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Pooled asset management underpins CF-IMCO deal

The founding partners of the Investment Management Corporation of Ontario (IMCO) have acquired a 50 per cent interest in Cadillac Fairview’s Vancouver portfolio. The newly announced deal will see the Ontario Pension Board (OBP) and the Workplace Safety and Insurance Board (WSIB) each take a 25 per cent stake in the super-regional mall, CF Pacific Centre, and 12 office buildings.

“The deal gives us the rare opportunity to gain direct exposure to the tightly held Vancouver real estate market,” notes Mark Fuller, OPB’s president and chief executive officer. “As the economic and financial centre for western Canada and the primary access point to Asian markets, Vancouver is expected to outperform other major Canadian cities going forward.”

The three parties to the deal already have a track record of joint holdings. Cadillac Fairview and OPB co-own two major office properties — RBC Centre and Toronto-Dominion Centre — in downtown Toronto, along with two development properties, while Cadillac Fairview and WSIB co-own Simcoe Place, also in Toronto’s core.

IMCO, which was created through Ontario provincial legislation last year, is slated to launch operations in 2017. This will initially bring OPB and WSIB into a shared asset management framework, with flexibility for other Ontario broader public sector organizations to voluntarily join the pool. Cadillac Fairview is the real estate arm of the Ontario Teachers’ Pension Plan.

“Today’s announcement proves the value of pooled asset management and its tremendous potential for the economy of Ontario,” says WSIB’s president and chief executive officer, Tom Teahen.

“It was critical for Cadillac Fairview to find like-minded partners who share in our long-term vision,” concurs John Sullivan, president and chief executive officer of Cadillac Fairview.

Commercial real estate outlook for 2017: report

Political unrest and rising protectionism are causing skepticism among commercial real estate owners, occupiers and investors in the current market and year ahead, according to Avison Young’s recently released, 2017 North America, U.K. and Germany commercial real estate forecast.

But despite global economic and political disruption, stability is expected to define Canada’s commercial real estate sector this year, says Bill Argeropoulos, principal, practice leader, Research (Canada) for Avison Young.

“Despite challenges in Alberta, it is business as usual in most major markets as trends prevalent in 2016 – changing demographics, workplace design and disruptive technology – continue to test the status quo,” he adds. “Successful real estate strategies will evolve to address risk and opportunity in response to these changing circumstances.”

The annual report covers the office, retail, industrial and investment sectors in 63 markets in five countries on two continents.

Office

Almost 6.5 million square feet of office space was completed in 2016, while a further 14 million square feet (61 per cent preleased) was under construction near year-end – a mere 2.6 per cent of existing inventory. Currently, Toronto and Calgary lead, with notable development also underway in Montreal, Edmonton and Vancouver. Calgary and Toronto are among the ten most active office development markets in North America, ranked sixth and eighth, respectively.

Highlights:

  • Uneven demand and steady new supply lifted Canada’s overall office vacancy rate 150 basis points (bps) from year-end 2015 to close 2016 at 12.5 per cent. As expected, vacancy increased in 10 of 12 markets surveyed with Calgary posting the highest rate (22 per cent) and biggest change (+600 bps). A supply-demand imbalance will drive office vacancy higher in most markets, lifting Canada’s vacancy rate slightly above 13 per cent by the end of 2017.
  • Due to weak fundamentals in Calgary and, to a lesser extent, in Edmonton, Western markets will lag Eastern markets by a wider margin. Vacancy among Western markets jumped to 15.2 per cent at year-end 2016 from 11.9 per cent at year-end 2015, and is poised to rise to 17.1 per cent by the end of 2017. Vacancy among Eastern markets has been more modest, climbing to 11.1 per cent at year-end 2016 from 10.5 per cent at year-end 2015, and is forecasted to settle at 12 per cent by the end this year.

Retail

“Retail is, perhaps, regarded as the most volatile sector as technological disruptors and rising consumer debt levels remain among the major threats,” states Argeropoulos. “As in 2016, big data, demographics and millennial behaviour will preoccupy the retail sector in 2017.”

While “hard assets will always be needed,” digital and physical retailing strategies continue to be scrutinized with an increase in online retailers’ opening physical stores. Examples include Costco’s launch of its first business centre store concept in Toronto – focusing more tightly on the office and business-supplies sector, Best Buy’s new experience stores, set to host Google’s first “shops within a shop” in four Canadian locations and Amazon’s line-free grocery store in challenge to supermarkets.

Industrial

“The industrial market has been resilient and remains the darling among Canada’s commercial property sectors, exceeding expectations in most markets in 2016, notes Argeropoulos. “Although the manufacturing sector continues to retool, e-commerce is accelerating the rapid-order-fulfillment phenomenon, fuelling both leasing and investment sales.”

