44-unit boutique rental property coming to Victoria

A new housing project in the Fairfield neighbourhood of Victoria, B.C., which was previously proposed as a condominium building, will now be a 44-unit boutique rental property.

Empresa Properties and Low Hammond Rowe Architects shared plans for the site at 1120 Burdett, an infill design that integrates elegant contemporary urban architecture among a classic Victoria streetscape.

If approved, the four-storey apartment building with underground parking will be built on lots currently occupied by three 1920s-era homes. When last before council in May, the applicants had proposed 36 condominium units. According to the revised proposal, the site will now house a 44-unit market-rental apartment building, with a housing agreement guaranteeing it will remain rental for years.

Mayor Lisa Helps called the revised submission “a model proposal” in that rental is in high demand and the new building will provide a significant increase in rental units close to the downtown.

The change to rental from strata came after the applicant applied for funding to the Canada Mortgage and Housing Corp.’s Rental Construction Financing Program.

Vancouver Port Authority buys industrial properties

The Vancouver Fraser Port Authority has acquired three industrial-zoned properties in Richmond and Port Coquitlam. The acquisitions were made to secure trade-enabling land to support future port growth, facilitate Canada’s trade and contribute to the local economy.

Large parcels of industrial land are needed in the Lower Mainland for logistics warehouses and distribution centres to ensure the smooth and efficient movement of goods, but the availability of such parcels is declining at an alarming rate.

“Our focus is on protecting what industrial land is left in the Lower Mainland because studies show the region is going to run out of trade-enabling land within the next decade,” said Tom Corsie, vice president of real estate at the Vancouver Fraser Port Authority. “Our trade-enabling land strategy includes advocating for industrial land protection, acquiring industrial land to meet the needs of growing Canadian trade, and maximizing the use of our existing port lands.”

With the lack of new supply of land, coupled with an ongoing trend towards the conversion of existing industrial land to other uses, demand for trade-enabling land continues to intensify. In particular, this is evident with logistics facilities linked to the growing trade of goods in containers, fueled in part by the growth in the Canadian e-commerce sector. However, affordability of industrial land is becoming an important factor in the Vancouver region.

“Vancouver currently has one of the lowest availability rates for industrial space in all of North America,” commented Joel Barnett, vice president at CBRE Canada. “At 2.6 per cent, Vancouver’s availability rate is at generational lows, with options for large format logistics space yet more acute. This makes it challenging for both existing logistics occupiers to grow and for new businesses to enter the Lower Mainland. As such, we welcome the port authority’s efforts in securing these critical lands, which will contribute to the future vitality of the local logistics and distribution sector.”

The three properties include: 1700 No. 6 Road in Richmond – 8.48 acres; 11480 to 11500 River Road, Richmond – 9.46 acres; and 1305 and 1375 Kingsway Avenue, Port Coquitlam – 17.65 acres.

IT support vital to successful workplace strategy

As real estate prices continue to rise in Canada, companies are exploring increasingly creative and innovative strategies to shrink their real estate footprint and save money for what really matters — growing the business.

Two trends in particular are benefitting from this drive to reduce costs — hoteling and work-from-home policies. When an organization institutes a hoteling policy, employees do not have an assigned desk and sit at whichever cubicle is free on a particular day. A work-from-home policy complements hoteling, as employees are given the flexibility to decide where they work. This concept is much broader than a ‘home versus office’ debate. Employees could join a conference while on a long commute, or from the hockey arena during their child’s tournament.

The result is fewer employees in the office at once, making a hoteling policy more feasible. And an organization’s real estate footprint can be reduced, even as they add employees.

That is not to imply shifting to these policies will be without challenges. When creating office spaces that support these new styles of work, it is important to consider how the space will contribute to team cohesiveness. This is essential when teams are spread across large distances and facility managers need to ensure the design will sustain (or increase) productivity across all employees, whether they are in the physical or digital office.

These challenges are not insurmountable, especially if these three considerations are kept top of mind when creating a hoteling and work-from-home friendly workplace:

Variety of work space options

Throughout the course of the day, an employee will likely need to do solo work, make confidential calls, have a one-on-one meeting, and have a larger team or project meeting. Their space needs for each is different, and it is important to plan sufficient, different space usage options to maximize employee productivity. For many organizations, this means a mix of cubicles, small audio privacy rooms, and small to mid-size meeting rooms.

But what about employees not in the office who are also part of these meetings? It is essential that office spaces are equipped with appropriate technology, such as video conferencing endpoints, to ensure remote attendees are able to participate on an equal footing. Additional capabilities like co-white boarding, automatic speaker tracking, and background noise detection will further enhance the experience. Loud typing, doorbells, and even dogs can be automatically tuned out so they don’t disrupt meetings.

One work experience

Whether employees choose to work in the office or from home (or from the arena), it is essential the work experience is the same. Technology can help to smooth the bumps created by distance while also bringing teams together, so it’s important that facility managers and planners work with IT to ensure technology and work spaces complement each other. Teamwork apps that can be used on any device promote flexibility and consistency in workflows while allowing employees to work in a manner they prefer. Look for one that can incorporate the entirety of the workflow — messaging, calling, meeting, and file sharing — to help work become more efficient and streamlined.

Secure VPNs (virtual private networks) allow employees to access an organization’s network safely while remote, allowing them to access all their files and applications as though they were in the office. IT leadership may even recommend routers be provided to employees so they can connect to the company’s network from home, ensuring they can access what they need while being protected by the organization’s security policies.

