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Government to assist with Fort McMurray rebuild

Following the wildfires that struck Fort McMurray, Alberta last May, the Government of Canada has announced it is taking action to assist Western Canadians affected by the steep price increases and supply shortages of building materials.

Finance Minister Bill Morneau announced the Government has reduced anti-dumping duties on drywall from the United States into Western Canada by lowering the minimum import prices by more than 32 per cent. In addition, the Government will use the approximately $12 million in anti-dumping duties collected from September 2016 to January 2017 to provide monetary relief for Fort McMurray residents who are rebuilding their homes as a result of the wildfires, as well as builders and contractors in Western Canada that have been impacted by higher drywall costs.

The announcement comes as a response to recommendations from the Canadian International Trade Tribunal (CITT), which found that the full amount of the anti-dumping duties on imported drywall from the U.S. was leaving businesses that use drywall with fewer choices, possibly leading to supply shortages in the region and harming consumers.

The duty reduction is intended to maintain competitive conditions in the Western Canada drywall market and reduce potential supply shortages, while ensuring a reasonable return on sales for domestic producers.

The Government’s actions complement the approximately $300 million it provided to Alberta through the Disaster Financial Assistance Arrangements program in July 2016, as well as the donations it made by matching individual donations to the Canadian Red Cross between May 3 and May 31, 2016, in support of the Fort McMurray wildfire relief effort.

Toronto project introduces residential agri-tecture

As developments in the City of Toronto continue to include greenspace and incorporate opportunities for urban food production, Curated Properties and Windmill Developments have teamed up to introduce residential agri-tecture to their newest project.

Located at the former Dufflet Bakery site at Dovercourt Road and Sudbury Street in Toronto’s West Queen West neighbourhood, The Plant is a mixed-use community rooted in sustainability and residential agriculture. Food-focused building amenities include an internal greenhouse to cultivate seeds and act as a nursery for newly-sprouting plants. An industrial-style kitchen in a common area of the building can be used to host social events.

“Urban living used to mean choosing between a cool neighbourhood full of amenities or having enough land to cultivate a robust garden,” said Adam Ochshorn, partner at Curated Properties, in a press release. “When you consider two-thirds of all humans will soon be city-dwellers, having to choose between an urban residence or the ability to comfortably grow herbs and vegetables no longer makes sense.”

The Plant’s ground floor will feature retail spaces, while offices will occupy the second floor. The developers hope like-minded businesses and office tenants will choose to set down roots at The Plant to help amplify its dedication to sustainability and reinforce a project-wide lifestyle.

Each suite at The Plant features a custom micro-garden bed for fresh herbs built into a sidecar in the kitchen. Suites are wide and shallow to maximize sun exposure. Each unit will come with a terrace or balcony with space for plants, furniture and a barbeque. Outdoor space will be optimized through an angular construction to allow sunlight to flow into the suites.

“The balconies and terraces at The Plant are really more like an eight-storey porch,” added Jonathan Westeinde, CEO of Windmill. “They have their own structure, with railings and lattices, as well as a thermal break. So not only are they large and spacious, but they’re orientated to work with the sun and encourage plant life to take hold.”

The 10-storey development will have interiors designed by +tongtong, a company that has worked with Queen West staple The Drake. Suites will range from one bedroom condominium units to four bedroom townhomes, with units starting at $500,000.

“We wanted to design the suites and common areas to incubate a community around food, agriculture and local ingredients,” said lead designer, John Tong. “With The Plant, we have accomplished terrace-to-table food production, and that’s just the start of it.”

Push for revised rent control in Ontario

The controversial topic of rent control in Ontario is back in the news after two Toronto City councillors voiced concerns about what they are calling “unethical” rent hikes across the GTA.  As such, Councillor Josh Matlow and Councillor Ana Bailão announced that they will be holding a special meeting of the Tenants Issues and Affordable Housing committees this April for a review of the Residential Tenancies Act.

Currently, rent control in Ontario dictates landlords are limited to rent increases of 1.5 per cent, unless the building was constructed after the year 1991. Councillor Matlow asserts that this exemption has led to unfair rent increases—specifically for young people and seniors who are unable to afford the additional funds and are being “forced out of their own communities.”

As Toronto rental housing providers are well aware, the exemption policy was introduced in the 1990s to give developers an incentive to build much-needed new purpose-built rental stock—in other words, to spur investment interest in a critical sector that was lagging. Today, with rental vacancies sitting at record lows, the rental industry at large is concerned that new restrictions could yet again deter developers from building.