Highlights

  • The industrial market looks bright as higher competition prompts existing landlords and developers to offer viable, flexible and affordable product near urban centres to meet e-commerce demands. Matching the right supply with demand will be the challenge.
  • Near the end of 2016, Canada’s overall industrial vacancy rate hovered at 3.1 per cent compared with 3.6 per cent at year-end 2015. Ten of the 11 markets surveyed displayed single digit vacancy in 2016, with Toronto and Vancouver posting rates below the national average. Speculative construction coming online is expected to push vacancy modestly higher, to 3.4 per cent by the end of 2017.
  • Toronto is North America’s third-largest industrial market, and Canada’s largest. Canadian markets captured five of the 10 lowest vacancy rates in North America – a trend that will persist in 2017.
  • More than 12 million square feet (34 per cent preleased) was under construction near the close of 2016, down from 14 million square feet at the end of 2015. While Toronto and Vancouver remain construction hubs – accounting for nearly 80 per cent of total development – Toronto was the only Canadian market to claim the ninth spot in North America’s top 10 most active development markets.
  • In some markets, investment sales are the largest source of activity in this sector as users are taking advantage of available credit options to purchase, lowering their operating costs. Elsewhere, the lack of industrial properties for sale and the absence of industrial land for additional development are pushing pricing to new heights.

Higher pricing in Vancouver and Toronto led some owners to sell assets, including whole or partial interests, while joint-ventures are increasingly popular as a means of spreading risk.

“Flush with capital, investors will resume their pursuit of the best risk-adjusted returns across the risk spectrum – including core to opportunistic, debt and equity – in 2017,” concludes Argeropoulos. “Demand for high quality product will spill over from Toronto and Vancouver to Montreal – and, perhaps, Calgary, if the price of oil stabilizes.”

Independent Herman Miller dealer opens in Montreal

Herman Miller has announced the opening of Möbel360, an independently-owned certified Herman Miller dealer in Montreal. The owners, Jacques Gravel, Jean-Philippe Dufour, and Renaud Perron, have a collective experience in logistics and project management, installation and brand identity. They plan to use this experience to provide customers the insight and skills necessary to create a workplace that supports their business priorities, no matter the size or complexity.

“Quebec is very important to Herman Miller and we’re excited about the level of expertise Jacques, Jean-Philippe and Renaud bring to the region,” said Paulo Carmini, president of Herman Miller Canada, in a press release. “Together, we’re creating a complete offering of knowledgeable, experienced resources and compelling product and service solutions for the Quebec market.”

Möbel360’s customer support process follows every project from start to finish to create perfectly integrated results and quality assurance at every point in the process, like all certified Herman Miller dealers. The full-service dealership offers solutions for design, conceptualization, delivery, storage, installation and repair. The location also offers customers access to product solutions from all Herman Miller subsidiaries, including Geiger, Nemschoff and Maharam, as well as brand partners including Magis, Mattiazzi and naughtone.

Möbel360 is located at 6666 Saint-Urbain Street in Mile-Ex, and is the only Herman Miller dealer for the greater Quebec market. Customer service is currently available in English and French, seven days a week. In March, the company will open a new 3,500 square foot showroom, designed by the Herman Miller Brand Design team, which will feature a range of products in a variety of settings from private offices to open landscapes.

Remembering Vancouver architect Joe Wai

Vancouver architect Joe Y. Wai died unexpectedly on January 11 from complications related to an aneurysm. He was 76. Wai leaves a legacy of activism and generosity, and will be remembered for his passion for architecture and community.

“Joe’s tenacity mixed with disarming humbleness set him apart,” said AIBC president Darryl Condon Architect AIBC. “Vancouver has lost a great architect and a tireless champion of community spirit and resilience. It is our good fortune that his legacy lives on through his architectural designs that help define the City of Vancouver.”

Born in Hong Kong, Wai came to Canada as a teenager in 1952. He graduated in 1965 with a degree in architecture from the University of British Columbia. After a formative period employed by notable local firms such as Erickson/Massey Architects, Thompson, Berwick, Pratt + Partners, and working abroad for Denys Lasdun and Partners and the Greater London Council in London, England, he set up practice in Vancouver.

Wai is best known for his work designing the Dr. Sun Yat-Sen Classical Chinese Garden (photo above), with landscape architect Don Vaughan. The garden is the first full Chinese Garden to be built outside of China and it continues to serve as a peaceful retreat in the centre of the city. Chinatown’s Millennium Gate, a towering landmark that welcomes both visitors and Vancouverites alike, is another Wai creation. The “Joe Wai Special”, known for its flexible design, was specifically intended as affordable infill housing for the Strathcona neighbourhood, saved, in part, by Wai’s efforts in the late 1960s from a massive freeway construction project.

Throughout his professional career, Wai served as a committed teacher, mentor, and community activist. An active member of the AIBC, he served on council in the mid-1980s, and participated on civic design panels. The AIBC Barbara Dalrymple Memorial Award for Community Service (2001) and, more recently, in 2016, the AIBC Lifetime Achievement Award recognized his profound contribution to the profession of architecture. In addition, Wai was awarded an Honorary Doctor of Letters from the Emily Carr Institute of Art + Design (2001), the Vancouver Civic Merit Award (2013) and the Queen’s Diamond Jubilee Medal (2013) for outstanding community service, among several awards.

A memorial celebration is planned for February 5, 2017. He is survived by his wife Lynn and his son Jonathan.

