Sensor solutions optimize washroom maintenance

Data informs the day-to-day responsibilities of facility managers, from tenant occupancy and supply needs, to the cost of monthly overhead. While facility management already leverages technology extensively in its operations, high-tech innovations aren’t yet being used fully in cleaning and washroom maintenance to help make processes smarter. But data is a powerful change driver and can enable better-informed, more efficient, and faster decisions — ones that building managers use to create atmospheres that customers deserve, while maximizing cleaning staff performance.

While the washroom isn’t the first place that comes to the mind of the average customer, it is the most often-used facility in any building. Customers expect a clean, fully stocked and enjoyable washroom experience, and since washrooms reflect on the entire business, every impression counts. Historically, facility cleaning and maintenance staff completed tasks such as refilling soap dispensers, restocking bath tissue and managing supply orders manually, room to room, stall by stall — sometimes hourly, depending on the facility’s size. Today, however, technology is playing a major role in overhauling the way that building and facility managers manage washroom maintenance.

Intelligent washroom solutions have become increasingly vital in helping building and facility managers effectively manage washroom upkeep. Some of these solutions use sensor-equipped dispensers to collect and transmit data around the clock, using wireless technology. By capturing refill levels in real-time and displaying it in a web portal, these numbers cut down on time-consuming tasks such as having cleaning staff visit each washroom to manually check product supply.

Here are five ways to positively improve business practices by incorporating smart technology in washrooms:

1. Prevent complaints

Stay informed of washroom traffic, with alerts of exactly when and where issues might arise, to prevent complaints before they happen.

2. Staff efficiently

Use data to make better staffing decisions with a needs-based cleaning approach. When the unexpected arises, quickly assign tasks to the cleaning staff. Have those staff address the situation and mark tasks as “complete” to confirm that all cleaning needs are met.

3. Optimize supplies

Accurately track how much inventory is being used to base purchasing decisions on actual usage rates, not estimates. This eliminates the need to run out for more supplies before the next shipment, or the risk of ordering more product than is needed or can be stored.

4. Impress guests

Impress customers with consistently clean and fully stocked washrooms. Seamless experiences can generate positive word of mouth for a venue, and improve its overall reputation as well as increase tenant recommendations.

5. Reduce waste

Reduce the time wasted having facility maintenance staff check each washroom and stall with accurate data on washroom stock and supply needs.

As facilities managers strive for greater efficiency in the face of increased demands, leveraging data through emerging technology can serve as the backbone to improving overall building performance, while benefiting both washroom guests and facility staff. Data has the power to alleviate facilities executives’ pain points by improving reliability and efficiency while managing and maintaining users’ seamless experiences.

Jimy Baynum, director of market development, North America for Essity Professional Hygiene Business.

Rainwater harvesting bus wash system earns acclaim

A rainwater harvesting bus wash system that reduces the use of cleaning products and conserves drinking water in Guelph, Ontario, earned a Water’s Next national award for water advocacy, in the category of Projects and Technology—Stormwater.

Since its launch in 2012, Guelph has saved more than one million litres of drinking water in the process of washing buses—enough to fill four Olympic-sized swimming pools.

Capture and use of this water source provides many benefits including lower operational costs, local flood protection and reduced strain on stormwater management systems. The city found that installing spray nozzles reduced water use alone by 25 per cent (1.9 million litres per year) with less than a year payback.

“We rely on a groundwater supply in Guelph, and we need to be smart about how we use water—at home, at work and at our City facilities,” said Emily Stahl, manager of technical services for the City’s Water Services department. “It makes sense to match the water supply provided with the use, and naturally soft rainwater is better for washing buses, and cars at home too.”

Reducing stormwater runoff and the amount of cleaning products are other benefits. Washing with naturally soft rainwater uses less cleaning product than washing with the City’s naturally hard drinking water.

A Guelph Transit mobility bus passes through the final rinse where water is supplied by collected rainfall

Guelph added more rainwater collection capacity in 2016, and now has enough rainwater stored for all final rinsing of its buses. In 2016, the city saved 548,000 litres of water by using rain water for bus washing, for a water cost savings of almost $2,000, on top of the savings achieved from the water-efficient spray nozzles (3,150,000 litres) and savings from the reduction in pumping and treatment of the drinking water supply.

“This award is shared with Enviro-Stewards Inc. who helped us develop the system, and the province for recognizing the potential of this project and providing funding to help realize it,” said Stahl. “And we are really pleased to work with our Guelph Transit team; their support for this project was invaluable.”

New enzyme technique may destroy biofilms

Scientists from the Research Institute of the McGill University Health Centre and SickKids have developed a new enzyme technique aimed at destroying biofilms, which form when bacteria adheres to surfaces and produces a slimy substance that helps it stick to material.

Biofilms are also responsible for thousands of hospital-acquired infections every year within North America. Because they create hardened sugar molecules that prevent anitbiotics from reaching target sites within microbes, they are very difficult to remove.

Findings recently published in Proceedings of the National Academy of Sciences (PNAS) show some success, and what is being called “the first strategy that has ever been effective in eradicating mature biofilms.”

“We were able to use the microbe’s own tools against them to attack and destroy the sugar molecules that hold the biofilm together,” said the study’s co-principal investigator, Dr. Don Sheppard, director of the Division of Infectious Diseases at the MUHC and scientist from the Infectious Diseases and Immunity in Global Health Program at the RI-MUHC, in a press release. “Rather than trying to develop new individual ‘bullets’ that target single microbes we are attacking the biofilm that protects those microbes by literally tearing down the walls to expose the microbes living behind them. It’s a completely new and novel strategy to tackle this issue.”