“The 1991 exemption is important for rental housing providers because it provides certainty,” comments Jim Murphy, FRPO President and CEO. “At a time of tight housing, changing the rules and enacting more regulation will only act as a disincentive to new rental housing and tenant affordability.”

Rent control in Ontario: facts, findings and opinions for and against

Though rent control is a well-meaning attempt to help alleviate unfair rental hikes, many naysayers assert that the impact it has on housing quality is largely a negative one. Tighter rent controls can limit building owners’ resources  to make necessary investments in repairs and maintenance. Also, there is some economic evidence that rent control can lead to a shortage of housing when the price is artificially suppressed, curtailing new supply and stoking demand—an opinion FRPO shares.

According to CMHC data, in some cases, rents in cities with rent control actually went up more than in non-rent controlled cities. From 2008 to 2010, average 2-bedroom rents in cities without rent control (such as St. John’s, Halifax, Regina, Edmonton and Calgary) increased a total of four per cent over the two-year period, whereas in Toronto and Ottawa, the same sized rental units saw rents go up by almost six per cent over the same period.

According to economists worldwide, high rent levels in big cities are driven by the same phenomenon as high house prices — a chronic under-supply of new properties in areas where people want to live. In that regard, the rent increase increment is often less than for house prices, suggesting that landlords aren’t being greedy, but merely setting rents according to market conditions.

Essentially, it can’t be ignored that real estate investment is a business and landlords are looking to see a return on their investment. Ignoring market rents and going by the guideline year-over-year would limit that return and create less incentive for development.

On the other hand, proponents of rent control in Ontario, like Councillors Josh Matlow and Ana Bailão, assert that landlords often use basic building improvements as a means to justify unfair rent increases—a trend that is effectively turning the downtown core into a “playground for the rich,” Matlow has contended. By putting a cap on what they can charge, tenants will have at least some degree of protection.

Some investor groups, such as The Global Property Guide, maintain that rent control is generally harmful, but it can be benign if it is implemented so that “its market-restraining effects are modest; that it helps to defuse public protest about high rents; and that it assists citizens by providing an agreed framework for contracts.”

Germany’s “Rent Price Brake”

In Berlin, for example, a new law was put into effect in 2015 in order to prevent the huge rent jumps that were causing residents to be priced out of their neighbourhoods. In a city where rental tenants overwhelmingly outnumber owner-occupiers, the law was largely embraced.

Rather than imposing a blanket rent cap across all apartments in Berlin, the system calls on an observatory to calculate the typical rent per square metre for a given area, creating different rates for apartments deemed “simple,” “medium,” or “good,” while also factoring in the building’s age. Over the following five years, no new rental contract is allowed to exceed these rates by more than 10 per cent.

Whether an indexed system, like Berlin’s, is on the horizon in Ontario, or a blanket rent cap with no exemptions, all industry eyes and ears will be on the upcoming April meeting.

UK seeks private rental housing investment

A goal to attract more institutional investment in the United Kingdom’s rental housing sector aligns with in-progress efforts to forge eight larger asset pools from the country’s 89 local government pension funds. The UK government’s new white paper, Fixing our broken housing market, presented to parliament earlier this month, identifies the pools as a means to diversify housing supply with flow-through benefits for pensioners and the wider economy.

“The pooling of local government funds will increase opportunities for their assets to be used to support infrastructure projects, including housing. This could generate promising returns for scheme members while maintaining value for money for national and local taxpayers,” the white paper states. “We want to attract major institutional investment in new large-scale housing, which is purpose-built for market rent. These developments tend to be built out more quickly, adopt modern methods of construction and help regenerate local economies by attracting a skilled labour force.”

Much of the white paper’s focus is on ownership tenure, but it also touches on the need to increase the supply and quality of the private rented sector (PRS) where about 4.3 million U.K. households currently reside. This number has nearly doubled since the turn of the century and the sector now accommodates more tenants than the UK’s extensive network of publicly owned local housing authorities. Nevertheless, a December 2016 parliamentary briefing paper describes private rental as “a cottage industry”, citing a 2010 government survey that found 89 per cent of the country’s landlords are private individuals and only 2 per cent hold more than 10 properties.

The white paper also points to the government’s financing guarantee scheme for the private rented sector — funded with 10-year bonds first issued on the London Stock Exchange in November 2016 — as a lure for a more sophisticated investor base. Announced by the previous Conservative-Liberal Democrat coalition government in 2012, the program is targeted to new developments with a minimum aggregate value of £10 million (CAD $16.4 million).