Americans look north as President Trump takes office

The number of Americans browsing for Canadian properties spiked following the U.S. election last fall, and real estate advisors don’t expect this increased interest to abate any time soon as President Donald Trump takes office today.

Royal LePage observed a more than four-fold increase in American web traffic on its consumer real estate portal on Nov. 9, the day after the election. That web traffic remained high for the following week (up 210.1 per cent year over year), the month of November (up 73.7 per cent year over year) and the final quarter of 2016 (up 40.9 per cent year over year), reported the real estate services provider.

Nearly 40 per cent of real estate advisors reached by a cross-country survey expect to see a sustained uptick in U.S. inquiries about Canadian properties during Trump’s tenure in the White House, according to findings released this morning by Royal LePage.

“The United States was already a top source for immigration into Canada, and now in the period following the recent U.S. election, we are witnessing a material bump in American interest in Canadian real estate,” said Phil Soper, present and CEO of Royal LePage.

Americans are most interested in residential properties, with Canada’s largest markets attracting the lion’s share of U.S. regional page views, the real estate services provider found. A full three-quarters of American inquiries made in the fourth quarter of 2016 related to residential properties. Also during this period, Ontario, British Columbia and Quebec collectively captured 72.7 per cent of U.S. regional page views on Royal LePage’s consumer real estate portal.

Royal LePage surveyed real estate advisors from across Canada for their views on American interest in Canadian real estate in the aftermath of the U.S. election, reaching 1,226 advisors between Jan. 12 and 17.

Canada fosters innovative building design

Two Canadian facilities are 2017 winners of ASHRAE Technology Awards for innovative building design that enables sustainable and energy-efficient operations. Toronto’s Humber River Hospital is recognized for excellence in the health care sector, while Montreal’s Centre de transport Stinson receives the honour for industry facilities/processes. Both categories are new this year as ASHRAE marks the 35th anniversary of the awards program.

“Throughout the lifetime of the Technology Awards, ASHRAE has demonstrated how innovative design becomes the standard of care for the built environment,” says Scott Wayland, a past chair of the judging panel. “The showcased projects offer lessons learned from both the design and post-occupancy phases.”

ASHRAE member, Kurt Monterio, an engineer with Smith + Andersen in Toronto, wins accolades for Humber River Hospital‘s lean, green and digital performance. Completed and occupied in the fall of 2015, it was designed to exceed the 2007 edition of the ASHRAE 90.1 energy standard by 40 per cent.

Notably, 100 per cent fresh air, with no recirculation, is delivered for maximum infection control and indoor air quality, while energy recovery systems and related high-efficiency HVAC design counterbalance the energy impact of that air intake. The 1.8-million-square-foot, 656-bed complex also boasts Canada’s largest modular green roof and the largest installation of electrochromic glass in North America.

ASHRAE member, Julien Allard, a mechanical engineer and project manager with Bouthillette Parizeau in Montreal, is recognized for his work on Canada’s first LEED Gold bus depot. Centre de transport Stinson, owned by the Société de transport de Montréal (STM), accommodates 300 buses in a space roughly equivalent to seven football fields.

Designed for energy and water efficiency, it incorporates high-efficiency condensing boilers, energy recovery ventilation and destratification fans in high-volume areas. Nearly 75 per cent of water is recaptured from the bus wash-bay and reused for pre-rinsing, augmented with rainwater harvested on the facility’s 86,000-square-foot green roof.

This year’s five other Technology Award winners include: the YKK80 Building in Tokyo, Japan, in the commercial buildings category; the Parnassus Services Seismic Replacement Building at University of California, San Francisco, in the institutional building category; the John Hopkins University Undergraduate Teaching Laboratories in Baltimore, in the educational facility category; the Cincinnati District 3 Police Headquarters, in the new commercial buildings category; and 435 Indio Way in Sunnyvale, California, in the existing buildings category.

The awards will be presented at the upcoming ASHRAE 2017 Winter Conference, Jan. 28 to Feb. 1, in Las Vegas. More than 300 ASHRAE members have been recognized for their work on projects that exemplify and advance energy efficiency and sustainability since the awards were launched in 1981.

One of the inaugural honourees, ASHRAE Life Member, James Lange, lists several technologies introduced in that year’s award winning Western Life Insurance Building in Woodbury, Minnesota, that are still prevalent today, including: variable air volume terminal boxes; heat recovery chillers; thermal storage tanks; and DDC controls that include airflow measuring stations.

“I felt that this building would demonstrate many energy-conserving features that had not been used on other projects,” he recalls.

Image: Humber River Hospital,Toronto.

LEED registered projects in Canada now exceed one billion square feet

The Canada Green Building Council (CaGBC) says LEED registered projects in Canada now total more than one billion square feet.

Provinces leading the pack across Canada at the end of 2016 are Ontario (147 certifications), Quebec (103), British Columbia (62), Alberta (61) and Manitoba (10). With a total of 406 LEED projects certified between January 1 and December 31, 2016, these numbers bring the grand total of certified projects in Canada to 2,990.