The team found enzymes that cut up sugar molecules, which glue biofilms together, and discovered a way to use these enzymes to “degrade the sugar armour, exposing the microbe to antibiotics and host defenses.”

“When we took the enzymes from bacteria and applied them to the fungi, we found that they worked in the same way on the fungi biofilm; which was surprising,” says the study’s co-principal investigator, Dr. P. Lynne Howell, who is also a professor in the Department of Biochemistry at the University of Toronto. “What’s key is that this approach could be a universal way of being able to leverage the microbes’ own systems for degrading biofilms. This has bigger implications across many microbes, diseases and infections.”

Photo courtesy of McGill University. The fungus Aspergillus fumigatus (in red) produces a sticky sugar molecule (in green) in order to make its biofilm.

FM complaints could inform employee well-being

Research on organizational productivity could make better use of valuable information archived in the facilities management department, a new report from the Continental Automated Buildings Association (CABA) and the National Research Council (NRC) concludes. Improving Organizational Productivity with Building Automation Systems is a first step in a planned three-part study, which begins with a comprehensive review of existing research from around the world.

Drawing on 500 peer-reviewed academic studies that measure some aspect of how organizations function within their workspaces and more than 4,000 abstracts summarizing similar research efforts, NRC analysts developed a framework for assessing building technologies and operations in relation to other key performance indicators for employee well-being and output. These included: absenteeism; employee turnover intent; self-assessed performance; job satisfaction; health and well-being; and complaints to the facilities manager.

Building automation systems (BAS) and whole-building green strategies — defined as “better buildings approaches” — were then compared in a matrix with four other employee-focused corporate strategies: office design/format; workplace health programs; bonuses; and flexible work options. This was not meant to be a hierarchical ranking, but, rather, a means to capture and organize evidence that researchers acknowledge has been “notoriously difficult to quantify convincingly”.

“By comparing better buildings approaches to other corporate programs, which may have known costs and expected outcomes in a particular organization, the decision-maker is empowered to choose (or not) a better buildings approach relative to another approach,” the report states.

However, the comparisons were ultimately based on just five of the six envisioned key performance indicators due to inadequate data on complaints to facilities managers. Existing research could not deliver a metric based on complaints per person per year.

“This is surprising because the data are routinely collected and archived in electronic format in most large organizations, and it seems like such an obvious outcome for building researchers to pursue, with their historic focus on occupant comfort,” the report’s authors observe. “This is also an area in which a business case could be made in a relatively straightforward manner. Even excluding the potentially large benefits that lowering occupant discomfort might have for a range of organizational productivity metrics, responding to a complaint has direct tangible costs too, with both fixed and variable components.”

Etobicoke General construction reaches milestone

Morguard Corporation and William Osler Health System recently celebrated the topping off of the Ancillary Services Building at Etobicoke General Hospital. The seven-storey, 156,000 square foot Class A building is targeting LEED Gold certification.

In 2016, Morguard’s Etobicoke General Hospital Health Partners consortium was awarded permission to design, build, finance and maintain the $56 million Ancillary Services Building through an alternative financing arrangement.

“Morguard has the flexibility to provide alternative financing options that offer innovative and accessible means for the public sector to modernize and replace aging infrastructure,” said K. Rai Sahi, chairman and CEO of Morguard Corporation, in a press release. “We are pleased to join our partners to celebrate a milestone in the development of this modern facility that will provide world-class medical care in this community.”

The development of the medical office building is key in the expansion and transformation of Etobicoke General Hospital. The new facility will replace the existing building, providing more than twice the square footage to meet the hospital’s growing needs. It also acts as a connection to the newly constructed Etobicoke General Hospital patient tower through a covered pedway on the second storey.

The medical office building was designed to the hospital’s specifications and will house physicians’ offices, classrooms and outpatient programs and services, including a fracture clinic, diagnostic imaging and a satellite dialysis program.

“This marks a significant milestone in the revitalization journey at EGH,” said Ann Ford, vice president facilities, redevelopment and information technology at William Osler Health System. “With the support of our partners, we are excited about the tremendous progress we are making in transforming this site, which will help increase access to the health care services most needed by patients and families in the community.”

The project is a hybrid infrastructure/commercial real estate alternative financing arrangement between the consortium and William Osler Health Systems. Under the terms of the partnership, Morguard will develop, own and operate the building for a 40-year term, during which time 100 per cent of the space will be leased for William Osler Health System. The consortium includes Morguard Investments Limited as developer, financial advisor/arranger and facilities manager; Bird Construction as constructor; ARK Inc. as architect; Fasken Martineau as legal partner; RBC Capital Markets as construction financer; and RBC Insurance as long-term financer.

Executives from William Osler Health System joined Morguard at the topping off ceremony, a key milestone in the development process. Construction is on track to be substantially complete by late 2017.

Teknion workplace products named Best of NeoCon

Multiple new workplace products from Teknion Corporation’s Teknion, Studio TK and Luum Textiles collections received prestigious recognition at NeoCon 2017, held June 12 to 14 at The Mart in Chicago.

Three of the awards presented to Teknion were Best of NeoCon awards. The Altos Landscape wall collection and its height-adjustable Altos Desk won Gold in the Architectural Products category. Altos Landscape is a horizontal wall collection with wall-integrated furniture that provides layered-off module planning applications to maximize space and minimize cost. The Altos Desk, a key feature of the collection, is the first height-adjustable desk that is integrated into a standard four-inch-thick wall.