Last fall’s £265 million (CAD $434 million) bond issue is the first increment of a pledged £3.5-billion (CAD $5.7 billion) fund. Sought after institutional investors could presumably be bond purchasers, housing developers or both.

“We are delighted to see such interest from institutional investors in the inaugural PRS Finance Plc’s government-guaranteed bond,” reported Richard Green, head of PRS Operations Ltd., the UK government’s manager for the scheme. “The availability of attractively priced funding should assist PRS operators to come to market and supply housing units into this much needed, quality, long-term rental sector. With a significant pipeline of projects in the planning and development stages, which the government’s PRS scheme will assist fund, we expect PRS operators to be able to accelerate their projects and create value for investors and tenants alike.”

Meanwhile, moves to reform the UK’s local government pension scheme began with former Chancellor of the Exchequer George Osborne in the pre-Brexit era. Eight proposed pools — four of which will have at least £34 billion (CAD $55.7 billion) in assets — are now working through the many details of the envisioned arrangement, which has a target launch date of April 2018.

However, reports of discussions last summer suggest fund administrators may be wary of any agenda to procure private rental housing investment. “There was a strong feeling in the room that Administering Authorities were being encouraged to consider inappropriate investment for political gain both at the central and (in some cases) local government level,” a summary of the session notes.

A submission to the UK government’s public consultation from global investment consultant BNY Mellon also warns of potential conflicts of interest if local government pension funds invest in assets located within their own jurisdictions.

“A local authority could find itself both seeking to provide low-cost social housing or promote development within its territory, while at the same time seek to maximize income from social housing or business tenants in property it owns in whole or part, or in which it has an interest,” the submission states. “This conflict is manageable, but care must be taken to ensure accurate valuations of market rates are obtained and adhered to.”

More draft regs released under condo law reforms

The Ontario government released Friday a third round of draft rules under the Protecting Condominium Owners Act. Passed but not yet in force, the legislation reformed Ontario’s outdated condo laws and introduced new laws to regulate the condo management industry.

If adopted, the draft rules would see the recently created Condominium Authority of Ontario (CAO) designated as the condominium authority described in the Condominium Act reforms. The CAO would be responsible for administering provisions of the Condominium Act relating to new requirements for condo returns and director training, among others.

The CAO would also oversee the Condominium Authority Tribunal, which is envisioned as a cheap, fast alternative to taking certain types of disputes to court. To start, the regulations propose that the Condominium Authority Tribunal hear only disputes related to rules under section 55 of the Condominium Act, which deals with records, with some exceptions. The proposed regulations further provide that tribunal orders, excluding certain personal information, would be published online in a freely accessible database.

If adopted, the draft rules would also see the recently created Condominium Management Regulatory Authority of Ontario (CMRAO) designated as the administrative authority described in the Condominium Management Services Act. The CMRAO would be responsible for administering most provisions of the Condominium Management Services Act along with its regulations.

The draft rules further propose to delegate some of the lieutenant governor in council’s regulation-making powers under section 78(1) of the Condominium Management Services Act to the minister of government and consumer services. An example of those regulation-making powers would be the ability to require licensees to include specified terms in condo management services contracts.

If the draft rules are adopted, both of the recently created administrative authorities are expected to be designated by mid to late 2017. The changes delegating certain regulation-making powers to the minister of government and consumer services are projected to take effect within the same timeframe. The provisions concerning the scope of disputes to be heard by the tribunal and the publication of tribunal orders are slated to come into force this fall.

The ministry is accepting feedback on these proposed regulations until April 10. This latest release of draft rules under the Protecting Condominium Owners Act follows the release of proposed regulations for the licensing of condo managers as well as proposed regulations to accompany condo law reforms, including provisions standardizing records requests.

Average GTA condo prices climb 13 per cent: BILD

The average price of new condominium apartments in stacked townhouses and mid- and high-rise buildings in the Greater Toronto Area (GTA) reached a record $507,511 in January, says the Building Industry and Land Development Association (BILD).

The average price for a condominium reached an unprecedented $625 per square foot. New apartment prices have climbed 13 per cent since January 2016, an increase of nearly $60,000. Ten years ago, the average price of a condominium apartment was $322,569.

“Our industry is implementing provincial policy by building more condominium apartments and less ground-oriented housing,” said Bryan Tuckey, BILD president and CEO, in a press release. “A decade ago, condominiums represented just 42 per cent of available inventory, compared to 88 per cent in 2017.”

