Christine Battist joins Avison Young as CFO

Christine Battist has joined Avison Youing as a principal and chief financial officer (CFO).

Based in the firm’s Chicago office, Battist will lead the company’s finance and accounting organization, serve on Avison Young’s corporate leadership team and participate in the development and execution of the company’s long-term growth strategy and profit goals.

“I’m excited to be part of Avison Young’s collaborative global culture, which prides itself on providing premier client service,” said Battist. “I’m looking forward to joining a dynamic, highly strategic leadership team that is committed to growth and commercial real estate industry leadership. I’ll strive to transform Avison Young’s enterprise capabilities to support the agile and efficient execution of key initiatives for the purpose of sustainable – and profitable – growth.

She brings more than 25 years of financial management experience to the firm, most recently as CFO of Silver Bay Realty Trust and, previously, Two Harbors Investment Corp – two public REITs associated with global alternative asset management firm Pine River Capital Management. During her career, she has managed the financial aspects of leading corporations within and outside the real estate sector, co-ordinating such matters as company formation, investor relations, recapitalization, internal financial controls, due diligence, risk management and financial audits.

“Christine is a finance thought leader with a proven track record and keen understanding of the levers that propel shareholder value,” said Mark E. Rose, chair and CEO of Avison Young, She has confidently navigated companies through exponential growth.”

Battist succeeds Gary Hubbard who intends to retire later this year after a 37-year career as a financial executive with global corporations.

Thinking outside the mould in maintenance

Facilities still contain built-in materials that were exposed to rain and snow during the construction or renovation process, leading to the presence of mould. A seminar at PM Expo last fall touched upon many other causes of mould growth and its close association to failures of the building envelope.

Some buildings can only afford reactive approaches to this fungus. The speakers, Jill Grant, director of practice leadership at Pinchin, and Jaime Hass, service line leader at Pinchin, stressed the importance of preventative maintenance, documenting water damage and how to best communicate with building occupants.

Preventative maintenance

To reduce mould, it’s key to control any one of the three factors that help it grow: a food source, moisture and time. Selecting non-susceptible materials like wood and paper should be a careful process. This could mean choosing fiberglass-faced drywall over faced drywall or cement board over green board.

Mould can grow on vulnerable, organic materials within 12 hours of getting wet. All standards cite a 24- to 48-hour window to dry materials before there is a risk. Consider proactive removal of difficult-to-dry materials, such as drywall, insulation, ceiling tiles and multiple layers of finishes, and check for hidden and absorbed moisture in unexpected areas like under carpet tiles, raised flooring in IT areas and places not subjected to regular housekeeping.

“If you don’t dry materials in that window, you have to presume mould is present, unless you can thoroughly and intrusively investigate and confirm it is not,” said Grant.

Consider proactive removal of ceiling tiles, insulation and multiple layers of finishes. A flooding event may require special attention as unsanitary water could be chemically treated or laced with human pathogens. To avoid ongoing odour issues in a building, maintenance staff should avoid drying materials impacted by unsanitary water. Disinfection of structural areas will need to be followed by testing for sewage-indicator bacteria to verify cleanliness.

Professionals called in to assess water damage should follow industry accepted standards like that published by the Institute of Inspection Cleaning and Restoration Certification (IICRC). ANSI/IICRC S520 Mold Remediation is widely used across North America and is currently under revision. The standard stresses hiring certified contractors with the right experience, training and insurance for water restoration, and focuses on properly documenting the drying process for insurance and tax purposes and to avoid future repercussions.

“In the event you have another water loss, you won’t really have the back-up to show any mould growth that may have resulted was not a pre-existing condition,” said Grant.

Five causes of mould growth

Mould growth from poor construction practices could be averted if contractors installed interior finishes before a building was closed-in and were responsible with the use of water during construction processes; curing concrete and storing building materials ahead of time are both culprits of growth.
To prevent moisture from seeping in, the building envelope needs preventative maintenance and repair once it begins aging.
One of the most challenging issues after an interior or exterior flooding event is mould, which thrives in moist environments. Flooding can occur from plumbing pipes bursting during maintenance activities, a backed-up sewage system or rainwater intrusion. The problem can last long after water recedes.
Condensation from humidity conditions and also can lead to mould growth. When warm humid air reaches cold exterior surfaces it forms liquid water. Mould can also pull enough moisture from the air when there is a sustained relative humidity at about eight per cent or higher.
Mould can arise from dust accumulation in air handling units and duct work in the presence of moisture. Mould spores floating in the air can lead to illness.

Consider the building envelope

Wall assemblies can harbour excess moisture from the absorption, penetration and splashing of rain events, while ground water penetrates a building’s fabric through capillary action. Building occupant activities, from drying clothes and indoor pools to breathing, also attribute to excess moisture in the form of water vapour. Mould also results from condensation that might not be detected until other evidence shows up, such as black material at the base of a wall.

Many materials used today are “prepared to handle interior moisture,” but window and curtain wall systems have to be able to dry or move moisture out, so surface evaporation is key, noted Hass.