Expansion Cityline was awarded Best of NeoCon Silver in the Furniture Systems category. Featuring a unique beam framework and wide selection of accessories, Expansion Cityline creates connected workstations, collaborative spaces and mixed-use areas.

The Zones furniture collection, designed by PearsonLloyd in conjunction with Teknion, was introduced as an alternative to a traditional office setup at NeoCon 2016, where it earned multiple awards, including Best of Competition. Several new pieces have been added to the Zones collection this year. At this year’s awards, Zones won Best of NeoCon Silver in the Office Accessories category for new easels, storage carts, food trolley and accessories.

“Winning these awards at NeoCon would not have been possible without the incredible talent of all the designers that we have been fortunate enough to work closely with over the years,” said David Feldberg, Teknion president and CEO, in a press release. “This year, Toan Nguyen, Mario Ruiz, Suzanne Tick, Tom Lloyd, Luke Pearson, everyone working behind the scenes at their respective studios and our own in-house design teams created some outstanding new products for our industry. I would like to thank the judges and editors for recognizing our talented group of designers with these awards.”

In addition, Teknion Corporation’s Teknion, Studio TK and Luum Textiles were honoured at the HiP Awards, honouring industry leaders and innovative products, sponsored by Interior Design magazine. Expansion Cityline was named Winner of the Workplace: Systems category, while Studio TK’s Dual Lounge designed by Toan Nguyen won Winner of the Workplace: Lounge Seating category. Honourees included Zones Modular Seating in the Workplace: Modular Seating category and Zones Screens in the Workplace: Standing Partitions category. The Nuova Contessa task chair was an Honouree in the Workplace: Task Seating category. Luum Textiles’ Focus In collection, designed by Suzanne Tick, was an Honouree in the Workplace: Fabric & Textiles category.

HCMA is first B.C. architecture firm to become JUST

HCMA Architecture + Design is the first architecture firm in B.C. to become JUST. JUST is a label that organizations from all industries can adopt to review themselves against ‘socially good’ and ‘socially just’ criteria.

Developed by the Living Future Institute, it is a platform for organizations to be transparent about their practices, policies and employees. The process is self-reflective, requiring companies to rate themselves based on diversity, equity, safety, worker benefits, local benefits and stewardship. JUST gives clear benchmarks for social progression, improves organizational focus and gives clients and collaborators further insight into firms.

The JUST program is a voluntary disclosure tool for organizations. It is a transparency platform for organizations to disclose their operations, including how they treat their employees and where they make financial and community investments. JUST is a nutrition label for socially just and equitable organizations.

“In a relatively short time frame since program launch, the JUST Program has garnered worldwide interest and has helped organizations develop better employee engagement policies and community stewardship practices. The International Living Future Institute is very pleased to announce that HCMA Architecture + Design has earned the distinction of being the first JUST labeled architecture firm in the province of British Columbia. The JUST Label is reflective of HCMA’s long standing commitment to sustainable design and the role that social equity plays in truly sustainable organizations,” said Francis Janes, JUST program manager, International Living Future Institute.

Canadian among BOMA International top officers

Keith Major, executive vice president, real estate services, with Bentall Kennedy (Canada) has been elected secretary/treasurer of the Building Owners and Managers Association (BOMA) International. He joins the new slate of officers for 2017-18, which begins its term with this week’s BOMA International Conference & Expo in Nashville, Tennessee.

First elected to BOMA International’s executive committee in 2012, Major serves as vice chair of its international council. He was honoured with the BOMA Canada Chairman’s Award in 2014 and the BOMA International Chair’s Award in 2016.

“Keith’s wise counsel as a member of the executive committee has enhanced BOMA’s programs and initiatives around the world, and his vision and diplomacy have further strengthened the relationship between BOMA International and BOMA Canada,” Kent Gibson, BOMA International’s 2015-16 chair and chief elected officer, said as he conferred the award at last year’s annual conference and expo in Washington, D.C..

Major is part of Bentall Kennedy’s senior leadership team, overseeing property management, operations, leasing and development for the company’s Canadian office and industrial portfolio. He is a long-time member of BOMA Toronto, and has been a particularly valuable resource for the commercial real estate sector on energy, sustainability and tax issues. He has also played a key role in BOMA’s outreach to young professionals.

Robert Brierley, managing director and executive vice president of Colliers Boston; Brian Cappelli, vice president, asset management, Global X Properties, Cleveland; and Scott Jones, vice president, Jacobs, San Francisco, join Major as BOMA International top officers for 2017-18, with Brierley serving as chair.

Canadian properties also earned BOMA International accolades at the Nashville conference, drawing TOBY awards for excellence in commercial building management and operations in four categories. Winners include: the Toronto-Dominion Centre for office buildings/complexes greater than 1 million square feet; CF Toronto Eaton Centre as the retail property of the year; the Kennedy Matheson Industrial Complex in Mississauga in the industrial office category; and the East Calgary Health Centre as the medical property of the year. All were 2016 BOMA Canada award winners in the same categories.

Teknion wins multiple NeoCon 2017 Awards

Teknion has won multiple NeoCon 2017 Awards for products from its Teknion, Studio TK and Luum Textiles collections.