After years of healthy supply, the number of condominium apartments available for purchase began to fall. In January 2017, there were 11,529 new condominiums in builders’ inventories across the GTA, a 10-year low.

Meanwhile, BILD reports that in January, the average price of new single-family low-rise homes, including detached, semi-detached, row and townhomes, climbed to a new record of $1,028,395, according to Altus Group. Prices of new ground-oriented homes climbed 25 per cent in just one year.

The average price of a new detached home reached an unprecedented $1,316,325 in January. That is compared to 10 years ago, when the average price was $444,368. Meanwhile, the average price of a new GTA townhome was $879,619 in January 2017, compared to $328,989 in January 2007.

At the end of January, there were only 1,524 new ground-oriented homes available for purchase in builders’ inventories, which is a near-record low. Compared to 10 years ago, there were 18,400. The supply of new detached homes declined to 534, the lowest number ever recorded in the GTA. This contrasts greatly from the 12,242 new detached homes available 10 years ago.

Overall, there were 13,053 new homes in builders’ inventories across the GTA in January 2017, compared to 31,461 in January 2007.

“Lack of serviced developable land, excessive red tape and frequent delays in the development approval process have all been large contributors to our housing supply crisis,” added Tuckey.

New condominium apartment sales were the strongest for a January following a record 2016. There were 1,199 homes sold across the GTA in January, with most sales in the City of Toronto. That number is an increase of 11 per cent compared to last year.

“Demand for condominium apartments is coming from a variety of sources,” added Patricia Arsenault, executive vice president of research consulting services at Altus Group. “Among them: end users who prefer the locations and amenities offered by condominium apartments; families who might have opted for a single-family home, but have been shut out of that segment due to lack of available product, and investors who are the key providers of new rental supply for the GTA’s growing population.”

Sales of new single-family homes dropped to one of the lowest Januaries in the last 10 years. There were 741 homes sold across the GTA, of which 369 were detached.

Prével launches third phase of 21e arrondissement

Prével has unveiled the third phase of its 21e arrondissement development in Montreal. This new phase, comprised of townhomes and condos, completes the western half of the project.

Located at the corners of Saint Paul W., St-Henri and William Streets, 21e arrondissement sits between Old Montreal, featuring shops, restaurants and boutiques, and Griffintown, a vibrant neighbourhood that is bordered to the south by the Lachine Canal.

21e arrondissement’s amenity spaces include a Grand Salon and Winter Garden, which offer year-round indoor relaxation; a 4,400 square-foot fitness centre featuring exercise machines, an indoor swimming pool and spa; rooftop terraces with views of the city, some of which feature swimming pools and barbeque areas; and a rooftop urban agriculture space, which aims to appeal to local organic farmers who wish to cultivate produce there to distribute it to residents. At the heart of the project sits a local neighbourhood square featuring terraces, shops, a café and restaurants.

The third phase of 21e arrondissement features 101 units on nine storeys, configured into townhomes, one- and two-bedroom condominium units and studios with refined finishes. Unit sizes range from 306 to 1150 square feet.

Menkes is first Canadian real estate Fitwel Champion

Menkes Developments is the first Canadian real estate company to become a Fitwel Champion. Fitwel is a new metric-based certification program that measures the physical, emotional and mental well-being of people in the workplace through targeted improvements to design and operational policies.

“We are addressing an emerging trend in the real estate market that employees want work spaces that support their health and wellness goals” says Peter Menkes, president of the commercial and industrial division of Menkes. “Being an active partner in promoting health and wellness in our buildings is an investment in our occupants, tenants and buildings, just as our leadership in sustainability has been.”

Fitwel addresses health within seven health impact categories, including community health, morbidity and absenteeism, social equality, physical activity, occupant safety, and a sense of well-being. The certification assesses building and workplace features—including the design of stairwells and outdoor spaces, proximity to public transit and fitness facilities, indoor air quality, and healthy food standards—against a baseline of criteria that create a health-promoting environment.

“Fitwel will be used as a measuring stick in creating healthier work environments,” says Jon Douglas, director of sustainability for Menkes. “Employees spend an increasing amount of time indoors and the buildings they work in have an impact on their health. We actively promote health and wellness at our properties by creating opportunities for occupants to make healthy lifestyle choices.”