Finally, hoteling means employees will not be sitting at the same desk, day in and day out. Single number reach, where employees can log into the phone at their desk for the day or be reached on their cellphone, allows the phone number to follow the employee, not tie them to their desk.

By providing mobility and remote working solutions through a collaboration with IT, facilities managers enable employees to take full advantage of hoteling and work-from-home policies without negatively affecting productivity, effectiveness, or the team atmosphere.

Track, analyze, optimize

It is vital to understand how employees use the workplace resources supporting these policies so they can evolve to meet employees’ needs. For example, if data suggests the smaller meeting rooms for groups of five are constantly booked, but the larger rooms for 15 are often free, consider future designs that incorporate rooms which convert from one room to two as needed. Many video conferencing and web conferencing solutions provide usage tracking, which allow facilities managers to identify high, early and slow adopters.

Office traffic can also be tracked using radio-frequency identification (RFID) to determine the number of people in the office on any given day. Once enough data is compiled, facilities managers can use this information to determine whether the current split of meeting rooms to cubicles needs to be adjusted. In fact, with hoteling that requires employees to “check-in” to a desk, it is possible to determine the most popular areas of the office.

Lastly, speak with employees. Numbers and metrics tell half of the story, anecdotal feedback tells the rest. Maybe web conferencing usage is low because the chosen solution lags and drops calls, not due to disinterest. Put a human story to the numbers.

Hoteling and work-from-home policies must be carefully planned before being implementation and, once in place, facility managers and planners must track usage and optimize work spaces to meet the needs of employees. Implemented and well-managed, these new workplace options can prove to be a boon for employees, facilities managers, and an organization’s bottom line.

Susannah Pennal is the collaboration marketing manager for Cisco Canada, responsible for developing go-to-market strategies for collaboration solutions, including channel alignment and content development. She can be reached at [email protected].

ZAS and Bucholz McEvoy tapped to design TRCA building

ZAS Architects and Bucholz McEvoy Architects have been selected in a joint venture to design the Toronto and Region Conservation (TRCA)’s new Administration Building. The facility will provide 100,000 square feet of adaptive office space and demonstrate TRCA’s commitment to green infrastructure by targeting LEEDv4 Platinum, WELL Silver and is a CaGBC Zero Carbon Building Standard pilot project.

Canada Green Building Council (CaGBC)’s Zero Carbon Building Standard is a new initiative designed to make carbon emissions the key indicator for building performance. As part of the 16-project pilot program, TRCA’s Administration Building will help further the development of the standard, along with accompanying resources and education.

“We’re extremely excited to work in collaboration with the TRCA and Bucholz McEvoy Architects to create one of the most ambitious sustainable green buildings in Canada,” said Marek Zawadzki, principal at ZAS Architects. “The facility will be one of the first targeting LEEDv4 Platinum, WELL Silver and net zero carbon as part of the CaGBC Zero Carbon Building Standard pilot project. The new TRCA Administration Office will set a leading example of sustainability.”

TRCA’s new headquarters will help consolidate many operations, reducing the number of its administrative offices from eight to three. The building will be located on land already owned by TRCA at the heart of its area of jurisdiction, with convenient highway and transit access. It will also feature a three-level underground parking garage spanning over 90,000 square feet.

The intention of the building’s design is to demonstrate municipal, provincial and federal strategies, use innovative healthy materials and adopt passive house design principles. Plans for the facility also include the use of renewable energy, innovative wastewater management and integration with the ravine landscape.

Marine Gateway wins ULI Global Award

Marine Gateway, Vancouver’s first major transit-oriented development integrated with a Canada Line rapid transit station, was selected as a winner of the Urban Land Institute’s 2017-2018 Global Award for Excellence.

Marine Gateway by PCI Developments was one of 13 developments worldwide selected by the Institute. This prestigious award is Marine Gateway’s seventh award in the last two years from local, national and international organizations.

“We are honoured to receive this international recognition from the ULI for Marine Gateway, a project that we are very proud of,” said Andrew Grant, president of PCI Developments. “The site previously had no housing and only 60 jobs. Now, Marine Gateway is a vibrant, transit-oriented, complete urban community home to approximately 750 residents and 2,000 jobs in conjunction with high quality restaurants, retailers and movie theatre serving the local community.”

The winners were selected by an international jury made up of ULI members from various real estate development disciplines. The ULI Awards for Excellence, established in 1979, recognize the full development process of a project, including design, leadership, community contribution, innovations, public/private partnerships, environmental protection and enhancement, response to societal needs, and financial success.

Designed by architecture firm, Perkins & Will, Marine Gateway is LEED Gold certified with 415 condo units, 46 rental apartment units, 230,000 square feet of retail and 260,000 square feet of office space directly integrated with the Marine Drive Canada Line Station.

West Don Lands was the other Canadian project that won. The 32 hectare (80 acre) site was transformed from former industrial lands into a sustainable, mixed-use, pedestrian-friendly, riverside community.

“We are extremely proud to be associated with both of Canada’s 2017 ULI finalists and award winners,” said Peter Hrdlitschka, president, Ledcor Construction. “Both clients and their design teams visualized innovative mixed-use real estate development projects that would fundamentally transform two very different global city neighbourhoods. We are pleased to have helped their visions be actualized.”

Ledcor was the general contractor for PCI’s Marine Gateway and a Ledcor EllisDon JV was the Design Builder for the West Don Lands project, also known as the Canary District or Pan Am Athletes Village (PAAV).

