Home sales activity to fall 7.1 per cent this year: CREA

The Canadian Real Estate Association (CREA) has updated its forecast for national home sales activity for 2018 and extended the outlook to 2019.

Housing market fundamentals remain supportive in many regions of the country. By the same token, housing markets continue to face policy-related headwinds.

New mortgage rules announced in late 2017 had been expected to cause homebuyers to advance their purchase decision before the new rules came into effect in January, with the advanced purchases made in late 2017 resulting in fewer transactions in the first half of 2018. Evidence suggests the policy response was stronger than expected, with seasonally adjusted national home sales having surpassed all previous monthly records last December before dropping sharply in the first two months of 2018.

When CREA previously published its forecast in December 2017, housing markets were being affected by provincial policy measures in B.C. and Ontario, and by the stress test on mortgage applications involving down payments of less than 20 per cent. Rising interest rates and the announcement of a stress test on mortgage applications involving down payments of over 20 per cent set to take effect in January 2018 were also factors.

Since then, more provincial housing policy measures have been announced to further cool housing markets in B.C. In addition, interest rates have risen further and the stress test on mortgage applications involving down payments of over 20 per cent has come into effect.

Interest rates are widely expected to climb further this year. Higher interest rates make mortgage stress tests a more difficult hurdle for homebuyers that require mortgage financing.

Some homebuyers will likely elect to refrain from purchasing a home at this time amid heightened housing market uncertainty and to continue saving a larger down payment before purchasing, suggests the forecast. This is expected to result in lower sales in the first half of the year followed by a modest rebound in the second half of 2018 as housing market uncertainty fades.

Taking these factors into account, the national forecast for sales and average price has been lowered. National home sales activity is expected to fall by 7.1 per cent to 479,400 units in 2018. The decline reflects slower sales in B.C. and Ontario, along with heightened housing market uncertainty caused by provincial policy measures, high home prices, ongoing supply shortages and tightening mortgage stress tests as interest rates rise.

The national average price is expected to dip to $498,100 this year, down 2.3 per cent from 2017. Only Newfoundland and Labrador is expected to post a sales decline of that size, while half of all provinces see average price gains. The decline in national average price reflects fewer transactions taking place in B.C. and Ontario; it also reflects fewer sales of higher-priced homes in Vancouver and Toronto.

Home prices in Eastern Ontario, Quebec, New Brunswick, Nova Scotia and Prince Edward Island are expected to continue to climb following years of firming market conditions.

Meanwhile, home prices are predicted to be little changed in Alberta and fall in Saskatchewan and Newfoundland and Labrador for the fourth consecutive year. In Saskatchewan and Newfoundland and Labrador, supply remains elevated in relation to demand.

In 2019, national sales are expected to rebound modestly to 496,500 units but remain below highs recorded from 2015 to 2017. The rebound reflects an expected partial recovery of sales over the second half of 2018 in Ontario and B.C. followed by a gradual slowdown of activity over 2019 as previously deferred activity comes to a close and interest rates continue to rise. This trend is also expected in other provinces but will be more noticeable in B.C. and Ontario, where transactions have fallen dramatically early this year despite a supportive economic and demographic backdrop for housing demand.

The national average price is also predicted to rebound by 3.1 per cent to $513,300 in 2019, placing it around level with the 2017 figure. The increase reflects expected modest price gains in a number of provinces and a partial rebound of sales activity in B.C. and Ontario.

In addition, forecast price gains in B.C. and Ontario in 2019 reflect an expected improvement for sales activity in Vancouver and Toronto and homes remaining in short supply relative to demand in these provinces. As market conditions continue to firm up in Quebec, New Brunswick, Nova Scotia and Prince Edward Island, these provinces are expected to see further slight price gains in 2019. Meanwhile, prices in Alberta, Saskatchewan, Manitoba and Newfoundland and Labrador are predicted to hold relatively steady from 2018 to 2019.

Deadline to apply for condo manager licence to close

The deadline to apply for the licences that are now mandatory to continue providing condo management services in Ontario closes on Friday, March 30, at midnight. The original Jan. 29 deadline was extended in mid-February after the new body set up to oversee the industry determined that more than 200 individuals had missed this cut-off date.

No further extensions will be granted, Sandy Vizely, deputy registrar at the Condominium Management Regulatory Authority of Ontario (CMRAO), confirmed in an email.

“It’s now an offence under subsection 34(2) of the Condominium Management Services Act, 2015, to provide condo management services without a licence,” said Vizely. “If convicted, there are serious penalties for committing an offence under the Act.”

