Few women at top level of the cleaning industry

More work needs to be done to propel women into executive roles within the cleaning business and retain their talents, says a budding organization called the ISSA Hygieia Network, an international community dedicated to the advancement and retention of women at all levels of the global cleaning industry.

While not all companies in the industry face a lack of gender diversity at the top, many still do. In Canada alone, women represent 47.5 per cent of the Canadian workforce, but hold only 26.6 per cent of senior management positions, according to Statistics Canada. While this data was gathered from overall labour force participation, it does include the cleaning and maintenance field.

ISSA Hygieia Network

In response to her own experience, Dr. IIham Kadri, president of Sealed Air Diversey Care, launched the ISSA Hygieia Network in 2014 after noticing “huge gaps in gender diversity and a lack of prestige connected with cleaning jobs.” She, along with six other council members, are intent on making room for transparency, while providing a global platform for women to network, find mentors and obtain leadership skills.

“We’ve noticed in the upper echelons of the industry there is no gender diversity and we want to see women advance,” says Linda Silverman, council member and president of Maintex, a facility services provider based in the U.S. “It’s about letting women reach managerial levels and not letting talented women leave our industry, but providing them with the tools to advance.”

Meredith Reuben, council member and chief executive officer at EBP Supply Solutions, a regional distributor of food service and cleaning supplies and services, says it’s also about rewarding institutions, from building service contractors to manufacturers and distributors.

“The ISSA Hygieia Network is about visibility,” she says. “And we’re trying to reward and create visibility for those companies that are helping women.”

These forward-thinking companies are honoured at an awards dinner held in conjunction with the annual ISSA/INTERCLEAN North America trade show. During this year’s event, the ISSA Hygieia Network—named after the Greek goddess of cleaning and hygiene—is holding an educational event focused on teaching women how to strategically network with colleagues.

“We’re focused on this industry, but some of the training is about decision-making, networking and best practices, which you can use in any industry,” says council member Nathalie Doobin, owner and chief executive officer of Harvard Services Group, a metrics-based, WBE (women business enterprise) certified janitorial services provider. “Some of these skills we’re teaching women aren’t janitorial specific.”

The training and networking are also continuous; it doesn’t stop after the conference is over. Members field all sorts of questions in between ISSA events, from how to interpret something in an RFP to how to handle an employer relationship or deal with a situation involving a family-owned company.

“For me, there’s a lot of women who just want to understand how to get from here to there and understand there is a path,” says Holly Borrego, council member and senior director of cleaning services at C&W Services, a leading integrated facility services provider. “Some questions are as simple as how to bid on window cleaning. It’s really different based on the level of the individual. That’s the beauty of the organization; it doesn’t matter what level you are. There are resources available to everyone.”

Barriers to advancing and retaining employees

A 2014 Bain & Company report: Everyday Moments of Truth: Frontline managers are key to women’s career aspirations, which surveyed more than 1,000 men and women across sectors, suggests that “ideal worker” stereotypes, a lack of supervisory support and few role models in upper management, hinder gender parity in the workplace and cause experienced female employees to feel less confident about their work opportunities.

Career expectations among younger employees, both male and female, are beginning to merge as both genders expect more work-life integration. Yet, the majority of survey respondents believe managing both work and family commitments slows or disrupts women’s careers. It seems that perceived “ideal worker” criteria, like working long hours, is still seen as challenging for women.

While it varies from company to company, many women think their supervisors don’t know where they stand in their career aspirations, or what to do or say to support them. Women feel less supported at the mid-career level, which suggests that “whatever is happening in the conference room reinforces men’s aspirations while eroding women’s.”

Regarding role models, companies don’t facilitate enough meaningful dialogue about how their leaders have attained top positions, while balancing work and life. At the same time, there are not enough female role models to look up to and, many times, men in senior positions are expected to fulfill this role.

The imbalance of women in top positions is a nuanced and complex issue, the report concludes, but there is much room for progress.

“For front line cleaning workers, a lot of time when they are women, it’s pretty difficult because there are typically a lot of other responsibilities; there’s family; there’s childrearing; the hours can be difficult because in many instances cleaning occurs during evening hours,” says Silverman. “If their work provides flexibility, I think that could help with retention of the workforce.”

For Borrego, building skills and not locking women into low wage jobs is another path to creating a less transient industry where women have the opportunity to rise.

“I can tell you from experience that I did start at the bottom level,” she says. “I had a small child and working at night kept her out of daycare, but at the same time I was afforded a lot of opportunities because I worked for a private company that was very proactive in helping us get the training we needed.”

Bain & Company’s research mirrors some of these personal experiences, suggesting that when companies are more engaged with women’s career development, they are more successful in attracting and retaining the next generation of top talent, both female and male.

Industry leaders in gender diversity

Irina Dounaevskaia, chief financial officer at GDI Services (Canada), a fully-owned subsidiary of GDI Facility Services Inc. (TSX: GDI), has been working in the cleaning industry for about 15 years. She sees a woman’s role in the cleaning industry from a case-by-case basis, where much depends upon values, how a specific company is structured and the level of support an individual receives at home from his or her family.

GDI, for instance, is people-oriented and gives its female employees opportunity for growth. Before she reached her CFO position, Dounaevskaia was appointed senior vice-president of finance at GDI, upon closing the largest transaction in the history of the building services and facility maintenance industry in Canada. Over the years she’s been seeing an increasing number of women attracted to facility management and the cleaning industry at large.

“I see more and more women coming to the industry, and more and more women taking senior executive positions, particularly in Canada,” she says. “In my opinion, the cleaning industry is still at the beginning of the journey, slowly but surely moving away from the old prejudices related to the woman’s role in the business. As new generations play an increasingly active role, the entire landscape is changing. From my vantage point, gender is a non-issue these days. People are judged by their abilities and caliber, not by their gender.”

Company values, it seems, figure prominently in how women advance into senior management positions. GDI is an equal opportunity employer and has a policy to support employee development, including educational and training needs. The company also tries to provide ample assistance to employees with their personal life situations.