Building energy benchmarking pays off

In order for energy use to be effectively managed, it must first be measured and understood. Local governments and property owners all across British Columbia want large buildings to be required to track their energy and water consumption, and to report this data to the province every year. This practice, known as building energy benchmarking, is a key tool for driving conservation and efficiency, and reducing carbon pollution.

Benchmarking allows property owners to compare the performance of their buildings with historical use and similar buildings. This, in turn, helps building owners identify opportunities to save energy and water, and thereby save money on utility bills and curb pollution. Studies by the U.S. Environmental Protection Agency, Urban Land Institute, and Massachusetts Institute of Technology suggest benchmarked buildings can achieve energy savings of 7 to 14 per cent within four years — even before any major investments in deep retrofits.

Reducing energy and water waste can save British Columbians millions of dollars every year. More than 3,000 buildings in B.C. and 16,500 buildings across Canada already benchmark their energy performance through the Energy Star Portfolio Manager platform, the industry standard tool maintained by Natural Resources Canada. The largest building managers in the country already recognize the benefits that benchmarking can have in reducing operating costs and enabling enhanced energy management. Disclosure of this data can help tenants and owners to make more informed property decisions, which leads to markets placing a higher value on energy- and water-efficient buildings.

In September, the Union of B.C. Municipalities passed a resolution calling on the B.C. government to make energy benchmarking and annual reporting mandatory for large buildings, and to make energy data available to local governments to inform their regulations and climate-change programs. Such requirements are not novel; this low-cost, market-based approach is already being used in 25 North American cities, Ontario, Washington, and California, and numerous jurisdictions in the U.K., Europe, and Asia.

The B.C. government has previously committed to implementing a benchmarking requirement across the province. In December 2016, B.C. signed the Pan-Canadian Framework on Clean Growth and Climate Change, which calls for building energy benchmarking and disclosure policies. Likewise, the province is a signatory to the Pacific Coast Climate Leadership Action Plan (an agreement between B.C., California, Oregon, Washington, and Alaska), which sets a target of 75 per cent of large buildings reporting energy data in the region.

While local governments may be enabled to establish benchmarking requirements, we believe that a provincial approach is likely to be the most administratively simple and impactful means of enacting benchmarking requirements in B.C. This approach is being taken for Ontario’s Energy and Water Reporting and Benchmarking initiative, which will enter into force for very large buildings (250,000 square feet or larger) on July 1, 2018. Mandatory reporting for other large buildings (50,000 square feet or larger) will follow and will be in place by 2020.

Given that Ontario is introducing Canada’s first subnational program and more and more Canadian jurisdictions are expected to introduce benchmarking and reporting policies, a consistent approach is needed. B.C. could use Ontario’s framework as a blueprint. This is a concrete step forward that the new B.C. government can take on climate leadership while saving money for British Columbians.

In order to successfully implement a benchmarking and disclosure policy, industry needs to be engaged as a key stakeholder. The varying capacity of building owners, operators, and landlords across the sector makes training and capacity building essential, especially for those managing smaller buildings. It is important that publicly disclosed energy use data be accompanied by a plan to build expertise and improve performance among those who do not have as much experience with energy management and complex building systems. Industry associations and governments have a key role to play in ensuring that mandatory reporting and disclosure benefits the whole industry, not just the largest owners.

The benefits of improved energy efficiency to the public are many. Canadians spend 90 per cent of their lives indoors, which underscores the importance of tapping into the multiple benefits of efficient homes and buildings. Every $1 million invested in energy efficiency generates 13 jobs and $3-4 million in economic growth. Energy-efficient buildings last longer and can fetch higher resale values. Ultimately, taxpayers also benefit from reduced energy consumption as a result of fewer utility infrastructure upgrades being required to supply buildings with energy.

Taking action on building energy benchmarking is a win-win for British Columbians. The implementation of a consistent benchmarking and disclosure policy in B.C. would provide a low-cost and effective tool to reduce carbon pollution from buildings. Promoting high levels of energy performance will improve the quality and health of the homes and buildings in which we live and work, create jobs in the clean economy, and support innovation in the local supply chain.

Dylan Heerema is an analyst with the Buildings and Urban Solutions Program at the Pembina Institute, a leading clean energy think-tank. He lives in Vancouver. Learn more at: www.pembina.org

Simple design choices support accessibility

Older condo buildings constructed in the 1980s and earlier are now facing challenges of providing amenities to owners who are 65 years or older. These buildings often lack accessibility and safety features now common in new buildings.

In recent months, condominium boards and managers have been increasingly seeking advice on how to make accessibility improvements. These boards and managers are interested in limiting their legal liability, but are primarily motivated to enhance the overall living experience of owners.

With planning most of the upgrades can be done economically. Many accessibility deficiencies can be addressed alongside existing maintenance activities or current improvement projects with informed product choices.

There are some simple choices that can make a big difference for liability and service through the course of common projects undertaken in condo buildings to improve flooring, doorways, lights, and wall/door finishes.

Flooring

Flooring must be durable and not show dirt easily. Two things to consider for seniors and people with disabilities when it comes to carpeting are design and contrast.

Look for simple rather than complex design patterns that follow the natural flow of the hallway and lead to elevators and exits. Also use a proper light/dark contrast so people with low vision can easily navigate hallways. Make sure the contrast is near enough to the wall so someone with low vision or blindness can easily walk with their hand on the wall for support and identify any signage, door handles, etc.