“Any condo corporation that enters into an agreement with an unlicensed manager or management company is also contravening the Condo Act,” Vizely added. “It’s important for condo directors to understand their obligations as well.”

The CMRAO received more applications than expected, based on its estimates that around 2,200 individuals and 300 companies were providing condo management services before mandatory licensing launched. As of Jan. 29, it had received 320 applications from companies and 2,432 applications from individuals.

Of the individuals, 1,386 applied for general licences, 636 applied for transitional general licences and 410 applied for limited licences. Which type of licence individuals are eligible to apply for depends on their education and experience.

Mandatory licensing was introduced as part of broader legislative reforms aimed at improving consumer protection in the Ontario condo industry.

Arts Umbrella gets $7 million funding for new home

The federal government has announced a historic $7 million in funding for Arts Umbrella’s new home on Granville Island in Vancouver.

When the building opens in September 2019, it will feature seven dance studios, five theatre and music studios, eight visual and media arts studios, a 160-seat professional theatre, a publicly accessible exhibition gallery, and new workshop spaces.

The currently facility of the renowned non-profit arts education organization on Granville Island— a converted 1930s nail factory—is in poor condition from overuse, does not allow for state-of-the-art technologies, and is bursting at the seams due to high demand.

The new 50,000 sq. ft building will more than double Arts Umbrella’s net square footage, ensuring innovative spaces and technologies, increased access to arts education programs for children and youth, and expanding our significant and ongoing contribution to the creative economy.

“Our government believes that all children, regardless of age or circumstance, deserve access to artistic and cultural learning activities in their community,” said the Honourable Mélanie Joly, Minister of Canadian Heritage. The funding comes from the Department of Canadian Heritage through the Canada Cultural Spaces Fund.

The building was originally designed by Patkau Architects, but its retrofit will be undertaken by Henriquez Partners Architects. Construction is expected to begin this summer.

“Arts Umbrella is constantly pushing boundaries,” says Paul Larocque, president & CEO of Arts Umbrella. “This new building will allow us to keep this forward momentum and provide young people with limitless opportunities.”

The funding will go towards the $27 million renovation cost of converting Emily Carr University of Art + Design’s old South Building at 1400 Johnston Street into Arts Umbrella’s new purpose-designed facility.

BILD reports higher prices for new homes in GTA

According to the Building Industry and Land Development Association (BILD), the prices of new homes in the GTA showed few signs of slowing down in February.

The benchmark price for condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units climbed again in February to $729,735, an increase of 39.5 per cent year-over-year, according to Altus Group. The benchmark price for available new single-family homes, including detached, linked and semi-detached houses and townhouses (excluding stacked townhouses), fell slightly from $1,229,454 in January to $1,219,874 in February, but was still 12.8 per cent higher than February 2017’s average.

“Tight supply continues to drive pricing levels,” said David Wilkes, BILD president and CEO, in a press release. “This is especially true when it comes to the pricing of single-family homes.”

Although the supply of new homes on the market slightly increased in February to 12,896 units (comprised of 9,285 condominium apartments and 3,611 single family homes), supply is still well below what is considered a healthy level. Supply of new housing is generally measured by the number of new homes available for purchase in builders’ inventories at the end of the month and includes units in pre-construction, under construction and completed projects. A healthy market should have nine to 12 months’ worth of inventory available, but currently, inventory sits at about four months’ worth, based on the pace of sales over the last year.

“While single-family new home inventory is up from last year, it is still quite low in historical terms,” said Patricia Arsenault, Altus Group’s executive vice president, research consulting services. “Moreover, there is a dearth of new single-family product that is affordable to a broader range of buyers – fewer than one in five single-family homes available to purchase at the end of February were priced below $750,000.”

Sales of new homes in the region rose month-over-month in February, with 2,159 new homes sold, but remained soft relative to the very strong sales recorded last February. Sales of new single-family homes fell 82 per cent year-over-year and 79 per cent below the 10-year average, with 264 units sold in February. Sales of condominium apartments declined 50 per cent year-over-year, but were still 17 per cent above the 10-year average, with 1,895 units sold.

According to Wilkes, the government regulation is a significant factor influencing the industry’s ability to increase the supply of new housing in the GTA.

“We encounter excessive red tape, out-of-date zoning, and lack of developable land serviced with critical infrastructure,” he said. “That is why, as the municipal elections approach, we’ll be initiating public conversations about ways policy makers, urban planners, our industry and residents can work together to address the GTA’s housing supply challenge.”