“Certainly, our female employees take full advantage of the company’s practices,” says Dounaevskaia. “Quite a few of them have been promoted. We try to accommodate personal requests as much as possible. For many females it means an opportunity to stay home with their kids, when needed, as we accommodate their working hours and offer compressed weeks.”

Open dialogue is also key, along with how an organization is structured. Specific paths for advancement at GDI include paying for an employee’s education. Once a request is approved, the associated cost is covered 100 per cent. The company also looks internally first when filling job openings and offers internal training specific to the industry, such as Health and Safety WHMIS training and professional development to help employees gain necessary skills.

“We pay particular attention to the people we would like to promote,” says Dounaevskaia. “That is why we have a mentorship and cross-training program, to make sure the person is ready to take on and succeed in the new role when the time comes.”

Recently, one of the company’s female employees was promoted to a general manager position.

“Her potential was noticed some time ago and she was given an opportunity and proper support to be successful. Our vice-president of operations personally mentored and coached her during her first year on the job. She is now a valued member of the senior management team.”

Gender diversity under the microscope

At the same time, not all companies are structured well enough or committed to ensuring gender diversity and capitalizing on the talent pool.

This is why studies are finding reasons to justify women in leadership roles. For example, earlier this year, a Peterson Institute for International Economics report was released, showing that organizations are more profitable with more women in executive roles.

“As female participation increased in senior management, so did performance, providing more quantitative evidence of the enhanced decision-making and governance that diversity enables within an organization,” the report stated.

Also released this year was the 11th Annual Rosenzweig Report on Women at the Top Levels of Corporate Canada, a study that tracks Canada’s 100 largest publicly traded companies. That report revealed that out of 526 top executives, 484 are men and only 42 are women, and the larger the company, the fewer women in leadership roles.

“We are literally awash in research that demonstrates the benefit of diverse boards and senior management teams,” stated Kristin Luck, growth strategist and board advisor and founder of Women in Research. “Increasing the number of women on a board of directors has been linked to improved financial performance, corporate social responsibility and an increased number of women in other high level positions. Yet in both the United States and Canada, we see little change.”

Developing female professionals

Facility managers and cleaning companies who notice these gaps can look to mentoring, networking and training as key pathways for more gender diversity

“Mentoring is really important,” adds Silverman. “One of the reasons I got involved in the ISSA Hygieia Network is there are not many women leaders, so I think it’s incumbent upon us to try to reach back. You should be reaching up, down and all around to collaborate with people and help people and try to mentor people.”

To some degree, she adds, mentoring might help condense the gaps, along with teaching organizations how to create training programs and be responsible for them. Such training, as Dounaevskaia mentioned, adds significant value.

“In terms of upwards mobility, we have to do everything we can to keep women in this industry,” adds Doobin. “Providing training and opportunities means women are less likely to self-select out. If you value them, they are more likely to stay. I think that often times women in general, but especially in this industry, will self-select out of opportunities to become a supervisor or building manager. I feel we have a role and a responsibility to provide training and showing them it’s possible.”

ISSA Hygieia Network will be hosting an educational event, “Networking Secrets of Successful Women,” on Tuesday, October 25. The event is to be held in conjunction with the ISSA/INTERCLEAN North America trade show taking place in Chicago from October 25 to 28.

On October 26, 2016, the ISSA Hygieia Network Awards Ceremony will recognize individuals and companies that have made an outstanding contribution to gender equality and inclusiveness within the global cleaning industry.

Council members invite industry to submit entries by September 30:

Read about the 2015 winners here.

Technological innovations in condominiums

Technology is one of those things that never stops moving, and sometimes it can be daunting to keep up with all the latest advancements out there. If leveraged correctly, though, it can provide great amounts of value to those that take the jump and never look back.

Everyone loves technology, but it takes a little bit of foresight and a change in perspective to appreciate the potential value. Take the example of the soon-to-be self-driving car. On the one hand, it might sound silly to have a car controlled by a network of computer programs. On the other hand, it might eventually seem insane in retrospect that 16-year-olds were given control of a 4,000-pound machine, capable of hitting speeds of more than 100 kilometres per hour.

So, what equivalent technological innovations are happening in the world of condos today?

Data collection

Technology is being leveraged to conduct dangerous jobs such as building envelope inspections. Consider the case of the engineer on a swing stage taping his camera to a broom stick to get a view around the corner of the building.

The advancement of drones and robotics allows for this collection of information to be done faster and without the hazards associated with dangling humans from heights. Instead of collecting data from a small portion of the exterior and extrapolating the results, it’s now possible to capture information from the entire exterior.

When it comes to the health of a building, more information is always a good thing, and a drone can easily fly around a building and collect data across the envelope.

Computer vision and machine learning

Now, with all these images of a building to review, technology can be of further assistance. Computer programs are being developed to perform more complex tasks traditionally reserved for humans.

Two-dimensional images captured from a camera mounted on a drone or robot can be run through image processing and analysis for contrast enhancement, edge detection or noise removal. It’s like zooming in on an image using a microscope and grouping together or clustering similar groups of pixels as a means to detect features. This method has been successfully applied already to identify defects and assess the condition of concrete and asphalt in civil infrastructure.

Machine vision takes this a step further by using various techniques to automate imaging-based inspections. Being more complex, this often requires the help of humans initially, in a process called supervised learning, where humans provide a filter for the image processing system.

An inspector or engineer can look at an image and can identify it as a window, or as a crack in a brick. Then, after the computer has learned this feature — often after thousands of instances — the computer can do it autonomously. This becomes valuable because now the system can save human inspectors time spent reviewing images by filtering them for issues. This technology is still in its early stages, but it’s already being applied in the medical industry to brain and eye imaging, where algorithms can predict diagnoses by piggybacking inputs from specialists based on previous similar and learned images.

The building envelope presents a different set of challenges to the use of machine vision due to the exterior environment. Not being in a controlled setting means the system needs more images and time in order to learn and become more sophisticated.