Doorways

It’s common for condo buildings to have raised transitions in doorways of all condominium units. This is an unfortunate case where the fire code and accessibility/safety are in conflict. The transition itself is part of important doorway designs that control the spread of fire and airflow between hallways and units. At the same time, these transitions can pose a significant tripping hazard to seniors, particularly those with vision loss and/or progressive age-related mobility disabilities.

If the transition is removed, the door must be replaced — a major expense. But there are products such as fire-rated door sweeps that allow the transition to be removed without compromising the fire safety elements of the doorway. Before embarking on a replacement project consider which products work for a particular building and whether they are approved by the local fire inspector.

Lighting

When considering lighting upgrades, look at ways to improve light diffusion while also eliminating shadowed areas. Poor lighting in common halls has resulted in alternating light/dark patterns on the walls, which can be disorienting and confusing for seniors suffering from low vision or early cognitive disability symptoms.

The selection of wall sconce and light intensity makes a big difference for diffusion and light levels, so ensure proper testing is done to measure adequate lumens and minimize shadows. Lighting upgrades can also pay dividends in energy savings.

Wall and door finishes

Common areas should look great. However, the importance of wall finishes in improving accessibility and safety for seniors often gets underestimated.

There are a couple of simple and effective rules of thumb to keep in mind. Ensure the wall surface helps to properly diffuse light to minimize shadow. Also ensure the wall colour contrasts with the floor as well as door frames, condo units and elevators. And make fire exit doors a different contrasting colour.

The key to success is making sure lighting, flooring and wall finishes work together to deliver an enjoyable design experience while making the halls safe and easy to use. Improvements that benefit both seniors and residents with disabilities can be quite simple and inexpensive with simple choices that can be made during regular upgrades.

Jeff Wilson is founder and CEO of Adaptability Canada, a national provider of accessibility solutions for the residential, commercial, non- profit and public sectors.

Ergonomic laptop bags help reduce wearer fatigue

Although ergonomics are discussed at length for employees sitting at an office desk, what about those that bring their work home with them at the end of the day? Ergonomic benefits can be found beyond the office, especially to how employees commute with their laptops to and from the office.

For those employees that travel at length with their laptop computers, an ergonomic laptop backpack may help alleviate and prevent ergonomic issues from cropping up.

“Ergonomic backpacks are designed around the user,” said Brian Bone, certified professional ergonomist, in a press release. These backpacks are constructed to “provide a proper fit so that muscles of the body do less work and uncomfortable pressure points are relieved.”

The design of these ergonomic laptop bags helps save the user’s muscles from extra work, reduce pain and improve posture and overall comfort.

Targus, a company that specializes in the mobile computing accessories category, has come up with a definitive list of what consumers should look for when selecting an ergonomic backpack to help improve comfort and reduce fatigue from long-term wear. For employees that are toting their laptops and other tech gear around, they should look for the following when selecting a backpack:

Proper weight distribution, by strategically-placed pockets and partitioned main compartments;
Adjustable features, including shoulder straps, sternum straps and hip belts, multiple size options, and height-adjustable shoulder strap attachment or adjustable torso length;
Comfortable design, including an airflow channel for breathability, soft and comfortable padding, and contoured and well-padded shoulder straps.

To read more about how to select an ergonomic backpack, click here.

REMI Network wins top honours at Canadian Online Publishing Awards

The REMI Network won gold for Best Trade Media Website in the business-to-business category at the 9th annual Canadian Online Publishing Awards (COPA) in Toronto last night.

Barbara Carss, editor-in-chief, also took home a silver for Best Industry Feature for her article Furor over MPAC multi-res cap rates predicted, while writer Matthew Bradford was a finalist in the category Best Branded Content for a series of articles he produced.

The COPA awards, presented by Masthead Online, recognize editorial and design excellence across Canadian digital publications, including websites, tablet editions, digital replicas and apps.

“To win gold at the Canadian Online Publishing Awards is an honour. We work hard to deliver the type of quality content our readers deserve and expect from us, and being recognized with two awards affirms that we’re achieving that goal,” says Kevin Brown, president of MediaEdge Communications Inc. “We strive to create engaging and meaningful content across all our verticals. These accolades prove that our talented team of editors and designers continues to set the standard for industry news.”

REMI Network is a leading news and information site aimed at professionals within Canada’s real estate management industry. On the site, readers can find daily news briefs and informative feature articles on topics relevant to the industry, focusing on the planning and development of a project through to its construction, occupancy, management and maintenance.

Top photo, from front to back (left to right): Michelle Ervin, editor, Erin Ruddy, executive editor, Kavita Sabharwal-Chomiuk, online editor, Barbara Carss, editor-in-chief, Rebecca Melnyk, online editor, Steven Chester, digital media director, Rick Evangelista, web developer. Missing, Cheryl Mah, editor, Matthew Bradford, writer.

Canada’s first LEED Platinum heritage conversion opens

Credit Suisse Asset Management and Vancouver-based Swissreal Investments officially opened The Exchange office tower yesterday in Vancouver’s Financial District.

The Exchange is a $240 million investment and the first major project in North America that a real estate fund of Credit Suisse Asset Management built from the ground up.

“A few years ago, we expressed our confidence in Vancouver’s economy and its future,” said Christoph Schumacher, head of global real estate at Credit Suisse Asset Management. “While we would typically invest in a fully-developed leased property, we were confident that we could manage this development from start to finish, which speaks to our confidence in Vancouver and its future. Made possible by international partnerships, today, we are proud to deliver an office tower that defines the next generation.”