Three of the honours were Best of NeoCon awards. The Altos Landscape wall collection and its height-adjustable Altos Desk won Gold in the Architectural Products category. Altos Landscape is a horizontally planned wall collection with wall-integrated furniture that provides layered off-module planning applications to maximize space and minimize cost. A key feature of the collection is the Altos Desk – the first height-adjustable desk to market that is integrated into a standard 4-inch-thick wall.

Expansion Cityline won Best of NeoCon Silver in the Furniture Systems category. With a unique beam framework and robust accessories program, Expansion Cityline creates connected workstations, collaborative spaces and mixed-use areas in which people can feel comfortable and empowered.

The Zones furniture collection was introduced as an alternative to the traditional office at NeoCon 2016, where it earned multiple awards including the show’s top honor – Best of Competition. Several new pieces have been introduced to the collection to enable new planning paradigms. This year, Zones won Best of NeoCon Silver in the Office Accessories category for new easels, storage carts, food trolley and accessories. Zones was designed by PearsonLloyd in conjunction with Teknion.

“Winning these awards at NeoCon would not have been possible without the incredible talent of all the designers that we have been fortunate enough to work closely with over the years,” said David Feldberg, Teknion president and CEO. “This year, Toan Nguyen, Mario Ruiz, Suzanne Tick, Tom Lloyd, Luke Pearson, everyone working behind the scenes at their respective studios and our own in-house design teams created some outstanding new products for our industry. I would like to thank the judges and editors for recognizing our talented group of designers with these awards.”

Starlight sells Texas property; acquires Denver apartment

Starlight U.S. Multi-Family (No. 5) Core Fund announced that it has sold the Villages at Towne Lake, a 126-unit, 55+ age restricted community in Houston, Texas, and intends to redeploy the proceeds, together with proceeds from the recently announced disposition of Belle Haven Apartments, to acquire Carrick Ben, a 228-unit, Class “A”, garden-style apartment community located in Denver, Colorado.

The Fund expects that the acquisition will be completed on an accelerated basis in order to ensure the Fund’s capital remains fully deployed for the benefit of unitholders and will immediately enhance the geographical diversification of the Fund’s portfolio and create the opportunity for operating economies of scale and net operating income growth while lowering the average vintage age of its apartment communities. The current average age of the Fund’s properties is 2011.

Pursuant to a purchase and sale agreement, Towne Lake Acquisition LLC, an indirectly wholly owned subsidiary of the Fund, sold Towne Lake to an arm’s length third party, unencumbered for the purchase price of approximately US$18.6 million. The proceeds from the sale were partially used to repay the outstanding mortgage balance of approximately US$8.6 million. Pursuant to a purchase and sale agreement made and entered into on June 9, 2017, as amended from time to time, Carrick Bend Acquisition LLC and Carrick Bend 3 Acquisition LLC, indirect wholly owned subsidiaries of the Fund, have agreed to purchase Carrick Bend unencumbered for the purchase price of approximately US$54.5 million. In connection with the acquisition of Carrick Bend, new financing in the amount of approximately US$34.0 million is expected to be secured for a four year and four month term with a one year extension available. Subject to certain conditions, financing is expected to be interest only and payable at an annual rate of LIBOR +2.15%.

“The sale of Towne Lake highlights the Fund’s execution of its business plan to reduce its exposure in any one market,” commented Evan Kirsh, the Fund’s President. “By selling Towne Lake and Belle Haven, two of the Fund’s smallest assets, and entering into an agreement to redeploy the proceeds into Carrick Bend, the Fund is positioning itself to capitalize on enhanced economies of scale while improving its geographical diversity and the average vintage of the Fund’s portfolio.”

Carrick Bend

Carrick Bend is located approximately 15 miles north of downtown Denver and consists of nine, three-storey walk up buildings on a nine acre site comprised of one, two, and three bedroom units. Each apartment unit at Carrick Bend contains modern interior finishes including gourmet kitchens with European cabinetry and quartz countertops, stainless steel under mount sinks, USB ports, full-size washers and dryers, and private decks or patios with additional storage. Indoor amenities include a state-of-the-art fitness centre, a clubhouse with an entertainment kitchen, televisions and Wi-Fi. Exterior features include a resort-style swimming pool and spa, a fire pit and a courtyard with barbeque grills as well as 78 detached parking garages. As of June 22, 2017, Carrick Bend’s occupancy was 96.1 per cent.

Following completion of the acquisition, the Fund expects to retain Greystar Real Estate Partners, the largest third-party multi-residential property management company in the United States, to property manage Carrick Bend. Greystar currently manages ten communities for Starlight U.S. Multi-Family in Atlanta, Georgia, Denver, Colorado, Houston, Texas, and Nashville, Tennessee.

The Fund portfolio

Following the sale of Towne Lake and acquisition of Carrick Bend, the Fund will have interests in and operate a portfolio comprising 6,692 apartment units in 22 recently constructed, Class “A” stabilized, income producing apartment communities located in Arizona, Colorado, Florida, Georgia, Nevada, North Carolina, and Texas.

Navigating the CRE career path

Professional, community and broader economic development issues were closely linked in the discussions that kicked off the CREW Network 2017 Spring Leadership Summit last week. Delegates from 73 chapters in Canada, the United States and the United Kingdom gathered in Toronto for two days of workshops and small-group meetings that offered the 271 attendees opportunities to glean insight from prominent players in the commercial real estate industry and to share their own career experiences.

The acronym CREW — commercial real estate women — aptly depicts the membership, which, while open to men, predominantly consists of women who have at least year five years of experience working in one the industry’s many disciplines. However, Network is equally intrinsic to the definition of an organization that bills itself as instrumental in fostering business relationships and peer support.

