September 2014 BOMA

JASPER AVENUE OFFICE TOWER GETS A SECOND CHANCE TO SHINE

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t’s not every day that a high-rise office building gets a do-over, but that’s what is happening on Jasper Avenue and 99th Street after ATB Financial outgrew its old headquarters and moved across the street.

The departure of the 16-floor tower’s sole tenant offered an opportunity to transform the former bank building into 9Triple8 Jasper, a property redesigned for the needs of a new generation of businesses. The goal went beyond providing office space. The purpose was to create a quality environment and daily experience that will help tenants attract and retain the best work force available.

“We asked ourselves, if we were putting up a brand-new building today, what would we do,” says Jordan Hokanson, president of Hokanson Capital Inc., the owner and redeveloper of 9Triple8 Jasper.

The transformation begins at the sidewalk, where one of the drabbest facades on Jasper Ave. is being replaced by bright, glass-walled retail frontage. Staff and visitors will pass through beautifully detailed new lobbies on their way up to state-of-the-art offices.

9Triple8 Jasper is also being fitted with a 2,200-square-foot conference centre and a private fitness centre, which Hokanson promises will be something special. “I want people to have the same kind of experience as they would get when they work out at a state of the art health club,” he says.

Providing a first-class working environment for employees is one reason why accounting firm Kingston Ross

EDMONTON

O F F I C E

VAC A N C Y Q2 - 2014

Overall Vacancy:

8.1%

Downtown Vacancy:

7.8%

Suburban Vacancy:

8.5%

Financial District Vacancy: AA: A: B: C:

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8.0% 8.6% 7.7% 7.9% 6.8%

Government District: Vacancy: A: B: C:

7.4% 8.3% 12.2% 1.8%

Suburban: 118th & Kingsway: 124 Street: 149 Street: Eastgate: Southside: Summerside: West End: Whyte Avenue: Sherwood Park:

2.7% 15.7% 7.9% 10.9% 5.9% 11.2% 12.4% 5.4% 11.3%

Avison Young is the North American real estate partner businesses trust for intelligent, integrated solutions. We deliver results that are aligned with your strategic business objectives, supporting real estate initiatives that add value and build competitive advantages for your organization

www.avisonyoung.com

www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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Pasnak LLP chose to become the anchor tenant and acquire the naming rights to the building.

“It’s in a prime location downtown for business, and our staff like that lifestyle where it’s easy to get transportation and access entertainment,” says Bob Wilson, CEO of the firm.

During renovations, working without tenants in the building allowed crews to make some noise. They stripped all the floors to the bare concrete and rebuilt 174,000 square feet of office space to 2015 standards of connectivity, comfort and style. 9Triple8 Jasper also got a complete environmental overhaul. The 1970s-era lighting, heating and air conditioning were all replaced with the latest environmental systems.

“The building was an energy pig when we started,” Hokanson says. “We have been able to cut utility consumption in half, from 4.2 million kilowatt hours a year to 2.1 million.”

9Triple8 Jasper was designed to meet the LEED Gold for Existing Buildings standard and to attain a federal Energy Star rating of 85 for consuming 61% less energy than the average Canadian office building. These efficiencies are not only good for the environment – they are also passed on to tenants in the form of lower operating costs.

Hokanson’s vision for the rejuvenated building is to create a living space for companies that have outgrown their current location downtown or in the suburbs. At 11,000 square feet

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September 2014 | BOMA Edmonton Newsletter | www.bomaedmonton.org

per floor, it’s the right footprint for organizations like ASET, the Association of Science and Engineering Technology Professionals of Alberta, another early tenant.

9Triple8 Jasper offers a quality location in the heart of the city without the premium pricing of new or legacy properties. Two LRT stations are within a few blocks, as are the Shaw Conference Centre, Churchill Square, the Arts District and the city’s best hotels, shopping and restaurants. While close to all the bustle, the chance to relax is also at hand. 9Triple8 Jasper is next to a pocket park and the restored Alberta Hotel on Jasper Avenue and only steps away from the spectacular river valley.

Underground parking is available with abundant off-site parking nearby. Currently, the building can accommodate tenants who need up to 100,000 sq. ft. of contiguous, multi-floor space.

Downtown Edmonton has grown since the original building opened in 1979; the way we do business has also undergone a revolution. Now 9Triple8 Jasper is being transformed and renewed to face the challenges of a new generation.

To learn more, visit 9Triple8Jasper.com. Leasing information is available from Colliers International at (780) 420-1585.