The 31-storey building is Vancouver’s tallest LEED Platinum office tower and Canada’s first LEED Platinum heritage conversion with the restoration of the Old Stock Exchange building, which opened in 1929. The building ranks as Canada’s eighth largest LEED Platinum office project.

“When we approached Credit Suisse about building an office tower in Vancouver, critical to their decision was that the project achieve the highest environmental standards and architectural excellence,” said Franz Gehriger, CEO of SwissReal Investments.

World-renowned Swiss architect Harry Gugger designed The Exchange in collaboration with Vancouver-based architectural firm Iredale. Last month, The Exchange won the 2017 American Architecture Prize for Heritage Architecture.

“The new tower arose entirely from the context of the Old Stock Exchange building, which we preserved as the cornerstone of the new structure,” said Gugger, known for his work on Beijing’s Bird’s Nest Stadium and London’s Tate Modern Gallery. “The Exchange is a distinctive, iconic pillar of Vancouver’s historic financial district. Viewed from the street, the elegant pinstripes of its façade mullions create a unique identity for the tower at the heart of Vancouver’s downtown.”

The Exchange will have half the energy load of a traditional office building, with a 35 per cent reduction in energy costs and an 85 per cent reduction in carbon dioxide emissions.

More than 200 people attended the grand opening for The Exchange, Vancouver’s tallest LEED Platinum office tower.

With Vancouver’s office market currently ranking the second tightest in North America, The Exchange is already almost two-thirds leased. Its anchor tenant, National Bank, is the second oldest and sixth largest bank in Canada.

Executive Hotels will operate a luxury boutique hotel in the heritage portion of the building, while a Vancouver accounting firm, Smythe LLP, and a fintech company, HyperWallet Systems, will occupy a total of 50,500 square feet. Swiss chocolatier Lindt has a retail store on the ground level, and Sovereign General Insurance recently signed a lease.

Top photo from left to right, lead architect Harry Gugger, Vancouver Mayor Gregor Robertson, Credit Suisse Asset Management’s Christoph Schumacher, SwissReal’s Franz Gehriger.

How technology is leveraging asset management

There are now more than 130 companies creating technology to help the commercial real estate industry thrive and to make work easier for property owners and managers. A panel discussion at the Real Estate Strategy & Leasing Conference in Toronto this year examined how technology is changing asset management and where the future of office space marketing is headed. Moderator Monica Di Zio, marketing and communications manager at Crown Realty Partners, posed questions related to what technology to use and how companies can measure the success of products.

Looking back to the 1980s when a “good old handshake was the way properties were marketed,” Di Zio said some spaces are really starting to incorporate technology. The industry is shifting into augmented reality, 3D printing, robotic automation and drones, which are creating paths to imagine commercial real estate in new ways.

“Tenants are now more sophisticated than ever and commercial real estate has been slow to adapt to technology,” she said. “Our tenants are expecting more, so marketing campaigns have evolved.”

Deciding what technology to use

The commercial real estate industry has traditionally been lethargic when it comes to adopting new technologies, but businesses are starting to view change more positively, said Maria Aiello, vice-president real estate advisory and technology lead at PwC.

With so many technologies competing for attention, it can be difficult to know which one is best for business. With the ability to address gaps that once persisted, Aiello says industry should now look more closely at the solutions that can help properties and make sure marketing can be enhanced.

“There has to be some kind of a value proposition, said Aiello. “In the interest of the deal, the space, tenants and occupancy, I don’t think it’s one-size-fits-all.”

For Jennifer Allard, project manager of real estate investment information systems at HOOPP, data is required in order to know what is working and not working. However, many leasing teams have been using Excel spreadsheets for years, and they need to use tools so data can be collected in order find out what initiatives are working and generating leads.

“If the vast tools aren’t easy to use or if they don’t see value in them, they won’t use them,” she noted. “The value of getting them to use the tools so they have to data is key to making decisions.”

Peter Altobelli, vice-president and general manager of Yardi Canada, sees a lot of change in how to deliver marketing to potential clients and new tenants and how to service existing tenants. In the next several years, industry can expect more integration between products and services or interfaces with third party companies, along with the use of artificial intelligence and machine learning in marketing and leasing.

“Over the years I’ve seen an enormous amount of change in technology and how it delivers solutions,” he said. “The U.S. is so much ahead of Canada in terms of technology adoption, but it’s starting to change where new technology is coming out with real ROIs.”

When choosing technology, he suggests looking at the larger issues and working on acceptance. He spoke about the benefit of CRM tools and how sales teams often have a difficult time using them.

“If you want to automate your leasing teams, you have to get acceptance in that automation and try to drive what the benefit is,” he said. “If someone leaves and all their contacts go with them, you really need to understand how that is a problem for your company and determine how to solve it. Once you solve it, how do you deploy it and gain acceptance from internal staff? Or, if you’re using external brokerage, how do you get those brokers to use it effectively?”

Alain Cohen, president of Arcestra Inc., said clients are expecting them to find better ways to track supply and demand. His objective is to bypass CRM tools and look at newer technology platforms like Uber and Airbnb, which don’t utilize CRM platforms, but connect to supply and demand.

“I think our market is much more ready to adopt new technologies that reside on the cloud,” he said. “What we are working on is peer-to-peer communication; it doesn’t change the way you work, but captures a conversation.”