”We have just 13 years to reach aggressive national and international commitments to climate change,” says CaGBC President and CEO Thomas Mueller, commenting on the move to a low carbon economy. ”Our members, stakeholders and the green building industry have proven that we are ready to take on this challenge. With over one billion square feet of LEED projects across the country, a new more rigorous version of LEED, and the release of a net zero carbon standard for Canada coming mid-year – it is evident that we are ready to hit the ground running and do our part in the countdown to 2030.“

CaGBC is pushing higher standards for the performance of buildings (both new and existing) through LEED v4, and is providing Canada’s first guideline and third-party verification for zero carbon buildings. In addition, it is expanding research and consultations on existing buildings to determine how Canada’s infrastructure can be better managed and retrofitted – both to stimulate job growth and reduce GHG emissions.

Final 2016 totals of LEED certification level were:

  • 70 LEED Certified
  • 154 LEED Silver
  • 152 LEED Gold
  • 30 LEED Platinum

The rise of green building and its influence on climate policy in Canada is also detailed in an update to the LEED in Motion: Canada report from the U.S. Green Building Council, published on January 18, 2017, which includes key highlights on CaGBC’s progress in advocating for green buildings in 2016.

New $70 million lane on Alex Fraser Bridge

A new seventh lane on the Alex Fraser Bridge will act as counterflow during rush hour to ease congestion on the busy connector between Delta and New Westminster, B.C.

“This project will help cut congestion on the Alex Fraser Bridge, which is important for commuters, for local businesses and for our trucking industry. Projects like this create high-paying, family-supporting jobs,” said B.C. Minister of Transportation and Infrastructure Todd Stone.

A seventh lane will be added to the bridge by slightly narrowing the six existing lanes and removing the shoulders. A moveable barrier, similar to that on the Golden Gate Bridge in San Francisco, will be added to allow four lanes of traffic northbound during the morning rush hour. It would then be repositioned to allow four lanes southbound for the afternoon rush hour where it will remain for the rest of the day.

This project also includes adding 13 electronic signs placed at key decision points on highways throughout the Lower Mainland. These signs will give commuters real-time information about crossing delays for four Fraser River crossings, including the Alex Fraser Bridge, to allow drivers to make timely decisions about which route to travel.

The $70 million project is being jointly funded with almost $34 million from the federal government under the New Building Canada Fund and $36 million will come from the province.

Once completed in spring 2018, commuters and other highway users can expect to save about 12 to 16 minutes during the afternoon rush hour and about six minutes during the morning rush hour. More than 130 jobs are expected to be created over the life of the project.

Last June, the B.C. government unveiled a multi-step plan to help unclog congestion on the Alex Fraser Bridge and Highway 91 – starting with a new interchange at Highway 91 and 72nd, which will eliminate the final traffic signal on Highway 91 leading up to the bridge. Construction is under way on the $30 million interchange.

Five points on VOCs in green cleaning solutions

High concentrations of volatile organic compounds (VOCs) can negatively impact indoor air quality and cause a variety of respiratory, cognitive and health-related problems, especially in children.

Here, Avmor, a leading North American manufacturer and marketer of cleaning solutions, provides five points to know about VOCs, specifically in green certified cleaning solutions:

1. No VOCs

If a green-certified product says it has no or few volatile organic compounds, that typically means there are no ozone-depleting VOCs in the product. It may still have VOCs that can impact the physical and mental health of the cleaning worker and building users.

2. Deceptive VOC measurements

The VOC content measurement given on a product label does not reflect the VOCs released during use. The only way to ensure a product does not emit high levels of VOCs is to measure VOC emissions; it is VOC emissions, not content, that contribute to indoor air pollution. Many cleaning products considered low-VOC green-certified are measured by their VOC content not by their actual VOC emissions.

3. Dual certification

Different certification organizations, such as Green Seal, the Safer Choice Program, ECOLOGO, and GREENGUARD, focus on different environmental issues. For instance, one puts more focus on sustainability, another on lifecycle considerations and another on chemical emissions and indoor air quality. If there are concerns about protecting indoor air quality, select a product that has been green certified by two certification organizations, for instance Green Seal and GREENGUARD.

4. Green aerosols

A product may have, for instance, 10 per cent VOCs by weight, low enough to classify it as green or environmentally friendly. However, if packaged as an aerosol, the VOC particles will atomize during use. When atomized, VOCs are smaller and lighter, which means they can be inhaled deeply into the lungs.

5. Reformulated cleaning solutions

Some traditional cleaning solutions that have been reformulated to meet green certification standards may meet those standards, but still emit VOCs that can harm indoor air quality over time

Three fundamentals of facilities management

Facility managers do a lot, and sometimes that gets in the way of other things they should be doing but aren’t. They get re-directed by the latest trends and concepts and neglect to focus on the fundamentals that drive results and improve what they do.

Spend less effort always responding immediately to the latest facility work order or email, or being distracted by BIM, the Internet of Things, big data, sustainability and the most recent trend. Instead, here are three things that should always be at the top of a facility manager’s list to focus on and get done, no matter what else is happening. Listening, planning and promoting are the foundation for building success in other areas.

Listening

“Without data, you’re just another person with an opinion.” — W. Edwards Deming

Listening is about gathering information and data.