As part of the Fitwel certification process, Menkes has committed to implementing a Real Estate Wellness Program with efforts such as encouraging physical activity, supporting mental health, and promoting nutrition and good hygiene. Specific strategies include encouraging occupants to use the building stairs and making properties more bicycle-friendly. Communications outreach will focus on mental health awareness and promoting healthy food options on-site and within walking distance of the workplace. Another component of the communications strategy will highlight preventative initiatives that support good health, for example hosting onsite flu clinics.

The U.S. Centers for Disease Control and Prevention and the General Services Administration led the development of Fitwel. The Center for Active Design (CfAD) is the operator leading its widespread adoption and future development.

 

Business applauds B.C. electricity cost relief

The newly released British Columbia budget will provide some electricity cost relief for customers in the commercial, industrial and institutional electricity sectors beginning in the fall of 2017. Business advocates are applauding the provincial government’s pledge to reduce the 7 per cent provincial sales tax (PST) on electricity to 3.5 per cent as of this October, and phase it out completely by April 2019.

“For more than a decade, BOMA BC has lobbied the Province for tax credits aimed at improving energy affordability for building owners and business tenants. We are delighted that our message has helped government craft a tax reduction that significantly benefits the built environment,” says Paul LaBranche, president of the Building Owners and Managers Association (BOMA) of British Columbia.

The promise follows through on a recommendation the provincially appointed Commission on Tax Competitiveness made in its November 2016 report to the Minister of Finance, in which it noted that B.C. is the only North American jurisdiction to charge retail sales tax on electricity. Even that has been levied inequitably since residential and farm customers are already exempt.

Once fully eliminated, the government estimates it will forego about $164 million annually in PST income. However, other projections in the 2017-18 budget are premised on 3.5 per cent average annual growth in collected PST revenue over the next three years.

“Government agrees with a common assessment expressed to the Commission that, as 98 per cent of British Columbia’s electricity is hydro-electric, charging PST on electricity works against a low-carbon economy and removing it would encourage green energy consumption,” the budget document states.

The government is not acting on the Commission’s calls to discontinue PST levied on software and telecommunication services, and to exempt business capital expenditures. These recommendations have been classified as “future considerations” that “will be considered in the context of the province’s fiscal situation and competing funding priorities”. Still, business groups are expressing patience for now.

“This is an important first step towards fixing the PST,” says Richard Truscott, vice president, B.C. and Alberta, of the Canadian Federation of Independent Business. “With the election quickly approaching, we hope to see further commitments from all parties towards a plan to support small business, especially how to finish fixing the PST.”

QuadReal names real estate leaders to founding board

QuadReal Property Group, which manages more than $18 billion in global real estate assets for bcIMC, including some of Canada’s most well-known properties, has appointed new members to its board of directors.

The directors bring broad networks and deep global expertise through their long experience in private and public sector organizations. New members include Paul Cantor (chair), Steve Barnett, Stephen Bellringer, J. Lorne Braithwaite, Thomas Garbutt and Lauralee Martin.

“This board will provide experienced advice and governance as it works with everyone at QuadReal to offer peerless service to our tenants and residents, and desirable returns to our investors,” said new Chair Paul Cantor.

Cantor‘s board chair experience includes the Public Sector Pension Investment Board, Revera Inc., the Global Risk Institute for Financial Services and York University. was also president and chief executive officer of National Trust Company and Confederation Life Insurance Company, and president of CIBC Investment Bank. He is a member of the Order of Canada.

Steve Barnett is seconded from bcIMC to the position of chief operating officer, QuadReal. Previously, he was assistant deputy minister of finance and administration in the BC Ministry of Education, and chief financial officer at WorkSafeBC.

Lauralee Martin served as CEO of HCP, a Fortune 500 REIT. She held both COO and CFO positions with Jones Lang LaSalle, where she led the firm’s global financial strategy. She has also worked at Heller Financial Inc. and GE Capital, including having held the position of CFO while at Heller. She also sits on the board of Kaiser Aluminum Corporation, ADM Industries and Yale Union Contemporary Art Space.

Stephen Bellringer, is a private investor with D.K. Harris Properties. He was president and CEO of Canadian Hotel Income Properties, BC Gas, Union Gas, TransMountain Pipelines and Orca Bay Sports and Entertainment. Mr. Bellringer was also chair at Anthem Properties and OneREIT, and vice-chair of the BC Business Council.

Lorne Braithwaite was the founding CEO of Cambridge Shopping Centres (now Ivanhoé Cambridge), where he was also chair and president. He is the current chair of the Canada Post Pension Plan’s Investment Advisory Committee and a special advisor for Majid Al Futtaim Retail, the leading shopping mall, retail and leisure company in the Middle East and North Africa. He previously served as director for Enbridge and OMERS Realty Corporation.