The real fun starts when predictive models can be applied using artificial intelligence (AI), layering more data, such as weathering patterns and free-thaw cycles, onto the model. Frequent and repeatable scans completed using robotic and drone technology can detect the changes over time, with what is known as time-lapse or fourth-dimension photography.

This learning model allows for humans to input what their previous knowledge suggests should occur, and then get real-time feedback on what actually happened. This information is then returned to the feedback loop and the process starts all over again, bettering everyone’s knowledge each time.

What’s coming next?

The technology train never stops and the systems will only continue to improve, reducing their error levels to match human performance and even surpass them at some point. The other major trend is the development of sensor packages on these robots and drones — laser measurement, depth sense sensors, and sonar capabilities, just to name a few.

The challenge is translating this insight into valuable information. Each step forward in sensor development requires a step back to integrate the new information and capability.

The smart folks at Stanford have combined the climbing robot with drone capabilities with their SCAMP (The Stanford Climbing and Aerial Maneuvering Platform) project. Using gecko adhesives to climb along a wall, the drone bug also has the capabilities to disengage from the wall and fly to safety should slippage occur.

Now it’s possible to begin looking at what sorts of knowledge can be gained from using this new ability. Perhaps pressure sensors could be used to detect loose components that pose a fall hazard? The possibilities are really only limited by the things humans can dream up.

As discussed, appreciating the value of leveraging technology is all about perspective. Some may think that all this stuff is outrageous and that it’s not feasible to ever eliminate the need to dangle humans off the sides of buildings. Others may just be look up into the sky one day, see a drone flying around a building and think to themselves, “How did we ever scan and review these buildings without these things around?”

Filip Sobotka is co-founder and CEO of FTD Highrise Inspection Inc.

The dirt on biofilm

Biofilm—slimy clumps of bacteria that settle onto surfaces—has been a growing concern in Canadian facilities because it can be a threat to occupants. In fact, it’s considered a leading cause of hospital acquired infections (HAI), can grow on any type of surface and is difficult to stop.

To better understand biofilm and learn ways to eliminate it, Robert Kravitz, former building service contractor and now writer for the professional cleaning and building industries, delves into the topic and interviews Matt Montag, distribution sales manager for CleanCore, manufacturers of aqueous ozone cleaning systems for the professional cleaning industry.

What is biofilm?

Biofilm is an assemblage of microbial cells that stick together and adhere to surfaces, like a dense glue cohesive. Within it are huge numbers of pathogens, mostly bacteria. Because of this, some public health officials refer to biofilm as “bacterial cities.” Biofilm isn’t necessarily bad, but when it is, it can cause serious health problems. Biofilm was first reported in 1684 by Antonie van Leeuwenhoek, a Dutch scientist who found a huge accumulation of microorganisms in dental plaque. While people usually hear about biofilm in context to human teeth, it can now be typically found on human teeth, it can now be found on a variety of surfaces—from floors and counters to sinks and even dog food and water bowls.

Where can biofilm be found?

Biofilm can be found everywhere, often in dry, unexpected areas of a facility. But for the most part, it needs moisture to survive.

“That’s why we might find it on rocks near a waterway or in spas and jacuzzis where water circulates,” says Montag. “We also find biofilm on surfaces that are frequently damp inside facilities, such as counters in a restroom or a food service area, locker room floors, restroom fixtures, and so on.”

Can you see biofilm on a surface?

When biofilm first forms you cannot see it, except under a microscope. However, as it grows and becomes larger, there is usually discoloration that occurs on the surface where it is attached. Often, it takes on a brown or pink color, but this can vary.

Is it hard to remove?

“Biofilm is hard to remove, and as the individual cells of bacteria and pathogens grow, they weave and interconnect,” says Montag. “As this happens, a sticky matter develops, which then bonds to just about any surface. Think of biofilm on our teeth. If it were easy to remove, we could just brush it away. But it is not, and that’s why the dentist has to scrape it off.”

Can you kill biofilm by using a disinfectant, bleach or some other type of powerful cleaning chemical?

The sticky matter not only sticks to surfaces, but it coats and surrounds the bacteria, says Montag. It’s like a protective armor that becomes very hard to penetrate. There have been tests where various cleaning products such as chlorine bleach or disinfectants at full strength (not diluted) were poured on an affected surface, and these tests found that these products had little impact on the biofilm.

If biofilm is hard to remove, how do you get rid of it?

The first option, which is actually the best option, is keeping surfaces as clean and dry as possible and making this an ongoing process. In an article for Medscape Medical News, researcher Dr. Karen Vickery from Macquarie University in Sydney, Australia, said, “Biofilms are forming on many . . . surfaces because [the surfaces] aren’t cleaned frequently enough. [If not cleaned frequently] the bacteria have a chance to attach and excrete extracellular polymeric substances, or slime, which makes them more resistant to removal and tolerant to disinfectants.”

Since bacteria typically need moisture to survive, the less moisture on surfaces, the less likely bacteria will form in large numbers. Agitation and scrubbing of potential problem areas, such as the floors in a locker room and using a sanitizer or disinfectant, can help keep biofilm from forming. Scrubbing floors can involve using a deck brush or even a low-speed floor machine. It provides the agitation necessary to loosen the bacteria and keep it from developing.

How do you get rid of biofilm if it already exists on a surface?

Depending on what type of surface the biofilm is found, the effectiveness of options can vary. According to findings published in the Journal of Hospital Infection, Vickery and her team discovered biofilms on dry hospital surfaces, and found that “microbes attached to surfaces, especially established biofilms, are less susceptible to chemical biocides, UV radiation and antibiotics” than other bacteria. However, in other cases biocides were ineffective at killing bacteria.

The study also pointed out that some surface materials are more prone to biofilm formation than others. The metal copper, for instance, is a potential candidate for antimicrobial surfaces. There is evidence that copper inactivates microbes and DNA deposited on surfaces and may reduce the transmission of pathogens in a hospital setting.

“Biocides with the highest activity against bacteria attached to surfaces, and ideally those with the ability to prevent biofilm formation and dismantle existing biofilms, should be selected,” the study states. Data on such detergents is limited, but there is some research that suggests oxidizing agents may contain more of these properties than other agents.