It includes hearing from senior executives about organizational objectives and goals, reading reports, receiving and analyzing facilities data from building systems, talking to other experts and colleagues, attending conferences and training, and talking with (and listening to) facilities staff and contractors who are experts in what they do and can offer advice on what should be improved, changed, etc.

As big data trends, facility managers simply need to have data, even ‘little data’ to make a material impact in their responsibilities. It isn’t acceptable to use intuition, ‘gut feel’ and anecdotal evidence to lead and manage facilities departments — facility managers need facts they can analyze and act on to increase services, manage costs, and be more efficient in dealing with facilities issues.

The IFMA Benchmark Report #34 indicated that only 53 per cent of FMs have a computerized system to manage their responsibilities (79 per cent have a space system, 45 per cent have a move-management system and only 35 per cent have a maintenance-management system). The overall trend shows increasing adoption of facilities software, which is important because these software systems are a fundamental tool in managing processes efficiently and providing data for management, analysis and decision making that every FM should have. It is worth noting that even if FMs have a system, they don’t always go to the next step and use the data to analyze and inform their decision making.

Listening takes time, not only to collect information and data but also to do something with it — to analyze it and turn it into decisions and actionable changes that improve results.

Planning

“People and their managers are working so hard to be sure things are done right, that they hardly have time to decide if they are doing the right things.” — Steven Covey

Planning is about looking forward, whether to tomorrow or next year — and importantly, taking a more strategic approach to that planning. Since a lot of the basic facilities role is reacting to occupant needs and solving them, facility managers seldom take as much time to plan strategically as they should.

This problem isn’t limited to the overall facilities portfolio for the next five years, it includes a lack of strategy for dealing with common issues, for the meeting tomorrow, for improving how services are procured or for how to get needed resources and staff.

Facility managers aren’t just paid to get things done, they are also paid to think, which sometimes looks like unproductive time — something most facility managers believe they can’t afford. Yet sitting at their desk with their feet up thinking or planning something is more valuable in the long term than spending their time on the third floor or on the phone resolving issues. If facility managers are spending most of their time putting out fires, they will never be able to prevent them in the first place.

Planning takes focus and time but it also takes courage — courage to delegate and courage to put the long-term objectives in front of some short-term tasks, and to change from managing the urgent items to managing the important ones.

Promoting

“Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them.” — Paul Hawken

Promoting is about ensuring the facility manager’s organization and senior management understand the importance of the facilities management department and provide support when the facility manager presents proposals for staff, resources, changes or strategic plans.

It is about getting what facility managers need to make improvements, increase efficiency and add value. Remember that facility managers are competing with their colleagues in other departments for attention and resources. Facility managers can’t just go to management, tell management what they need and expect management will hand it to them. Facility managers need to promote and sell their department’s interests. And facility managers need to have a plan and data to prove what they need.

This doesn’t come naturally to most facility managers since many are used to simply doing what they do behind the scenes. Instead, facility managers should provide evidence of their impact and communicate successes as well as failures, including what they did to reduce or eliminate the problem. Hiding failures is a good way for management to assume everything is fine and facility managers don’t need any more resources or staff. Highlighting them helps to demonstrate what facility managers need, such as capital replacement money, staff, training, tools or contractors who aren’t the lowest cost.

Learn the language of the executives, including legal, finance and operations, so facility managers know what the C-suite cares about and how to communicate in terms it understands.

Promoting takes time and a shift from being in the background to being out front. It requires a change in approach, including self-promotion (of the department) and marketing what facility management does and why it matters to the organization. Success in promoting their department makes it easier for facility managers to get support and make a difference.

And in combination with listening and planning, promoting paves the way for future success in other areas.

Michel Theriault is principal of Strategic Advisor, a facility, property and asset management consulting firm. For more information, visit www.fminsight.com.

Avmor appoints 15 new hires

Avmor, manufacturer and marketer of professional cleaning chemicals, has made several changes as the company expands their product marketing beyond Canada to all of North America.

Several new people in key sales and marketing positions have been added to the Avmor team to support this extended marketing coverage.

“It is with great excitement and pleasure that Avmor announces the hiring of these fifteen new people,” says Mike Sawchuk, chief business development officer for Avmor. “We are working hard to hire only the best people we can find. These new members, like our existing team members, are the best of the best.”

The new regional hires include the following:

  • Atlantic area: Marcus Costandi, region manager
  • New Brunswick and Prince Edward Island: Mark Atkinson, territory manager
  • Quebec: Martine Menard, region manager
  • Quebec East: Stephane Gagne, territory manager
  • Ontario East and North: Mike Watt
  • Western Canada: Irene O’Neil, region manager
  • Saskatchewan and Manitoba: Keri Carson, territory manager
  • Alberta North: Julie Marie Berardi, territory manager

Hires for specific divisions of Avmor include:

  • Food Service: Darrell Campbell, executive vice-president, corporate and food service accounts
  • Manager, Corporate Accounts Food Service: Mike Rys
  • Account Manager, Food Service: Patricia Briere
  • Marketing Manager: Lai-Na Wong
  • Marketing Coordinator, Web Site and Graphics: Margaux Beauvais
  • Customer Care Manager: Nancy Matte
  • Coordinator Pricing, and Customer Care Representative: Laura Poce

M City to anchor $1.5-bil master-planned community in Mississauga

Plans are already underway for the 60-storey, 784 unit M City tower, which will sit at the corner of Burnhamthorpe Road and Confederation Parkway, becoming Mississauga’s tallest building. The tower is the first of 10 in a $1.5 billion, master-planned community.