Thomas Garbutt was the head of Global Real Estate for TIAA-CREF Asset Management and the chair of TH Real Estate. At TIAA, he led the firm’s $90-billion global real estate investment management business. He sits on the board for the Greenprint Foundation and the Association of Foreign Investors in Real Estate.

 

Job cuts lead Newfoundland’s way forward

Major job cuts and departmental reorganization were announced yesterday as the government of Newfoundland and Labrador rolled out its promised flatter, leaner management structure. The 17 per cent reduction of the provincial public service’s management ranks and streamlining of ministries and agencies are among several actions outlined in the provincial policy document, The Way Forward, released last fall, which established six-month, 18-month and longer-term deadlines to achieve a wide range of fiscal, social and growth targets.

“We realize this is a very difficult time for people who are impacted by this new management structure,” Minister of Finance Cathy Bennett said. The province expects to reap annual savings of $20 to $25 million in salaries and benefits through the termination of nearly 200 employees and permanent elimination of another 90 currently vacant positions.

Mergers and/or reconfigurations will bring more operational responsibilities under the umbrella of four newly expanded departments: Municipal Affairs and Environment; Fisheries and Land Resources; Tourism, Industry and Innovation; and the Intergovernmental and Indigenous Affairs Secretariat and Office of Labrador Affairs. The Office of Climate Change — formerly part of the department of Environment and Climate Change — has been reassigned to the Executive Council.

“The Way Forward was developed using the guiding principle of doing better with less,” said Newfoundland and Labrador Premier Dwight Ball.

Other pledged actions for the near term include: a 10 per cent reduction in the provincial government’s building footprint by 2020, beginning with the return of 40,000 square feet of leased space to the market by March 31 this year; a review of the Newfoundland and Labrador Housing Corporation also to be completed by March 31; and the launch of a program to allow municipalities to lease Crown lands for economic development purposes.

How FMs can get recognized for their work

Despite being one of the most called upon professionals in an organization, the facility manager (FM) is one of the least understood professionals in an organization, said Marcia O’Connor, president of AM FM Consulting Group. For that reason, it can be challenging for FMs to demonstrate their value.

The International Facility Management Association (IFMA) generally defines the multi-disciplinary profession as integrating people, place, processes and technology to support the function of the built environment. But, as O’Connor pointed out, it’s hard to agree on a common way to explain the FM’s role and responsibilities.

“No two FM job descriptions are the same in the world,” she said, speaking in the PM Expo seminar Advance your FM Profile last fall.

O’Connor, along with co-presenter Arnie Wohlgemut, president of KP Mylene, talked about how FMs can get recognized for their work. The seminar shared lessons from the book Value-Based Facilities Management by Stephen Ee.

Among the takeaways was that it takes financial literacy and fluency in C-suite lingo to communicate how the FM department contributes to an organization’s bottom line, as Wohlgemut underscored. Consulting the strategic plan is a good place to start, he said, suggesting that facility managers align their work with their organization’s mission. Broadly speaking, some of the way FMs can add value are by reducing costs with energy-conservation strategies and improving productivity by locating additional space.

However, there is a tendency for senior management to look at facilities management as a cost rather than an investment, Wohlgemut said, which may be rooted in the long-standing stereotype of FM as a janitor. Running from one fix-it job to the next will do little to dispel this misconception, O’Connor added, making it difficult to earn a seat at the boardroom table. Getting the ear of executives also demands communicating in terms that resonate with them.

This is lingo that FMs may not pick up in school, even though one-third of these professionals hold degrees. There is no one widely accepted post-secondary school path to facility management, which may explain why many FMs stumble into the profession later in life from other fields, such as architecture and engineering. Credentials such as IFMA’s certified facility manager (CFM) are becoming popular among millennial newcomers to the profession, O’Connor observed, but the average age of FMs remains around 47.

Some of the terminology facility managers have picked up in their efforts to speak the language of the C-suite are key performance indicators (commonly known as KPIs) and service level agreements. While working for the Regional Municipality of Niagara, Wohlgemut took the service level agreement one step further, using service level objectives as the basis for his budget asks.

“I was meeting with public health and they had a particular need for a certain amount of cleanliness in their health clinics, especially in flu season and delivering flu shots,” he said by way of example. “I could translate that into dollars and cents and get them to agree to that as a service level agreement.”