Meanwhile, in another study, researchers found that ozone [referring to aqueous ozone] effectively destroys biofilms, microbes and organic residue material within these films. At appropriate concentrations, ozone injected in water was found to destroy all microorganisms, viruses, oocysts and pyrogens.

Apparently, ozone worked well on its own, without additional agitation. Further, the researchers reported that ozonated water leaves no chemical residues, unlike other chemicals, and reverts back to oxygen.

Robert Kravitz is a frequent writer for the professional cleaning and building industries.

Home renovation spending in Ontario is set to increase

Homeowners in Ontario are set to increase their renovation spending, according to the latest Housing Market Insight from Canada Mortgage and Housing Corporation (CMHC).

Current estimates find that the average homeowner equity in Ontario has grown by 14 per cent since 2012. Most of this growth is concentrated among older households. When rising prices boost home equity, households feel wealthier, inspiring them to invest in their homes.

Home renovations in Ontario make up a growing share of the province’s economy. The renovation market has nearly doubled in size over the past 16 years and is poised to reach nearly four per cent of GDP in the years ahead. The bulk of this spending is on higher-end home upgrades.

“Although the average growth rate of home renovations is not likely to match that of the last couple of decades, the province is still set to see an increase,” said Ted Tsiakopoulos, CMHC’s regional economist for Ontario, in a press release. “Ontarians are aging, the housing stock is aging, home prices are on the rise and more homebuyers are turning to the resale market – all of these factors support renovation spending.”

Historically, the renovation market has been driven by home resale activity. In fact, CMHC data indicates that Ontario households usually undertake renovation work within one year of an existing home purchase. Roughly 75 per cent of spending involves projects that add value to a home. As resale activity reached record levels in 2015 and early 2016, this suggests renovation spending is poised for additional growth. In 2015 alone, Ontario’s renovation market was estimated to be worth about $25 billion.

Some of these renovations and upgrades are necessary, since according to the 2011 census, 57 per cent of the entire housing stock was built before 1980, and about 85 per cent of the apartment rentals in the province were built prior to 1980. Not surprisingly, as more stock has sprung up for both new ownership and rental units, existing homeowners and landlords have completed more renovation work in order to sell or rent existing space.

Since more purpose-built and condominium rental units were completed in 2014 and 2015, industry contacts suggest landlords have invested more money in their units in an effort to remain competitive. Ontario landlords are able to pass on increases in rent exceeding guideline amounts when capital improvements and upgrades have been made to rental units. In addition, new money allotted in the 2016 budget designated to repair and upgrade the existing social housing stock will provide additional support to the renovation market.

Pacific NorthWest LNG gets federal approval

The federal government has approved the massive $36 billion Pacific NorthWest LNG project in Prince Rupert, B.C.

Led by Malaysia’s state-owned energy giant Petronas, the facility would ship an estimated 19 million tonnes of LNG per year to Asian markets from a port near Prince Rupert.

“This is a significant milestone, and the last major requirement for Pacific NorthWest LNG before a final investment decision can be made. As the largest capital investment proposal in British Columbia’s history, Pacific NorthWest LNG represents an unprecedented opportunity to create thousands of jobs and new economic prospects for First Nations and communities throughout our province,” said Premier Christy Clark.

Pacific NorthWest LNG received an Environmental Certificate from the Government of British Columbia in 2014.

The federal approval comes with 190 legally binding conditions, including a cap on greenhouse gas emissions. For example, Pacific NorthWest LNG Ltd. will be required to comply with mitigation measures that will minimize adverse effects on fish, fish habitat, marine mammals, wetlands, migratory birds, and human health. The decision imposes – for the first time ever – a maximum cap on annual project greenhouse gas emissions. This cap means direct greenhouse gas emissions from the project will be capped at a maximum of 4.3 Mt of CO2e per year, 900,000 tonnes less than what had initially been proposed by the proponent.

“The only way to get resources to market in the twenty-first century is if they can be done in a responsible and sustainable manner. This decision reflects this objective. With the legally binding conditions we are putting in place and with British Columbia’s commitment to increase its price on carbon in line with the Pan Canadian Framework, I am confident that we will minimize the environmental impacts of the project and ensure that it proceeds in the most sustainable manner possible,” said Environment Minister Catherine McKenna.

The Pacific NorthWest LNG Project is touted as a major opportunity to grow the economy. The project represents one of Canada’s largest resource development projects with a total capital investment of up to $36 billion when accounting for upstream natural gas development. During construction, the project will create an estimated 4500 jobs and an additional 630 direct and indirect jobs during the operation of the facility.

“Moving forward, Pacific NorthWest LNG and our shareholders will conduct a total project review over the coming months prior to announcing next steps for the project,” said Pacific NorthWest LNG president and CEO Adnan Zainal Abidin in a released statement.

Okanagan Trades Training Complex opens

The newly renovated $35 million Trades Training Complex at Okanagan College has officially opened. The updated facility has room for 2,700 students per year and includes new and updated spaces for shops and classes.

Students can choose from a variety of apprenticeship programs, diploma programs and foundation certificate programs that will provide them with the education and skills they need to prepare for their future careers.

The updated facility will prepare students for in-demand careers that support a diverse, growing and strong economy.

“Trades students have a nearly unlimited potential ahead of them in B.C.,” said Premier Clark. “They’re being equipped with the skills for a career in fields that are not only in high demand today, but also emerging sectors that will need skilled workers for years to come.”

The new 6,237-square metre expansion and the renovation of the 4,385 square metres of existing space were funded through B.C.’s Skills for Jobs Blueprint, which targets $185 million for new trades training infrastructure and equipment.

The Province contributed $28 million of the $35-million total project cost. Okanagan College is meeting the additional amount through fundraising.

According to the British Columbia 2025 Labour Market Outlook, the province is expecting almost one million job openings by 2025 and eight of out ten of these jobs will require post-secondary education or training.

Okanagan College offers a wide range of trades career opportunities, including carpenter, plumber, auto service technician, sheet metal fabricator, welder, electrician, aircraft maintenance engineer, heavy duty mechanic technician, professional cook and refrigeration and air conditioning mechanic.

