Revitalizing Commercial Spaces Part 2 – Office

Over the last decade, we’ve seen a major rise (literally) in office towers in and around Vancouver. Class A buildings are making their mark on the skyline and are being snatched up by technology and creative companies, while older buildings are being extensively renovated to compete for these high quality tenants. This is happening in all major markets across Canada today.

Some older class B buildings have added state-of-the-art gyms, coffee bars and nap rooms, while others have spiced up their lobbies in an attempt to out-compete class A properties for tech tenants. This focus on tech has left a gap in the market for older class C buildings to attract professional tenants who aren’t willing to pay the class A and B rents.

Outside Vancouver, Coquitlam and Port Moody have become recent members of the Skytrain line with the new Evergreen extension, which has allowed both cities the opportunity to become new urban centres.

For one professional office building at 1025 Austin Avenue in Coquitlam, the shifts in the market were beginning to hurt the property badly. Competition in the area was becoming fierce, with new developments attracting the best tenants and causing a general increase in vacancy rates in the neighbourhood.

Average vacancy in the market was approaching 20 per cent and asking rents were in decline. Seeing the market trends as they were, Martello approached the owners with a plan to revitalize the building and ensure its competitiveness.

Martello developed a comprehensive two-phase revitalization plan, which would be implemented over a two year period to make the property the premiere location in the neighbourhood for middle market professional tenants and small businesses, as these tenants would not be interested in the newly renovated class B buildings coming onto the market.

The first phase included:

Modernizing common areas and interior lighting systems to freshen up the building and reduce utility costs.
Developing a new inducement structure to attract high quality and professional tenants.
Strengthening relationships with existing tenants to increase the likelihood of renewals.

Phase 2 included:

Replacing existing capital components, including roof and HVAC to reduce operating costs.
Utilizing new technology such as solar reflective film to support these systems.

Once renovations were complete, the building successfully became a high demand location for the selected target market. Now three years on from the project outset, the building is 100 per cent leased, with two solid anchor tenants and a quality tenant mix consisting of accounting, legal and educational professionals.

Owners of older class C buildings must be vigilant to stay on top of local market conditions, recognize any gaps in the market and think long term to fill that need. Doing so will ensure that your building is fully leased and cash-flow producing for years to come.

Last month we discussed the importance of revitalizing retail spaces. You can check out the article here.

Martello Property Services is a Vancouver-based real estate management company that specializes in commercial and residential property management, commercial insurance, strata management, and building operations. For any questions, you can reach out to them at 604.682.4034 or at www.martello.group.

Urban green space could prove a health asset

Convenient access to urban green space could improve resistance to diabetes, heart or respiratory diseases. Canadian researchers recently completed what’s believed to be the first large-scale study of links between residential proximity to greenery and mortality rates from those chronic illnesses, and concluded there’s evidence that municipal policy makers and land-use planners may want to consider.

“Increased amounts of residential greenness were associated with reduced risks of dying from several common causes of death among urban Canadians,” they state in their report, published in the international medical journal, Lancet Planetary Health, earlier this month. “The findings support the development of policies related to creating greener and healthier cities.”

Peer reviewers commend the work, led by Dr. Dan Crouse, an epidemiologist with the New Brunswick Institute for Research, Data and Training, for its expansive sample size of more than 1.26 million respondents to the 2001 Canadian census and follow up of 11 subsequent years of data. This measured exposure to greenery — derived from the study subjects’ postal codes and satellite images supplying what’s known as the normalized difference vegetation index (NDVI) — then linked it to Statistics Canada’s mortality database and factored in several socio-economic and ambient air quality variables.

“By linking the NDVI, which can be standardized across the world, to mortality data in a well-designed statistical study, Crouse and colleagues have contributed to further advancing the field, as it will now be possible to replicate their study in various geographical regions with different socioeconomic and cultural conditions,” Dr. Matilda van den Bosch of University of British Columbia’s School of Population and Public Health, observed in an accompanying Lancet commentary.

The Canadian research team derived average 10-year values for the impact of green space within 500 metres and 250 metres of each study subject’s residence. Risks of mortality were found to be lower in all cases for residents living within 500 metres of green space, with best result exhibited in fewer deaths from non-malignant respiratory disease and the most minimal benefit seen in deaths from cerebrovascular disease.

Various cohorts within the overall sample, which was drawn from 30 Canadian cities, also appear to enjoy greater protective benefits. Notably, men aged 35 to 74 with higher incomes who were married or in common law relationships had the most markedly better health outcomes compared to similar subjects who lived at a greater distance from green space.

“Middle age might be an etiologically important window during which living close to greenness might yield the largest benefits to health,” the researchers hypothesize.

Income-related results also proved intriguing since other studies of the links between access to green space and emotional and physiological well-being have found lower-income groups generally record the most distinctive health gains. In those cases, restorative natural environments are deemed to have incrementally less influence on stress and other physical conditions for research subjects who typically begin with a better base level of health.

