Report defines framework for community wellbeing

A new report by design firm Dialog and The Conference Board of Canada (CBoC) provides an evidenced-based methodology to help design and development professionals understand the impact of their project design decisions on community wellbeing.

The research initiative was proposed to the CBoC by Dialog in 2016 to more accurately align the firm’s project work with their mission to meaningfully improve the wellbeing of communities and the environments they share. The result of the research, The Community Wellbeing Framework, is an open-ended and self-determined guide accessible for free with the invitation to share feedback and experiences to allow the CBoC and Dialog to continue to explore the benefits of designing for community wellbeing.

“By having a framework upon which our industry can define and evaluate the built environment’s contributions to community wellbeing, it empowers conversations toward a shared vision and actionable decision-making,” says Antonio Gómez-Palacio, principal at Dialog.

“Coordinating our approach in the design industry will support all members of a community – the public sector, the private sector, and individual groups – in finding common ground, a shared vision, and sense of purpose to design physical environments, first and foremost, in the interests of community wellbeing that has tangible value.”

The framework is made up of five domains, 18 indicators, and 48 metrics. The domains – social, cultural, environmental, economic, and political – form the structure of the framework and represent the dimensions of life that can affect a community’s wellbeing. The indicators are the aspects of each domain that determine the presence or absence of community wellbeing. Each indicator is informed by a series of quantifiable and qualifiable metrics that are relevant across different scales and context.

Some questions asked include:

Do people feel welcome, safe, and engaged, 24/7, regardless of background or physical ability?
Does the project have a positive impact on the functioning of local and global natural systems?
Does the project account for full life-cycle value and costs to the environment and community?
Do people feel included in their communities, connected to their social networks, and engaged in civic and community life, regardless of their background?
Do decision-makers, stakeholders, and the public at-large have opportunities to collaborate with the project team from the outset and throughout the life of the project?

The framework also provides business case application with demonstrable return on investment to design for community wellbeing in workplace, academic, hospital, retail, and residential settings.

To download the report, please visit: www.dialogdesign.ca/community-wellbeing.

Halifax office vacancy rate dips modestly

Halifax continues to suffer the highest office vacancy rate of any major Canadian market east of Alberta. However, a recent comprehensive survey of more than 20 million square feet of commercial space across a wide sweep of the regional municipality finds some relatively strong pockets and at least a modest dip from last year’s levels almost everywhere.

The Atlantic Canada real estate advisory firm, Turner Drake & Partners, reports an overall office vacancy rate of 15.25 per cent, representing a drop of more than 170 basis points since June 2017. New occupants moved into about 540,000 square feet of previously empty space over the past 12 months. In the same period, nearly 400,000 square feet of new space was added to the region’s office inventory, to exceed 12.1 million square feet.

At the best performing end of the spectrum, vacancy fell nearly 180 basis points to edge below 8 per cent in the suburban Halifax market. This node offers about 2.3 million square feet of typically newer office stock.

“A decade ago, the vast majority of new office construction was in the suburban business parks, driven by the lower costs of land and construction and the ease with which planning permission could be obtained. This head start on capturing tenants looking for modern space has resulted in the lowest vacancy rates of any of the Halifax submarkets,” the Turner Drake analysis explains.

Dartmouth’s central business district sits at the other pole with a vacancy rate nudging above 18.5 per cent. Even so, that’s in a submarket with just 330,000 square feet of office space.

The Halifax central business district accounts for more than 5 million square feet or about 42 per cent of the surveyed office inventory. Turner Drake analysts peg the vacancy rate at 18.35 per cent, down from 19.5 per cent one year earlier.

That’s a somewhat more optimistic picture than CBRE’s newly released numbers for the second quarter of 2018, which indicate 19.9 per cent of downtown office space is vacant — up from 19.3 per cent at the end of March. The Class A vacancy rate is higher still, at 22.1 per cent, in large part due to the arrival of new space in recent years.

An average net rent of $19.31 per square foot is lower than the $21.35 per square foot average for downtown Class A space across the 10 Canadian markets CBRE surveys, but is greater than the average rent Class A commands in Calgary, Winnipeg, Waterloo or London, Ontario.

“In 2013, Class A space represented 27.9 per cent of the total gross leasable area (GLA) in the office market, while Class B accounted for 64 per cent and Class C just 8.1 per cent. In 2018, Class A makes up 36.5 per cent of the total GLA, while Class B comprises 57.3 per cent and Class C, 6.2 per cent,” Turner Drake reports.

CBRE reports approximately 170,000 square feet of office space is currently under construction, with 120,000 square feet of that in a new downtown mixed-use project, but it will not be completed until 2019. “Larger scale projects are scheduled to come on stream in the 2 to 3-year projection period, but, in the meantime the steady short-term inventory will give demand a chance to gain some ground versus supply,” the Turner Drake analysis concludes.