National home sales decline further in February

Canadian home sales fell 6.5 per cent month-over-month in February, marking the second consecutive monthly decline following record sales in December 2017 and the lowest reading in nearly five years, according to statistics released by the Canadian Real Estate Association (CREA).

February sales were down on a monthly basis in nearly three-quarters of all local housing markets, with large monthly declines recorded in and around the Greater Vancouver and Greater Toronto areas.

Actual (not seasonally adjusted) activity declined 16.9 per cent year-over-year to reach a five-year low for the month of February. Sales were also seven per cent below the 10-year average for the month. February sales activity was down compared to year-ago levels in 80 per cent of all local markets, including those within and surrounding Ontario’s Greater Golden Horseshoe region.

“The drop off in sales activity following the record-breaking peak late last year confirms that many homebuyers moved purchase decisions forward late last year before tighter mortgage rules took effect in January, said Gregory Klump, CREA’s chief economist, in a press release. “Momentum for home sales activity going into the second quarter is also likely to be weighed down by housing market uncertainty in British Columbia, where new housing policies were introduced toward the end of February.”

The number of newly listed homes climbed 8.1 per cent month-over-month in February, following a drop of more than 20 per cent in January. Despite this increase, new listings remained 6.4 per cent below the 10-year monthly average and 14.6 per cent below the peak reached in December 2017.

New supply was up in approximately three quarters of all local markets. The monthly increase was led by B.C.’s Lower Mainland, the GTA, Ottawa and Montreal, which all remained balanced or continue to favour sellers. The national sales-to-new listings ratio eased to 55 per cent, compared to 63.7 per cent in January, indicating a balanced housing market.

The number of months of inventory also helps measure the balance between housing supply and demand. At the end of February 2018, there were 5.3 months of inventory on a national basis – the highest level in over two years and in line with the long-term average of 5.2 months.

The MLS Home Price Index (HPI) rose by 6.9 per cent year-over-year in February 2018, which marks the 10^th consecutive month when year-over-year gains decelerated. It was also the smallest year-over-year increase since October 2015.

Slowing year-over-year price growth is largely reflective of trends found in the GGH housing markets. Prices in the area have stabilized or begun to show tentative signs of moving higher recently; however, year-over-year comparisons are likely to continue to deteriorate further due to rapid price gains experienced last year.

The price for an apartment unit climbed 20.1 per cent year-over-year in February, the largest price gains across all home types. The price for a townhouse/row unit increased by 11.8 per cent, while one-storey single family homes saw price increases of 3.5 per cent, and two-storey single family homes only saw increases of one per cent.

The actual (not seasonally adjusted) national average price for homes sold in February 2018 just surpassed $494,000, a five per cent decline compared to February 2017. This drop demonstrates the impact of GTA sales activity on the national average price. When removing the Greater Vancouver and Greater Toronto regions, two of the most active and expensive markets, from calculations, the national average price falls to just under $382,000.

Energy Star certification launches for Canadian commercial buildings

ENERGY STAR certification is now available in Canada for commercial and institutional buildings for the first time. In an announcement made earlier this week, Canada’s Minister of Natural Resources, the Honourable Jim Carr, challenged building owners and managers to take advantage of this new tool to demonstrate their commitment to green growth and to be the first to apply to earn their certification.

“We have realized great successes through energy efficiency in Canada, and I am proud to bring ENERGY STAR certification to our tens of thousands of commercial and institutional buildings,” he said. “I encourage all building managers and owners to apply to be one of the firsts in Canada to become certified, thereby improving environmental performance, lowering greenhouse gas emissions and helping to build a better future for all Canadians.”

ENERGY STAR Portfolio Manager is a resource that building owners and managers can use to help manage energy consumption. Thousands are already doing their part for a low-carbon future using this Government of Canada, free, online energy-benchmarking tool to transform their buildings into greener, more energy-efficient spaces.

Starting this week, the Government of Canada will recognize commercial and institutional buildings that demonstrate exceptional energy performance with ENERGY STAR’s mark of superior energy efficiency. The program is expanding to encourage and recognize energy efficiency leaders in the building sector for their exceptional energy performance, corporate management and environmental stewardship.

In addition, the first buildings to be certified will receive additional recognition beyond the ENERGY STAR acknowledgement. The “Who Will Be the First?” challenge runs until April 30, 2018, 11:59 p.m. PDT.