For evaporation and diffusion, use vapour permeable weather proof barriers in the correct location to promote outward drying. Another problem is condensation and subsequent mould occurring on the ceiling of a top floor unit, often caused by interior ambient conditions, including relative humidity levels of 69 per cent to 70 per cent.

Water infiltration through concrete floor slabs is another ongoing issue. Testing concrete floors through a moisture vapour emission rate test can help measure the rate at which water is transmitting through the concrete floor. This test should be conducted in both new and old buildings of all grade levels before installing a new floor or coating such as epoxy. Basic details such as various roof drip edge designs are “sometimes overlooked, but make all the difference,” said Hass. They help direct water from the roof edge to the gutter, without damaging other building components

Communicating with occupants and workers during remediation

Relocation during remediation is usually warranted for infants, the elderly, those with weak immune systems and strong allergies, and residents in healthcare facilities who are all considered susceptible occupants. However, anyone who is sensitive or reacting to mould growth should be evacuated.
While there isn’t a regulation for mould growth like there is for asbestos, public health and regulatory bodies will expect the best industry standard to be followed, noted Grant.

In Ontario, the key standard of care, developed by the Environmental Abatement Council of Ontario, shows how to protect workers and occupants during remediation. The Canadian Construction Association has a broader guideline during the design and construction process, encompassing assessment, health concerns and hazard communication.

All species of mould growth require special attention. In workplaces, the joint health and safety committee should be invited to view the testing and receive any resulting reports.

Both standards give detailed remediation procedures for multiple levels of work and highlight isolation of the work area, protection of workers with personal protective equipment, good hygiene practices, packaging and removal of waste, and cleaning up the work area.

Urbanation reports record GTA new condo sales in 2017

There were 35,074 new condominium apartment units sold across the Greater Toronto Area in 2017, up 30 per cent compared to 2016 (26,893), and 75 per cent higher than the 10-year average of approximately 20,000 sales, according to Urbanation Inc.’s 2017 condo market results.

Condo market activity was driven higher in 2017 due to a surge in new project openings, which included 19 large-scale developments featuring 500 or more units, and strong investor demand. Of the 105 new pre-construction projects launched in 2017, totaling 32,435 units, 84 per cent of those units were sold by year-end, with prices averaging $795 per square foot.

New launches in downtown Toronto markets sold for an average of $972 per square foot, with available inventory at year-end reaching $1,079 per square foot, the first time the average price has surpassed the $1,000 per square foot threshold. Activity remained strong throughout the year, with sales in the fourth quarter climbing 20 per cent annually to reach a Q4 high of 8,869 units sold.

Since inventory levels for unsold condos dropped 26 per cent in 2017 and 58 per cent over the past two years to 7,942 units, and prices climbed 35 per cent to an average of $876 per square foot in 2017, Urbanation expects new launch activity to remain busy in 2018. However, the company expects to see a more cautious approach this year as developers must deal with delays and uncertainty in obtaining approvals and face tighter resource constraints while completing projects that are already underway. In 2017, industry consultants reported double-digit increases in construction costs, which along with large proposed increases in development charges and high land prices, will lead to a more measured page for new launches to ensure sale price targets can be achieved.

Meanwhile, investors are expected to remain active this year, encouraged by strong rates of return for projects that are completing construction, steady price growth for condos in 2018 and rapidly rising rents. Urbanation found that for projects that were completed and registered in 2017, average resale values were 42 per cent higher than their average pre-sale opening prices.

Also, it was calculated that most newly completed condo projects were able to generate positive cash flow in the rental market last year, factoring in an 80 per cent loan-to-value mortgage, condo fees and taxes. Therefore, Urbanation believes investors should act less aggressively in 2018 due to high prices, capped rent increases, rising mortgage rates and stricter mortgage qualifications. Providing some offset to less investor demand will be end-user buyers, who are expected to increasingly seek to purchase condos due to elevated single-family home prices and new lending rules.

Urbanation also calculated the percentage of resale condos that were bought and resold within short periods of time. For units bought and resold within 12 months, the share of total condo resales reached a high of four per cent in Q1-2017, falling to 2.9 per cent in Q4-2017, which is slightly lower than Q4-2016 (3.1 per cent). For units bought and resold within six months, the share fell to 0.8 per cent in Q4-2017, down from a high of 2.1 per cent one year before.

Less speculative demand in the second half of 2017 contributed to lower overall resale condo sales volumes in 2017, which fell six per cent to 23,907 units. However, resale activity climbed 2.5 per cent quarter-over-quarter in Q4 as some buyers made purchases before new mortgage stress test rules took effect that the start of 2018.

Resale market conditions remained tight throughout 2017 as listings trended lower, providing support for prices. Average resale prices climbed 22 per cent on an annual basis in Q4-2017, although all of the growth was recorded in the first half of the year.

Following a five-year low for completions in 2017 to 13,513 units, condo deliveries are expected to increase in the next three years, reaching 22,395 units in 2018, 25,124 units in 2019 and 28,432 in 2020. However, actual completions may be lower than projected, given that annual deliveries have been averaging about 7,000 units less than scheduled in recent years. Only 62 per cent of units that were scheduled for delivery in 2018 reached occupancy.