The Halifax industrial market is already more upbeat. Turner Drake looks more narrowly at 8 million square feet of rentable warehouse space to calculate an 11.5 per cent vacancy rate and average rents of $7.81 per square foot, while CBRE’s averages arise from 12.4 million square feet of industrial space.

Those numbers show a 1 per cent drop in the vacancy rate, taking it down to 8.7 per cent, since March of this year. Average net rent rose in the same period, from $7.83 per square foot to $7.91 per square foot.

Dartmouth, in particular, presents a happy contrast to sluggish office dynamics. It was the best performing submarket, tallying more than 182,000 square feet of industrial absorption in the second quarter. In addition, tenants have pre-leased 80 per cent of the 82,500-square-foot facility now under construction, while the newly opened Centre for Ocean Ventures & Entrepreneurship (COVE) is key to envisioned high-tech research, development, innovation and commercialization in the marine sector.

GTA condo prices climb 5.4 per cent year-over-year

According to the Toronto Real Estate Board (TREB), the average selling price for condominium apartments in the Greater Toronto Area (GTA) has increased by 5.4 per cent year-over-year to $561,338.

The highest average selling price for a condominium apartment was in the City of Toronto, at $603,480, an increase of 6.5 per cent compared to Q2-2017.

“Condominium apartments have outperformed other housing types over the past year, in terms of price growth,” said Garry Bhaura, TREB president, in a press release. “It has been a seller’s market in many neighbourhoods for this home type, which is why we have continued to report average price growth more than twice the rate of inflation.”

There were a total of 6,837 condominium apartment sales through TREB’s MLS System in Q2-2018, a 16.5 per cent decline compared to the 8,188 sales reported in Q2-2017. However, the number of new condominium apartment listings fell by 15.9 per cent on an annual basis. Since sales and new listings were down by similar annual rates, this suggests that market conditions have remained similar over the past year, which has supported continued price growth.

“First time buyers continue to be a key driver of condominium apartment demand,” said Jason Mercer, TREB’s director of market analysis. “The relative affordability of condos versus low-rise home types, especially with the onset of stricter mortgage qualification guidelines and generally higher borrowing costs, has also been a key factor underpinning tight condo market conditions and continued average price growth.”

The current status of the condominium apartment market highlights the TREB’s calls for governments to take steps to work on creating greater housing options, especially in the “missing middle,” which refers to the gap between low-rise low density and high-rise high density housing.

“For many people, condominiums are the only realistic housing option, even if they may prefer a different lifestyle. There is simply not enough supply of housing to meet the need for home types between detached homes and condominium apartments,” added Bhaura. “This could help provide affordable housing options for home buyers and TREB looks forward to raising this issue during the upcoming municipal election campaign in our determination to find ways to get more of this type of housing into the market.”

National home sales rise 4.1 per cent in June

According to recent statistics from the Canadian Real Estate Association (CREA), national home sales increased by 4.1 per cent from May to June 2018. Although this marks the first considerable month-over-month increase this year, sales remain well below monthly levels recorded over the past five years.

Over 60 per cent of all local housing markets reported increased sales activity in June compared to May, led by the Greater Toronto Area (GTA). Meanwhile, sales in British Columbia continue to moderate.

Actual (not seasonally adjusted) sales activity fell 10.7 per cent year-over-year in June. Sales hit a five-year low and remained almost seven per cent below the 10-year average for the month of June. Activity came in below year-ago levels in nearly two-thirds of all local markets, led by those in the Lower Mainland of British Columbia.

“This year’s new stress-test on mortgage applicants has been weighing on home sales activity; however, the increase in June suggests its impact may be starting to lift,” said Barb Sukkau, CREA president, in a press release. “The extent to which the stress-test continues to sideline home buyers varies by housing market and price range.”

“The national increase in June home sales suggests activity may indeed be starting to turn the corner,” added Gregory Klump, CREA’s chief economist. “Even so, the number of homes trading hands has a long way to go before it returns to levels posted in recent years. Looking ahead, home sales activity and price gains will likely be held in check by higher interest rates.”

The number of newly listed homes declined by 1.8 per cent in June, and also remained below levels for the month for the last few years. New listings fell in several large urban markets, including those in B.C.’s Lower Mainland, Calgary, Edmonton, Ottawa and Montreal.

With sales up and new listings down, the national sales-to-new listings ratio reached 54.3 per cent in June, compared to 51.2 per cent in May, indicating a balanced market nationally. About two-thirds of all local markets were also in balanced market territory in June 2018.

The Aggregate Composite MLS HPI climbed 0.9 per cent year-over-year in June 2018, marking the 14^th consecutive month of decelerating gains. This figure was also the smallest increase since September 2009.

Decelerating year-over-year home price gains are largely reflecting trends currently being seen in the Greater Golden Horseshoe (GGH) housing markets tracked by the index. Home prices in that region have started to stabilize and trend higher on a month-over-month basis in recent months.