Improving product offerings

At Yardi, the team focuses on short-term and mid-term research and development. Products are developed based on listening to what clients need and ask for. But these products are now maturing. There are now more and more integrated solutions which are “feature-rich.” All software cannot be “sitting-at-my-desk type applications,” but more web-based and mobile.

“Arguably, there are a lot of great tools out there, but you have to have a strategy because the strategy is really important and differentiates organizations from others, added Aiello. “I urge you to create a strategy that incorporates all of your stakeholders and leverages investment in technology, which is always under the microscope.”

Software is now a service, and Aiello suggests using vendors as partners. Using the functionality of software vendors offer extends to both internal and external organizations, including tenants, investor clients and third party partners.

Software as a service is a major change that has made offerings more flexible, said Allard.

“Traditionally, you would go out and spend $10 million on a SAP solution, which you’re customizing and are kind of stuck. Software is a service; it’s cheap, it’s an annual fee and your biggest cost is change management. At the end of the contract, if you’re not satisfied, you can walk away and all you’ve lost is what you paid that year.”

Measuring the success of technology

“The success of technology is very difficult to measure,” said Aiello. “Traditionally, people thought it could come through savings and resources, but I believe that it leads to operational efficiencies and a means of reinventing your business.”

“The ROI you can get by implementing a platform that centralizes everything and makes things faster and better is really key to getting an easy pay back,” added Allard.

For Cohen, it’s a simple equation: the cost of empty space and the value of any vacant day surpasses skepticism of technology.

Quite often it takes too long to close a deal, Altobelli added. The people needing to make decisions need data and deal structures in front of them, rather than sifting through documents and emails to pull it together.

Immediacy is also key.

“How can you place a price on the immediacy of information,” posed Aiello. “Everyone has some kind of device. You can be in Santa Barbara or Asia and know that space is available or a deal is done. In terms of what vendors offer, it’s organizing data in such a way that it is available and something that can communicate to all of us in record time.”

Long Term Energy Plan reframes CDM incentive

One of Ontario’s most lucrative incentives for conservation and demand management (CDM) will be terminated next summer, about two years after the rules were revised to make it more appealing to multi-residential landlords and condominium corporations. The newly released provincial Long Term Energy Plan (LTEP), now updated to replace the 2013 version, rescinds favoured status for combined heat and power (CHP) systems that rely on fossil fuels.

The move reflects the Ontario government’s agenda to integrate the Conservation First Framework — programs and incentives aimed at achieving a province-wide target of 7 terawatt-hours (7 billion kilowatt-hours) of energy savings by 2020 — with the provincial Climate Change Action Plan and Ontario’s commitment, as part of the pan-Canadian alliance, to work toward reducing national greenhouse gas (GHG) emissions to 30 per cent below 2005 levels by 2030. The Green Ontario Fund, launched last August, is now promoted as a “coordinated, one-window approach” for obtaining incentives, financing and services for low-carbon technologies, while the demand management aspect of longer standing CDM programs appears to have slipped in priority.

“Under current conservation programs, combined heat and power projects that use supplied fossil fuels to generate electricity on-site are eligible for incentives because they can significantly reduce demand on the electricity grid,” the 2017 LTEP acknowledges. “To help meet the Province’s climate change goals, these projects will no longer be eligible to apply for incentives under the Conservation First Framework and the Industrial Accelerator Program, starting July 1, 2018.”

This doesn’t rule out systems that recover energy from waste, or use renewable fuels directly or in combination with energy storage. “North Bay hospital has a CHP that has a wood chip option, so this is not uncommon,” reports Linda Varangu, executive director of the Canadian Coalition for Green Health Care.

Savings, load-shifting and resilience

For smaller landlords, however, renewable options may be more of a stretch. As the name suggests, combined heat and power systems generate electricity — typically via on-site reciprocating engines or gas turbines — and recover the waste heat to use for space heating, cooling and/or domestic hot water. The vast majority of commercial, institutional and multi-residential applications use it as a supplementary source to offset the costs of natural gas boilers and grid-connected electricity supply.

Beyond the energy efficiency and cost savings of redeploying waste heat for other useful purposes, CHP allows building operators to shift load off the grid during times of peak demand. That flexibility could have a big payoff for consumers large enough to qualify for the Industrial Conservation Initiative, which prorates participants’ Global Adjustment charges to their demand during the five hours of the year with the highest overall system demand.

Depending on the system size, CHP can also provide emergency power in lieu of diesel or natural gas backup generators. Health care providers, commercial real estate operators and condominium corporations are all considering that aspect of the technology with growing interest as they look to strengthen resilience to climate change and prepare for possible prolonged power outages.

“Traditional backup generators do not always perform during emergencies,” says JJ Knott of Healthcare Energy Leaders Ontario. “CHP plants have operated continuously during natural disasters like Hurricane Sandy in New York.”

Rule changes introduced with the most recent iteration of Ontario’s Save On Energy incentives further improved the economics for multi-residential and MUSH (municipal, universities/colleges, schools and health care) customers by allowing them to offload much of the risk to third-party contractors, who would continue to own and maintain the equipment within their clients’ buildings. “A lot of multi-res buildings are having this conversation,” Jennifer Grado, Toronto Hydro’s lead on CDM business development told SpringFest seminar attendees in April 2016.

Yet, contractors see the prospect of future rising electricity costs as the ultimate motivator. “The best rates we’re going to enjoy for electricity are today,” asserts Ray Samuels, executive vice president of dbs Power and Energy.