“This is a space that truly reflects the importance of skilled trades training and the value our students bring to our communities. It is one of our most sustainable buildings and is intended to showcase latest technologies and inspire students and others. The success of this project is in no small way attributed to the support we have received from our community and I continue to be grateful for that support,” said Okanagan College president Jim Hamilton.

National home sales fall for fourth consecutive month

Canadian home sales fell 3.1 per cent month-over-month in August 2016, making it the fourth consecutive month of sales declines, according to the Canadian Real Estate Association (CREA). This marks the largest monthly decline since December 2014.

Including the three previous months’ declines, the slowdown in August finds national home sales activity 6.9 per cent lower than the record set in April 2016. This is consistent across about 60 per cent of regional markets in August, led by a sharp decline in Greater Vancouver following the introduction of the property transfer tax on homes purchased by foreign buyers.

“The sudden introduction of the new property transfer tax on homes purchased by foreign buyers in Metro Vancouver has created a cloud of uncertainty among home buyers and sellers,” said Cliff Iverson, CREA president, in a press release. “That the tax applies to sales that had not yet closed shows how the details for a new tax policy can unnecessarily destabilize housing markets. More broadly, it speaks to the importance of evidence-based decision making to ensure that unintended consequences and collateral damage are minimized when new policies or tighter regulations affecting housing markets are being actively considered.”

“Single family homes sales were already cooling before the new land transfer tax on foreign home buyers in Metro Vancouver came into effect,” added CREA chief economist Gregory Klump. “The surprise announcement of the new tax caused sales to brake hard.”

Actual (not seasonally adjusted) sales activity increased 10.2 per cent year-over-year in August 2016, with sales up compared to one year ago in about three quarters of Canadian markets, led by Greater Toronto, while Greater Vancouver posted the largest year-over-year sales decline.

The number of newly listed homes fell 2.7 per cent in August 2016 compared to one month before. While new supply had fallen in just over half of all local markets, declining numbers in the Lower Mainland, Greater Toronto and Montreal regions far outweighed the monthly rise in new listings in less active markets.

The national sales-to-new listings ratio was 61.6 per cent in August 2016, indicating a sellers’ market. This level remains relatively unchanged month-to-month.

The Aggregate Composite MLS HPI increased by 14.7 per cent year-over-year in August 2016, the biggest gain seen since October 2006. For the seventh consecutive month, year-over-year price growth increased across all property types tracked by the index.

Two-storey single family home prices increased 16.3 per cent year-over-year in August 2016, as did townhouse/row units. One-storey single family homes posted a price increase of 14.4 per cent year-over-year, while apartment unit prices increased 11.7 per cent.

The actual (not seasonally adjusted) national average home price in August 2016 was $456,722, a 5.4 per cent increase year-over-year, making it the smallest price increase since January 2015.

The national average price continues to be higher as a result of sales activity in Greater Vancouver and Greater Toronto, but when excluding those regions, the average price of a home sits at $357,033.

Global leaders vow action on antimicrobial resistance

World leaders pledged a stronger commitment to curb the spread of antimicrobial resistant (AMR) infections, during the high-level meeting on AMR at the 71st UN General Assembly, which took place on September 21, 2016.

AMR occurs when bacteria, viruses, parasites and fungi become resistant against medicines that were previously able to cure them, according to the World Health Organization (WHO). Common and life-threatening infections like pneumonia, gonorrhoea, and post-operative infections, as well as HIV, tuberculosis, and malaria are increasingly becoming untreatable because of AMR.

For the first time, heads of state vowed to address the root causes of AMR across all sectors, especially human health, animal health and agriculture. They aim to develop national action plans, based on the Global Action Plan on Antimicrobial Resistance, and to call for more global funding and stronger systems to monitor drug-resistant infections and the volume of antimicrobials used.

The leaders stressed that regulation and greater awareness of antimicrobials is also a priority, as well as using innovative alternatives and new technologies for diagnosis and vaccines.

The countries requested better use of existing, cost-effective tools for preventing infections in humans and animals. These include immunization, safe water and sanitation, good hygiene in hospitals, and animal husbandry. Systems to ensure better use of existing and new antibiotics is also essential. This applies across sectors.

“AMR is a problem not just in our hospitals, but on our farms and in our food, took,” said Dr José Graziano da Silva, director-general of the Food and Agriculture Organization of the United Nations. “Agriculture must shoulder its share of responsibility, both by using antimicrobials more responsibly and by cutting down on the need to use them, through good farm hygiene.”

New measurement standard for residential buildings

A new international measurement standard will soon offer more clarity and consistency to users of residential property services, whether they’re buying, selling, renting or investing.

The International Property Measurement Standards (IPMS): Residential Buildings will provide a uniform global method to determine the size and dimension of floor space measures that can be used anywhere in the world.

Currently, the way residential property is measured can vary significantly from one market to the next. As a consequence, owners, occupiers and investors in domestic property are often left confused or misinformed when it comes to the reported floor space. This causes substantial issues when property is listed off-plan or bought by investors, but it has also led to disputes where rental calculations and service charges have relied on erroneous measurement information.

Published by a Coalition of more than 80 property organisations around the world, and drafted by an independent group of 18 experts from 11 countries, IPMS: Residential Buildings is the second in a series of global open-source standards aimed at creating a uniform approach to measuring buildings. Representing many hundreds of thousands of property professionals globally, the IPMS Coalition conducted a public consultation giving property professionals everywhere a chance to have their say on this landmark residential standard.

“IPMS: Residential Buildings addresses a simple but challenging reality: How do we provide transparent and consistent measurements for domestic properties when the methods used to perform these measurements differ across global markets? For many, owning a home is the most important investment they’ll make,” says Alexander Aronsohn, RICS Director Technical International Standards. “This new standard will enable investors, estate agents, developers, consumers and other users of professional property services, to make more informed decisions. IPMS: Residential Buildings is ultimately about protecting the investments we make as individuals, investors or industry leaders.”