The largest year-over-year price gains in June were seen in apartment units (an increase of 11.3 per cent), followed by townhouse/row units (up 4.9 per cent), but price gains in these home types have decelerated this year. Meanwhile, one-storey and two-storey single-family home prices fell compared to year-ago levels in June (down 1.8 per cent and 4.1 per cent, respectively).

With home prices having climbed above year-ago levels in 8 of the 15 housing markets tracked by the HPI, price trends continue to vary widely. Fraser Valley experienced the largest home price increase, at 18.4 per cent, while home prices in Barrie and District fell by 6.5 per cent year-over-year.

The actual (not seasonally adjusted) national average price for homes sold in June 2018 fell 1.3 per cent year-over-year to just under $496,000. Although this marked the fifth month in a row of national annual price declines, it was the smallest decline among them.

When removing the Greater Vancouver Area and GTA, Canada’s most active and expensive housing markets, from consideration, the national average price for a home fell to just over $389,000.

Downtown Montreal office market making gains

Employment growth and a GDP uptick surpassing the national average underpin healthy office demand in downtown Montreal. Rents are rising, the availability rate remains steady even with the arrival of newly completed space and construction crews are busy on in-progress commercial, multi-residential and public infrastructure projects. Two new reports summarizing the first half of 2018 conclude the city is a standout among major Canadian markets.

“The outlook for business in Montreal has seldom been stronger than it is now,” maintains Jean Laurin, president and CEO of Devencore.

The real estate advisory firm’s newly released market report pegs the availability rate at 12.2 per cent across eight downtown submarkets and all building classes, and cites an average gross rent of $34.46 per square foot in 52.7 million square feet of inventory. During the past 12 months, 745,000 square feet of new space came onto the downtown Montreal office market, but the availability rate sits just 10 basis points higher, while average gross rents have pushed up more markedly from $32.79 per square foot at the end of June 2017.

Class A space along the René-Lévesque Boulevard corridor commands the downtown’s highest gross rent at $47.90 per square foot. Availability in this largest downtown submarket, with nearly 11 million square feet of space, is almost exactly aligned with the overall average. The rent gap between Class A and B space is most pronounced, at $13.15 per square foot, versus the narrower $6.40 to $7.40 per square foot gap in submarkets with lower availability rates.

“The once Flight to Quality trend has now become a Flight to Creativity as landlords demonstrate ingenuity and inventiveness during the redevelopment of space,” CBRE analysts suggest, in pinpointing the key trends shaping Montreal office market statistics for the second quarter of 2018. “This trend extends across all assets/classes, ranging from new construction to the retrofitting of Class C product.”

In the broader economic context, 2017 saw a 3.5 per cent increase in Montreal’s real GDP, while the business support agency, Montréal International, reports 48 foreign businesses established or expanded ventures last year, translating into 5,000 direct high-wage jobs. That’s in line with the investment returns the Canada Property Index recorded in 2017, in which a total return of 6.5 per cent on Montreal-based properties nearly doubled the 3.3 per cent total return of 2016.

“We are seeing a lot of interest from foreign capital and domestic capital,” Colin Johnston, Colin Johnston, president, research, valuation and advisory with Altus Group, observed in a panel discussion when those results were released last February.

Multi-billion-dollar infrastructure investments in a new Champlain Bridge, highway interchange and light rail public transit are expected to significantly improve transportation networks. The Quebec government has also pledged to support technological innovation and the transition to a low-carbon economy.

Devencore’s use of the availability rate — which adds available sublease space and space where tenants have confirmed a pending move-out to the narrower measurement of current vacancies — complements a market where major downtown projects are slated to deliver nearly 1.5 million square feet of new office space in both single-purpose and mixed-use buildings. The vast majority of this is found in Quartier International, which, due to this construction, is set to become the second largest office submarket downtown. Currently, its availability rate hovers just above 9.5 per cent with Class A buildings commanding average gross rents of $43.20 per square foot and Class B securing gross rents of $34.05 per square foot.

“Because availability rates are relatively high, this is a very good time for tenants to be negotiating a new lease or renewal, as space options in most office categories are very good,” Laurin advises. “However, brick-and-beam offices, which are highly sought after by the creative class of tenant, are in short supply, as are larger blocks of contiguous space.”

CBRE concurs with that analysis. “The existing loft office space has been unable to keep up with demand from large occupiers and these users are now taking up higher-priced built-to-suit loft offices,” it states.

CBRE pegs Montreal’s overall downtown office vacancy rate at 9.6 per cent — 110 basis points lower than the average across 10 national markets surveyed — with a tightening to 8 per cent for Class A space. Average Class A net rent of $22.58 per square foot likewise outperforms the national average of $21.35 per square foot.

Toronto’s 2.9 per cent downtown vacancy rate arguably positions it as Canada’s best landlords’ market, even though the average Class A net rent of $31.36 per square foot trails Vancouver’s $38.11 average. Still, Montreal looks rosy from the perspective of the comparably sized downtown Calgary market. There, the vacancy rate sits just below 28 per cent with the average Class A net rent at $16.51 per square foot.