In this case, Canadian researchers postulate subjects with higher incomes may have more leisure time to enjoy the outdoors and/or superior choices. “The quality of the green space around the homes of more affluent populations might be different from those around people in more deprived populations, which is a factor that we were unable to assess or describe with our existing datasets,” they acknowledge.

Subjects who lived within 500 or 250 metres of green space were benchmarked only within their own urban communities to ensure that other potential variables — climate, access to health care, etc. — matched closely. van den Bosch calls the research findings particularly telling when accounting for air pollutants.

“Crouse and colleagues were able to adjust for several environmental covariates, including PM2.5 (fine particulate matter), ozone and nitrogen dioxide, but noted these only had a small confounding effect on the green space hazard risks. Thus, in this case, it seems as if greenness has a protective effect that is independent of air quality,” she notes.

However, researchers do underline a few intangibles. The NDVI describes the presence and amount of vegetation at a given location, but not whether it is publicly accessible and/or easily navigable. Nor does the research focus, which is solely on place of residence, contemplate subjects’ possible exposure to greenery in their daily travels and workplace or school settings.

Self-selection among the research subjects could also colour results if, for example, it can be shown that people who have healthy lifestyles are more predisposed to choose homes with convenient access to green space. Both the research team and peer reviewers concur that further exploration is warranted.

“Future studies should build on the approaches of Crouse and colleagues to assess the potential of urban green spaces as inherently health-promoting assets in cities,” van den Bosch maintains.

Alberta introduces stronger protection for condo buyers

On October 12, the Alberta government approved the first stage of new regulations that will better protect condominium buyers in the province.

“Albertans deserve to be protected when making a big purchase like a home or investment property,” said Stephanie McLean, Minister of Service Alberta, in a press release. “Today, we have taken the first steps toward reassuring Albertans that their investments are properly looked after, so they can feel confident when investing in the condo market.”

The new rules will improve protections for buyers of new and converted condo units by:

Requiring developers to give a final move-in date, and if they cannot deliver the unit on time, buyers have the option to renegotiate or cancel their contract and get their deposit back;
Preventing “fee shock” by requiring developers to give a realistic estimate of condo fees a buyer can expect upon moving in;
Requiring developers to include more information in the contract, including floor plans and finishes, so buyers can make a confident decision;
Creating new rules so developers must hold buyers’ deposits in trust with a lawyer while their units are being built;
Requiring developers to provide more information to the first elected condo board, to create a smoother transition for owners; and
Allowing the government to investigate breaches of the Condominium Property Amendment Act, and issue fines to developers where necessary.

Most of these regulations will come into effect on January 1, 2018, with the remainder coming into force on April 1.

“The new rules will benefit both condominium builders and purchasers,” said Jade Mahon, Partners Development Group. “As consumers look to purchase homes, having rules that enhance their confidence and security will result in increased participation in the marketplace.”

Public consultations are already underway for the second set of regulations, which are focused on improving condo living. Albertans are invited to complete an online survey on issues including how meetings are run and how votes take place, rules on renting a condo, and who should repair units and pay for insurance, among others.

The survey is available at condo.alberta.ca until November 10, 2017. The survey is a follow-up to a series of open houses which were held across the province earlier this summer. Consumer input from the survey and open houses will help the government create new regulations related to governance and dispute resolution, with the new rules expected to be finalized in 2018.

A director’s toolkit for renovation success

Given how much corporations are likely to invest in renovation projects, it’s important to set them up for success. Here’s advice to help directors do just that.

The reserve fund study

Before even thinking about a renovation, take a look at the corporation’s reserve fund study (RFS).

Directors need to know their RFS thoroughly and understand its limitations. Specifically, it’s critical to understand that reserve fund studies don’t provide exact implementation schedules or precise budgets for anticipated projects and always seem to calculate the annual interest rate for the reserve fund account using interest rates that no local banks offer.

There are no rules requiring directors to follow their RFS exactly. The RFS schedule shifts when any part of the physical infrastructure is damaged by an “act of God” or fails prematurely. Decisions about implementation can only be made after consulting with the appropriate experts.

Corporations with a good record-keeping system will know their property’s history and will have valuable data on previous work, resident maintenance requests, and other pertinent information. A trend in minor leaks, for example, can indicate that the windows are failing faster than expected.

Delaying work to future years to keep condo fees from increasing is possible but only acceptable if delays do not cause adverse consequences. The key lesson is to understand that the RFS is not an absolute road map and to consider the pros and cons of delaying a project thoroughly.

Plan, plan, and plan

Planning always takes longer than expected, so start early; a year in advance is not too soon. Large projects demand careful planning and budgeting to ensure that a contract is in place before the onset of the construction season. If directors allocate enough time for planning, they can relax (a bit) and avoid pressure to make snap decisions.

Ask owners for their opinions

Another benefit of advance planning is that it leaves directors plenty of time to consider owners’ opinions. Any renovations that include an aspect of colour or design — for example, redecorating the party room — need special attention that replacing the roof does not.

