absolute numbers since the introduction of its current demographic accounting system in 1971.”

Rentals.ca and Bullpenconsulting.ca are predicting annual rental rates will increase as much as 11 per cent in Toronto, 9 per cent in Ottawa and 7 per cent in Vancouver, and 6 per cent across Canada in its 2019 predictions for the Canadian rental market. Rentals.ca based the report on its data and from interviews with 16 housing experts around the country including data analysts, professors, economists, property managers,rental advocates, landlords and politicians.

The report cited continued low vacancy rates, higher interest rates, increased immigration, insufficient affordable housing, rent control, and millennials staying in the rental market longer as the main factors in driving monthly rents higher.

Quebec City mall reopens $52 million amusement park

After a year of renovations, Oxford Properties Group has re-opened its amusement centre, Méga Parc at Galeries de la Capitale shopping centre in Quebec City. It’s the second-largest indoor amusement park in Canada (the largest is at West Edmonton Mall).

Amid the ongoing e-commerce revolution retailers are turning to entertainment destinations to drive traffic to their physical retail spaces. Following the $52-million overhaul, Méga Parc now features 18 rides and experiences, 14 of which are brand new including the Zénith, the first spokeless Ferris wheel in North America.

The new Méga Parc also features the Patinarium – a 750-foot ice skating circuit which runs through the park and is the longest indoor skating trail in Canada.

Galeries de la Capitale is a shopping mall located in the Lebourgneuf neighbourhood of Les Rivières borough, in Quebec City. The shopping centre celebrated the re-opening of Méga Parc over the weekend of January 18.

Bull market to continue in Canadian commercial real estate: report

Avison Young predicts the 10-year bull market in the Canadian commercial real estate sector will continue in 2019. The strength in the Canadian commercial sector was supported by the lowest unemployment rate (5.6 per cent) in December in at least four decades according to Avison Young’s 2019 North America, Europe and Asia Forecast.

“Strong performances in 2017 and 2018 have led to supply constraints amid a maturing commercial real estate cycle in Canada,” said Bill Argeropoulos, principal practice leader, research in Canada for Avison Young in a press release.

“Activity is expected to remain stable in 2019 with a general supply constraint being the primary brake on property market growth. Meanwhile, occupiers and owners will have to adjust to rapid technological advances during a period of moderating economic growth.”

According to the annual report, industrial vacancy continued to decline, falling to a new record low of 2.9 per cent near the end of 2018 – and is expected to edge lower in 2019. Toronto (1.3 per cent) and Vancouver (1.5 per cent) posted the lowest vacancy rates in North America in 2018 and are projected to rank among the tightest three markets this year.

Office vacancy also declined in almost every market, lowering the Canadian average to 11 per cent near year-end 2018. A similar story is expected in 2019 although vacancy will rise modestly to 11.3 per cent by year-end after construction nearly doubled in 2018.

Avison Young said that retail properties remain the most unpredictable commercial real estate assets in Canada – amid the ongoing e-commerce revolution.

“Significant investment in technology to track millennial behaviour is being made by retailers developing and enhancing their physical locations and online market shares while seeking the correct balance in the symbiotic relationship between bricks and clicks,” Argeropoulos said.

“Competition from the emerging recreational-cannabis industry will add to the already robust e-commerce demand this year as owners and occupiers continue to grapple with rising land costs and the eroding supply of developable land – most evident in Vancouver and Toronto.

With the final tally yet to come, 2018 was another record year of investment, exceeding the previous high of $36 billion set in 2017.

“Supported by relatively sound leasing fundamentals in almost every market, debt reduction and asset and geographic diversification will continue in 2019, while asset values are expected to remain elevated and cap rates low for prime assets,” Argeropoulos concluded.

Calgary Cancer Centre on time, on budget

Construction of the $1.4-billion Calgary Cancer Centre is on time and on budget, according to the Alberta government.

Work on the largest government infrastructure project in the province began in 2017. Four cranes and about 300 workers are currently on site with construction well underway on the lower levels, all five parkade levels and the first clinical areas of the centre.

Thirty per cent of the project’s total concrete, or 37,000 cubic metres – has been poured as work progresses on the 12-room radiation therapy department.

With a total concrete volume of 125,000 cubic metres, it will be the largest stand-alone cancer centre in Canada when it begins offering improved care for patients in 2023.

PCL Construction has removed about 450,000 square metres of material since the project’s groundbreaking and will continue with below-grade activities through 2019. Construction will continue until 2022.

The Tom Baker Centre reached full capacity in 2003. Since then, cancer rates have continued to rise at a rate of thee to five per cent a year. Every day, 54 Albertans learn they have cancer, a number that is expected to grow to more than 70 by 2030 due to aging and population growth.

“All Albertans deserve top-quality, innovative cancer care. I’m so excited to see continued progress on the Calgary Cancer Centre that gives hope and increased access to care to patients and families in southern Alberta. We continue to fulfil our promise to provide life-saving health services in communities across the province,” said Premier Rachel Notley.

Development of the radiation therapy department will continue later this year with the pouring of more than 10,000 cubic metres of concrete and the construction of 12 steel and concrete vaults. Each vault will have 1.8-metre-thick walls to protect patients and families from radiation exposure. This will nearly double the current Tom Baker Cancer Centre’s capacity to treat patients with radiation therapy – currently more than 3,300 a year – to meet an anticipated 60 per cent increase in demand by 2030.

The Calgary Cancer Centre will be integrated with the Foothills Medical Centre and will replace the aging Tom Baker Cancer Centre.