“While the results for 2017 prove how remarkably strong demand can be for GTA condos, the level of activity underway is putting the industry under tremendous pressure to push the units through the development cycle,” said Shaun Hildebrand, Urbanation’s senior vice president, in a press release. “A more sustainable pace of roughly 26,000 sales is likely in store for 2018.”

High levels of antibiotic resistance found globally

Data on antibiotic resistance reveals high levels of resistance to a number of serious bacterial infections in both high- and low-income countries.

WHO’s new Global Antimicrobial Surveillance System (GLASS) reveals widespread occurrence of antibiotic resistance among 500, 000 people with suspected bacterial infections across 22 countries.

The most commonly reported resistant bacteria were Escherichia coli, Klebsiella pneumoniae, Staphylococcus aureus, and Streptococcus pneumoniae, followed by Salmonella spp.

Among patients with suspected bloodstream infection, the proportion that had bacteria resistant to at least one of the most commonly used antibiotics ranged tremendously between different countries – from zero to 82 per cent. Resistance to penicillin – the medicine used for decades worldwide to treat pneumonia – ranged from zero to 51 per cent among reporting countries. And between 8 per cent to 65 per cent of E. coli associated with urinary tract infections presented resistance to ciprofloxacin, an antibiotic commonly used to treat this condition.

“The report confirms the serious situation of antibiotic resistance worldwide,” says Dr. Marc Sprenger, director of WHO’s Antimicrobial Resistance Secretariat. “Some of the world’s most common – and potentially most dangerous – infections are proving drug-resistant. And most worrying of all, pathogens don’t respect national borders. That’s why WHO is encouraging all countries to set up good surveillance systems for detecting drug resistance that can provide data to this global system.”

The report is a vital first step towards improving our understanding of the extent of antimicrobial resistance.

Ontario looks to boost elevator availability

Ontario is looking to boost elevator availability in multi-storey residential buildings, as well as long-term care and seniors’ homes. In what would be a global first, the provincial government plans to establish a data-based standard for the time it takes to turn around elevator repairs.

This measure forms part of an action plan that comes in response to a study commissioned by the Technical Standards and Safety Authority (TSSA) at the request of the Ministry of Government and Consumer Services. The study, produced with support from Deloitte’s public sector strategy team, occurred as concerns surrounding elevator availability mounted.

In his final report, study lead Justice J. Douglas Cunningham found that the current state of elevator availability falls far short of ideal. He made 19 recommendations for improving the status quo, including looking into requiring more frequent upkeep for high-risk devices and stepping up the enforcement of existing maintenance standards with new fines.

Minister of Government and Consumer Services Tracy MacCharles said the government will be addressing all of the recommendations contained in Justice Cunningham’s report as she announced the action plan last week at a downtown press conference.

“Our government has growing concerns about seniors and people with disabilities and other mobility issues being unable to get in or out of their condos, apartments, long-term care facility or retirement homes because of unreliable elevators,” she said. “The changes we are proposing would reduce elevator breakdowns by developing new preventive maintenance requirements and expanding enforcement tools.”

Min. MacCharles said the government will introduce legislation soon as it moves to roll out its action plan in stages. If passed, proposed changes would pave the way for measures including the collection and sharing of data on elevator availability, which is currently sparse.

A survey conducted as part of the study found responding condos to have an average elevator availability of 93 per cent, the lowest of all the institutional and residential building types reached and short of the industry target for up-time of 98 per cent. Justice Cunningham’s report calls for a public database showing elevator up-time by address to be created using information volunteered by contractors.

In a separate recommendation, he suggested requiring contractors to report service outages that last longer than two days to a regulator and develop plans for bringing elevators back online spelling out the respective responsibilities of the contractor and the owner. This approach marks a departure from the two-week deadline for repairing elevators proposed in a private member’s bill put forward by Liberal MPP Han Dong last winter. Dong, who was on hand at the press conference last week, welcomed the move to advance his efforts to improve the reliability of elevators.

“I’m glad to see that my private members’ bill was an inspiration for the government to take action and that proposed changes are coming,” he said in a press release accompanying the announcement. “The action plan addresses the concerns voiced by those living in our vertical communities.”

In addition to proposing a deadline for repairing elevators, Dong’s private member’s bill proposed requiring elevator traffic studies for developments of seven or more storeys to ensure new buildings are equipped with enough elevators to adequately serve residents. Currently, the only minimum for providing elevators is found in the fire code, which requires residential buildings of six or more storeys to be equipped with at least one elevator for firefighter use. The action plan aims to establish standards for conducting elevator traffic studies and minimums for providing elevators in new buildings of six or more storeys in the building code over the next three years.

Stepped up enforcement of existing maintenance requirements is expected to come sooner, with implementation slated for 2019. Specifics such as the size of the fines, which Justice Cunningham suggested could potentially be meted out to both elevator contractor and owner, are slated to be hammered out in regulations in the fall, following consultations with stakeholders.