The Toronto event began with an open plenary to consider best practices for advancing that network’s goals and providing relevant programming for members at all stages of their careers. Panellists from CREW Dallas, New Mexico and Denver outlined the premise, logistics and outcomes of their student outreach, mentoring and member value programs.

None of these are unique to any of the chapters, but presenters had both practical advice and some bigger-picture reflections on lessons learned as they explained how the initiatives had been tailored to reflect community needs and make best use of local resources. As a package, the three examples also parallel the typical professional’s career progress from uninitiated to aspiring to entry-level to entrenched status.

Outreach to students

The Dallas chapter’s CREW Careers addresses the front end of that continuum with an immersive experience for high school students. The program is strategically targeted to a demographic that is thinking about postsecondary education, with the aim of showcasing some possible options.

“We want to bring this information to young women who may not even know what commercial real estate is,” explained Paula Beasley, CREW Dallas president-elect and a partner with the legal firm, McTaggart and Beasley PLLC. “Career counsellors may not understand commercial real estate either.”

She traced the steady momentum of the program, which was launched at one all-girls school in the Dallas Independent School District and has now expanded to 10 schools and about 100 girls. Something like a moot court for commercial real estate, CREW members coach students who assume various roles in the development/redevelopment process. These CREW coaches initially visit a school to talk about what they do, then leave it to school officials to sign up student participants.

An actual building site serves as the living laboratory — which might be a new-build or repositioning of an existing building — allowing students to take on roles in design, planning, finance, project management, leasing or property management. This culminates in a competitive charrette, during which teams devise and present plans for the project.

Mentors

At the next stage of the CRE career path, CREW New Mexico focuses on the women who have not yet gained the requisite five years of experience for full membership. The program pairs five mentors with five protégés, following a set course agenda that’s open to indefinite informal extensions.

“They are going to spend six months together and, hopefully, a lifetime being friends,” reported Martha Carpenter of CREW New Mexico, a vice president with Colliers in Albuquerque. All mentors are CREW members, while protégés are generally identified through a referral process.

The chapter’s application and interview process for both halves of the prospective friendship ensures that mentors are truly committed and protégés want real estate careers. “One question we ask is: where do they see themselves in five years? If they say: ‘I really want to be a teacher’, that’s kind of a ding there,” Carpenter quipped.

Beyond initial vetting, mentors and protégés choose each other via a “speed-dating” exercise. The whole group of 10 meets monthly, but duos are encouraged to communicate more frequently.

Over the course of the program, several former protégés have become eligible for full membership — including one whom Carpenter introduced as she sat among the delegates at the Leadership Summit. “Seventy six per cent of our protégés have advanced in their careers, been promoted in their careers or got another job that was a promotion,” she added.

Member value

CREW’s multidisciplinary membership underpins the organizational goal to be “the premier resource and referral network in commercial real estate” yet poses some professional development challenges in balancing dozens of often complementary, but distinct fields. Courtney Ryan of CREW Denver noted that her chapter’s recent move to revise its programming is still subject to scrutiny and refinement, but is an effort to appeal to a broader base of members and capture specific interest groups.

“We are finding there is a definite stratification of where people are finding value,” she observed.

Smaller scale events — like the popular Dinner with an Icon, in which ten to 15 members have an opportunity to meet with a influential industry or community leader, and a bring-your-own-lunch midday seminars — have been added, while the number of all-member events have been reduced. Ryan warns that a surfeit of options stretches the base of prospective attendees in too many directions.

“We were competing against ourselves. So now we’re very strategic with no more than one signature event a month” she said. “Every time we creep up over two (signature and small-scale events) a month, attendance for all events falls.”

A move to limit casual attendees’ access is another part of the strategy to promote the value of CREW membership. Previously, about 95 per cent of events were open to non-members, who simply paid a higher price for their tickets. Now, only about 50 per cent of the events provide this option. “It was, frankly, a big shift,” Ryan acknowledged.

Part of that shift involves reframing the expenditure. “What we really found is that women have a hard time valuing themselves and their network,” she said.

Similarly, Carpenter noted that her chapter’s mentors must often be actively approached and encouraged to apply for the role because they underestimate qualities in themselves that others can clearly see. Meanwhile, Beasley summed up a common perception of the commercial real estate community in her city as: “It’s a bunch of white men.”

She urged continued action on all fronts to create a more diverse pool of replacements from future generations. “Hopefully, the idea is we’re changing the face of commercial real estate,” she reiterated.

Photo: CREW Network President, Alison Bedard, with Paula Beasley, Courtney Ryan and Martha Carpenter.

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

Sears closures a ‘positive break’ for some owners

Last week, Sears Canada announced it is closing 59 of its 255 stores, including 20 full-line department stores, and cutting 2,900 staff positions across its workforce. Unlike Target’s departure two years ago, which left an unexpected void in the Canadian retail landscape, many retail owners have been prepared for some time.

“This comes as no surprise,” says John Williams, senior partner with the retail consulting firm, J.C. Williams Group. “The handwriting has been on the wall for at least a decade that a traditional full-line department store as an anchor is not performing a very important function anymore.”

Among the group of big box department stores, Sears Canada, he notes, has generally been a poor performer, with consistent and significant decreases in revenue, so most developers have a plan B or may have potential tenants already lined up.

According to the latest Colliers’ National Retail report, shopping malls across Canada have been struggling for some time. With or without Sears as an anchor, all malls must now evolve or face demise.