Fixing Ontario’s rental housing crisis

On June 7th, Ontario Progressive Conservative party leader Doug Ford was elected the province’s new premier in a majority vote that has left some industries fearing the worst and others optimistic of much-needed change. Since Ford launched his campaign, the rental housing industry has been vocally in favour of a PC win, citing former premier Kathleen Wynne’s restrictive legislation as one of the major obstacles to new housing development.

With reports of an annual shortfall of 6,000 rental units per year in Ontario, landlords aren’t the only ones seeking amendments to a broken system. Desperate residents in need of affordable places to call home are just as driven to see the rental shortage resolved, but there are no simple solutions to a dilemma with many complicated, interrelated causes.

A 2018 CMHC study showed that the steep rise in land costs in Toronto is one factor contributing to the lack of supply. Add in restrictive government policies, zoning limitations and “uncertainty and delay in the approval process,” and investors often abandon thoughts of new development before it has begun.

Will Doug Ford’s conservative government help overturn some of these obstacles?

“The industry has a list of changes on the table that, if implemented, will significantly improve investor confidence,” says Joe Hoffer, Partner at Cohen Highley LLP Lawyers. “The changes are easy legislative fixes without impairing tenants’ rights. FRPO (Federation of Rental-housing Providers of Ontario) is expected to present the industry proposals soon with some expectation the province will be receptive.”

Overseeing that process is Daryl Chong, FRPO’s Interim President and CEO. In his ongoing advocacy of apartment sector interests and his quest to eliminate policies that stifle, rather than spur, new development, Chong says he is hopeful that the new Ford government will usher in an era of growth and heightened activity.

“During his campaign, Doug Ford was able to articulate a vision of change that resonated with regular people,” Chong says. “His vision is one that respects the taxpayer and stands up for the average person. His government also demonstrates a better understanding of our industry, and is open to exploring ways we can work together to encourage more rental supply. I look forward to working with the new Minister of Municipal Affairs and Housing, Steve Clark, to discuss ways we can reset this broken system and hopefully relook some of those misguided government policies that continue to hold back new supply.”

Specifically, one of those “misguided” policies is rent control and the post-1991 exemption that was overturned in April 2017 as the Liberals pressed forward with measures to help ease financial pressures on renters. As part of what the then government called its Fair Housing Plan, allowable rental increases were limited to the rate posted in the annual provincial rent increase guideline (about two per cent on average) regardless of when it came onto the market. Landlords and developers argue that the policy compels them to set prices high from the outset in order to make a new project viable —in other words, forego building anything affordable.

Ford has frequently asserted his belief that overregulation leads to undersupply and that when it comes to matters of supply and demand “the market should take care of itself.” Nevertheless, according to a May 15th statement posted on the Ontario PC website, his party appears to have no current plans to address rent control.

“I have criss-crossed the province, and from one corner to the other, the people of Ontario have told me they are struggling. I have listened to the people, and I won’t take rent control away from anyone. Period,” he said. “When it comes to rent control, we’re going to maintain the status quo.”

As an industry that looks forward to the day rent controls are eradicated, what can be done in the meantime? Here are a few key areas that will need to be addressed as the province moves toward an era of change—one that hopefully encourages rather than waylays the development of affordable rental housing:

1. A change to the government’s rent increase guideline
FRPO has been advocating a move towards a more sustainable CPI + “X%” cap on rent increases for existing buildings, and for a rolling exemption to the guideline for new construction.

2. Vacancy decontrol and above-guideline increases (AGIs)
These provisions allow for periodic catch-up in rents that would otherwise be frozen by legislation. FRPO will continue to educate government decision-makers on the importance of these provisions.

3. Streamlining planning and zoning approvals
Too many layers of municipal and provincial regulations are interfering with the pace of new construction. Streamlining these costly, onerous approvals is an essential step to speed up the development process.

4. Tax exemptions and incentives
Exploring government supports that help reduce the financial burden of new purpose-built apartment construction is a must for the industry to grow.

Multi-res apartment demand defines Q2

The overall pace of Canadian commercial real estate transactions slowed in the second quarter of 2018 but the dip in volume has nothing to do with demand for assets, according to the latest Research Report issued by Morguard Corporation.

“A drop in transaction volume in the second quarter is very much a function of low product availability rather than a drop in demand,” said Keith Reading, Director of Research at Morguard. “With quality office and industrial space at a premium, apartments are a crowd favourite as investors search for yield.”

Multi-suite residential properties bucked the second quarter trend, with transaction volumes growing by 17.5% year-over-year. Persistent rental growth, combined with a positive long-term sector forecast, has led to rising values for apartment properties in most of Canada’s major markets. The U.S. multi-suite residential sector also continued to provide value for Canadian investors, given healthy fundamentals driven by positive demographic trends and stable demand.

The supply-demand imbalance has driven up prices in key markets and asset types to an extent, particularly for Class A, new-build assets. A shortfall of functional space has also been characteristic of the strong leasing activity in the office and industrial sectors, with cycle-low vacancy rates occurring in most regions. Newly built speculative development, while still lower than the long-term average, also saw substantial pre-leasing activity.