Min. MacCharles said the government will also be asking the TSSA to review the prescribed schedule for elevator maintenance with an eye toward increasing its frequency. The prescribed schedule for elevator maintenance was relaxed four years ago from a minimum frequency of monthly to quarterly.

“Compliance with minimum maintenance standards for safety, shown to signal more effective preventive maintenance practices, is at an all-time low,” Justice Cunningham wrote in his report.

In addition to new fines, he recommended raising owner awareness around preventive maintenance, which he said data analysis and stakeholders indicated plays a major role in elevator availability. His report also calls for education for building owners to equip them with the knowledge to secure improved service through their maintenance contracts.

Justice Cunningham also flagged the availability of elevating device mechanics for attention, noting a perception among some building owners that a labour shortage might be contributing to slow repair times. He suggested giving Class T mechanics-in-training a deadline for taking the steps to become Class A mechanics, which are increasingly in demand amid booming high-rise construction. Min. MacCharles said the government plans to examine the labour market in consultation with industry this year.

Also in line for implementation this year are measures to improve access to elevators for first responders. Justice Cunningham proposed that when firefighter elevators break down, outages lasting longer than a day trigger an obligation that would be added to the fire code for owners to alert their fire department, occupants and supervisory staff.

The development of a standard for the time it takes to repair elevators is expected to carry into 2019, which is also when the government aims to assign regulatory responsibility for elevator availability. The TSSA appears to be a likely candidate for the job based on Justice Cunningham’s assessment, but he said further analysis was needed, citing concerns raised by the Technical Standards and Safety Authority that this responsibility could conflict with its existing mandate.

“If safety is assumed to take priority over availability in all circumstances, this should not be an insurmountable problem,” he wrote, adding, “It should be noted that there is no empirical evidence that a lack of availability poses a safety risk, when compared with other potential risks monitored by the TSSA.

“Technical elevator safety is well regulated and managed in Ontario.”

Michelle Ervin is the editor of CondoBusiness.

GTA’s 2017 new home sales strong amid falling inventory: BILD

In 2017, the GTA new home market saw falling inventory, rising prices and strong sales, setting a record high in new condo apartment sales and a record low in single-family home sales, reports the Building Industry and Land Development Association (BILD).

Last year, there were 44,143 new homes sold in the GTA, according to Altus Group, BILD’s source for new home market data. These results are the GTA’s fourth-strongest since 2000, when Altus Group began collecting data on the region. The largest number of home sales in one year was reported in 2002, with 53,660 units sold.

Of the new homes sold in 2017, 82.5 per cent, or 36,429 units, were condominium apartments in low, medium or high-rise buildings, stacked townhouses and loft units, making 2017 the year with the highest number of condo units sold in the GTA. Meanwhile, the other 17.5 per cent were single-family home sales, including detached, link and semi-detached houses and townhouses, the lowest number of single-family homes sold since 2000.

“Low inventory and escalating prices across the board are behind the highs and lows of the sales numbers we saw in 2017,” said David Wilkes, BILD’s new president and CEO, in a press release. “Our industry wants to build new homes to increase the housing supply in the GTA, but we need municipalities to work with us to expedite the process by simplifying the development approval process, updating zoning by-laws to align with provincial policies, and servicing developable land with critical infrastructure.”

By the end of December 2017, there were 11,397 new homes available for purchase in builders’ inventories, a decline of 13.2 per cent from 13,136 at the end of December 2016 and 60.3 per cent fewer than the 28,739 new homes available 10 years ago.

Meanwhile, by the end of December 2017, there were 3,481 new single-family homes available for purchase, a drop of 74.4 per cent compared to 10 years ago.

In December 2017, the benchmark price for available new single-family homes climbed 23.2 per cent year-over-year to $1,225,744. Meanwhile, the benchmark price for available new condominium apartments in December 2017 increased by 41.3 per cent year-over-year to $716,772.

“While many end-user buyers have been looking to the new condominium apartment sector for more affordable homes, some are now starting to be priced out of this segment as well,” said Patricia Arsenault, Altus Group’s executive vice president of research consulting services.

Wilkes added that BILD will be raising the issues of housing supply and affordability as the municipal elections this fall approach. “We are calling on governments at all levels to ensure that people who choose to live in the GTA can afford to purchase a new home,” he said.

Latest NA Fenestration Standard published

The 2017 edition of the North American Fenestration Standard/Specification for windows, doors, and skylights (AAMA/WDMA/CSA 101/I.S.2/A440, NAFS) has received final approval and is now available.

This standard is the result of a multi-year effort by the American Architectural Manufacturers Association (AAMA), Canadian Standards Association (CSA) and Window & Door Manufacturers Association (WDMA). The updated 2017 standard replaces the 2011 edition of the joint standard.

The 2011 NAFS standard is already referenced in the 2015 editions of the International Building Code and International Residential Code, with the new standard to be included in the 2018 editions of these codes. The new standard is being proposed to replace the 2011 edition in the National Building Code of Canada when it is updated.

The Joint Document Management Group (JDMG), comprised of representatives from all three associations, stresses the importance of NAFS-17.