The 9Triple8 Jasper redevelopment is a project of Hokanson Capital Inc., a family-owned corporation with interests in commercial real estate. HCI also manages the largest portfolio of agricultural land in western Canada.

SR&ED IN THE REAL ESTATE INDUSTRY

Dream believes in better communities to live in and work in. Our goal is to be Canada’s top real estate investment, development and management company. dream.ca

The real estate industry is currently facing unprecedented challenges. Regulatory hurdles continue to drive additional costs, particularly as they relate to the environmental attributes of real estate projects.

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ustomers are demanding more from technological innovation in terms of originality, value and environmental design — both in the construction process and final product. As a developer, builder, contractor, investor, property manager or supplier, your challenges and opportunities in the industry have never been greater. Incentives in support of innovation in this sector are readily available but they are increasingly focused, competitive and time sensitive. Awareness and readiness are essential.

The Canadian Scientific Research & Experimental Development (SR&ED) program offers some of the most generous incentives in the world. A white lab coat generally comes to mind over a hard hat and steel toes, but SR&ED activities go beyond those taking place in a traditional research lab.

Under Canadian tax law, the key benefits of qualifying SR&ED expenditures include: • Eligibility for federal investment tax credits (ITCs) of 35% of eligible expenses to reduce tax payable for Canadian Controlled Private corporations; and 15% of eligible expenditures for other entities.

• A full tax deduction in the year the expenditures are incurred.

• The ability to “pool” SR&ED expenditures, enabling you to carry forward these deductions indefinitely, to the extent that they are not currently needed.

• Alberta offers additional incentives of 10% of qualifying activities. Most other provinces also offer SR&ED incentives. www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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The SR&ED program can be used to help the real estate industry with support for innovations ranging from design and development of equipment and structures to building materials and new energy sources. Some areas that may apply include: • analysis of structural designs related to dynamic structures (retractable roofs, solar energy collection positioning systems), • design and development of construction equipment, tools and temporary construction structures, • investigations related to the development of new — or the improvement of existing — construction and building materials (metals/alloys, glass, plastics, ceramics, concrete/cement, insulation), or • investigations related to the development of new — or the improvement of existing — construction techniques to improve finish quality, durability and efficiency, soil remediation and to achieve environmental certification under programs such as LEED. Real estate companies are not typically perceived as being in the “science and technology” business, but they are often paying for and taking the financial risks in respect to engineering development work. Significant eligible project incentives are often missed because it is not easy to recognize who is entitled to the claim.

By way of example, engineering firms hired by real estate and construction firms often undertake SR&ED eligible projects yet are unable to make a claim for their technological advancements. This is because they are paid for their efforts and are not undertaking any financial risk. The real estate and construction firms paying for the engineering work are taking such risk but are often unaware of the potential for making a claim themselves. Consequently, many possible SR&ED claims are missed along the real estate development supply chain.

However, contract payment rules in the SR&ED regime are designed to prevent two Canadian companies from claiming incentives on the same project. These rules are among the more complex in the program. Four criteria are examined in order to determine who is allowed to make the SR&ED claim

when one Canadian company pays another to perform its SR&ED eligible work:

Contractor performance requirements

Does the contract state that the contractor was required to perform specific SR&ED work? This is often overlooked by the real estate developers.

Pricing vs. risks assumed

Would the contractor have been paid if the work did not initially meet the specifications set out under the contract? If yes, it may indicate that the financial risks were taken on by the payer – again typically the developer or general contractor and as such they are entitled to the claim.

Intellectual property

If the rights to the intellectual property (IP) of the SR&ED work belong to the payer, this may indicate that the contractor was required to perform SR&ED on their behalf.

Contract for service vs. contract for the sale of goods

A contract for service may indicate that the SR&ED work was being performed on behalf of the payer.

The SR&ED program continues to be the single largest federal funding source and one of the most generous incentive programs in the world. There is no question that Canadian real estate companies will continue to deliver on innovation and contribute to the future competitiveness and prosperity of the Canadian economy. Make sure you do take advantage of the government’s programs to assist in the financing of such innovations. Contact a BDO specialist today or look at our website at www.bdo.ca/real-estate.

BRINGING THE OXFORD NAME BACK INTO EDMONTON’S DOWNTOWN CORE

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xford Properties Group is proud to announce the rebranding of City Centre Place to Oxford Tower, located in the heart of the financial district in Edmonton. 2014 also marks the 40th anniversary of the newly branded tower. The

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September 2014 | BOMA Edmonton Newsletter | www.bomaedmonton.org

recent $1.3M lobby redevelopment has positioned Oxford Tower in the forefront of the city’s downtown revitalization currently taking place and ensures that it remains a landmark office tower visible from all parts of the city. Edmonton

is the birthplace of Oxford and remains an important market for the now $35 billion global company.