“Office and industrial tenants who are looking to expand or move to new premises are being forced to make do with what they have due to a lack of alternatives in the downtowns of certain metros,” said Reading. “Landlords of prime assets are enjoying record occupancy levels and steadily increasing rents as supply remains tight.”

On the economic front, the Bank of Canada’s July interest rate increase was widely anticipated by investors. The rate hike indicates the Bank expects Canadian economic activity to pick up through the balance of the year, despite increasing concerns surrounding escalating Canada/U.S. trade tariffs and a slowdown in the national housing market.

The Second Quarter Update of the 2018 Economic Outlook and Market Fundamentals Research Report is available at www.morguard.com.

NDP launches new agreement for public projects

The B.C. NDP government has introduced a new labour agreement for major public-sector infrastructure projects, which will prioritize hiring and training for Indigenous people, women and locals.

Under government’s new Community Benefits Agreement, a diverse and qualified workforce will be supplied for select major public infrastructure projects through a newly created Crown corporation, BC Infrastructure Benefits Inc. (BCIB). BCIB will hire the project’s construction workers, and will work with unions and contractors to dispatch labour, as well as manage payroll and benefits. The organization is expected to be fully operational in fall 2018.

“With this agreement, we’re not just investing in roads, bridges and other infrastructure, we’re investing in good jobs and new opportunities for people who live in B.C. And with our focus on expanding apprenticeships for young British Columbians, we’re helping build B.C.’s next generation of construction workers,” said Premier John Horgan.

Highlights of the agreement include:

A targeted approach to maximizing apprenticeship opportunities on major public-infrastructure projects.
Focus on priority hiring and training of Indigenous peoples, and women.
Co-ordinated access to existing training programs, while identifying and addressing skills gaps.
Priority hiring for qualified individuals who live within close proximity of the projects.
Hiring flexibility for contractors, who can request named hires.
Wage alignment to prevailing industry rates to promote good wages for all employees.

The first projects to be delivered under the new community benefits framework are the new Pattullo Bridge, and the four-laning projects on the Trans-Canada Highway between Kamloops and Alberta. The request for qualifications (RFQ) for the Pattullo Bridge Replacement Project has been released.

“Certain sectors of our province have been ignored for far too long. Under a Community Benefits Agreement, these groups will have opportunities to contribute and invest in their communities while essentially building B.C,” said Tom Sigurdson, executive director of the B.C. Building Trades (BCBT)

Sigurdson calls B.C.’s new construction model a progressive and forward-thinking roadmap that will ensure B.C. remains prosperous.

The announcement also drew criticism and concern from other construction associations. Chris Gardner, president of the Independent Contractors and Businesses Association, called the new labour agreement “a payoff for political favours.”

“With nearly $30 billion in government construction projects planned over the next three years, project delays and overpaying by creating a union monopoly will cost taxpayers billions of dollars,” said Gardner. “Fair, transparent and open bidding should be a cornerstone value in a democracy like B.C. Whether you are union or open shop, you should have a fair shot at work put out by government.”

According to the Progressive Contractors Association of Canada (PCA), the agreement raises serious concerns about value for tax dollars and fairness for the vast majority of B.C. construction companies and their workers

Though details are scarce, indications are these projects will be modeled after the 1990s Island Highway Project, which was millions of dollars over budget. Workers who wanted to build that project were forced to pay dues to the building trades unions (BTU) . Today, building trades workers constitute just 15 per cent of B.C.’s construction workforce.

“Allowing the building trades unions a monopoly over future public construction projects by forcing all workers to pay union dues is not in the public interest,” said Rieghardt van Enter, PCA Regional Director, B.C. “This will inflate construction costs and limit opportunity for the vast majority of skilled workers who chose not to belong to the BTUs. A restrictive deal like this would be more like a ‘Building Trades Benefits’ than Community Benefits Agreement.”

The Vancouver Regional Construction Association (VRCA) and the British Columbia Construction Association (BCCA) also expressed concerns, noting Community Benefit Agreements are seen by various levels of government as a way to solve social issues, however, they represent a potentially limiting approach that may layer on costs and reduce competitive bidding on provincial infrastructure projects.

VRCA and BCCA are non-partisan construction associations representing both union and open-shop employers. The two have always advocated for fair, open, and transparent procurement processes which are an obligation and responsibility of government to taxpayers.

VRCA and BCCA therefore strongly oppose any procurement practice or program that seeks to confer exclusive bidding rights to firms based upon any system of quotas or legislated wages within the province.

HCMA Architecture expands leadership team

Vancouver-based HCMA Architecture + Design has announced the addition of Marni Robinson as director of community and stakeholder engagement and the promotion of Adam Fawkes to managing associate (Victoria), Darin Harding to associate and Ian McLean to special projects manager.