Evidence of the variance in residential measurements is also highlighted in a new RICS Research report “Residential Property Measurement Practice” (September 2016), written by Dr Lesley Hemphill and Dr Jasmine Lay Cheng Lim of Ulster University. The report investigated local measurement practice in locations across the world and compared the variance to using the new globally benchmarked IPMS: Residential Buildings. The difference in measurement for residential apartments, for example, varied by as much as 27 per cent while measuring residential homes can vary by up to 58 per cent.

To provide a little more detail on this issue for multifamily investors, this report shows a marked difference in practice on apartment floor plans between the Americas and Asia/Middle East compared to mainland Europe, the U.K. and Oceania. The Americas and Asia/Middle East have a much higher prevalence of including dimensions for the core living space such as living rooms, kitchen/dining room, bedrooms, and bathrooms (all 78 per cent). This compares to just 38 per cent for the same rooms in mainland Europe and the U.K., and only 29 per cent in Oceania.

Earlier this year, RICS Property Measurement, 1st edition, which incorporates IPMS: Office Buildings, became the mandated standard to use for all RICS Professionals who perform measurements on commercial properties. A number of governments, corporate occupiers and employers of property professionals are adopting IPMS to benchmark their property measurements around the world.

Over the coming months RICS Professionals will be encouraged to share their expertise and shape the Professional Statement to include IPMS: Residential Buildings as an update to the Code of Measuring Practice.

Ontario care facilities get maintenance funding boost

Fifty nine community health organizations across Ontario will receive $4.1 million in maintenance funding to repair and upgrade 70 care facilities, so patients can continue to receive high-quality care.

Funds will be released in 2016 to 2017. Projects may include upgrades or replacements to roofs, windows, HVAC systems and fire alarms.

Premier Kathleen Wynne announced the investment at South Riverdale Community Health Centre, which will receive $265,000 this year through the Community Infrastructure Renewal Fund (CIRF) for upgrades to heating, ventilation and air conditioning systems, and to make washrooms and facilities wheelchair accessible. This is the first round of maintenance funding through the CIRF.

“Providing infrastructure funding to community health service providers is part of our commitment to put patients first and ensures that Ontarians receive care in a safe and healthy environment, said Minister of Health and Long-Term Care Dr. Eric Hoskins. “Important investments like this one help to build a health care system that delivers high-quality care today and a sustainable system in the future.”

Four Seasons and Carbonleo partner on downtown Montreal project

Construction is currently underway on the Four Seasons Hotel and Private Residences on vibrant de la Montagne Street in Montreal. The hotel and residences is currently under development in partnership with Carbonleo, a Quebec property development and management company. The $250-million project is slated to open by late 2018.

“Montrealers have been waiting to see how de la Montagne Street would evolve, and we’re very proud to be part of this unique project while contributing to the revitalization of this downtown area. Our vision is to create an architectural ode to extraordinary urban living, that will help redefine Montreal’s famous Golden Square Mile,” said Andrew Lutfy, chair of the board, Carbonleo, in a press release. “This will become an exciting lifestyle and dining epicentre for both Montrealers and visitors, linking the Bell Centre to the museum district in the heart of the action.”

The 163-room hotel and 18 private residences will feature a state-of-the-art spa, an indoor pool, a fitness centre and extensive event spaces including a 6,000 square-foot ballroom with terrace. The complex will also feature three dining venues, all anchored by a renowned local chef. Meanwhile, guests will get the star treatment with a high-end valet parking service.

“Montreal is one of North America’s great cities, a vibrant urban destination that has long appealed to luxury travellers drawn to its European flair and cultural sophistication,” said J. Allen Smith, president and CEO of Four Seasons Hotel and Resorts. “In partnership with Carbonleo, we are bringing to Montreal a landmark luxury hotel and private residences that will soon be the city’s address of choice. We look forward to introducing visitors and locals alike to the highest standards of quality and the most genuine and personal service – the markers of a Four Seasons experience the world over.”

The Hotel and Private Residences will be directly connected to retailer Ogilvy. Holt Renfrew & Co. Limited plans to expand and transform the retailer, located on Sainte-Catherine’s Street, into a unique and exciting luxury retail destination. The new 220,000 square-foot store will include an adjacent site and become one of the largest stores in the Holt Renfrew network.

$1.5-bil M City development slated for Mississauga

Rogers Real Estate Development Limited, a private holding company owned by the Rogers family, has announced a $1.5-billion development slated for the western edge of downtown Mississauga.

When complete, M City will be comprised of 10 towers situated across 15 acres, or 4.3 million square feet, with frontage along Burnhamthorpe Road and connections north and south along Mary Fix Creek. The master-planned community will include the development of over two acres of public parkland in the downtown core. The project, the Rogers family’s first major residential condominium development, was inspired by Mississauga’s Downtown21 Master Plan.

The project has been in the works since 2007, when Rogers Real Estate Development turned to leading Canadian developer Urban Capital Property Group to manage the process of turning long-held family property into a legacy community.

“Rogers has an enduring history with the City of Mississauga. We believe in the city and in the vision that was set forward in Downtown21,” said Edward Rogers, deputy chairman of Rogers Communications Inc., in a press release. “With the help of Urban Capital and our development team, we aim to contribute to the evolution of Mississauga’s downtown. M City will be anchored by iconic design, it will prioritize public spaces and parkland, and it will offer residents the best technology available now and into the future.”

Key community features include extending existing city streets on an angular plane to create a network of blocks, creating a pedestrian-friendly environment. Standard residential blocks will provide two-way roads with street parking, large sidewalks and residential frontages.

“Rogers Real Estate Development has put forward a bold, exciting and forward-looking vision for Mississauga’s growing, thriving and promising downtown,” added Mississauga Mayor Bonnie Crombie. “These new planned developments by Rogers are consistent with the City of Mississauga’s commitment to build a livable, walkable city, home to mixed-use residential and commercial developments that are connected to an extensive public transit network.”