Leading the development of the first phase of M City is Urban Capital Property Group, which worked with Rogers Real Estate Development Limited over the past several years to win the City of Mississauga’s approval of the 15-acre community’s master plan. Designed by CORE Architects, M City features undulating geometry using seven floor plates to twist the building as it rises. The design was meant to create the impression of fluid movement and lightness of mass.

“M City’s tower will be instantly recognizable, but equal attention and care was given to the podium, which anchors the project,” said Mark Reeve, partner at Urban Capital Property Group, in a press release. “Not only does the podium enable the lifestyle component of the building, but it defines how this and future phases interact with the streetscape and the fine grain network of blocks that characterize the master plan.”

The podium features faceted glass walls designed by CORE Architects. These walls introduce a prismatic shape to the space, which accommodates a large rooftop amenity space. During the summer, this space will feature a pool and kids splay zone and splash pad, but during the winter, the terrace transforms into a rooftop skating rink. The podium of the tower will feature retail space, while the exterior of the development will boast over two acres of public parkland. The development will also feature lounges, a gym and yoga/spinning room, among other benefits. All the amenities, common areas and suites in M City were designed by Cecconi Simone.

“It was important that the interiors and amenities achieved the same attributes as the architecture: fluidity, movement, excitement,” said Elaine Cecconi, partner, Cecconi Simone. “The amenities flow from interior to exterior and the spaces are not simply square or straight but are sculpted in angular planes defined with different materials. Floor finishes wrap up walls, planes are folded and twisted, sunlight and artificial light are manipulated to enhance the spaces.”

Suites will feature sleep designs and range from 400 to 1,300 square feet in one bedroom, one plus den, two bedroom and two plus den configurations, ranging from $199,900 to over $700,000.

Killam announces two multi-res acquisitions

Killam Apartment REIT announced the closing of two multi-res acquisitions totaling $26.2 million, consisting of 153 apartment units in London, Ontario, and 66 units in Calgary, Alberta. These acquisitions build on Killam’s existing presence in London and Calgary and align with Killam’s strategic goals of accretive growth and geographic diversification.

On December 22, 2016, Killam acquired a portfolio of five buildings in London, which includes: 960, 970 & 980 Cheapside Street, 298 Fairview Avenue and 1447 Trafalgar Street.

The acquisition cost was $13.4 million ($87,500 per unit). The acquisition was funded with $9.5 million in mortgage debt and cash-on-hand. Killam’s London portfolio now totals 417 rental units and including this acquisition, Killam completed $70.0 million in acquisitions in 2016, in-line with Management’s acquisition target to exceed $50 million for the year.

On January 16, 2017, Killam acquired Spruce Grove Lane Apartments, its second apartment property in Calgary. The property, located on a 3-acre site at 1802-92 Avenue SW in the Pump Hill neighbourhood, consists of 66 townhouse-style apartments. The acquisition cost was $12.8 million ($195,000 per unit). Management plans to increase the net operating income for this very well located asset with a combination of professional management and capital upgrades. This acquisition increases Killam’s Calgary portfolio to 373 rental units.

“We are pleased to grow our rental portfolios in both London and Calgary,” noted Philip Fraser, President and CEO. “We have been monitoring the Calgary rental market over the last year and Spruce Grove Lane Apartments, located in a sought-after residential neighbourhood, has great upside. We have the opportunity to add value and grow net operating income at this property.”

 

National home sales rebound slightly in December

National home sales increased 2.2 per cent from November to December 2016, according to statistics released by the Canadian Real Estate Association (CREA). This rebound is less than half of the drop in activity from October to November, when monthly sales figures were the lowest in over four years after tightened mortgage regulations came into effect.

Sales activity was up on a month-over-month basis in about 60 per cent of all local markets, led by Calgary and Edmonton, where sales picked up after steep declines in November.

Actual (not seasonally adjusted) sales activity fell five per cent in December compared to one year ago, when it surpassed the record for the month. The number of homes sold in 2016 was up by 6.3 per cent year-over-year, reflecting strong sales activity in the first half of the year.

“Sales set a new annual record last year,” said Cliff Iverson, CREA president, in a press release. “However, tightened mortgage regulations are expected to contribute to lower sales activity this year, though the extent to which they will weigh on housing markets across Canada will vary.”

“Home sales are unlikely to benefit the Canadian economy as much in 2017 as they did in 2016,” added Gregory Klump, CREA chief economist. “New regulations mean that in order to qualify for a mortgage, home buyers will either have to save longer for a bigger down payment or purchase a lower priced home. In urban centres where the latter are in short supply, that’s likely to translate into fewer sales.”