Robinson brings expertise in engagement, strategy, and communications to encourage informed and inclusive public participation. She is a champion for the creation of healthy, sustainable communities and has the ability to distill the diverse interests of many into a clear and viable design direction for your project

Fawkes has been an integral member of the Victoria studio for over a decade. He offers clients in-depth expertise in recreation, sports and aquatic architecture as well as sustainable design. As the firm’s presence on Vancouver Island continues to grow, he will work closely with Carl-Jan Rupp, principal, to expand the team.

Motivated by discovering new ideas and bringing them to life, Harding brings a decade of experience leading teams on public space design, transportation, and recreation projects. He is currently the project architect for North Vancouver’s Harry Jerome Recreation and Community Centre.

As special projects manager, McLean will lead small and unique projects that demand a more nimble, flexible and responsive design approach. These projects align and reinforce our community mission in an exceptional way

Based in Vancouver and Victoria B.C., HCMA Architecture + Design challenges the traditional boundaries of architectural practice by asking: ‘What’s Possible?’ Services include architectural design, interior design, wayfinding + signage, master planning + urban design, project + construction contract management.

CDPQ injects $250 million into Avison Young

Strategic investment from Caisse de dépôt et placement du Québec (CDPQ) will allow the principals of Avison Young to regain 100 per cent of the common shares in their real estate services company. With today’s announced $250 million injection from the Quebec-based institutional investor, Avison Young will repurchase shares from its current equity partner, Parallel49 Equity, and from other non-management founders and former principals.

Accompanying details of the deal — in which CDPQ acquires non-voting preferred shares and will designate three members to Avison Young’s nine-member board — stress that the company is “well capitalized” and has sought out the new investor to buttress its growth strategy. Currently, Avison Young boasts 84 offices in North America and Europe, expanding rapidly over the past decade through its model of private, principal-led ownership.

“We look forward to a collaborative relationship with CDPQ and its large global network, and benefitting from the ability to share expertise, deal flow, market intelligence and resources as we continue to grow our business across the spectrum of commercial real estate services in North America and other key markets globally,” says Mark Rose, Avison Young’s chair and chief executive officer.

“With its unique corporate culture and its long-term vision, Avison Young is an ideal partner for CDPQ, and we look forward to supporting the company as it continues to grow over the coming years,” observes Stéphane Etroy, executive vice president and head of private equity at CDPQ.

Chartwell launches new retirement living campaign

Chartwell Retirement Residences is aiming to educate seniors and their adult children about retirement living through a new national advertising campaign tackling common concerns and misconceptions about seniors housing. The initiative builds on Chartwell’s popular educational web series “Ask Edna” launched in 2016 to help families as they transition into this phase of life.

“Modern retirement living is increasingly about lifestyle and choice,” said Sharon Henderson Vice President of Marketing & Communications at Chartwell. “Our communities offer people the freedom to remain independent, active and social, with support options if and when they may need it.”

With the seismic shift in demographics approaching, the demand for information on independent and supportive housing options for seniors is growing.

“We are seeing an increased need to proactively challenge historical perceptions that truly do not represent the options and benefits of retirement living today,” Henderson said.

Chartwell is tackling misconceptions head-on with the new irreverent ad campaign, which features two fictional characters, Edna and Therese. The two high-spirited 80-somethings address topics on aging and retirement living, an approach that stands out in the landscape of current retirement home advertising.

Using both humour and frankness, Edna and Therese speak from a seniors’ viewpoint on various misconceptions, including the flexibility of living in a retirement residence, the level of independence that residents can enjoy, and they even address the hesitation adult children sometimes feel when starting the conversation with loved ones about considering a move to a retirement residence.

“Our goal is to help change the perception of retirement living and proactively offer information through our Retirement Living Consultants, Call Centre and on Chartwell.com that can help support seniors and loved one in their decision,” said Henderson.

New school the largest seismic project in Vancouver

The B.C. government will provide $79.3 million to fully replace Eric Hamber Secondary, the largest seismic project in Vancouver’s history.

Eric Hamber Secondary serves 1,700 students in grades 8–12. It opened in 1962, and has had several additions and renovations over the years.

However, the structure needs further upgrading, and has been deemed high risk in the event of an earthquake. The new school will be built next to the existing one on the northwest corner of the site. Students will remain in the existing school during construction. This will prevent the need for portables and minimize disruption.

Other project options would have required a phased approach, resulting in a longer construction period, a higher price and classes moving into a substantial number of portables. Using the existing school rather than temporary accommodation during construction saves approximately $16 million in costs over the seismic upgrade.

“One of our priorities at the Vancouver School District is to ensure our schools are safe. Another is that our schools are inspiring learning environments for our students,” said Suzanne Hoffman, Vancouver School District superintendent. “It’s very exciting that we will soon begin to design and build a replacement school that meets both those priorities at Eric Hamber, for decades to come.”