Services at the centre will include: outpatient cancer clinics, more than 100 patient exam rooms, 160 inpatient unit beds, more than 100 chemotherapy chairs, clinical and operational support services, 12 radiation vaults, with three more shelled in for future growth. There will also be a new on-site underground parking with 1,650 stalls.

GTA condo rents post record increase in 2018

Rents for condominium apartments in the Greater Toronto Area (GTA) rose by an average of 9.3 per cent in 2018, surpassing the 8.3 per cent growth recorded in 2017 and marking the highest rate of increase since 2010, according to year-end 2018 rental market results released by Urbanation Inc. Over the past eight years, condo rents have increased by an average of 4.1 per cent.

On an annual basis, rent growth moderated to 6.7 per cent in Q4-2018, representing the slowest annual pace since Q1-2017, with the average monthly rent reaching $2,310. In the third and fourth quarters last year, average rents rose by only 0.5 per cent. Part of the reduced rate of growth is due to a decline in the average size of a unit rented in the fourth quarter to a record low size of 709 square feet, and a shift in leasing activity to less expensive markets outside of the core. In addition, more supply was made available as the number of newly-completed and registered condo units reached its highest level in two years in Q4. Rents rose by a record 11.3 per cent to $3.26 per square foot in Q4-2018.

The total number of units leased through MLS in 2018 remained level with previous years, reaching a high of 27,426 units (compared to 27,327 units in 2017). However, as a percentage of the total stock of condominium apartments, lease activity dipped to a five-year low of eight per cent last year. The reduced level of turnover was likely due to the expanded rent controls for tenanted units introduced in 2017 and the increased barriers to buying a home caused by higher prices and interest rates, as well as new mortgage qualification rules. Low unit turnover limited the amount of supply available in 2018, helping to bolster rents throughout the year.

As renters faced a tight market last year, they began to substitute both their preferred unit type and location. As total lease activity climbed 21 per cent year-over-year in Q4-2018 across the GTA, leases for studio units (with an average rent of $1,793) increased by 44 per cent. In addition, small one bedroom units without dens (with an average rent of $2,024) saw lease activity rise 31 per cent. Meanwhile, activity shifted into the outer 416 markets of Toronto, which include North York, Etobicoke and Scarborough, where leases rose 40 per cent compared to Q4-2017. Average rents in suburban regions of the City of Toronto were 13 per cent lower than in downtown Toronto (at $2,192, compared to $2,520).

The number of new condominium apartments that reached final closing climbed to 6,216 units in Q4-2018, the highest it has reached since Q4-2016 and following a period of extremely low new supply. This helped to create slightly more balanced conditions, as the ratio of leases-to-listings dipped to 75 per cent in Q4, its lowest in three years. Meanwhile, there were 1,902 active listings at the end of 2018, their highest point in nearly four years. This trend is expected to carry over into 2019 as more than 20,000 new condos reach completion.

The total number of purpose-built rental apartments under construction in the GTA climbed to a more than 30-year high of 11,905 units at the end of 2018, which marks an increase of 59 per cent compared to the 7,494 units at the end of 2017. A total of 5,371 purpose-built rentals began construction in 2018, increasing from 3,787 in 2017. In 2019, Urbanation expects nearly 5,000 purpose-built rentals to reach completion, representing the highest level since the early 1990s. Longer-term future supply represented by the inventory of projects proposed for development rose from 34,559 units at the end of 2017 to 40,688 units one year later.

The average vacancy rate for purpose-built rental apartments completed in the GTA since 2005 was 0.6 per cent in Q4-2018. The average rent for available units in these buildings increased by 13.8 per cent on an annual basis to an average of $3.16 per square foot, with an average unit size of 776 square feet.

“Recent housing policy changes, combined with strong demand fundamentals and supply constraints led to record growth for rents in the GTA last year,” said Shaun Hildebrand, president of Urbanation, in a press release. “These factors should continue to keep upward pressure on rents, but to a lesser degree in 2019 as affordability becomes a bigger issue and more condominium and rental units finish construction.”

Edmonton’s Roxy Theatre to be reconstructed

The Government of Canada is investing $2.5 million towards the reconstruction of Edmonton’s Roxy Theatre, which was badly damaged following a devastating fire in Jan. 2015. The funding, which is being provided by the Canada Cultural Spaces Fund, will go to the Theatre Network Society, which owns and operates the Roxy Theatre.

This funding will support the construction of a new, fully accessible 14,639-square-foot Roxy Theatre, which will rise on its original site, located on 124^th Street. The new facility will include a 200-seat black box theatre, an 80-seat studio theatre, a rehearsal hall and a gallery in the lobby.

The original Roxy Theatre was first built in 1938 as a cinema, and was transformed into a live theatre venue in 1990.

“With the support of Canadian Heritage and the Canada Cultural Spaces Fund, this investment will help us to take the leap forward towards a new Roxy Theatre. We will now confidently roll up our sleeves and work with Group 2 Architecture and Interior Design towards tendering and then starting construction this spring,” said Bradley Moss, artistic and executive director of the Theatre Network Society, in a press release. “Theatre Network is excited to be back home on 124th Street in Edmonton, and to build a new arts facility that will proudly serve Edmonton and Canada for years to come.”

Since the fire, the Society has relocated to a temporary space in Old Strathcona for its productions and performing arts series.

In 2018, the Canada Cultural Spaces Fund invested $330,270 in the Theatre Network Society for pre-construction design work. Construction is expected to be completed within the next 18 months.

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