New York-based urban design firm Cooper Robertson was enlisted to design the framework for M City. The firm’s partner, Donald Clinton, was the lead designer on the project. Following a design competition among three of Canada’s top architecture firms, it was determined that CORE Architects’ winning design will redefine the city’s skyline with a striking, undulating tower that rotates seven typical floor plates in repetition as it rises 51 storeys. Cecconi Simone has been selected to take on the interior design of the tower.

PROREIT to purchase 12 commercial properties

PRO Real Estate Investment Trust (PROREIT) intends to purchase 12 commercial properties across Quebec and the Maritimes for about $63.3 million.

The assets —anchored by high-quality tenants under long-term leases —consist of 10 retail properties at 332,000 square feet, one 171-square-foot industrial property and one 50,000-square-foot mixed-use commercial property. Six properties are located in Quebec and four are in Nova Scotia. The other two assets are situated in New Brunswick and Prince Edward Island.

“PROREIT continues to deliver on its core business plan of delivering accretive acquisitions of high-quality retail, office, and industrial properties with strong tenants and long-term leases” said James W. Beckerleg, president and chief executive officer. “Additionally, we are capitalizing on opportunities to execute square foot optimization at existing properties at significant returns on invested capital, while reducing financial leverage.”

How commercial building operators can empower the “true first responders”

When the media talk of the “first responder,” images of brave fire fighters racing into burning buildings, or police of officers marching onto an accident scene, most often come to mind. These brave men and women with their countless hours of training, backed up with proven and advanced technology, are put in to harm’s way routinely to protect and help people during times of crisis. With their training and experience, they are able to quickly assess the situation, make decisions with the resources provided to them, and, in most cases, deal with an incident resulting in a favourable outcome.

Rarely, however, are these first responders on the scene of an incident when it first presents itself. In fact, most of the time first responders are three to five minutes away in the best of circumstances, and in the worst case scenario, maybe as long as three to five days.

Therefore, the “true first responders” (TFRs) are the civilians who are in close proximity to the event when it occurs and in a position to assist. In a building or facility, these are the building engineers, property managers, operators, security officers, janitors, tenant floor wardens, and ordinary occupants that wish to assist.

Building emergency response plans

The policies and procedures that the TFRs initiate prior to the arrival of the authorities can dramatically influence the outcome of the event either positively or negatively. The odds of having a positive outcome are directly proportional to the quality of the building emergency response plans, training programs, and tools provided to the TFRs.

It is important commercial building operators realize that without the support of these TFRs, the life safety of tenants and occupants could be at risk. They must be given procedures, training, and support to be able to manage an emergency event until such time as the community first responders arrive and are in a position to assume the responsibility for the management of the event. Again, in small events, this internal response duration may only be for a few minutes, whereas in a large event or regional disaster this may be up to several days.

The foundation of a building emergency response program must consist of an approved building fire safety plan (regulated by the fire code) and a comprehensive multi-hazard emergency response plan with detailed descriptions of the roles/responsibilities and how-to instruction for the TFRs involved in an emergency event. Commercial building operators also need to take into consideration plan continuity, scalability, and nomenclature when developing their building emergency response plans.

Processes, protocols and procedures

This fact was recognized by jurisdictions across North America, which has adopted the Incident Command System (ICS) as a cornerstone to their emergency management policies. This integrated system establishes a uniform set of processes, protocols and procedures that all emergency responders, at every level can use to conduct emergency response actions. They will have the same preparation, goals, expectations, and – more importantly – they will be speaking the same language. At the building or facility and corporate level, having everyone executing from the same play book is essential to a successful outcome.

Even though fire emergencies still pose the greatest risk and threat to building occupants, it is necessary to plan and prepare for a number of other life-threatening events such as earthquake, tornado, hurricane, flood, bomb threat, suspicious package, hazardous materials, power failure, medical and active shooter incidents.

Training, exercising and testing

Once the emergency response plans are developed, it is absolutely imperative these plans are implemented and maintained on an on-going basis. Consider your emergency plans as live documents that may need updating due to changes at your building or periodic changes in your TFRs. The training, exercising and testing of the plans and the TFRs on a continual basis is imperative or it will fail.

Training can be relatively generic for general occupants, but needs to be role and site-specific at the building or facility level. To manage changes and implementation, consider the use of technology that will allow you to leverage your time and costs such as online eLearning or the use of mobile technology to provide TFRs the knowledge and confidence necessary to lead your building occupants to safety.

By bringing awareness to the role of TFRs and providing them with the knowledge, tools, and disaster response, the end result will be a reduction in life loss, injury, property damage, reputation damage, liability, downtime, and confusion in dealing with an emergency.

Doug Araki is President at WPS Disaster Management Solutions.

Improving safety for elderly tenants

The Canadian population is aging and seniors constitute the fastest-growing age group. This trend is expected to continue for the next several decades due to a below replacement fertility rate, an increase in life expectancy, and the aging of the baby boom generation.

By 2036, the senior population aged over 75, is expected to double, making up twelve per cent of the overall Canadian population. About 41 per cent of this group of seniors will have some form of disability.

Many surveys conducted in recent years have indicated that the majority of seniors still wish to age in place. For those individuals, living independently at home is considered more cost effective and a welcome alternative to living in an institution. The design of much of our housing stock, however—whether it’s high rise apartment units or individual residences—does not allow for the increasing disabilities that accompany the aging process.

A study from 1987 indicated that over 45 per cent of Canada’s elderly population who continued to live at home had some difficulty in carrying out one or more of the Activities of Daily Living (ADL)—getting in and out of bed, for example, going up and down a flight of stairs, bathing, bending, reaching, handling objects, and cooking. Because of this, the percentage of seniors living in private homes decreased as they aged.

There have been several studies over the years that have outlined the social and economic benefits of enabling elderly people to remain in their homes. Adapting residences in order to accommodate aging Canadians’ needs is the surest way to achieve this.

Helping elderly tenants stay independent longer

For landlords catering to elderly tenants, there are a few minor, inexpensive adaptations that can be carried out to accommodate the changing needs of seniors. The simple rearrangement of furniture or the installation of a shower seat or grab bars in the bathroom can make a huge difference.