The new school will be built to Leadership in Energy and Environmental Design (LEED) gold standards. LEED gold schools are healthy, high-performance learning environments that include sustainable low-toxic materials, natural light, abundant fresh air, energy conservation, habitat protection and reduced demand on local landfills. The new school will also accommodate a child care facility.

Construction is slated to begin in summer 2020, and the new Eric Hamber Secondary is expected to welcome students in fall 2022.

Banff’s iconic Mount Royal Hotel reopens

The Mount Royal Hotel, located in the heart of Banff, officially reopened its doors on July 1 to welcome the community and guests back to the historic property. After a devastating fire in December 2016, the hotel has been restored to its former beauty, seamlessly blending its storied heritage with thoroughly modern amenities and design.

“The reopening of the Mount Royal Hotel will provide a truly unforgettable Banff experience for today’s modern traveller, bringing together a thoughtful juxtaposition of rich history and contemporary design,” said Dave McKenna, president, Banff Jasper Collection by Pursuit.

Designed by Dialog, the $45 million transformation embraced the storied past, incorporating the building’s evolution into the design to provide guests with the ultimate Canadian experience. For a building that occupies a large portion of one of the principal blocks on Banff’s iconic main street, the bar was set high.

“Guests today want a deeper experience from a hotel,” says Alison McNeil, design lead. “And that means a whole collection of little details that all fit together.”

The design inspiration reimagines the building as a quilt, symbolizing the distinct generations of the hotel coming together, emulating the patchwork of architecture. Dubbed by the team as “destination design,” meaning it’s rich with personality and true-to-place. “We are after a more curated, eclectic feel. It looks like someone’s house, not an airport hotel,” adds Alison.

And while the hotel has a contemporary feel that appeals to the most modern of travelers, it’s balanced with historic details in a very deliberate way. History is brought into many details: the library display, the guest room directories, and the hallways transition between decades.

Features of the historically inspired décor and remarkable amenities include the much anticipated rooftop lounge with outdoor hot tubs. A custom-designed museum and a hotel library provide unique spaces for guests and the community to connect and relax, while the well-appointed and spacious guest rooms showcase outstanding mountain views.

For more than 100 years, the Mount Royal Hotel has been an anchor in Banff’s community.

Toronto may extend reach of retrofit financing

Private landlords and condominium corporations in Toronto could gain access to a loan fund for energy upgrades if City Council agrees to open a longstanding retrofit financing scheme for municipal buildings to a larger pool of borrowers. A report to Toronto’s Parks and Environment Committee reiterates that such a move would have no budgetary impact since loan recipients fully cover the city’s borrowing costs.

Toronto Community Housing has been the largest beneficiary of the Sustainable Energy Plan Financing (SEPF) program thus far — receiving $35.2 million to put toward deep energy retrofits in nine buildings — as $53 million has been invested since 2013 in both the city’s portfolio and community-based, not-for-profit holdings. Toronto leverages debt financing for the upfront capital, which is then repaid as loan recipients realize their energy cost savings. To qualify, projected energy savings must be sufficient to offset a debt service schedule no greater than 20 years.

The city’s cost-neutral outlay would engender the greater projected benefit of curbing greenhouse gas (GHG) emissions in pursuit of Toronto’s targeted 80 per cent reduction of GHG emissions, relative to 1990 levels, by 2050. That’s also the rationale for the recommendation to expand the program to private commercial and multifamily buildings, the industrial sector, health care and educational facilities.

“Expanding eligibility requirements will allow building owners and managers to implement energy conservation, renewable energy and greenhouse gas reduction projects creating significant direct, indirect and induced employment, contributing the City’s TransformTO targets, reducing operating costs and creating revenue streams,” a report to Toronto’s Parks and Environment Committee states.

“Providing innovative financing to accelerate building retrofits is a key strategy in the TransformTO plan. Expanding SEPF eligibility to a broader range of building owners is a fast and effective way to begin delivering on this objective in a way that has no net financial impact on the City,” agrees Mary Pickering, vice president, program and partnerships with The Atmospheric Fund, in a letter of support.

Since the SEPF program’s forerunner, the Better Buildings Partnership, was launched in the early 1990s, the funding has enabled retrofits of more than 50 million square feet of space, calculated to have reduced cumulative carbon dioxide emissions by 400,000 tonnes. Since 2013, SEPH has funded projects delivering an estimated 115,000 equivalent megawatt-hours of electricity and natural gas savings.

The Atmospheric Fund urges a deeper pot of funds, beyond the $7.2 million allocated for 2018. “The cost of a deep retrofit of a single multi-residential building, based on TAF’s experience, is typically in the range of $2 to $5 million. With significant expansion of the program to more sectors, and an emphasis on deep retrofits, a much higher level of recoverable financing will be needed in future years,” Pickering’s letter notes.

Injuries to young workers declining in Nova Scotia

As the school year comes to an end and more young people enter the workforce, the Department of Labour and Advanced Education and WCB Nova Scotia are encouraging workers and employers to make workplace safety a priority.