Oxford, an OMERS Worldwide Company, is an owner, developer, investor and manager of real estate. From our humble roots that began in Edmonton some 54 years ago, the portfolio now extends to approximately 50 million square feet of office, retail, hotel, industrial and multi-residential assets

located in major international markets including Canada, the U.S. and Europe.

www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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USING ADVANCED TECHNOLOGIES TO STREAMLINE THE OPERATION AND MAINTENANCE OF FIRE AND LIFE-SAFETY SYSTEMS W

hen it comes to the operation and maintenance of fire and life-safety systems, advanced technologies have emerged that can be put to powerful use today to help building owners and managers create a safe environment and ensure the facility operates as effectively and efficiently as possible.

In all types of buildings and environments, the trend toward embedding more intelligence and capability into fire and lifesafety systems can improve the protection of life and property and provide added value. The array of innovative technologies available from Tyco Integrated Fire & Security includes remote diagnostics capabilities for fire alarm systems, automated inspection and reporting for fire and life-safety systems, and secure access to service information via an online customer portal.

For building owners and managers, these smart technologies can: • Enhance life-safety protection for building occupants • Simplify the inspection, testing and maintenance process as well as related documentation and reporting • Improve a facility’s operational efficiency • Reduce or eliminate nuisance or unwanted alarms resulting from a lack of system maintenance • Increase business continuity • Lower overall life-cycle costs • Support compliance with applicable codes and standards • Help to manage risk

Remote Fire Alarm System Diagnostics

Using a cloud-based software platform, fire alarm system devices can be connected and accessed through the Internet.

These connected products contain embedded technology that enables data to be turned into valuable information to help optimize efficiency and provide a higher level of customer service.

Remote diagnostics technology gives expert Tyco technicians, based in the company’s Service Resource Centre, a 24/7 electronic window into the status and operation of our ad-

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September 2014 | BOMA Edmonton Newsletter | www.bomaedmonton.org

The automation is achieved by having technicians use handheld, electronic devices that read bar coded information on system devices and components. The software guides the technician through the process, highlighting each of the devices due for inspection. When the inspection is complete, an electronic inspection report – formatted to meet compliance standards – is automatically generated and emailed to the customer. Additionally, all the inspection data is stored on an online portal, giving customers easy, secure access to essential service information – 24 hours a day, seven days a week.

Not only can these tools save time and money that would have been spent generating reports to support compliance, they can also provide an efficient online means for a building owner or facility manager to mine his or her own data to develop customized reports and detect important trends. The trend data can help benchmark how well an organization is performing and identify areas for improvement

vanced fire alarm systems. The remote service technicians are automatically alerted to system issues. They then use their expertise and the fire panel diagnostics to identify the root cause of the issue. If a service call is needed, the responding local technician can come to the facility with a clear, upfront understanding of the problem, the appropriate solution, and the parts required to fix it on the first visit.

The remote service technicians can also identify upcoming predictive maintenance needs, such as smoke detectors that will soon need cleaning to prevent them from causing a system trouble or nuisance alarm. Based on the diagnostic information, a practical schedule of site visits can be arranged to clean detectors in a timely, efficient and non-obtrusive way.

Building owners and managers with connected remote diagnostics solutions from Tyco Integrated Fire & Security gain an array of important benefits, including more uptime, fewer business disruptions, faster problem resolution, in-depth system operations data, and lower life-cycle costs.

Tyco Integrated Fire & Security is a leader in the market, providing comprehensive fire, security and life-safety solutions for businesses and large enterprises across Canada. We provide single-source solutions with a portfolio that includes fire alarm, sprinkler, suppression, healthcare & emergency communications, access control, intrusion, video, and monitoring. Our 2,000 employees, across 35 local offices, help protect over 100,000 Canadian businesses.

For more information, visit www.tycoifs.ca

Automated Life-Safety System Inspection and Reporting

Conducting timely inspections of fire protection and lifesafety systems and properly documenting the results in inspection reports are vital elements of any comprehensive life-safety strategy. Technology available today makes it possible to automate a portion of the life-safety system inspection process. Electronic inspection reporting is a software solution from Tyco Integrated Fire & Security that supports the inspection of fire and life-safety systems using a laptop or a pocket PC with a bar code reader. The power of electronic inspection reporting lies in how it speeds the inspection process, improves record-keeping and documentation, and works in concert with the company’s online customer portal. www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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