Simpsons-Sears was founded in 1952 as a mail-order business. Williams reflects back to when it evolved into bricks-and-mortar stores. It was blocked out of downtown locations across Canada and able to acquire very good suburban locations.

“They were a much sought-after anchor, and most Sears locations are really good, which is a big plus,” he adds. “Because they were in the game early, their rental rates are very low; consequently, for many developers and landowners, this is a positive break. They will be able to replenish that space with much higher revenue rates.”

Smaller malls might feel stronger effects. For RioCan Real Estate Investment Trust (RioCan), Canada’s largest retail owner, the Sears departure is expected to leave “minimal impact.”

“The announcement by Sears is a much different situation for RioCan than when Target announced their filing in 2015,” said RioCan CEO Edward Sonshine in a statement released yesterday. “Our exposure to Sears is far lower, and we have been preparing for just this situation at many of these locations for some time now.”

Seven RioCan locations in Canada were included in the Sears announcement. These seven stores represent $4.7 million of annualized rental revenue or 0.4 per cent of RioCan’s total annualized rental revenue with an average base rent per square foot of $9.33 as of March 31, 2017.

“In all but one case, these are smaller retail stores that will not require redevelopment as was the case with Target,” Sonshine adds.

Sears was granted temporary court protection from creditors under the Companies’ Creditors Arrangement Act last week. For the past 18 months, the retailer has revamped its product offerings and brand and plans to keep reinventing itself. However, it hasn’t made further progress due to ongoing liquidity pressures and legacy components of its business.

As it stands, RioCan has nine Sears locations, which overall, represent $6.3 million of annualized gross rent. Most of RioCan’s exposure to Sears is through the Sears Home banner, with an average store size of 40,000 to 45,000 square feet. To RioCan, this does not present the same challenges to backfill as a full department store.

Dream Office REIT selling properties for $1.7 billion

Dream Office REIT is selling a portfolio of office properties for $1.7 billion to KingSett Capital including its 50 per cent stake in Scotia Plaza to co-owners KingSett and Alberta Investment Management Corporation.

The real estate investment trust plans to use some of the money to buy back and cancel $440 million of outstanding units.

Dream is also reinvesting in its business and revising its annual distribution from $1.50 to $1 per unit.

The Scotia Plaza transaction is expected to close in the third quarter of 2017. The building recently underwent a major revitalization, with a lobby upgrade, LEED lighting retrofit and elevator modernization.

“We feel now is the opportune time for us to sell our interest in a much improved Scotia Plaza at a profit and move on to concentrate our efforts on other assets where we can use our expertise to increase value,” said Dream Office REIT CEO Jane Gavan. “We appreciate that our partner in the asset has recognized the work done on Scotia Plaza and the value that was created.”

With the new sales, Dream Office REIT will have sold or have under contract $3.2 billion worth in assets. The value of its income properties portfolio will drop from $6.1 billion from 18 months ago to approximately $2.9 billion.

Of the $2.9 billion of income properties that Dream Office REIT will own, assuming all sales are completed, about $1.5 billion are in downtown Toronto, $200 million are in Mississauga and North York, $300 million are in Calgary, and $350 million are in Montreal and Ottawa.

Photo of Scotia Plaza lobby courtesy of Dream Office REIT

Aging mall in cottage country finds new life

Mounds of mangled grocery carts piled in the parking lot of Mountainview Mall a few summers ago. Inside, the smell of burgers and fries wafted from the remaining vendor at the tiny food court. A handful of stores were open. Barely any people were walking through the murky hallway that once led to a giant Zellers. The enclosed shopping centre in Midland, Ontario, a town and popular vacation destination in southern Georgian Bay, was left struggling like many declining malls across Canada.

Either the mall was going to close completely or evolve into something else. Plaza Retail REIT saw an opportunity beyond the tired tiles and outdated flooring and bought the aging asset in 2015, with plans to cut the space down and transform it into a mixed-use strip plaza. The New Brunswick-based retail owner and developer already owns several Shoppers Drug Marts and has constructed new builds in the province, but this is the company’s first mall redevelopment in Ontario.

“It was an amazing property, with so much potential,” says Jamie Petrie, executive vice-president and chief operating officer of Plaza. “We’ve been seeing a lot of demand so far and we’re really pleased with the market.”

Stripping Down and Trading Up

The total investment in Mountainview Mall is $9 million so far. Construction started last year, after the interior tenants were relocated. Some moved elsewhere; others, like Sport Chek, moved to the front of the mall and are now seeing much success in brand new spaces. The entire mall interior will be closed off by the end of summer, once the final tenants, H&R Block and The Source, move out and into a new pad building in what was once the desert of a parking lot.

“One thing we’ve noticed in the redevelopment of regional shopping malls is many of them have really large parking fields that are underutilized,” says Petrie. “Moving from an enclosed centre of 331,000 square feet of pre-redevelopment to what is now 173,000 square feet, means not as many parking spots are needed, leaving more opportunities for pad or separated buildings.”

Renovating the mall and beautifying it with new entrances, sidewalks, curbs and landscaping has also attracted interest in the back of the property. So far, professional services, colleges, a school board, gym and groups looking for storage space have all pursued the idea of relocating offices to the rear.

Additions to the former Zellers space include Mark’s Work Warehouse, which relocated from another part of town. According to Wes Crown, director of planning and building services for Midland, Winners is also a confirmed tenant, set to open by the new year. The site plan also shows room for another pad building, expected to house a “well-loved,” full-service restaurant.