The number of newly listed homes fell three per cent in December 2016 compared to the month before. New listings were down in about 60 per cent of all local markets, which the largest declines seen in B.C.’s Lower Mainland, Calgary and the Greater Toronto Area (GTA).

As sales were up and new listings were down, the national sales-to-new listings ratio climbed to 63.5 per cent in December, indicating a sellers’ market. Most of the local housing markets that favoured sellers in December were located in British Columbia, in and around the GTA and across Southwestern Ontario.

The MLS Home Price Index (HPI) jumped 14.2 per cent year-over-year in December 2016, which is slightly lower than November (14.4 per cent year-over-year) and October (14.6 per cent year-over-year). This is due to softening price trends for single family homes in the Lower Mainland of B.C.

Year-over-year price gains remained strongest for two-storey single family homes and townhomes (16.1 per cent and 15.4 per cent, respectively). One-storey single family homes had price gains of 13.3 per cent year-over-year, while apartment units showed the slowest price gains at 12 per cent compared to the year before.

The actual (not seasonally adjusted) national average price for homes sold in December 2016 climbed 3.5 per cent year-over-year to $470,661, which is the smallest annual increase in nearly two years.

The national average price continues to be inflated by sales activity in Greater Vancouver and the GTA, which are two of Canada’s tightest, most active and expensive housing markets. However, Greater Vancouver’s sales activity slowed considerably during 2016. When excluding the GTA and Greater Vancouver areas, the national average price drops nearly $120,000 to $352,513.

Four factors affecting generator service costs

Developers are well familiar with backup power generators, which are a critical piece of the emergency evacuation puzzle in all condominium installations. The generator keeps the emergency systems functioning in the event of a loss of utility power.

As most property managers know, generators require regularly scheduled service intervals to comply with CSA 282.09, which is the current enforced code relating to generator service in life safety applications. Property managers always face pressured from residents (through their board of directors) to keep costs down and reduce building maintenance expenses. This is no easy chore at a time of rising labour and material costs.

There are many factors to weigh when condominium developers choose the design and location of a generator installation. The four major factors that will affect generator service costs in all condominiums are:

1) The make/model and kilowatt (kW) rating of the generator;
2) Generator location (roof, basement, underground parking, outdoors);
3) Electrical connection points for load bank testing; and
4) Room access and cleanliness.

The make/model and kW rating

The generator make/model and kW rating are straightforward, as there is typically not a lot of leeway on size in the design of a generator installation. Kilowatt ratings are essentially determined by the electrical load that the generator needs to support. The greater the electrical load to be backed up, the larger the size and capacity of the generator. Larger-sized generators require larger engines to drive them, and larger engines are more expensive to service (increased oil and coolant capacity as well as larger, more expensive oil and fuel filters).

Generator location

Outdoor installations are typically the least expensive service option and can save thousands of dollars annually compared to other potential generator locations. Typically, because the generator service provider can bring the service truck, parts and equipment very close to the generator, the resulting labour costs are much lower. Another money-saving aspect of an outdoor installation is that when the generator is load bank tested (a requirement of CSA 282), the load bank (which exhausts extreme heat) can usually be placed close by the generator, saving time and electrical cabling and connection costs.

Generators that are in penthouse mechanical rooms or on roof tops can have significantly varying service costs. A generator on the roof of one condominium can have an annual maintenance cost of five to 10 times that of an identical generator on another roof. Factors that can affect this installation location are elevator access and stairs. If equipment and supplies have to be carried upstairs, costs can be higher. In a few condominiums, there are rooftop generators that can only accommodate a load bank on the ground, which can add more than $10,000 to the annual maintenance cost of the generator, as electrical cables for the load bank have to be run over 25 floors in some cases. In cases such as these, it may be more advisable to have a permanent load bank installed on the roof when the building is designed and built. This strategy can save thousands of dollars in annual maintenance costs.

Many generators can be located in basement and underground parking areas, which can be fairly cost-friendly for generator service. Once again, though, certain factors can increase service costs. For one, they depend on how close the contractor can get the service truck to the generator room. For another, they depend on how close the load bank can be placed. Stairs and elevators also come into play here.

In many condominiums, the load bank heat can be exhausted directly into the underground parking area during tests. This is convenient and requires the least labour to do, but there are limitations. Larger generators exhaust extreme amounts of heat when they are load banked. There have been cases where the heat exhaust has set off sprinkler systems in the underground parking. In cases such as these, the load banks must be placed outside, which requires additional electrical cabling as well as labour.

Load bank connection points

CSA 282.09 requires that a two-hour load bank test be performed annually, so load bank connection points influence maintenance costs. Take, for example, a large rooftop generator with an electrical connection point on the roof. In this scenario, the generator contractor will likely have to bring their load banks up to the roof via elevator and/or stairs. This can be time-consuming and can also lead to a one-man job becoming a two-man job, which in turn leads to increased service costs. Conversely, an outdoor generator located on the ground is much less expensive to service, as the load banks are placed near the generator and the connections can be made with minimal cabling.