The annual general meeting (AGM) is an opportunity to speak directly with at least some of the owners. After the AGM and with the input from this initial group of owners, the board can follow up with the rest using readily available and often free software.

Consulting the owners is not mandatory, so why would a board want to do this? The most obvious answer is to prevent complaints once the work is finished. A colour choice that the owners dislike can result in a never-ending stream of complaints and ill will. The best answer is because asking the owners gives them a say in the look and feel of their homes. Technology makes it much easier and cheaper to do this than ever before, so why not?

As general rules, keep surveys short and ask focused questions. Provide a short-list of possible choices, or it will be impossible to make a final decision. And don’t forget to leave enough time to collect feedback from a survey.

Be flexible (and creative)

There are so many options and pricing possibilities for any project, but the following few tips will help directors navigate this complex process.

Always choose the best quality materials possible because they usually have a longer life expectancy, lower annual maintenance fees and will cost less over its expected lifespan. Higher quality materials might not pay for themselves until 20 or 25 years have passed, while lower cost materials might seem the best option for today but could cost more in the long run after including the cost of maintanance. It could be an excellent decision to levy a special assessment if a higher cost option reduces future costs. Always evaluate total costs based on the lifespan of the project.

Redecorating projects present a unique challenge because style is subjective, and it’s hard to predict how long today’s trends will look good. What’s more, certain features could look great but end up becoming costly if the feature is easily damaged, for example, by residents moving in and out.

Assign oversight

Major projects require expert oversight. Most contracts stipulate a payment schedule contingent upon meeting specified milestones, but who determines if the project meets the prescribed standard? It may be appropriate to engage an engineer to help monitor the project and conduct regular inspections.

It’s important to monitor large and complex projects closely and make any necessary corrections earlier rather than later. It’s possible to take legal action against a contractor if the project has issues, but consider this option a last resort. Preventing problems mid-project is always better than trying to fix problems at the end.

Consult experts

Throughout the process of planning and implementing any renovation project, directors are expected to consult with the appropriate experts. Property managers have considerable expertise in renovation and should always be the first person directors consult. Engineers also play a key role before and during renovations.

Successful renovation projects rely on condo directors understanding their RFS, planning, asking owners for input, being flexible and creative, and assigning proper oversight. If directors consider these factors and consult experts, there is a much higher probability of a positive outcome.

Pat Crosscombe is the founder and CEO of BoardSpace, a company that provides software for condo boards and property managers. She is the president of her condo board for the second time after a three-year break from a first term of five years. She can be reached at 613-790-0225 or [email protected].

High-rise development site sells in Coquitlam, B.C.

Colliers announced that it has sold a high density mixed-use development site, located steps from the Burquitlam SkyTrain Station in West Coquitlam, Vancouver. The property, 612-618 Clarke Road, sits on a combined 41,459 square feet and is currently improved with a 50-unit rental apartment building and a duplex.

With the recent expansion of the Millenium Line and the Evergreen Extension opening in early 2017, the Burquitlam neighbourhood has seen a recent surge in development and investment from prominent firms, including: Bosa, Marcon, Mosaic, Intracorp, Bluesky and Concert Properties.

Coquitlam enjoys a central location within the Metro Vancouver region and is currently listed as the fifth largest city in British Columbia.

Coquitlam property features:

Trophy 41,459 SF high-rise development site
Steps from Burquitlam SkyTrain station
A maximum FAR of 5.5 and 228,025 buildable SF
Holding income from existing 50-unit apartment building
“Top of the Hill” views of Burnaby Mountain and Mount Seymour
Designated mixed-use residential/commercial
Downtown Vancouver is 30 mins away
Metrotown is 20 mins away
YVR Airport is 40 mins away
Close to Simon Fraser University

Estimated 2016 demographics (within 1 km of the subject site):

12,962 residents
Average household income: $91,263

Bill 109 Proposes Strict Rules for Elevator Professionals

A new private members bill is gaining traction at the Ontario legislature that, if passed, will hold elevator contractors more liable for the state of elevator repairs.

Introduced by Trinity-Spadina MPP Han Dong on March 22, 2017, Bill 109, the Reliable Elevator Act, puts forward multiple amendments to the Building Code Act (1992) and Consumer Protection Act (2002).

For one, the Bill proposes that elevator traffic studies be conducted for building permit applications pertaining to developments of seven or more stories. It also holds contractors accountable for fixing out-of-service elevators in buildings with seven or more stories within 14 days, and those within long term care homes and retirements within seven days.

Additionally, the Bill subjects elevator maintenance contracts to the protections under the Consumer Protection Act, thereby leaving contractors vulnerable to potential fines and reputational damage.

“Currently, there are no regulations or bylaws that give a maximum timeframe for elevators to be brought back into service,” Han Dong told press. “I’ve been talking to many residents and condo associations, and I’ve been told that elevator reliability is a serious challenge. Getting home shouldn’t be difficult.”