ENERGY STAR certified buildings save energy, reduce costs and generate fewer greenhouse gas emissions than non-certified buildings. They often see higher rental and occupancy rates and greater engagement with clients and their communities.

Buildings now eligible for certification in Canada include the following with additional building types to be added over time:
• Commercial offices
• K–12 schools
• Hospitals
• Medical offices
• Senior care communities and residential care facilities
• Supermarkets and food stores
• Ice and curling rinks

Rich amenities make up for shrinking suites

Investors, developers, and builders are scrambling to keep pace with surging demand for multi-family housing as new condo sales hit an all-time-high for October last year.

The economic realities of development today have meant that suite sizes have had to shrink, and multi-family developers are creating amenity-laden buildings to compensate. It’s clear that residents across multiple generations are willing to trade in-unit square footage for common area spaces that complement their lifestyles.

Design should be leveraged to create holistic living spaces that transcend passing fads and recognize that residents want more than just four walls and a roof over their head. Here are four key lifestyle trends that will shape how builders, developers, and architects approach their projects in 2018:

Parcel pending

The rise of online shopping is disrupting more than just bricks and mortar retail; it’s quickly become the consternation of condo concierges across Toronto. Piles of packages and parcels mount up behind desks, creating a mess and chaos.

The design solution? Factor in dedicated storage to handle the daily stream of deliveries, including cold storage lockers so groceries can be delivered at any time and remain fresh when residents collect them. Alongside this, mobile apps have allowed couriers and concierge desks to alert residents to deliveries.

The hassles of storing and managing, the problem of loss or theft, and the everyday frustration of having to rush home before the management office closes are now a thing of the past.

The Well, a transformative mixed-use redevelopment in downtown Toronto, has given over ample space to meet the realities of the way urbanites shop today.

Co-working spaces

The boundaries between work and home have never been more blurred. The rise of the freelance life, the portfolio career, and the side gig means that today’s condo residents want something different from their building’s public spaces. They want flexible arrangements that let them work from home on their laptop and mobile phone; they just don’t want to do that alone in their living room.

Recognizing this, developer CentreCourt is creating Toronto’s first condo tower with a co-working space as part of the building’s amenities. The 4,000-square-foot space, complete with printers and private meeting rooms, will remain open 24 hours a day.

Flexible amenity spaces

With millennials now outnumbering other generations in Canada, by default they’re the largest group in the multi-family residential sector too. They’ve grown up with the ability to customize almost everything in their lives. Not surprisingly, they want to be able to customize their physical environments too.

Increasingly this is reflected in how lobbies and amenity spaces are being considered. These spaces should have flexibility built into them with demountable walls and screens, along with smart layouts that let residents book different areas without the whole area suddenly being off-limits to everyone else.

Fitzrovia Capital, the developer behind 390 Dufferin St., is taking this approach to its amenity spaces. Fluid, flexible spaces create a democratic common space that signals to all residents they’re welcome to use it how they like.

Elevated fitness facilities

People want to feel connected to each other, to their neighbourhood and to their homes. They also want their homes to provide respite from the world and to recharge them. What better way to meet both of these deeply held needs than a spectacular gym and fitness facility?

Take, for example, RioCan and Woodbine’s joint venture at The Well, which will be providing residents with a 6,000-square-foot gym on the 46th floor of the building. In addition to a spectacular view, the gym will offer a flexible workout space designed to be able to offer residents a wealth of classes, from yoga to Crossfit, and in so doing allowing neighbours to connect with one another in their vertical village.

Relegating the gym to a below-grade, joyless bunker no longer passes muster.

Solving for the challenges of how people live now results in developments that rise above the faddish, and instead meet the deeply held needs of what residents really want from their homes.

Dominic DeFreitas is VP of residential development at figure3.

Pictured above is a rendering of a co-working space designed by figure3 for developer Daniels.

KPU Trades offer tankless water heater training

Kwantlen Polytechnic University (KPU) will be offering tankless water heater training, thanks to a generous donation from gas appliance manufacturing Rinnai American Corporation.

Popular in Europe for years, tankless water heaters are becoming steadily more prevalent in North American homes and commercial spaces, as is the demand for installation and maintenance.

To meet this growing industry need, KPU will soon be offering technician training for the energy and space-saving appliances.

“This is definitely the newer technology side of the trade,” said plumbing/piping instructor Sven Rohde. “At KPU, we pride ourselves on being able to provide our students with industry-grade cutting-edge technology, and Rinnai is one of the most respected brands in our field. This is really exciting for our students.”