Payback periods in flux

Without the incentive — up to 40 per cent of the capital cost of the equipment and $0.20 per kilowatt-hour (kWh) of ensuing savings — Samuels estimates the payback period for the investment is likely to stretch eight to 12 months longer. However, his company already offers an alternative energy services contract model, which, he reports, clients have chosen over the lengthy process of applying for incentives and waiting for approval for their projects.

“If the rebate is going to be less than $100,000, what you would realize in savings by moving ahead with an installation is greater than what you would recover from the rebate by waiting,” he submits.

Termination of the incentive caught few industry insiders off-guard, but it does complicate the business case for bigger-ticket expenditures. Energy management specialists foresee a different scale of investment, focused more exclusively on energy savings rather than climate change adaptation.

“Many people in the industry are not shocked by the cancellation of incentives for (fossil fuel) CHP because the program seemed contradictory to the policy of reducing GHGs,” observes Rob Detta Colli, manager of energy and sustainability with Crossbridge Condominium Services. “Without incentives, I think projects will look to lower capital costs. CHP units will be much smaller. They will probably be sized more to meet the domestic hot water load and, as such, will not be able to provide any resilience.”

New and old alternatives

Technologies funded through the new Green Ontario Fund won’t necessarily be the most popular alternative option. It could be diesel.

“We still have a lot buildings that use diesel generators for backup power. If renewable technologies aren’t economically or technically feasible, the next best solution becomes cogen, which also provides buildings with a great deal of resilience,” says Bala Gnanam, director of sustainable building operations and strategic partnerships for the Building Owners and Managers Association (BOMA) of Greater Toronto. “One of the chapters in the Long Term Energy Plan is actually entitled: Responding to the Challenge of Climate Change. In that respect, resilience is responding to climate change.”

Farther afield, energy specialists in Europe’s health care sector are actively exploring the potential of coupling CHP with renewable fuels — in part with the prompt of the European Union’s promised €1 million (CAD $1.5 million) prize for a hospital that installs a CHP system relying on 100 per cent renewable energy sources. “In a few years, we should have a very interesting operating model from Europe on how this could be done, if someone in Ontario does not do it first,” Varangu predicts.

“There is still a vast array of solutions that will help all consumers both reduce energy cost and their carbon footprint,” concurs Andrew Pride, a consultant specializing in energy management and strategic conservation planning. “It will be exciting to see how the Green Ontario Fund might enhance the opportunities offered by the current suite of electricity and gas programs.”

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

Class B Global Adjustment costs up for review

The newly released 2017 update to Ontario’s Long Term Energy Plan (LTEP) hints at future relief for commercial electricity customers currently carrying a disproportionate share of Global Adjustment costs. Nothing will happen before promised “consultations”, however.

“The government and the Ontario Energy Board are considering changes to the way the Global Adjustment (GA) is charged to mid-sized commercial and industrial consumers, otherwise known as non-RPP Class B consumers,” the LTEP states. “For these consumers, the GA is a fixed charge that is the same regardless of the time that they consume electricity.”

The document, which is subtitled, Delivering Fairness and Choice, does not address the structure of the Global Adjustment allocation across all non-RPP ratepayers. Class A — now open to commercial customers with an average peak energy demand of at least 1 megawatt and manufacturers with an average peak energy demand of at least 500 kilowatts — is granted the opportunity to significantly reduce GA costs through participation in the Industrial Conservation Initiative, but those avoided costs are redistributed to Class B consumers who do not qualify for the program.

Perhaps telling of the Ontario government’s priorities, the backgrounder accompanying the LTEP’s October 26 release discusses residential and industrial electricity rates, but makes no mention of the commercial sector. However, industry associations like the Building Owners and Managers Association (BOMA) of Greater Toronto have already been approached to discuss the Global Adjustment.

“They are genuinely interested in coming up with a creative, fair way to address this because we all know, right now, the Class B customers are carrying much of the cost load,” reports Bala Gnanam, BOMA Toronto’s director of sustainable building operations and strategic partnerships. “If it’s going to be fair, we need to look at it more holistically.”

“Many condominiums are surprised to learn they fit into the Class B designation. While a condominium is clearly a residence, these particular condominiums do not enjoy the same price protections given to single-family homes,” adds Rob Detta Colli, manager of energy and sustainability with Crossbridge Condominium Services.

“The Global Adjustment remains the elephant in the room,” says Scott Rouse, managing partner of the consulting firm, Energy@Work, who calls for more transparency of the various components now lumped into the GA’s bucket of costs.

On the plus side, he commends the LTEP pledge to address how the GA has been applied to energy storage. “It’s good that they are removing obstacles, including the possibility of offsetting the requirement to pay Global Adjustment for charging storage during off-peak periods,” he notes.

Crown Realty names winner of complex rebrand

A winner has been announced in Crown Realty Partners’ Name Game contest, which set out to rebrand 300, 302 and 304 The East Mall in Toronto, an office complex formally known as the Valhalla Executive Centre for the past 42 years.

Crown launched the contest in mid-September upon taking up property management. Brokers, tenants and the community at large were invited to submit their suggestions to rename the complex for a $2,500 prize. Contestants were asked to enter as many new names as they could muster, including a description of why each name was chosen.

After much deliberation and 400 submissions later, the new name of the complex is The Link. Scott Watson, partner of leasing, handed the prize over to lucky winner Mark Petznick of Devencore NKF. Crown says the name “epitomizes the literal link between the three buildings through a shared concourse, a connection to local amenities, a new pathway to a shorter commute for tenants, a thoroughfare from Mississauga to Toronto and a close bond to the office and local community.”