While Dong’s bill has been submitted with good intentions – that is, to protect the health and safety of building residents – professionals within the elevator industry argue it lacks an understanding of how the industry works.

“There’s really no strong data or research to support this is even a problem,” adds Phil Staite, Vice President with Quality Allied Elevators. “I would say that less than two per cent of all the elevator repair calls aren’t completed within the Bill’s time period, so it’s targeting something that’s typically not an issue.”

Secondly, says Staite, elevators that are out of service for long periods of time are usually in that condition due to circumstances beyond a contractor’s control. Specialized elevator parts aren’t always readily available, meaning contractors must wait for international orders to come through or go through the extra steps to have them custom made. Parts for older elevators may also be obsolete altogether, as is the case with many single-speed elevators throughout the province.

Lastly, it’s not uncommon for elevator repairs to be delayed by building owners who have not approved the work or by TSSA orders which draw out the process. Combine these factors with the possibility of brownouts and computer system failures on newer models, and the reasons behind a broken elevator are more complex than what Bill 109 appears to consider.

“Elevators go down – and stay down – for a number of reasons, and very few are because an elevator company isn’t doing its job. These are extremely complicated machines with thousands of parts, and a lot of them are very old to begin with,” says Staite, adding, “It will be an awful lot of work over nothing and if they end up passing this Bill. No one will know who is responsible for what, and there will a lot of needless finger-pointing.”

Bill 109 passed second reading on April 13, during which time concerns were voiced by a number of industry reps. Dong has stated he’s open to discussing the Bill further, adding, “I want to send out a message to independent contractors, especially those that are taking their job seriously and doing their best to ensure reliability of the elevators they look after … I want them to understand that this is a great opportunity for them to share best practices, to bring the industry to a unified standard so customers, ultimately, will benefit.”

With the Bill now sent to the Standing Committee on Regulations and Private Bills, it will be some time before the industry knows its fate. In the meantime, Staite says the answer to keeping elevators running is really more simple than it appears: “If you keep your elevators maintained and upgrade them if they’re getting old, than this whole matter is a non-issue.”

Phil Staite is Vice President of Quality Allied Elevators.

Fall inspections to curtail costly winter repairs

Fall is the ideal time to prepare facilities for winter, from roof to foundation. The changing seasons bring freeze and thaw cycles, falling pine needles and leaves, organic growth and harsh weather conditions that can wreak havoc on a building or structure’s exterior if it isn’t properly maintained. Conducting an annual fall building inspection will help to identify potential maintenance issues before they become problematic and lead to costly repairs for the owner.

“Maintenance of buildings or structures, whether it be the interior or exterior, horizontal or vertical construction, or a hi-rise or single-story, is a necessity across the country,” said Bob Gender, branch manager for Western Specialty Contractors, a large U.S.-based specialty contracting company. “Many times a quick check today on your properties can help save building owners and managers headaches during the harsh winter months ahead when getting repairs done can be complicated by low temperatures.”

Here are three ways facility managers can protect their buildings and structures throughout the winter. By identifying a few red flags early in the fall, problem areas can be quickly and effectively addressed before winter sets in.

Repairing and protecting concrete

In the winter, freeze and thaw cycles can cause big problems with concrete structures. When water infiltrates concrete, it can freeze, causing the water to occupy nine per cent more volume than in its liquid state. This expansion causes distress on the concrete, which can lead to fractures that will continue to grow exponentially as saturation of the material increases.

A wide range of restoration, repair and reinforcing services are offered by certified specialty contractors who can repair cracks, spalls, rust spots, deterioration, pot-holes and heaves in concrete and masonry. More often than not, concrete repairs are made before they become a more serious or costly issue, but there are measures that facility managers can take to actually prevent future damage. Applying hot-applied or below-grade waterproofing and urethane or acrylic protective coatings to traffic decks, pedestrian areas or exterior facades will extend the life of the repair, protect adjacent areas that are currently in good condition and significantly improve the aesthetics of the area treated.

For facilities with a concrete parking structure, the fall is an ideal time to survey for damage. Vehicles regularly entering parking garages leave water, oil and muck behind. Not to mention salt and de-icers tracked in during the winter months that can corrode the structure’s concrete and steel support system.

An ineffective maintenance routine on a parking structure can quickly lead to costly repairs and restorations that can be disruptive to tenants and cause unexpected costs and safety concerns.

All types of parking structures are subject to deterioration. Experts at Western have identified five key indicators that a parking garage is in need of preventative maintenance: water leakage, ponding water, expansion joint failure, exposed rebar, and delaminated, spalled or horizontally/vertically cracked concrete.

Preventing unwanted water leakage

The exterior walls of a building can be a significant source of unwanted water leakage. It’s easy to forget how many openings are required in commercial building walls, from plumbing and irrigation connections to lighting, HVAC system elements, exhaust vents, air intakes, joints around windows and doors, and fire alarms, to name a few.