Rinnai supplied KPU’s Faculty of Trades and Technology with five tankless water heaters, also known as hot water on-demand, valued at more than $15,000. The corporation also provided instructor training at its headquarters in Georgia for both Rohde and appliance service technology instructor Tom Westgate.

According to Westgate, the industry partnership is mutually beneficial, as Rinnai is looking for technicians trained to service their water heaters, “We’re all pretty happy to collaborate because it means more well-trained men and women in the field properly servicing these technically advanced products.”

The on-demand water heaters are already installed in the plumbing/piping lab at the KPU Tech campus in Cloverdale and will be part of the plumbing/piping and appliance service technology programs for fall 2018.

“The inter-program collaboration between KPU’s plumbing and appliance repair augments both programs’ training with innovative technology,” said Dean of the Faculty of Trades and Technology Dr. David Florkowski. “Plumbers and gasfitters will have the expertise to install the heating equipment while appliance service technicians will know how to repair and trouble shoot an already installed system. Rinnai’s donation moves KPU Tech in a new and innovative direction with regards to the technology being taught and the collaborative manner in which instruction is planned.”

IBI Group launches Smart City Platform

IBI Group has launched its Smart City Platform, which allows cities to improve the efficiency and safety of city operations and urban environments, and equips both city staff and residents with the necessary tools to make rapid and informed decisions. Offered as a software-as-a-service (SaaS) solution, the Platform is designed to work with a city’s existing hardware and software systems and can be scaled for use on a single building, campus or subdivision through to an entire city or region.

The Smart City Platform’s suite of tools and dashboards combines predictive analytics gleaned from IoT sensors, control devices and existing city networks to inform the design and management of more sustainable and resilient urban environments. Drawing on IBI Group’s extensive expertise in urban technologies, and its experience designing and implementing smart city strategies, the Smart City Platform provides a flexible and cost-effective way for cities to manage their operations, inform better decision making, and give residents a voice.

“As a technology-driven design firm, we are passionate about developing solutions to inform smarter, more resilient cities and communities. The Smart City Platform is an exciting step in this direction for the firm,” said Scott Stewart, IBI Group CEO.

The Platform’s public engagement module offers the ability to connect with city residents through apps, email and social media, fostering a two-way dialogue between residents and service operators. Residents wlll access more accurate, timely and accessible information and will be able to participate in the improvement of city services.

Built on the fundamental principles of open data and sharing, IBI Group’s Smart City Platform is designed to connect stakeholders with the services, information and insight they need. City agencies, decision makers, city staff, and most importantly, city residents, will benefit from the platform, as city services will be provided in a more efficient manner by prioritizing scarce resources where they are needed most, predicting needs based on a variety of conditions, and keeping all parties from the resident to the mayor informed and empowered.

“Smart Cities are already a reality,” said Bruno Peters, IBI Group Smart Cities Task Force lead. “Government and private sector initiatives worldwide are implementing innovative ways to make cities in the 21^st Century more efficient, more livable, and more competitive. We believe that achieving these goals is not just about being technologically advanced – it’s also about urban reinvention and citizen engagement.”

U of Winnipeg students conduct campus waste audit

In early March, 28 student volunteers from the University of Winnipeg helped sort and weigh nearly all of the garbage, recycling and compost generated by the community over the course of five days for the Campus Sustainability Office’s triannual waste audit.

The goal of the audit is to collect data on the University’s waste diversion efforts. With the help of UWinnipeg’s Physical Plant and Bee Clean staff, the team gathered waste from the main campus, the Buhler Centre and the Richardson College for the Environment and Science Complex, making this the Sustainability Office’s most comprehensive audit to date.

Once collected, each bag was identified by the kind of bin it came from (single or multi-stream) and assigned a contamination percentage based on the number of things that weren’t supposed to be there — for example, the number of non-compostable items in compost bags.

“This is my first semester in this university, so I’m quite interested in these activities,” student Ravneet Kaur said in a press release, “Everyone should be involved in something like this. It provides knowledge to people about recycling and composting. Some people don’t know about waste.”

Thanks to a partnership with the Canadian Beverage Container Recycling Association, the volunteers were able to sort the contents of the bags into 69 different waste categories. Being able to organize the waste so precisely, means the Sustainability Office is able to figure out how well they’re educating and communicating with the campus community.

“The waste audit is a great opportunity for students to get their hands, literally, dirty in the practice of institutional sustainability management,” said Joseph Wasylycia-Leis, UWinnipeg’s campus sustainability coordinator. “We know landfill diversion is a key element of environmental sustainability. It’s an important job that every member of the campus community is responsible for.”