Small Markets. Big Changes

Over the years, smaller markets have struggled to sustain these enclosed shopping centres. A big factor for Petrie is the loss of Canadian anchors like Zellers and now Sears, which “kept things going.” Demographics also ties into this decline.

“Fashion was the lifeblood of these centres,” he notes. “A lot of young people who used to frequent enclosed centres, particularly for fashion, are no longer there in great numbers as they once were, and the aging population of baby boomers may not shop in the same type of retail mix.”

Beyond demographics is a “major shake-up in the fashion industry.”

“A lot of old Canadian retailers cannot seem to compete against new offerings from Europe, the U.S. and in Canada as well,” he says. “Fashion seems to be moving to the discount style like a Winners or H&M, where it’s more treasure fashion that you dig through for a great deal. Then there is Lulu Lemon, Mark’s Work Wearhouse and Sport Chek – fashion that has become part of what we wear every day, certainly among youth.”

Layer on expenses, such as maintenance, and these types of buildings become even more expensive to sustain. Between painting, flooring and tiles, common areas are often hefty spaces to heat, cool and illuminate. Strip plazas have fewer common areas, making them more feasible to maintain.

Transportation infrastructure is another game-changer. Added laneways and more accessible routes are putting pressure on shopping malls in smaller markets, causing them to lose customers to larger, regional centres just down the highway.

“Shopping habits have also changed due to lifestyle,” says Petrie. “There’s less time to do everything you need to do, which is why there are so many restaurants. The growth of restaurants in the retail sector is astronomical because more and more people are relying on fast food or sit down restaurants to feed their family.

“Similarly, strip plazas meet that lifestyle change quite well,” he adds. “Now, you can park right in front of a strip plaza, run in, get what you need and leave.”

Plaza is looking forward to doing a lot more work in Ontario. In a joint purchase, the company acquired Mountainview Mall alongside an enclosed mall in Kenora, Ontario, from the same owner. Since then, Plaza has partnered with RioCan to complete a mall simplification in Cornwall and New Liskeard, also in Ontario and also smaller markets like Midland.

Public reaction in Midland, a town of more than 16,000 people and growing, has been generally positive so far. Petrie calls it a “major part of the community,” and a lot of people are interested in its fate and happy to see a company investing millions of dollars in its future.

“It’s great for employment, investment, property taxes and the energy that comes from a vibrant, new property,” Petrie adds. “The community does lose an interior, public space, but now they’ll have a much more vibrant centre.”

Rebecca Melnyk is online editor of Canadian Property Management @rebeccachirp

Proposed short-term rental regs see early support

Proposed regulations for short-term rentals in Toronto saw early signs of support, with a few exceptions, when a staff report went before executive committee last week. Many short-term rental hosts, including some condo unit owners, welcomed rules, provided that they’re fair. Other stakeholders, including some condo board directors, expressed general support, adding that rules would have to be accompanied by adequate enforcement and penalties in order to be effective.

After hearing from more than three dozen speakers, executive committee voted to have staff consult the public on proposed licensing and regulations for short-term rentals in Toronto. A related zoning bylaw change, which would create a short-term rental use, will also be subject to community meetings. Executive committee also asked staff to recommend and solicit input on possible penalties for home-sharing operators and platforms that flout rules as well as ways to require proof of principal residence.

In their current form, the proposed regulations would restrict short-term rentals to the home-sharing variety, where property owners rent out all or part of their principal residence for stretches of fewer than 29 days. The regulations would also require short-term rental operators to register with the city and short-term rental platforms to be licensed.

Short-term rental hosts talked about hosting responsibly without incident and touted the benefits of the practice, such as boosting local business, earning extra income and supporting Toronto tourism. Some of the short-term rental hosts, although welcoming of rules, urged against additional restrictions, such as a limit on the number of days per year a home can be shared.

Other stakeholders voiced some outstanding concerns, including condo residents operating short-term rentals in breach of building rules and short-term rental platforms saddling condo corporations with the extra costs that come with increased foot-traffic in their buildings.

Steven Tufts, a member of the Fairbnb Coalition, told executive committee that he found the contemplated regulations to be fair and balanced overall, but flagged a few issues for further attention.

“If a unit is to be rented by a condo resident, evidence must be provided that the condo regulations allow short-term rentals,” said Tufts. “While some condos are open to such activities, many are not.”

Mara Epstein, a condo board president and representative of the Bloor East Neighbourhood Association, suggested to executive committee that condominium documents or lease agreements could be used during the registration of operators to verify this.

“It is currently very difficult for condominium corporations and property management teams to enforce short-term rental regulatory compliance by both property owners and their tenants,” said Epstein, “as we have extremely limited authority and an ever-growing lack of bandwidth to do so.”

Epstein added that she would like to see a list of condo buildings that allow short-term rentals created through self-identification.

For the Residences of Maple Leaf Square, which attracts a lot of short-term rental guests, the increased wear and tear on common elements was a concern.

“Elevator reliability — already a major problem in our City — suffers from extra usage brought by short-term rentals,” wrote Davin Michael Garg, VP of TSCC 2130, on behalf of his condo corporation. “We are also not equipped, financially and otherwise, for the additional demands on our security, cleaning staff, property management, and insurance.

“Amenities such as the pool, gym, and terrace also see higher need for maintenance and repair.”

In a letter to executive committee, Garg argued that it’s not fair for condo owners and residents to absorb the associated uptick in expenses. He called for the regulations to hold short-term rental platforms accountable for compensating condo corporations for what he said should be costs of doing business.