“The newest version of NAFS includes three more operator types than the previous edition: folding door systems, parallel opening windows and top turn reversible windows. With these products becoming more prevalent in the industry, it is important that the updated document provide guidance on their testing,” says Steve Fronek, vice president, design engineering for Wausau Window and Wall Systems, who served as AAMA’s JDMG co-chair.

The 2017 version of NAFS is the latest product of the ongoing effort to harmonize standards in North America. This effort started over 20 years ago and is evidence of the fenestration industry’s desire to offer customers a single, unified performance specification across borders.

The 2017 standard represents significant steps toward achieving seamless trade across the U.S./Canadian border for fenestration industry manufacturers. A Canadian Supplement to the standard has been created by the CSA A440 Technical Committee to address those few Canada-only items not included within the new NAFS standard.

Copies are available for online purchasing from the American Architectural Manufacturers Association, Canadian Standards Association or Window & Door Manufacturers Association.

Online tool helps workplaces address stress and mental injury

A new online survey tool assists workplaces in identifying and addressing psychosocial hazards that can lead to stress and mental injury.

The Occupational Health Clinics for Ontario Workers (OHCOW) and the Canadian Centre for Occupational Health and Safety (CCOHS) created StressAssess so workplaces can anonymously, collectively and confidentially gather information about current work conditions and psychosocial hazards.

The free tool guides administrators through a five step process supported by instructions, templates and reminders. Upon completion of the survey, a summary report is provided. Along with comparisons against validated national averages, it includes practical ideas for action to help workplaces address identified concerns.

While the survey tool is meant to diagnose the workplace (not the worker), the website also includes a personal edition for individuals interested in measuring their own level and sources of stress.

Proposed community hubs get maintenance funds

Four community hubs across Ontario will receive funding through the Surplus Property Transition Initiative (SPTI), a new program that helps covers property holding costs such as ongoing operating and maintenance for up to 18 months.

The Surplus Property Transition Initiative was announced in May 2017 and started accepting applications in July 2017. This initiative is designed to provide more time for local communities to develop long-term business plans and find additional partners before transitioning properties into community hubs.

The projects include:

Biindigen Community Hub, St. Helen’s Elementary School in Hamilton: This proposed community hub will offer Indigenous and non-Indigenous services including: culturally safe health care, health promotion, traditional healing, recreation and wellness programming, before and after school care, licensed child care, and neighbourhood planning work.

Rideau-Rockcliffe Community Centre and Odawa Native Friendship Centre, Rideau High School in Ottawa: This proposed community hub is a joint project between two community organizations focused on Indigenous and non-Indigenous services including: alternative secondary school, urban Indigenous healthy living, life-long care, programs such as those for homelessness and bail, community justice, healing and wellness, cultural resources, a food bank, Indigenous job fair, housing, HIV/AIDS awareness, employment and training, and Inuit supports for students and youth. Other community services will include: health, social, recreation, life-long learning, and community engagement services.

Regional Skills Training, Trades & Innovation Community Hub, Sydenham Community Elementary School in Owen Sound: The proposed regional skills training community hub will include a trade and innovation centre to address barriers to rural employment and education through skilled trades, fine arts, energy, software, hairstyling and culinary arts. This hub will be connected to regional secondary schools and provide pathway opportunities for students.

Indigenous Early Years Hub, Dr. McDougall Public School in North Bay: This proposed community hub will provide services to Indigenous communities including a child and family program and licensed day care, Indigenous cultural and linguistic programs and services for families, supported by local elders and Indigenous partners.

Cap rates reflect potential for rent growth

An already low national multifamily cap rated nudged down a little further in the fourth quarter of 2017, largely attributable to an improving economy and demand for product in Calgary. Rates held steady in the other nine major markets CBRE analyzes, remaining at record lows in Vancouver, Toronto and Ottawa.

Nationally, the cap rate for Class A high-rise stock dropped below 4 per cent, to 3.96 per cent, while rates in Vancouver, Toronto and Ottawa were below the national average for Class A and B high-rise and low-rise stock. High-rise Class A stock in Calgary registered cap rates of 4.25 to 4.75 per cent, with Class B at 4.5 to 5 per cent.

Garry Beres, CBRE executive vice president in the Calgary market, points to a growing pool of private buyers chasing multifamily, retail and industrial properties. Continued potential for rent growth makes multifamily product attractive to investors at a time when the office and retail asset classes are seen to be in late cycle, suggests Paul Morasutti, CBRE’s executive vice president, valuation and advisory services.

“The hot condo and housing markets across the nation continue to make the increasingly affordable multifamily sector an enticing option for renters,” he adds. “As new supply continues to lag consumer demand, multifamily cap rates are forecast to remain low in 2018.”

As 2017 wrapped up, Vancouver sat at the low end of the national scale with cap rates for Class A high-rise stock in the range of 2.5 to 3 per cent. Even low-rise Class B stock was registering cap rates on par with the city’s downtown Class A office product, at 3.25 to 4.25 per cent.

Toronto’s Class A high-rise and low-rise stock commanded cap rates of 3 to 3.75 per cent. Class B high-rise and low-rise cap rates partly overlapped that range with cap rates of 3.5 to 4.5 per cent.