In addition to gathering important data, the waste audit is also a chance to explore the idea of providing waste auditing services to local businesses as a student-led social enterprise.

Once the data is analyzed the waste audit findings will be posted on the Campus Sustainability Office’s website.

Nexus REIT acquires industrial properties in Western Canada

Nexus Real Estate Investment Trust (Nexus REIT) is purchasing three industrial properties in Western Canada for $64 million.

The REIT has also entered into conditional agreements for the sale of two non-core properties in Kelowna, B.C. and Yellowknife, Northwest Territories, which are being sold for $11.3 million in two separate transactions. The sale price is $2.6 million greater than the total original purchase prices.

“We are extremely pleased to announce these acquisitions which we believe will not only generate increases in our AFFO per unit but should result in significant improvement in our NAV/unit once the repurposing associated with the Richmond assets is complete,” said Nexus REIT CEO Kelly Hanczyk. “The vendors realize the attractiveness of becoming long-term Nexus REIT unitholders as evidenced by a significant portion of the purchase price being paid in units (at a premium to today’s trading price).”

Nexus REIT expects to grow its market capitalization by about $22.7 million, without the need to raise equity in the public markets.

“We are currently in negotiations with several additional vendors for similar unit structured deals and hope that these are the first in a series of transactions that we will announce in the near future and complete in the second quarter,” adds Hanczyk.

Schulich students win Developers’ Den competition

Students enrolled in the Master in Real Estate and Infrastructure program at York University’s Schulich School of Business won first place in the eighth annual Developers’ Den international case competition.

Started in 2011, Developers’ Den is Canada’s longest running and most prestigious real estate case competition. This year’s case competition was presented by Altus Group and co-hosted by Schulich’s Brookfield Centre in Real Estate & Infrastructure and the Schulich Real Property Alumni Association.

The winning team, made up of Schulich MREI students Alannah Bird, Derek Wei, Jordan Trinder, and Bao Nguyen, defeated 11 teams from leading graduate business and professional school programs and won a $6,000 prize. MBA students from Ivey School of Business and the Schulich School of Business placed second and third, respectively.

The March 23rd final-round presentation and awards reception drew over 100 industry representatives, who joined with 14 expert judges to watch North America’s top real estate students perform and network with the competitors and industry peers.

“The Developers’ Den competition provides an important opportunity for the best students to develop and showcase their analytical, creative and presentation skills as emerging talent in front of leaders within the real property sector,” said Jim Clayton, who was recently appointed to the Timothy R. Price Chair at Schulich’s Brookfield Centre in Real Estate and Infrastructure. “We are grateful for the tremendous support the competition receives from industry and alumni.”

Last year, Schulich launched a Master in Real Estate and Infrastructure program to complement its long-standing MBA specialization in Real Estate and Infrastructure.

Mine the Bill

How Bitcoin’s soaring energy consumption could be increasing your electricity bill

The buzz around Bitcoin is rising. Yet as more and more virtual “miners” look to make their fortune in the cryptocurrency market, their byte-sited efforts are creating massive power demands. This can be an issue in bulk metered properties, where all it takes is one Bitcoin miner’s activities to drive up the cost of everyone’s bill.

“Bitcoin mining is a growing concern for property managers in bulk metered buildings,” says Andrew Beacom, President and CEO of Priority Submetering Solutions. “Not only is it contributing to higher electricity consumption, it is also increasing the building’s demand. That means the building as a whole is paying higher rates for electricity and the delivery of that electricity. “

For the uninitiated, a Bitcoin is a unit of virtual currency that is rewarded to “miners” who use specialized computer software to solve complex calculations that are part of the Bitcoin network. The main appeal of this network is that it is not owned by any one entity, making Bitcoin a decentralized digital currency. That means Bitcoin owners can trade units among themselves without the need of an intermediary (e.g., a bank).

So, what does this have to do with electricity bills? For one, it takes significant computational power to be a Bitcoin miner; ergo, it takes a lot of electricity to keep the process going. According to the tech website Digiconomist, each Bitcoin transaction requires 235kWh, which is enough to provide power to a home for nine days. And considering that Bitcoin miners generate an average of 75 Bitcoins an hour, it’s estimated that the Bitcoin network alone consumes an annual rate of 32TWh – or about as much energy used each year by the country of Denmark.

In short: Bitcoin mining may be the future, but it’s also becoming an energy drain.