Some condo corporations expressly allow or ban short-term rentals in their governing documents, while others are silent on the issue. Under the proposed regulations, which permit home sharing, condo corporations would continue to be able to establish community-specific guidelines through their declarations, bylaws and rules.

Alyas Ali, who rents his condo unit on a short-term basis when away, told executive committee that he was pleased to see that the proposed regulations do not impose a “blackout” on condos. Asked whether the practice is permitted in his building, Ali explained that, while others have run afoul of the condo board, he has an agreement in place that allows him to host, which he does with regard for his neighbours.

“It’s fine to have a great time, but it’s important to remember that these are people’s homes, and I’ve yet to experience these wild parties or a guest that has been cause for complaints at all,” said Ali.

The staff report containing the proposed regulations showed that the city received 20 noise complaints about short-term rentals via its 311 line over the span of close to three-and-a-half years. Airbnb employee Todd Hofley pointed out this figure to executive committee, decrying the “anecdotal evidence” and “hyperbole” in portrayals of how home-sharing is affecting condos.

Hofley also serves as president of his condo board and of a residents’ association representing 18 condo corporations in Liberty Village. He listed off noise and party complaints as being among the many issues he confronts as a condo board president, but described them as a fact of multi-residential living as opposed to a side effect of short-term rentals.

“As a president, all of these issues are real, they are substantive and they are of constant concern, but they are also occurring all the time, across the city, in every condo or rental building,” said Hofley.

Nick Christoforou, a resident who rents out a spare bedroom in his condo unit on a short-term basis, told executive committee that his guests have been quiet and respectful.

“I’m here to greet my guests when they arrive, and to supervise, and do not burden our concierge by having them drop keys off,” said Christoforou.

Similarly, Vanessa Tam told executive committee that she rents out a spare bedroom in her condo unit on a short-term basis.

“I hope to continue sharing my condo without a night cap [a limit on the number of days per year a home can be offered for short-term rental] and doing it responsibly,” said Tam.

Executive committee also heard from short-term rental operators who wished to continue the practice but would be precluded from doing so under the regulations as currently proposed. That included commercial operators renting out multiple units and home owners renting out secondary residences including condo units.

Coun. Cesar Palacio moved to have staff look into the revising the restriction on short-term rentals to “one Toronto residence” from “principal residence,” as long as the residence in question was not being displaced from the long-term rental market, but his motion failed.

Following community meetings and public consultations, city staff are expected to report back to the municipal licensing and standards committee on the proposed regulations for short-term rentals and to the planning and growth management committee on the accompanying zoning bylaw changes. This is due to happen before the end of the year.

Michelle Ervin is the editor of CondoBusiness.

Fortress completes first commercial condo project at Kingridge Square

Fortress Real Developments Inc. (Fortress) and Kingridge Developments (Kingridge) have finished constructing Kingridge Square, an office and commercial condominium development in Oakville, Ontario.

Located on Speers Road, east of Dorval Drive in south Oakville. The 4.95 acre property features four buildings at 209, 217, 225 and 235 Speers Road, with unit sizes ranging from about 1,000 square feet to 1,600 square feet.

The first owners at Kingridge Square took possession of their units in early 2017. Tenants represent a variety of small businesses including accountants, tax advisors, lawyers, engineering firms, insurance agents, investment planners, realtors, construction companies and medical professionals.

“It was originally envisioned as a high-rise apartment site, but our partner Dan Marion at Kingridge immediately recognized the opportunity to shift the use to a low-rise office and commercial condo development,” said Fortress CEO Jawad Rathore. “We were fully on board with the shift in built form, and the results speak for themselves.”

The site has easy access to the QEW and is immediately adjacent to the burgeoning Kerr Village area, which provides tremendous exposure and ease of use for the owners and tenants, as well as their customers.

“CBRE did a tremendous job at selling the units, and espousing the virtues of owning an office instead of leasing,” added Fortress COO Vince Petrozza. “Our construction lender, Morrison Financial, was tremendous to deal with, and Penalta Group built the development on time and on budget.”

Philips Lighting Concept Centre opens

The Philips Lighting Concept Centre (LCC) in Markham, Ont. is officially open following a grand opening launch, held on June 20.

The LCC is an interactive facility where visitors can experience a variety of light methods and controls, in addition to real-world applications of cutting-edge lighting technologies from Philips. The facility is set up as a series of vignettes, allowing visitors to learn more about lighting applications for offices and commercial applications, city and urban lighting, architectural, residential and retail spaces.

Philips has a team of educators to offer public educational programs at the Lighting Concept Centre, as well as advanced programs for lighting distributors, specifiers and customers. These programs are about inspiring people on the value of light and providing hands-on opportunities to explore the fundamental principles of lighting and new technologies.

“Innovation is at the heart of our business and the Lighting Concept Centre is our Canadian showcase to educate and inspire our visitors and customers,” said Michael Gentile, president and CEO of Philips Lighting Canada, in a press release. “The Lighting Concept Centre will always be changing as we develop new products and applications for lighting. Globally we invest approximately five per cent of sales revenue in R&D to ensure we remain at the forefront of lighting technological developments.”

The Philips Lighting Concept Centre was established in 1987 in a downtown Toronto location. After almost one year of construction, the LCC is now located in Philips’ Markham facility in a larger, more open space, which allows for larger tours and a dedicated education area for seminars and other programs.

To find out more about the LCC and its upcoming workshops, visit www.lighting.philips.ca/education.