It’s not just communicating with the C-suite that FMs may struggle with, but also financial literacy. Having the confidence to be able to defend a budget is another way to avoid the vicious cycle of deferred maintenance, although it’s not always straightforward to prove that a request is evidence based, Wohlgemut conceded.

He recalled a time when he asked for funding to replace a boiler he believed would soon fail. Since he had always found money to cover patchwork repairs, he said he was told to continue to extend its life.

“I had the fortune or misfortune that it actually failed in the middle of the winter, [which] closed the school for a week and a half,” said Wohlgemut. “After that, they believed me when I said, ‘It needs to be replaced.’”

This anecdote speaks to the character, or the trustworthiness, of an FM, which is one of two traits Wolhgemut identified as important to being in a position to add value. The other trait, competence, can be improved through professional development.

On another occasion, one of Wohlgemut’s budget asks was denied when he appeared before school board trustees to request funding for a roof replacement. He said he followed a compelling deck of PowerPoint slides presented by a group of teachers who successfully secured funding for additional textbooks, which taught him the importance of marketing.

A related challenge for FMs, many of whom fall into the baby boomer age bracket, is leveraging technology in their work. For example, Wohlgemut said, it may be more effective to use social media than email to send alerts about work happening on-site in facilities with large millennial populations.

Bringing value to an organization through facilities management should go beyond meeting the current needs of an organization, he noted. It should encompass anticipating future needs as well as circumstances where legally mandated minimum standards set out in legislation such as the building code may fall short of occupant needs.

And retaining a seat at the boardroom table requires FMs to show their subject matter expertise, O’Connor said, moving past a singular fixation on maintenance issues to make sure facilities are factored into the big decisions. Facilities are frequently forgotten in important decisions that will affect an organization’s real estate portfolio, such as downsizing, she explained.

Although FMs may be one of the least understood professionals in an organization, they are not only one of the most called upon professionals in an organization, but their calling card is also one of the most visible parts of an organization. The facilities have a significant impact on the first impressions of visitors, as O’Connor illustrated with the example of prospective students visiting a university campus.

“The first thing that comes out of that when you drive through the gates is, ‘Wow, what a nice grounds. Oh, look at the buildings,’” she said. “It’s not the program anymore; it’s the work that we’ve done.”

Michelle Ervin is the editor of Canadian Facility Management & Design.

Planon sponsors new IFMA Foundation publication

The IFMA Foundation and Planon, a global provider of Integrated Workplace Management Systems (IWMS) software, have released a new publication, Work on the Move 2, which focuses on the ways that innovation is transforming the workplace in a digital economy.

This second edition features forward-looking case studies from around the world and provides practical tools facility professionals can use to implement workplace strategy ideas and track their success.

Erik Jaspers, responsible for Planon’s strategy and innovation, wrote a chapter called “Technologies Driving Smart Futures,” while David Karpook, strategic business consultant at Planon, co-authored a chapter on “The Real Estate Paradox: Options and Investments.” Nancy Johnson Sandquist, VP of global strategic marketing at the company, was a co-editor of the book and also co-authored two chapters, called “The Building Digital Workplace,” and “Moving Forward with Wendy.”

“We believe this publication will be of great guidance to those who seek to understand the developments around the workplace and the forces behind them,” said Pierre Guelen, Planon CEO, in a press release.

Planon is planning a webinar on Tuesday, February 28 on topics connected to the book.

Ontario invests in Sunnybrook blood cancer facility

Ontario is investing in a new facility at Sunnybrook Health Sciences Centre that will provide specialized treatment for people suffering from blood cancers, such as leukemia.

The Complex Malignant Haematology (CMH) facility will make Sunnybrook the second hospital in the Greater Toronto Area – following Princess Margaret Cancer Care – to provide a full range of CMH services, including stem cell transplants.

In addition, Ontario is investing in renovating facilities at Sunnybrook Health Sciences Centre, the University Health Network’s Princess Margaret Hospital, Hamilton Health Sciences and The Ottawa Hospital. It also will be expanding CritiCall Ontario, a 24-hour emergency consultation and referral service, that helps doctors caring for acute leukemia patients get better access to expert clinicians and services.

“With this investment, patients will have better access to timely service and state-of-the-art treatment, but most importantly, more patients will be able to receive stem cell transplants right here in Ontario,” said Dr. Eric Hoskins, Minister of Health and Long-Term Care.

Conceptual rendering courtesy of Sunnybrook Health Sciences Centre.