An issue close to home

Bitcoin was the first cryptocurrency unit in the world when it was introduced in 2009. Since then, it has been joined by countless other players such as Litecoin and Ethereum (to name a few). What this means for the property management industry is that cryptocurrency mining is no longer a niche activity; and if managers and owners haven’t felt the impacts yet, it’s only a matter of time.

As Bitcoin mining becomes more mainstream, the challenge for all bulk metered property stakeholders will be to address the costs. This, says Beacom, is where it makes sense for stakeholders to get ahead of the game and to move to a “user-pay” system that protects both properties and residents.

“A user-pay system involves residents having their own individual meter so that they only pay for what they use,” says Beacom. “You wouldn’t want to pay for your neighbour’s grocery bill or pay to fill up their car so why would you want to pay for their electricity?”

Indeed, by billing tenants fairly for their individual energy usage, those that decide to make a virtual buck are not making the decision to raise the cost of electricity for everyone else.

No passing craze

If you’re counting on the cryptocurrency fad to fizzle out, you might be waiting a while. As other cryptocurrencies jockey to become a worldwide standard, and more and more retailers and consumers begin to adopt digital currency, the future will include Bitcoin mining of some form or another.

Right now, notes Beacom, the reality is that Bitcoin miners need to be on condo managers and owners’ radars: “Bitcoin is no momentary fad; its popularity is increasing vastly and appears to be here to stay. As goes the Bitcoin price, so goes its electricity consumption and the cost associated with that should not be subsidized by anyone by the miner themselves.”

Andrew Beacom is the President & CEO of Priority Submetering Solutions, a licensed, full-service utility Suite Metering and billing company serving multi-unit buildings across North America. For more, visit www.prioritymeter.com.

Tax relief for non-residential properties in Calgary

The City of Calgary approved the 2018 Municipal Non-Residential Phased Tax Program (2018 PTP), offering tax relief to non-residential properties that have experienced the highest increase in municipal non-residential property taxes due to shifts in market value.

No application is required. The 2018 PTP will be applied to the 2018 non-residential property tax bill mailed at the end of May. About 7,400 non-residential properties will benefit from the program. It is expected that in turn, a benefit will be realized by business tenants of the eligible non-residential properties.

“In this fragile economic recovery, we need to do all we can to help business in Calgary,” said Mayor Naheed Nenshi. “By offering property tax relief to businesses, Council is ensuring the short-term resilience of our economy while we take actions to build a stronger long-term economy for all.”

Non-residential property owners are encouraged to visit calgary.ca/ptp to determine if they are eligible for the program and to view their estimated 2018 tax amount. Residential properties and businesses are not eligible for this program.

The 2018 PTP is a separate, one-time program and not an extension of the 2017 Municipal Non-Residential Phased Tax Program (2017 PTP). It limits the increase in municipal non-residential property taxes to five per cent.

Alberta school district gets energy efficient overhaul

East Central Alberta Catholic Schools (ECACS) in Wainwright, Alberta, will be working with Johnson Controls on district-wide infrastructure upgrades that are energy efficient.

In collaboration with the ECACS senior management team, Johnson Controls Performance Infrastructure leaders identified improvements to address the district’s deferred maintenance challenges through a 10-month project implementation phase of an Energy Savings Performance Contract.

At more than US$1 million, the self-funded project includes more than $40,000 in incentives and can be funded through utility savings for a payback of under 15 years. The energy efficient upgrades are expected to reduce annual greenhouse gas (GHG) emissions by 712 tonnes CO2, equivalent to carbon emissions from 1,656 barrels of oil. They include:

LED lighting
Direct Digital Controls (DDC) and controls system replacements
Roof top units and furnace replacements
Heating system piping revisions
New flush valve urinals
Combined Heat and Power (CHP)
New air-cooled chiller

“By improving our schools and classrooms, we have a direct hand in increasing student productivity and creating an ideal environment for all occupants, from students to teachers and staff,” said Charlie McCormack, superintendent of ECACS. “Our collaboration with Johnson Controls allows us to provide a more sustainable and efficient environment for years to come, without putting a burden on our financials.”

Replacing outdated systems with standardized control systems will allow facilities to operate from a single point of access, which will help the school district save on utility costs, become greener through GHG savings and spend more time educating students.

“By overseeing the project, Johnson Controls takes over the risk, and guarantees cost and energy savings for ECACS,” said Andrew Nartey, account executive at Johnson Controls. “Removing these burdens allows the school division and its faculty to concentrate on their main objective – students’ education.”