There are also unplanned holes caused by aging brick joints that need re-pointing, vanishing sealants, damage from acid rain and settling cracks. All wall penetrations provide easy access for water, bugs, field mice, birds or other unwanted pests to enter the building and cause damage.

Checking for changes in a building since last year is also recommended if there are abandoned pipe penetrations from a tenant upgrade, a new tenant demo or a deteriorated building joint, which can make the building joint vulnerable to the elements and unwanted pests.

If a building is seriously damaged, a wall system may need to be brought back to its expected performance level. Regular inspections by the property manager or a trained professional will help identify these potential problems early and save the owner money.

Protecting the roof

A commitment to good roof maintenance practices can help facility managers avoid overflowing gutters, clogged downspouts and excessive ponding water, which can lead to costly roof, facade and foundation damage. A weekly routine roof inspection is recommended during this time of the year.

Decaying leaves, pine needles and dirt run-off can all contribute to ponding water and clogged gutters and downspouts, which is why it is essential that all roof drains remain clear of obstructions. In addition to the risk of water pouring into the tenant spaces should a breach in the roof occur, the freezing and thawing of ponding water during the fall and winter months can cause extensive roof damage.

Make sure that all organic debris is completely removed from gutters, downspouts and drains before the winter arrives.

New affordable housing facility coming to Hamilton

An affordable housing facility for individuals living with mental health issues and physical disabilities, broke ground today in the city of Hamilton. The development received $6.3 million in combined federal and provincial funding through the Canada-Ontario Investment in Affordable Housing agreement.

“Our Government is investing in affordable housing in Ontario and across the country to help create jobs and improve the quality of life for people who need it most,” said Bob Bratina, Member of Parliament for Hamilton East-Stoney Creek who was on hand at the ceremony. “When complete, this new development will bring 45 more affordable rental housing units to our city of Hamilton, giving a new place to call home for families in our community.”

The City of Hamilton contributed more than $990,000 to the initiative, and also participated in the ground-breaking ceremony. The facility is a partnership between Indwell and Hughson Street Baptist Church and will include both affordable housing and a place of worship.

Developers said they will be seeking to meet passive house certification, a highly energy-efficient building standard that significantly reduces heating and cooling costs.
Planned amenities in the complex include a common room, gymnasium/auditorium, atrium, chapel, community kitchen and classrooms for youth programs.

“We are proud to help fund projects that give members of our community a safe and affordable place to call home,” said Ted McMeekin, Member of Provincial Parliament for Ancaster-Dundas-Flamborough-Westdale. “Partnerships such as this one not only benefit the people who will be living at this new facility, but our city and our province as a whole.”

Construction starts on Canada’s tallest building, The One

Mizrahi Developments celebrated the start of construction on the retail portion of The One with a ribbon cutting ceremony featuring Toronto Mayor John Tory. The mixed-use development, located at One Bloor West, was designed by Foster + Partners and will stand 1,005 feet tall, making it the tallest building in Canada.

The 85-storey development was designed to highlight its height and slender shape, using the building’s structural frame as its defining characteristic. It will feature eight mega-columns and a hanger frame to create a distinctive, triangulated form to distinguish the building’s exterior.

The One’s elevators and movement of people will be located in a separate core from the 8,500 square foot base of the tower, which will feature ground-level retail and, according to lead project architect Giles Robinson, will be unlike anything else in the city due to its design that will make the building appear open and seemingly structure-free.

“What you will experience is a grand space, an urban room, with 33-foot ceilings, unimpeded sightlines and extensive transparency,” said Robinson, in a press release. “The space will be truly remarkable in terms of its scale and interaction with the streetscape.”

Residences at The One begin 100 feet above ground level, with a sky-lobby that is accessible via private elevators. A bell-hop and concierge will greet residents as they enter the lobby-level, which also features most of the building’s residential amenities, including a 2,000-square-foot rooftop swimming pool and adjoining garden terrace that will be heated for use year-round, as well as a private gym and spa.

Despite the building’s height, it will only feature 416 units – a nod to the city’s area code – to keep suites spacious. Suites will range in size from 591 to 8,000 square feet. Unit interiors were also designed by Foster + Partners to offer a seamless design throughout the condominium.

“The expressive, structural frame that characterizes the exterior of the building is echoed internally within the apartments as well,” said Robinson. “You have striking diagonal lines clad in bronze alloy that cut through the glazing. We’ve also introduced integrated benches around the perimeter of the units to invite residents to sit up close by the windows and enjoy the unmatched views.”

The exterior of the building will feature a state-of-the-art LED lighting system sourced from Japan. It can be used to produce different colours to reflect the mood of the city, and the infrastructure will be hidden within the construction of the building, allowing the light to appear as a glow.

“If you’re lucky, you get one opportunity in life to contribute to a project like The One,” said Sam Mizrahi, developer. “Yonge and Bloor is one of the most iconic intersections in the city and arguably the country. Mizrahi Developments has a responsibility to deliver something Canada hasn’t seen before and we’re grateful and excited to get started.”