Short list rivals undercut Toronto on housing

Toronto brings some of the steepest housing costs to the bid for Amazon’s second headquarters. A realtor.com overview of December 2017 median list prices among the 19 American contenders reveals a wide gulf between New York and every other market, while Royal LePage’s fourth quarter 2017 sales statistics suggest Toronto is relatively matched with Los Angeles as the next most expensive cities on the short list.

The median list price in New York increased 8.5 per cent over the course of 2017, to reach US $1,244,509 (CAD $1,530,746) in December. Los Angeles saw 5.3 per cent growth in the median list price during the same period, taking it up to US $699,900 (CAD $860,877) by year-end. All other short list rivals posted lower median list prices than Toronto.

Toronto-to-U.S. comparisons are somewhat imprecise since Royal LePage cites actual sales values, but the median house price in the Greater Toronto Area was pegged at CAD $837,873 (US $678,677) at the end of 2017 — up 14 per cent since the fourth quarter of 2016. This aggregate number hides fairly significant price variance across the GTA’s many sub-markets, and between single-family and condominium dwellings.

At the high end, the median price for a standard two-storey house was more than $1.2 million (US $988,000) in Toronto, but less than half of that, at $560,000 (US $453,000) in Oshawa. The GTA-wide median for a standard condominium unit was $476,421 (US $386,000), ranging from $516,000 (US $418,000) in Toronto to $287,000 (US $232,000) in Oshawa.

After Los Angeles, realtor.com reports a median price of US $550,000 (CAD $676,500) in Washington D.C. and US $534,659 (CAD $647,000) in Denver. At the low end, the median list price was US $170,900 (CAD $209,000) in Pittsburgh and US $210,000 (CAD $258,000) in Indianapolis last month.

Only three of the 49 Canadian markets Royal LePage analyzes — Moncton and Saint John, New Brunswick, and Trois-Rivières, Quebec — posted lower median prices than Pittsburgh. Another four — Charlottetown, Prince Edward Island; Fredericton, New Brunswick; Sherbrooke, Quebec; and Windsor, Ontario — were more affordable than Indianapolis.

“From a housing perspective, Pittsburgh, Indianapolis and Raleigh, N.C. all offer relative affordability and less inventory constraints,” observers Javier Vivas, director of economic research with realtor.com. “New York, Los Angeles, Denver and Boston are markets that have already seen a fair share of growth and inventory challenges.”

Meanwhile, growth and inventory challenges define Toronto’s housing market. “We see demand coming from three predominant categories: peak millennials, who are now at the age of home ownership; immigration; and the somewhat less talked about interprovincial migration of households to British Columbia and Ontario from other parts of the country,” says Phil Soper, president and chief executive officer of Royal LePage.

Vancouver reveals final plans for NE False Creek

The City of Vancouver has released the final plan for Northeast False Creek, which will guide the creation of a vibrant new waterfront destination. The plan provides:

Vancouver’s largest increase in new and renewed parks and open space in a generation
One of the most significant deliveries of affordable homes in British Columbia’s history
The opportunity to reconnect Chinatown and Hogan’s Alley to the rest of the downtown core through a new and improved street network.

“This transformative city-shaping project provides a bold new vision for the last remaining downtown waterfront,” says Kevin McNaney, project director for Northeast False Creek.

“The plan provides a guide to the evolution of Northeast False Creek into a culturally vibrant waterfront destination to live, work, and play. Comprising 10 per cent of the downtown core, Northeast East False Creek is an opportunity to reimagine an area of former heavy industry and freeway into a renewed place of modern urbanism for people to enjoy.”

The plan is the result of some of the most extensive consultation the city has undertaken, including hearing from over 17,500 people at more than 90 events. The city refined the plan to incorporate public feedback and priorities, including a focus on community and social development, housing, reconciliation, and cultural redress.

The Northeast False Creek Area Plan will ensure that public amenities and services continue to meet the community’s needs as Northeast False Creek grows and evolves. The costs of the project, including amenities such as childcare, social housing, artist space, plazas, and a new cultural centre, will be covered by developer-related revenues, utilities, sale or lease of City lands, and strategic partnership agreements with not-for-profit organizations.

Northeast False Creek’s final plan will be going to Council for consideration on January 31. The plan was prompted by the city’s decision to tear down the Georgia and Dunsmuir viaducts in 2015, offering an opportunity to redevelop the downtown neighbourhood.

Plans to redevelop Montreal Eaton Centre with $200-mil investment

Ivanhoé Cambridge is fueling $200 million into its Montreal Eaton Centre redevelopment as part of the firm’s $1-billion plan for Projet Nouveau Centre, a flagship property facelift and revitaliztion of the downtown core.

Sainte-Catherine Street, where the shopping centre is located, is undergoing a makeover itself. Wider sidewalks, new lighting and more seating areas are a few features in the works.