Fortress selects co-developer for SkyCity Winnipeg

Fortress Real Developments has signed on Edenshaw Developments Ltd. as a co-developer of SkyCity Centre Winnipeg. The project has a ground breaking slated for later this spring, and has been working to move the project towards the construction stage.

“We have been excited about this project right out of the gates,” said Vince Petrozza, Fortress COO, in a press release. “With such a large and complex tower, we always anticipated the need to add a co-developer for this project, to bring it across the finish line. After meeting with Edenshaw, we knew right away they were the perfect fit for this task.”

“When Fortress came to us with the proposal to work together on this project, I was excited,” added Edenshaw CEO David McComb, who is from Winnipeg. “I have been in the industry for years and developed projects in Canada’s two major markets, Toronto and Vancouver, but this was a unique opportunity for me to be a part of something iconic in a place I used to call home.”

Edenshaw, a Canadian real estate development company, will be leading the consultant teams on SkyCity Winnipeg and will work with all municipal departments to bring the development from pre-construction to completion.

The 45-storey tower was brought to market in the fall of 2015 and the residential units are currently over 50 per cent sold. A public launch of the Offices at SkyCity, which offers 60,000 square feet of commercial space, is planned for this month.

Mobile app finds solutions for indoor air quality issues

The Occupational Health Clinics for Ontario Workers (OHCOW) has collaborated with the Canadian Centre for Occupational Health and Safety (CCOHS) to develop a mobile app that helps individuals find solutions to indoor air quality problems in their workplace.

The app, AirAssess – Improve Indoor Air Quality at Work, provides users with a questionnaire that answers simple questions about their current work conditions, such as workplace stress levels, allergies and environment factors.

The answers to these questions provide key information to help uncover issues which may be related to the air quality in the workplace. Once the questionnaire is answered, the app will look for links and provide users with ideas to help their workplace take action on possible air quality concerns.

All jurisdictions in Canada include the ‘general duty clause,’ which requires employers to provide a healthy and safe workplace. This includes the provision of healthy indoor air. In addition, indoor air quality is implied in most building codes as design and operation criteria.

“OHCOW has been successfully using an Indoor Climate survey since 1993 in over 120 buildings,” noted Valerie Wolfe, executive director, south central region, at OHCOW. “Now, as a result of our valuable partnership with the Canadian Centre for Occupational Health and Safety, we are very pleased to be launching an app version of this validated survey.”

The free app can be downloaded from the Apple App Store, BlackBerry World, and Google Play, as well as from both the OHCOW and CCOHS websites.

 

Construction is driving B.C. economy

The construction industry is a significant driver for the B.C. economy. Without the industry’s impact on the province’s GDP, the government would not be balancing the budget, said B.C. Minister of Natural Gas Development and Minister Responsible for Housing and Deputy Premier Rich Coleman.

“Without the construction industry and the activities it brings and the ensuing work and opportunities it brings, it would really affect the government’s bottom line,” said the minister.

Coleman was the guest speaker at the 20th annual CEO breakfast hosted by the Independent Contractors and Businesses Association of B.C. at Buildex Vancouver 2017.

“We are the only place in North America that has balanced the budget five consecutive years,” said Coleman. When that happens, he said, “the surplus allows you do some creative things,” citing for example the initiative to help first-time buyers across the province.

With the launch of the BC Home Program in January, which gives no interest, no down payment five year loans for new home buyers, “people are getting the opportunity to buy their first home with a little help from government.”

The program will allow the next generation of British Columbians to own their first home – a first step towards stability and building equity and an economic future, he said, sharing his own story of buying his first home (a mobile home) in Alberta.

The program also means people will be vacating rentals and making rental product available to stabilize the marketplace. “It’s a big win,” said Coleman.

Another topic Coleman addressed was the harmonization of the building code in B.C. where municipalities will no longer be able to write their own bylaws or building codes anymore.

This will support innovation, productivity and address issues around delays and costs, he said, noting the exception will be the City of Vancouver.

The other big change coming into effect this year is around the competency of building officials working in municipalities. “Currently there is no qualification for local government building officials – that’s changed. They have four years – from January 1 – to professionalize themselves and build a professional organization,” said Coleman, noting building officials are supportive of the change and are working with government closely to make sure this happens.

He stressed these changes are important to keep the construction industry competitive and open to opportunities for innovation.

“We’re already ahead of the pack in climate leadership and energy efficiency in B.C. and we’re going to continue to build innovative buildings and look for innovative ideas,” he said. “The goal though is not to take too long to get those innovative ideas to the marketplace.”