Vancouver vacancy rates heading to historic lows

Vacancy rates for all space classes in downtown Vancouver have dropped substantially over the past 12 months. Demand is being driven by technology and media companies with the expectation that this surge in demand may see vacancy rates decline to record low levels.

According to a Real Estate Market Research report by Newmark Knight Frank Devencore, vacancy rates are trending towards historic lows in downtown Vancouver, dropping from 8.7 to 6.8 per cent since October 2017 . In the Class A market, the average gross rent is $49.52/sf.

“The downtown market will remain challenging for tenants pending the next development cycle, which will not hit its stride until 2021,” said Jon Bishop, executive vice president and managing principal of Newmark Knight Frank Devencore’s Vancouver office. “Landlords will be limiting tenant inducements and expanding tenancies will have to consider either leasing non-contiguous space or locating some or all of their operations to the suburbs.”

In Richmond, Burnaby and Surrey, Class A vacancy rates currently range from 10.4 to 17.9 per cent, and average gross rents are between $27.14/sf and $35.05/sf. Most suburban submarkets are tightening.

“Burnaby is taking the lead in positioning itself as an alternative urban centre to downtown Vancouver,” said Bishop. “Anticipating a population growth of over one million people by 2041, the city has created a comprehensive Metrotown Downtown Plan that aims to establish Metrotown as the focal point for growth and development. The plan promotes commerce and job growth, improves connectivity and transportation choices, and integrates office, retail, and residential development with urban plazas and other amenities in a concentrated and sustainable downtown core.”

With contemporary downtown office space in short supply, tenant negotiating leverage will be severely constrained until the next wave of developments is completed. As has been the case for some time, strata office developments will likely continue to attract tenants.

National home sales begin to climb in September

Canadian home sales increased by a modest 2.1 per cent between August and September 2017, according to statistics from the Canadian Real Estate Association (CREA). Despite this increase, home sales were still down on a year-over-year basis. September’s home sales build on a smaller increase seen in August home sales, but still remains 12 per cent below the record set in March of this year.

Activity was up between August and September in about half of all local markets, led by Greater Vancouver and Vancouver Island, the Greater Toronto Area, London and St. Thomas, and Barrie. In the Greater Golden Horseshoe region, some markets posted sales gains between August and September, while others had activity that remained near recent levels or fell further.

Actual (not seasonally adjusted) activity fell 11 per cent compared to September 2016. Sales were down on an annual basis in nearly three-quarters of all local markets, let by the GTA and nearby housing markets.

“National sales appear to be stabilizing,” said Andrew Peck, CREA president, in a press release. “While encouraging, it’s too early to tell if this is the beginning of a longer-term trend. The national result continues to be influenced heavily by trends in Toronto and Vancouver but housing market conditions vary widely across Canada.”

“Further tightening of federal regulations aimed at cooling housing markets in Toronto and Vancouver risks creating collateral damage in markets elsewhere in Canada,” added Gregory Klump, CREA chief economist. “It also jeopardizes Canadian economic growth, which is already showing signs of fading.”

The number of newly listed homes recovered by 4.9 per cent between August and September 2017, following three consecutive months of declines. The national result was largely due to the increase in new supply in the GTA.

Since the increase in new listings surpassed the increase of home sales in September, the national sales-to-new listings ratio fell to 55.7 per cent, compared to 57.2 per cent in August. This indicates a balanced national housing market. Based on a comparison of the sales-to-new listings ratio with its long-term average, about two-thirds of all local markets were in the balanced range in September 2017.

At the end of September 2017, there were five months of inventory on a national basis, which is unchanged compared to August and is generally in line with the long-term average for the measure.

The MLS Home Price Index rose by 10.7 per cent year-over-year in September 2017, representing a further slowdown in year-over-year gains since April. This is due, in large part, to softening price trends in the Greater Golden Horseshoe markets that are tracked by the index.

Price gains slowed in September among ground-level benchmark homes and accelerated slightly for apartment units.

The price of apartment units increased by 19.8 per cent year-over-year, the largest gain across all home types. This was followed by townhouse/row units (up 13.5 per cent), single-storey single family homes (up 7.9 per cent) and two-storey single family homes (up 7.2 per cent).

Although price trends continue to vary widely by region, benchmark home prices increased on an annual basis in all 13 markets tracked by the MLS HPI, which has not happened in nearly seven years.

The actual (not seasonally adjusted) national average price for a homes sold in September 2017 was just over $487,000, an increase of 2.8 per cent year-over-year. The national average price is not entirely accurate due to sales in Greater Vancouver and Greater Toronto, two of the country’s most active and expensive markets. When those two regions are excluded from calculations, the national average price of homes sold in September falls to just over $374,500.

Design standards key to benchmarking diversity

Accessibility and inclusiveness are on the agenda for a pending update of the model green office lease that has become an entrenched standard in Canada’s commercial real estate sector. Responding to a question about benchmarking diversity at the recent Canadian release of 2017 Global Real Estate Sustainable Benchmark (GRESB) results, Michael Brooks, CEO of REALPAC, identified the green lease, now nearing its 10th anniversary, as a potential effective guide for both landlords and tenants.