“Sainte-Catherine Street’s great strength is its ability to reinvent itself continually,” stated Claude Sirois, president of retail at Ivanhoé Cambridge. “Our demanding clientele wants an innovative and sustainable project that stands out for its urban character. With the physical changes we are making and the collaboration of our current and future retailers and brands, we are setting out to redefine the urban shopping experience downtown.”

Unifying the Complexe Les Ailes with the Montreal Eaton Centre, Ivanhoé Cambridge will be restoring the building’s original name while strengthening the Montreal Eaton Centre image and brand. Together, the two centres welcome more than 30 million visitors annually.

According to Ivanhoé Cambridge, the centre will offer numerous leasing opportunities, including large format retailers. The spaces will benefit from years of densification in the area and the future McGill light rail train station that is part of the Réseau électrique métropolitain (REM). The shopping centre already connects to Montreal’s underground city.

Consumers are told to expect the newest trends in retailing and a gourmet food hall.

The redevelopment will be ongoing until 2020.

Photos courtesy of Ivanhoé Cambridge

Canada ranks second for LEED certified projects

Canada ranked second in the U.S. Green Building Council’s (USGBC) annual Top 10 Countries and Regions for LEED list. Canada has a total of 2,970 LEED certified projects totalling 40.77 million gross square metres.

The list recognizes markets outside of the U.S. that use LEED (Leadership in Energy and Environmental Design) green building program, created by USGBC.

“Canada’s green building industry has consistently proven that we are among the most innovative in the world, and this result further cements that leadership position,” says Thomas Mueller, president and CEO of the Canada Green Building Council.

The list ranks countries and regions in terms of cumulative LEED certified gross square meters. This latest list includes data from Dec. 31, 2017, and represents 6,657 projects totalling more than 158 million gross square metres.

China came in first with 1,211 certified projects, or 47.16 million gross square meters. Other countries to make the cut include India, Brazil, Germany, Taiwan, Turkey, Mexico, United Arab Emirates and the Republic of Korea.

“LEED has and will continue to be instrumental in bringing green building solutions to scale including energy efficiency and carbon, health and wellness, resiliency and advanced material choices,” said Mueller. “With LEED we can deliver now to substantially improve performance for buildings across Canada.”

LEED projects can be found in over 167 countries and territories, with more than 205,800 gross square meters of space certified daily, according to USGBC. LEED is a global, regional and local solution that provides a framework for buildings, communities and cities to create healthy, highly efficient and cost-saving spaces while working to improve quality of life.

“Canada remains an important leader in driving the adoption of LEED and green building,” said Mahesh Ramanujam, president and CEO of USGBC and Green Business Certification, the global certifying body for LEED projects.

“Progress happens one project at a time and the work being done across Canada is helping to define where the industry is moving and how we stay focused on finding solutions that will continue to improve our quality of life.”

GTA condo supply and affordability in decline

Land for high-rise condominium development was a major component of $23.5 billion in investment property sales in the Greater Toronto Area last year. Altus Group’s newly released overview of 2017 market activity also points to record sales volumes and surging prices of newly built units, creating some condo supply and affordability constraints for 2018.

More than 36,400 new condos were purchased in the GTA last year, up from 29,100 in 2016. Nearly 22,000 of those sales occurred in Toronto, but Peel and York regions both registered a more than 60 per cent jump in sales volumes from the previous year. Based on the historic pace of sales, Altus analysts calculate there is about a three month inventory of available new units as 2018 begins, but that at least a nine-month supply is needed to meet demand.

The average asking price for available new units had soared to $716,000 as of December 2017, a 41 per cent increase from year-end 2016. “While many end-user buyers have been looking to the condominium apartment sector for more affordable new product, some are now starting to be priced out of this segment as well,” the Altus GTA Flash Report observes.

In addition to end-user buyers, who are either choosing to live in condos or settling on them when priced out of the single-family home market, small investors are identified as a key group of purchasers “who have become the de facto providers of new housing supply in the GTA”. Facilitating those small investors are the developers who purchased $8.5 billion worth of residential land last year — a $2.8 billion or 49 per cent increase in value from the previous year.

Land zoned for high-density development, primarily in Toronto, represented a $3.1 billion chunk of that total. Altus highlights two notable deals: Great Gulf’s $300-million acquisition of three parcels on King Street West; and Cresford’s $268.5-million deal for five adjoining parcels in Yorkville. Both are higher values than those garnered for the year’s top retail, hotel or industrial deals.

The 905 regions saw the greatest share of sales of land to accommodate single-family housing, including more than $1 billion worth in York region alone. The so-called missing middle may also become more evident soon following $1.6 billion in sales of land zoned to accommodate medium density townhouse and low-rise housing, which was nearly double the 2016 sales value.

“This segment is being driven by a growing demand for more affordable ground-oriented housing product,” Altus analysts conclude. Single-family housing trends back that theory as the average asking price of new homes ticked above $1.2 million last year.

Renters are contemplating the rising costs of home ownership with caution and/or finding it more challenging to obtain adequate financing for a stake in the market. About one third of renters Altus surveyed are currently saving for a down payment, while 13 per cent said they planned to buy in 2018.