IICRC seeks help on new fire and smoke restoration standards

The Institute of Inspection, Cleaning and Restoration Certification (IICRC) is seeking volunteers to serve on consensus bodies for the development of three new fire and smoke damage restoration standards.

Standards include BSR/IICRC S700 Standard for Professional Fire and Smoke Damage Restoration, BSR/IICRC S710 Standard for the Development of a Scope of Work in a Fire and Smoke Damaged Environment and the BSR/IICRC S740 Standard for Professional Restoration of Fire and Smoke Damaged Personal Items..

“The fire and smoke cleaning and restoration industry does not have consensus on standards for evaluating, cleaning or restoring fire and smoke damaged structures and contents,” said IICRC Standards Chairman.Howard Wolf. “These standards will provide consistent guidance and enable a safer work environment for tens of thousands of workers.”

Consensus body members can expect to begin work on the standards by mid-2018 with nearly all meetings being held online and via conference calls. The new standards are expected to be completed in about two years.

BSR/IICRC S700

The BSR/IICRC S700 Standard for Professional Fire and Smoke Damage Restoration will provide a specific set of practical principles, methods and processes for the restoration of fire and smoke damaged structural materials, assemblies and systems. The standard will cover the entire process of evaluation, mitigation, cleaning and restoration. This standard will cover scope development, temporary structures and repairs, engineering controls, proper cleaning methods and processes, and proper chain of custody documentation of the property being restored.

The IICRC seeks volunteers for this standard with knowledge and experience in structural cleaning or restoration, the property, casualty and liability insurance industry, brokers and agents who write property, casualty and liability policies; consumers who require the services described by this standard; and anyone who represents an insured or holds a lien on property damaged by fire and smoke.

BSR/IICRC S710

The BSR/IICRC S710 Standard for the Development of a Scope of Work in a Fire and Smoke Damaged Environment will provide a specific set of practical standards for the development of a scope of work in a fire and smoke damaged environment. The standard will provide measures for preparing a scope of work in a fire and smoke damaged environment, as this is not specifically covered in any detail in existing standards.

IICRC is seeking volunteers for this standard who perform structural cleaning or restoration, the property, casualty and liability insurance industry, brokers and agents who write property, casualty and liability policies, consumers who require the services described by this standard, and anyone who represents an insured, or holds a lien on property damaged by fire and smoke.

BSR/IICRC S740

BSR/IICRC S740 Standard for Professional Restoration of Fire and Smoke Damaged Personal Items will provide a specific set of practical principles, methods and processes to evaluate and restore fire and smoke damaged porous and non¬porous personal items, commonly known as contents or personal property. This standard will also establish methods and processes to document the chain of custody of these items, including: inventory, packing, storage, cleaning, verification and return to the customer. This standard will outline the proper handling, storage and care of these items.

The IICRC is seeking volunteers for this standard with knowledge and experience in contents cleaning or restoration, the property, casualty and liability insurance industry, brokers and agents who write property, casualty and liability policies, consumers who require the services described by this standard, and anyone who represents an insured, or holds a lien on contents damaged by fire and smoke.

Complete applications should be emailed to IICRC Standards at [email protected].

More than half of Americans would pay for public restrooms

More than half of Americans would pay for a clean, well-stocked public restroom, according to Bradley Corporation’s restroom and hand washing survey.

The annual review, which queried 1,035 American adults, also found that cost varies among this 56 per cent, with 45 per cent saying they would pay a quarter, 29 per cent would spend fifty cents and six per cent would drop more than $1.

Midwest respondents said they “definitely would not pay to use a premium public toilet.”

According to Bradley Corp, until 40 years ago, pay toilets were found throughout the U.S and they are common practice in some countries.

At least 70 per cent of Americans have had unpleasant experiences in public restrooms due to the condition of a facility. Oversights, such as clogged or unflushed toilets, empty or jammed toilet paper dispensers and partition doors that don’t latch are the most popular nuisances.

When asked what improvements they’d like to see, respondents flagged cleaning maintenance and stocking up a restroom with toilet paper, paper towels and soap as key concerns.

“Our survey found that a bad restroom speaks volumes to customers,” says Jon Dommisse, director of strategy and corporate development for Bradley Corp. “47 per cent say an unclean restroom shows the company doesn’t care about its customers and 46 per cent feel it’s a sign of poor management. On the flip side, we found that almost half of Americans will definitely or probably spend more money at a business that has clean, well-maintained restrooms.”