For workers between the ages of 15 and 24, more than 40 per cent of all injuries happen between June and September. In the past five years, three young workers went to work and never came home.

In 2017, of the 23,952 workers injured in Nova Scotia WCB-covered workplaces, 3,179 were young workers and 527 of them were hurt seriously enough to need three days or more off work. While this number has steadily decreased from 647 in 2015, there is still progress to be made.

Youth are most often hurt working in retail and hospitality, and frequently hurt in manufacturing and construction. Being struck by an object and overexertion are the two most common causes of injury in young workers.

In 2013, Cody Ross was working as a heavy equipment operator on a drilling and blasting project when a heavy piece of steel fell on his hand. He was 26 at the time and just four months into his new job.

“It was terrifying not knowing if I lost my hand or fingers or how serious the damage was,” Ross said.

The injury crushed his fingers and severed the thumb on his left and dominant hand. In the years since, Cody has had 14 surgeries and therapy to help him cope with the trauma. Unable to return to his former job, he decided on a career in occupational health and safety.

“I’ve been through it. I’m a walking example of what can happen,” says Mr. Ross. “I want to try to prevent these things from happening to anyone else.”

“Everyone has a role to play when it comes to creating a safety culture – from parents, to employers, to workers,” said WCB Nova Scotia CEO Stuart MacLean. “Young workers are invaluable members of our workforce and the future of this province. Employers need to ensure all workers receive adequate safety training and understand their rights and responsibilities.

“Parents need to keep the conversation going at home, and I encourage workers to ask questions and make sure they only do something if they can do it safely.”

ISSA reveals expansion plans for Mexico show

An additional curriculum geared specifically to cleaning and maintenance professionals is set to be part of a new and improved ISSA Show Mexico 2019.

The worldwide cleaning industry association has promised that the show will “deliver significantly greater value to participants” by way of co-located events.

Taking place June 5-7, 2019, at the World Trade Center in Mexico City, the event will co-locate with ExpoMed, the largest medical trade show in Mexico, which annually hosts in excess of 10,000 attendees. As well as this, the Professional Retail Store Maintenance (PRSM) Association will also be co-locating its member meeting with the show. The ISSA said these concurrent events will significantly enhance professional networking and best practice sharing opportunities among event delegates, resulting in increased value and connections for all participants.

“ISSA is extremely excited about our new partnerships and the accompanying benefits they translate to for our exhibitors, event attendees, and members in Mexico,” said ISSA Executive Director John Barrett. “Increasingly, we are striving to deliver events and programs that represent world class education and best practices and innovation that enables cleaning and maintenance professionals to deliver maximum value to their clients. The ISSA Show Mexico 2019 embodies this philosophy. We sincerely appreciate our partnerships with ExpoMed and PRSM that enable ISSA to expand its scope and better fulfill the association’s mission in Mexico.”

Attendees can expect an “expansive program that delivers outstanding education, information, and professional networking opportunities to attendees.”

“Educational sessions are presented by recognized experts in cleaning and facility management. The exhibition features several of the world’s premier cleaning suppliers and solution providers, covering cleaning agents, health and safety supplies, and state-of-the-art equipment,” the ISSA said in a press release.

Winners of 2017 Ontario Green Health Care Awards announced

The winners of the 2017 Ontario Green Health Care Awards were announced on Tuesday.

Award recipients were determined by selecting the top performing facilities from the 2017 Green Hospital Scorecard (GHS).

The GHS, a comprehensive benchmarking tool designed for Canadian health care facilities, measures energy and water conservation, waste management and recycling, corporate commitment and pollution prevention.

Through an online questionnaire, participating facilities reported their environmental initiatives and various types of data from the previous calendar year. A scorecard is generated and sent to each facility which allows health care staff and senior leaders to analyze their site’s environmental impact from year to year and relative to their particular peer group.

A total of 110 hospital sites completed the 2017 GHS survey, which reports on data from the 2016 calendar year. The wide range of facility sizes and various peer groups provided the award webinar participants with insights into how health care facilities operate, and examples of how facilities have responded to the call to be more environmentally friendly by increasing their commitment to a wide variety of greening initiatives.

This year, the virtual awards ceremony involved the bestowing of 16 awards to the top performing hospitals in the areas of energy, water and waste plus the Green Hospital of the Year. Peer group categories included non-acute, community, academic and small hospitals.

Green Hospital of the Year

Providence Healthcare
Michael Garron Hospital
St. Michael’s Hospital
Kemptville District Hospital

Top Performers in Energy

Providence Healthcare
Michael Garron Hospital
Mount Sinai Hospital
Strathroy Middlesex Hospital

Top Performers in Water

St. Joseph’s Health Care London – South Wests Site
South Muskoka Memorial Hospital
Mount Sinai Hospital
Four Counties Health Services

Top Performers in Waste

St. Joseph’s Health Care London – Parkwood Institute
South Muskoka Memorial Hospital
Trillium Health Partners – Queensway Health Centre
Kemptville District Hospital

Energy Efficiency Day networking event

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