“Homebuying intentions remain strong in the GTA, despite the many roadblocks that have been put in potential buyers’ way due to factors such as price escalation in recent years, rising interest rates, tighter lending criteria and additional stress testing,” observes Matthew Boukall, senior director at Altus Group.

Housing preferences stratify somewhat by age cohort, with those under the age of 35 more likely to opt for a downtown location. A third of surveyed renters of condo units were younger than 35 and one quarter were one-person households. One in 10 renters of condo units had a landlord — either a company or an individual — located outside Canada, while 40 per cent were immigrants to Canada.

Sales values pushed up again in the rental housing sector last year, following a decline in 2016. Durham was the only part of the GTA where apartment sales volume declined from the previous year, but the region was the scene of just five per cent of the GTA’s total investment property trades in 2017.

25 York is Canada’s first Fitwel-certified building

The first office building in Canada to receive Fitwel certification is Menkes’ 25 York Street, a tower that has helped revitalize Toronto’s waterfront since it was completed in 2010.

Fitwel, a revolutionary and evidence-based building certification system for wellbeing in real estate, elevates occupant health and productivity via targeted improvements to workplace design and operational policies.

“We view Fitwel as a great initiative to allow us to engage with our tenants in new ways, and as a way to measure our performance in promoting health and wellbeing at our properties” said Jon Douglas, director of sustainability at Menkes. “We want to create opportunities for our occupants to live their healthiest lives by making this goal convenient and actionable to them, and Fitwel is a practical program to support Menkes in delivering on this objective.”

Created by the U.S. Centers for Disease Control and Prevention and the General Services Administration, Fitwel has successfully ignited a culture of health and wellness within both private and public sector office and residential properties. The Center for Active Design (CfAD) is the licensed operator of Fitwel, and actively works to inspire real estate companies to adopt Fitwel into their developments.

“Time and time again, Menkes has raised the standard on developing high-quality buildings that promote health and environmental sustainability,” said Joanna Frank, CEO and president of the CfAD. “By becoming a Fitwel champion, applying Fitwel across multiple properties, and achieving Fitwel certification, Menkes has once again shown tremendous leadership in using commercial real estate to effectively impact the quality of life of building occupants.”

A Fitwel scorecard includes over 55 evidence-based design and operational strategies that enhance building environments by requiring a standard of excellence in seven health impact categories. These include healthy food options, occupant safety, physical activity, well-being, social equity, morbidity and absenteeism, and community health.

In addition to achieving Fitwel certification, 25 York Street has additionally aligned itself with the BOMA BEST certification system – a strategic Canadian partner to Fitwel.

“Menkes commitment to sustainability is exemplary. 25 York Street enjoys one of the highest-ever BOMA BEST certification scores, and now has achieved Canada’s first-ever Fitwel certification for an office building,” said Benjamin Shinewald, president and CEO of the Building Owners and Managers Association of Canada (BOMA Canada) a program partner with Fitwel. “Menkes really is a leader in both sustainable and healthy buildings”

A partnership between Menkes and the Healthcare of Ontario Pension Plan (HOOPP), 25 York Street, also home to TELUS, consists of 30 storeys of more than 780,000 square feet of office space.

“Our mandate to focus highly on tenant health and wellness has never been stronger. Fitwel has enabled us to gain valuable insight into the way we operate our buildings,” said Taryn Kelly, senior property manager at 25 York Street. “We’re proud to have achieved certification here at 25 York Street, we’re excited about sharing the announcement with our tenants, and we’re excited about our future with Fitwel as it will continue to push our boundaries and motivate us to innovate.”

GTA condominium sales fall 15.4 per cent in Q4

In the fourth quarter of 2017, there were 5,773 condominium apartment sales reported in the Greater Toronto Area (GTA), a decline of 15.4 per cent compared to the last three months of 2016, according to the Toronto Real Estate Board (TREB).

Over the same period, new condo apartment listings increased by 9.8 per cent to 8,186. Although sales were down compared to listings, market conditions still remained tight, with a sales-to-new listings ratio of 70 per cent.

“Demand for condominium apartments remained strong relative to listings in the fourth quarter,” said Tim Syrianos, TREB president, in a press release. “Even with the uptick in listings, which was certainly welcome, there was enough competition between buyers to prompt double-digit annual rates of price growth. This points to the fact that we still do have a supply problem in the GTA that needs to be addressed to ensure the long-term sustainability of the marketplace.”

The average selling price for a condominium apartment in the GTA climbed 17.9 per cent year-over-year in the fourth quarter to $515,816. Although this annual rate of growth was down compared to earlier in 2017, the condominium apartment segment was still the leader in price growth during the second half of the year.

“Seller’s market conditions remained in place for the condominium apartment market segment in the fourth quarter. Based on price point, this housing type remains top of mind for many first-time buyers,” added Jason Mercer, TREB’s director of market analysis. “In addition, as home prices have grown year-over-year, some buyers who initially may have considered the purchase of a low-rise home have chosen to purchase a condo apartment as well.”

Preventative maintenance

Five causes of mould growth

Consider the building envelope

Communicating with occupants and workers during remediation

The projects include:

Energy Efficiency Day networking event

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