The Link has 337, 000 square feet of space, an on-site fitness centre, food service, plentiful parking and soon-to-be daycare.

Historic Cinesphere at Ontario Place reopens

For the first time in years, Ontario Place is welcoming guests back to the Cinesphere, the world’s first permanent IMAX theatre, to watch movies at the iconic theatre year-round using IMAX’s new, state-of-the-art laser projection.

The Cinesphere originally opened in 1971, and in 2014, the province designated it a structure of cultural heritage value. It already has the technology to show IMAX 70 mm film, but was upgraded with a new 60-foot by 80-foot curved screen that will provide an immersive experience for guests. The lobby, theatre lighting and acoustics were also updated. As a cultural heritage landmark, renovations will continue at the Cinesphere to enhance the movie-going experience at the theatre while retaining its historic significance.

Ontario Place’s winter programming, which runs from early December until mid-March, will include movie screenings, Ontario150-themed activities, a winter light exhibition with illuminated installations by local artists, skating on a synthetic ice rink and other activities.

Reopening the Cinesphere is part of the province’s goal to transform Ontario Place. Other changes made to the site include the opening of the Trillium Park and William G. Davis Trail this summer, which saw the conversion of 7.5 acres of parking lot into new green space to the waterfront.

“For years, Ontario Place has been a cultural centrepiece and a hub for activities and attractions for us to enjoy. With the reopening of the Cinesphere, I’m excited to welcome back eager visitors to the iconic theatre and encourage people to take part in the fun activities that Ontario Place has to offer,” said Eleanor McMahon, Minister of Tourism, Culture and Sport, in a press release. “With year-round programming, the newly transformed Cinesphere will be a space to revisit great memories from years past, and a place to create new memories for years to come.”

Diamond Schmitt wins two wood design awards

Two buildings designed by Diamond Schmitt Architects have been recognized by WoodWORKS!, an Ontario-based event dedicated to recognizing outstanding wood design and construction, for their use of wood in architectural designs.

Lazaridis Hall at Wilfrid Laurier University in Waterloo, Ont. was presented with the Interior Wood Design Award. Lazaridis Hall is a 225,000 square foot facility for the Lazaridis School of Business, Economics and Math and related programs. It features large wood-line spaces, including the atrium, 1,000-seat auditorium and 300-seat lecture hall.

“Wood proved versatile for both aesthetic and acoustic considerations in these large spaces,” said Birgit Siber, principal at Diamond Schmitt Architects, in a press release. “Wood contributes to and unifies the dynamic curvilinear forms of the building where exterior veneer faced resin phenolic panels are closely matched with wood veneer panels on the interior curved walls.”

Built-in furniture also incorporates extensive wood elements ranging from continuous counters surrounding the atrium to a sculptural wall-mounted bench in the entrance. Classrooms are constructed with tiered levels, featuring a backdrop of custom acoustic panels in red oak designed with 250,000 circular openings to temper sound and add visual interest. The WoodWORKS! jury said the facility “demonstrates ingenuity and resourcefulness” in its use of wood.

Diamond Schmitt’s National Arts Centre (NAC) project won the Jury’s Choice Award at the event. Three new wings were added to the NAC, constructed with a prefabricated exposed wood structure. Laminated triangular wood coffers of western Canada Douglas fir create the finished decorative ceiling.

“The use of wood and glass provide a contrast to the original Brutalist building,” said Jennifer Mallard, senior associate at Diamond Schmitt Architects. “The geometry of the fine detailing in the wood coffers is inspired by the original building and adds a layer of texture to the 1969 structure.”

NAC’s Southam Hall received an extensive application of wood to improve room acoustics. Hardwood flooring and wood seat backs replace heavily upholstered surfaces and the flooring is made of engineered white oak stained to match the dark brown of the building’s original colour palette. The reflective wood surfaces have brightened the sound and have significantly enhanced the acoustic performance of the hall.

Arney Fender Katsalidis opens Toronto office

Arney Fender Katsalidis, a London-based architecture and interiors firm, has officially opened the doors to its Toronto office. The firm chose Toronto as its North American base in response to client demand, as well as the business opportunities available in the city. The firm’s current local clients include Deloitte, Loblaws, Cassels Brock and BMO.

“With Toronto’s growing global profile, its talent network and the added ability of being able to serve clients locally, now is the right time to open our office in the city,” said Earle Arney, chief executive officer, in a press release. “We are very excited about the business opportunities Toronto presents and we anticipate a similarly ambitious growth trajectory as we experienced when we opened our London, UK office five years ago.”

Sho Itoh, the firm’s associate director, will be running the Toronto office, focusing on the firm’s expertise in commercial architecture and interior design, as well as working with clients on custom-built workplace strategy and design.

Arney Fender Katsalidis’ workplace design strategies involve the creation of agile workplaces suited to the client’s needs that are far removed from the traditional office, providing an innovative approach to office design for the Canadian market.

“Our Toronto office will continue to focus on delivering beautiful buildings and inspirational interiors that enable people to live, work and play better,” continued Arney. “We can offer our clients an approach that brings together the best elements of European influence, underpinned by our experience of designing for livable cities, as well as our enthusiasm and ambition to create world-leading design for this burgeoning global city.”

Arney Fender Katsalidis has previously completed projects in Montreal (Deloitte), Calgary (Brookfield Place Calgary) and Toronto (Deloitte).