He suggested the next version may reference Rick Hansen Foundation Accessibility Certification, a two-level rating system for commercial, institutional and multi-residential buildings. In addition to credible third-party verification from professionals trained in accessible design fundamentals, participating buildings get a detailed scorecard advising where and how improvements can be made.

Green lease drafters are also interested in University of Toronto’s inclusive design research. “It’s looking at ways to make buildings amenable and welcoming to people of different cultural backgrounds,” Brooks reported.

Health and well-being specialist Whitney Austin Gray, also speaking in conjunction with the GRESB results release, suggested property and facilities managers can embrace diversity through “canaries” who may have heightened health sensitivities and/or be among the approximately 2.5 per cent of people at either end of the height and weight spectrum. Accommodating their needs will almost invariably appeal to a broader range of building users.

She cited task lighting, which is an important visionary aid for cataract sufferers and simply a preference for many office workers with better eyesight. As a spinoff bonus, it can contribute to energy savings by reducing requirements for overhead lighting. Similarly, curb cuts to accommodate mobility devices benefit people pushing strollers or pulling rolling briefcases.

“Pay particular attention to the canaries. These are the people who actually have the secret for the rest of us,” asserted Gray, who is senior vice president at Delos Living LLC, the company that devised the WELL Building Standard. “When you design for the extremes, you benefit the means.”

Yukon first to require radon testing in child care centres

Yukon will soon be the first jurisdiction in Canada to make radon testing a licensing requirement for child care facilities.

The territory announced it will develop a phased-in approach to the radon testing and mitigation licensing requirement, which will also apply to family day homes. Over the coming months, the government will be working with licensed child care facilities to determine how this requirement will be implemented.

“Making radon testing a licensing requirement will ensure all children in licensed child care centres and day homes throughout Yukon are protected from exposure to radon levels above those specified in Health Canada’s guidelines,” noted Minister of Health and Social services Pauline Frost.

Radon is a radioactive gas produced by the decay of uranium in soil, rock or water. It is a colourless and odourless gas that is found naturally in the environment. It can seep into buildings through cracks in foundation walls and floors or gaps around pipes and cables.

Exposure to radon is the leading cause of lung cancer for non-smokers. The effects of radon exposure are worsened in people who smoke or who are exposed to second-hand smoke.

“Exposure to radon is an important health concern for Yukon children,” said Yukon’s Deputy Chief Medical Officer of Health, Dr. Catherine Elliott. “The best ways to protect children’s lungs are to keep their air clear of second-hand smoke and to protect children from high radon concentrations.”

ISSA Canada forms alliance with Canadian Commercial Cleaning Association

ISSA Canada, a division of ISSA – the worldwide cleaning association, has formed a strategic alliance with the Canadian Commercial Cleaning Association (CCCA).

“This alliance is an extremely important step in terms of understanding the needs and desires of Facility Service Providers (FSPs) in Canada,” said ISSA Canada Executive Director, Mike Nosko. “By reaching out to all sectors of the Canadian cleaning industry, ISSA Canada and the CCCA hope to help unify the country’s cleaning community and increase the appreciation for cleaning as an investment in human health, the environment and an improved bottom line.”

Through ISSA, FSPs have access to the top-notch educational platforms and industry leading certifications that are recognized worldwide. These include not only ISSA’s Cleaning Management Institute (CMI) but also the Cleaning Industry Management Standard (CIMS).

Created specifically for FSP organizations, the CMI is geared towards front-line professionals, supervisors and managers. With three various certifications available under this platform, CMI certification equips FSPs with the knowledge to understand cleaning and health safety, work loading, chemical differentiation, sustainable practices and more.

CIMS is the first consensus-based management standard that outlines the primary characteristics of a successful, quality cleaning organizations. Certification through the CIMS program indicates that FSP firms conform to the standard requirements, and have successfully demonstrated that compliance to an independent, third party assessor.

Also available are the Value of Clean and Value of Clean Safety tools which provide technical data, calculators and presentations designed to educate FSPs on how to improve current practices, and focus on health and sustainability to protect employee and customer health, and ultimately receive a return on investment.

“Over the past month I have spoken directly to the majority of owners and senior executives of the major contract cleaning firms in Canada, and have received strong support to move forward with this initiative,” said CCCA Chairman and founder of the Canadian Commercial Cleaning Association Randy Burke. “We look forward to being a part of unifying this country’s professional cleaning community.”

Ontario raising awareness for workplace ergonomics

In an effort to raise awareness for musculoskeletal disorders (MSDs) and other ergonomic ailments during Global Ergonomics Month, Ontario workplace health and safety associations are hosting a variety of learning sessions, webinars and training events on the subject in October and November.