Some condominium developers are now designing buildings with load bank connection points (via camlock connectors) located on the outside of the building. This is an excellent way to reduce maintenance costs. The contractor can simply bring their load banks close to the load bank connection point, connect the load banks and begin performing the required two-hour load bank test.

Room access and cleanliness

Besides being a requirement of CSA 282, keeping the generator room free of debris and other materials is good practice. If the generator contractor has to climb over or move debris, this will increase labour costs. Debris in the room can also lead to catastrophic failure of the generator. Generator cooling fans move large amounts of air over the generator engine and exhaust the air outside. Debris in the generator room can easily be sucked up and fired through the generator radiator, leading to cooling system failure and ultimately unforeseen generator shutdown.

Is the room easy to access? Are there elevators? Are there many stairs? All of these factors affect the maintenance costs.

By considering these four factors, it’s possible for developers and property managers to minimize the annual service costs associated with generator maintenance.

Grant Farrow is national service sales manager for Total Power Ltd. in Mississauga, Ontario. He can be reached at [email protected].

Top 2017 design trends

According to the Interior Design Show, the following will be the top 10 design trends for 2017 inspiring the direction of design for the year to come.

Material Matters
Mixed materials continue their domination in 2017. Floors, ceilings, and surface areas will be adorned with interesting materials, tiles, and patterns to create an eye-catching statement. Designers will play with strategically placed tiles mixing into other patterns to create an unconventional focal point.
Maxe by Ceragres features tones and textures reminding us of nature’s beauty. (photo credit: Ceragres)

Rugs as art
Area rugs will be the go-to trend for homeowners looking to make a rapid impact. A mix of size, colour, style and texture creates endless possibilities to complement an existing room or make a complete transformation. From floors to walls, rugs become art with rooms being built around them as opposed to on top of them.
J & M Republic’s one of a kind rugs are not to miss (photo credit: J & M Republic)

Tech & Design
From Smartphone to Smarthome, this is modern like you’ve never seen it before. This year, home décor will take a futuristic trip to introduce avant-garde lighting and appliances for the savvy homeowner who refuses to sacrifice style for convenience.

Urban Retreat
In an age where homes are smaller and lives are busier, the city retreat becomes more important than ever. As an extension of the living area, creating an outdoor urban oasis will be the perfect addition to any home or condominium. In 2017 expect to see mixed materials work their way into outdoor spaces.

Feminine Redone
Strong and beautiful, the new feminine aesthetic goes beyond pretty. This trend sees a juxtaposition of bold architectural details and lines, mixed with soft colours and feminine shapes.
Azure Trade Talks Speaker Nika Zupanc’s collaboration with Qeeboo (photo credit: Nika Zupanc)

Maker Movement
This year’s Maker class embodies the essence of North American craftsmanship: quality and style while using local raw materials to design unique pieces. The Maker movement speaks to consumer trends towards personalization, one-offs and supporting local and independent design.
IDS17 MAKER, Morgan Clayhill’s handmade wooden Graffiti Cabinet (photo credit: Morgan Clayhill)

Classics Revisited
Old will meet new in 2017, as we witness traditional furniture structures reimagined with a modern edge. New materials, colours, and textures will revamp even the most dated of styles for a playful and referential approach to design.

Innovative Lighting
Experts are shining a spotlight on lighting as the true showstopper for commercial and residential spaces. It’s not just fresh interpretations of shapes, but also the incorporation of interesting technology from LED and beyond that make this trend new and innovative.

Emerging Designers
The Interior Design Show has been an incubator of emerging design talent since the get-go. New professionals within the industry will continue to be leaders with the experimentation of materials and forms to display fresh perspectives in design.

Kitchens and Baths
Stylish kitchens and bathrooms will never go out of style. Year after year these rooms act as a perfect “splurge” for homeowners looking to renovate. With the introduction of wood panelling and technology, a fusion of classic design with modern sensibilities will be popular this year.

CMW and Capri Insurance join forces

CMW Insurance Services Ltd. and Capri Insurance Services will join forces, announcing a merger effective January 1, 2017. The new company will be one of the largest insurance brokerages and risk management firms in Western Canada.

The merger leverages the strength and stability of a combined 63 years of insurance and risk management experience, adding new expertise, products and services to better support clients’ insurance and risk management needs. The two independent and employee-owned B.C. companies have had a collaborative relationship for years.

The decision to merge consolidates a professional range of expertise in the industry and creates greater opportunities for employees. With more than 400 employees in 14 offices across B.C. and Ontario, the new company is well positioned to grow, remain independent and provide value to customers and businesses, while enriching the communities they serve.

“We strongly believe this integration will bring significant value to our employees, clients, and partners,” says Andrew Kemp, president of CMW Insurance Services. “By combining our complementary cultures, values, products and services, we will be well positioned to meet the changing needs of clients across Canada.”

Tim Miller, president, Capri Insurance Services, says, “We’re thrilled to be making this announcement. The merger allows us to leverage the strengths of our two companies while retaining the advantages of being independent and employee-owned.”

CMW is a uniquely independent, employee owned and locally owned company with strong roots in the B.C. business sector. The company is one of B.C.’s top brokers, with over 20 risk advisors working in over 20 specialty areas.