For a larger scale look at what can be done, CMHC offers an assessment tool to identify home improvements or adaptations that will enable elderly individuals to remain independent for longer. The three basic principles of the assessment tool include:

1. An accessible environment

Elderly tenants should be able to fully use their complete apartment space in a safe way. Stairs that are too steep to climb, balcony thresholds that are too high, and toilets that are too low can create barriers for aging residents. Some of these barriers can be eliminated without major repairs or rehabilitation.

2. An attractive and practical environment

It is important not to over-adapt a space. Only those changes that provide appropriate, practical and attractive environments for everyone should be carried out. In extreme circumstances, when some specific modification or specialized technical intervention is necessary, the simplest means should be used. Time and energy can be saved without turning a property into an emergency unit. Any specialized equipment should be avoided.

3. A flexible environment

While the goal is to be accommodating, it’s important to making specific changes that will require ‘undoing’ later. The changing needs of older people can be satisfied by providing flexible environments and adjustable equipment that can be removed when no longer needed.

Think safety first

Many seniors cite similar barriers as they age, and these can include navigating stairs, reaching low cupboards and electrical outlets, accessing clothing, etc. Through minor modifications, it is possible to address safety issues in order to ensure that seniors have the ability to move about and accomplish tasks in the kitchen and the bathroom, for example. Floor surfaces can be replaced to ensure they don’t become slippery when wet. Electrical outlets can be relocated to higher areas, and new, accessible shelving can be installed under the kitchen cupboards for easier access.

Adding handrails in hallways, lever handles on doors and extra lighting in dark spots are also some other helpful and inexpensive adaptations that can be made. It is also good to remember that it is important not to over-adapt the environment, but to modify it in such a way that elderly people can make best use of their strengths and abilities.

To help you learn more about home adaptations, CMHC has two publications called Maintaining Seniors’ Independence: A Guide to Home Adaptations and Maintaining Seniors’ Independence Through Home Adaptations: A Self-Assessment Guide. Download your free copies at www.cmhc.ca or call 1-800-668-2642.

Pure Multi-Family REIT sells Texas rental property

Pure Multi-Family REIT announced that it has entered into an agreement to sell Livingston Apartments, located in Plano, Texas, for gross proceeds of US $34.3 million. The sale is expected to close at the end of October, 2016.

Livingston is comprised of 180 residential units, situated on 11.8 acres of land and was built in 1998. Pure Multi-Family REIT acquired Livingston in August 2013 for US$25.5 million. As part of Pure Multi-Family’s commitment to create value for its unitholders through selective dispositions, Pure Multi-Family REIT anticipates using the net proceeds from this profitable sale and reinvesting it into another quality asset in the near future.

Steve Evans, CEO, stated, “Having successfully executed our value-add initiatives at Livingston, we are excited to capture this value we have created through this profitable sale and we intend to re-invest these proceeds in a timely manner into another quality asset.”

About Pure Multi-Family REIT
Pure Multi-Family REIT is a Canadian based, publically traded vehicle which offers investors exclusive exposure to attractive, institutional quality U.S. multi-family real estate assets.
Additional information about Pure Multi-Family is available at http://www.puremultifamily.com or www.sedar.com.

Why Savvy Investors Should Take a Look at Apartment Buildings

Uncertain economic times and a saturated condo market in Canada’s urban centres have prompted more commercial real estate investors to consider purpose-built apartment buildings as a savvy, safe investment.

“Commercial real estate has typically generated a higher rate of return than some other types of investments, and multi-family is the most stable sub-asset class in commercial real estate,” says Darryl Bellwood, assistant vice-president of commercial financing at First National Financial LP, Canada’s largest non-bank mortgage lender. “From one year to the next, you typically know what your expenses will be and, if you run a good operation, you’ve got consistent vacancy figures.”

People have to live somewhere, so especially in major markets, finding tenants is not difficult. With low rental vacancy rates across the country, returns have been very stable.

Purpose-built apartment rentals appeal to younger people who can afford to pay a higher rent for the amenities they want but are not looking to invest in a condominium or home. Baby boomers looking to retire and downsize are another target market.

Apartment buildings can also be economically advantageous for developers. Brokerage fees are less than for individual condominium sales, for instance. Marketing and construction costs are also typically lower. As well, selling an apartment building involves a single transaction, rather than multiple condominium sales, reducing risk.

According to Colliers International, the multi-family class of commercial real estate remained the most stable in major Canadian cities as of mid-2015. It reported that the total value of transactions in major markets increased by 21.7 per cent from mid-2014. Year-over-year rental rates and vacancies also remained stable, with a 2.8-per-cent increase in rental rates and vacancy rates at 0.2 per cent.

Succeeding in the market

Borrowers should be cautious about the lender that they choose, experts stress. The reputation of the institution and its overall experience in the multi-family market is important; but it’s also essential to work with an individual within the institution who has experience in this area, who asks the right questions and understands your plans.

Small landlords and large institutional borrowers alike are advised to avoid choosing a lender based solely on interest rate. Rates fluctuate, but a partnership with a lender is an investment that helps to achieve long-term goals.

“We go a little bit farther than just saying, ‘Here’s the mortgage we can offer you’,” Bellwood says. “If you have a strong relationship, your lender will know exactly how to structure the deal that you want to do.”

He often finds himself providing advice, for instance, about how much to put down and which loan term is the most appropriate when a borrower is seeking to purchase or build a building. Sometimes a second mortgage on another property makes more sense in terms of raising cash. Sometimes a borrower might be better off with an improvement loan to upgrade an existing property to increase cash flow before investing in another building. A lender familiar with the details of your portfolio is in the best position to provide this type of strategic advice and to update you on market changes.

If you have a strong relationship, you can trust that your lender will structure the deal that is right for you. And since trust is a two-way street, a lender who trusts you might be more willing to take a smart risk for you.

“If you know someone, you can trust them to do what they say they’re going to do,” Bellwood says.

Darryl Bellwood is an Assistant Vice president, Commercial Financing at First National Financial LP. Get to know Darryl here.

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