Topics range from how to conduct an assessment of office ergonomics to demystifying ergonomics for the modern office, with training events and learning sessions to be held in various locations around the province, including Ottawa, Windsor and Sarnia.

In the mining sector, for example, the Ontario government is targeting MSD hazards, slips, trips and falls in mines and mining plants during workplace inspection blitzes. The blitzes are taking place from October 2 to November 30, 2017, and will involve Ministry of Labour inspectors visiting mining workplaces to inspect for any hazards that can increase the risk of MSDs during manual material handling tasks and when using equipment that can cause hand-arm vibration.

“Everyone in the workplace has a role in preventing MSDs,” said Kevin Flynn, Minister of Labour, in a press release. “The enforcement initiative and other activities during Global Ergonomics Month will help ensure workers in Ontario return home safe and sound at the end of each working day.”

MSDs are injuries and disorders of the musculoskeletal system, including muscles, tendons, nerves and spinal discs, and can develop from continuous exposure to awkward or sustained posture, repetitive work, or exertion such as lifting, pulling and pushing heavy objects and equipment. MSDs are the most common type of injury resulting in lost time at work that is reported to Ontario’s Workplace Safety and Insurance Board.

“MSDs cause pain and suffering for thousands of workers every year and cost Ontario workplaces millions of dollars due to absenteeism and lost productivity,” said Marcelle Crouse, acting chief prevention officer at the Ministry of Labour. “Our goal is to protect workers on the job. We’re working together to build awareness of MSD hazards and prevent injuries.”

New protocol for cooling towers to prevent Legionellosis

Global public health organization NSF International has published a new protocol, which outlines proper maintenance and safety practices associated with evaporative cooling systems.

NSF P453: Cooling Towers – Treatment, Operation, and Maintenance to Prevent Legionellosis also addresses health concerns associated with commercial buildings, including health care facilities, whose residents may experience health issues such as Legionellosis from improperly maintained water systems. It can also be can be used by facilities to establish a management plan for the treatment, operation and maintenance of cooling tower water systems.

The protocol can be applied in Canada and references follow local regulations from the Authority Having Jurisdiction. It uses the water safety plan approach recommended by the World Health Organization to assemble a team, identify potential hazards and establish control measures to prevent the growth of Legionella bacteria.

According to the Public Health Agency of Canada, fewer than 100 cases of Legionnaires’ disease are reported each year, but the actual number of infections could be much higher. Statistics are also worrisome in other parts of the world. In the U.S., 5,000 cases of Legionnaires’ disease are reported each year.

“Legionella bacteria are found naturally in fresh water environments, like lakes and streams, but can quickly become a health concern due to lack of proper treatment, operation and maintenance in building water systems and cooling towers.” said Dave Purkiss, general manager of water systems at NSF International.

NSF P453 allows owners and managers of buildings with cooling tower water systems to create an easy-to-follow, actionable plan with specific means and methods to manage the risk of Legionnaires’ disease.

Google spinoff to build high-tech community in T.O.

Sidewalk Labs, an Alphabet company, is teaming up with Waterfront Toronto to transform 800 acres of Toronto’s eastern waterfront into a new digital community; a global, mixed-use hub of a new industry.

Following a rigorous procurement process, the Google parent won the bid to help bring urban innovations advanced at Quayside to scale in the Port Lands, one of North America’s largest areas of underdeveloped urban land. Team members include urbanists who led New York City post-9/11 revival and technologists who helped open Google’s first engineering office outside Silicon Valley in New York City.

Alphabet plans to move Google’s Canadian headquarters to the district, set to be a culturally diverse place for tens of thousands of people to live, work, learn and play. The vision includes developing and advancing new ideas that improve city life, from climate-positive energy systems that can deliver a new standard in sustainability, to self-driving transit that makes streets safer, to new adaptable buildings and construction techniques that lower housing costs.

“On Toronto’s Eastern Waterfront, we are making a bold bet that innovative technology and forward thinking urban design can make fundamental improvements in city life,” proclaimed Eric Schmidt, executive chairman of Alphabet. Toronto is the ideal place for Alphabet and Sidewalk Labs to do something impactful that we hope will foster new ideas that can be applied by cities around the world.”

The next year will be devoted to extensive community and stakeholder consultation and long-range planning, focused on improving infrastructure and transportation systems, creating new models of affordable housing and flexible retail uses, and establishing clear governance policies related to data protection and privacy.

Public engagement will culminate in a Master Innovation and Development Plan that, if adopted by the Board of Directors of Waterfront Toronto and by Sidewalk Labs, will form the basis for the Quayside development and any subsequent revitalization of City-owned lands in the Eastern Waterfront. This process will kick off with a community Town Hall on November 1, 2017.

“Today, we are expanding our know-how by partnering with Sidewalk Labs to create a progressive, innovative community; one that addresses significant challenges and sets new standards around sustainability, affordable housing and community engagement,” said Waterfront Toronto President and CEO Will Fleissig, yesterday in the announcement at Corus Quay.

Photo courtesy of Sidewalk Labs