BOMA Space Directory 2023

Designing the hybrid office

THINK: FLEXIBILITY AND FLUIDITY

Designing the hybrid office

THINK: FLEXIBILITY AND FLUIDITY

Something Different

Welcome to the 2023 Commercial Space Directory Winter Edition. For many years BOMA produced an annual Commercial Space Directory together with the Ottawa Business Journal and distributed it at the Ottawa Real Estate Forum in October.

The Pandemic changed everything everywhere and that included the Commercial Space Directory, which moved to early in the new year.

It’s time to move back

After considering many factors, it was decided that it was time to move back and publish the annual directory in the fall. We did have commitments to advertisers for a winter edition and so the decision was made to publish two version of the Directory in 2023.

The first, which you are reading now, will be an abbreviated version, with the listings of Office, Industrial and Retail space, but without the property management firms associated with it.

The second, will not be a simple repeat of years past, but rather will be featuring new sections. Back will be the full detailed building listings, but we’ll be adding special sections contributed by government and other associations.

We are already hard at work in developing this new re-born version of the Commercial Directory and find it even more useful than past editions.

Glenview Management Limited has long been one of the National Capital Region’s most established and respected owners, developers and managers of commercial and residential real estate.

Since 1966 Glenview has been involved in the construction and management of all facets of real estate in the Ottawa area. From its beginnings, Glenview set new standards for the highest level of quality and professionalism in the development industry.

Our team of professionals brings together years of experience in developing, renovating, leasing, managing and marketing properties of all kind.

Glenview is a family-run company which puts its reputation on the line with every project. We are proud of each and every development we have built over the years. We are even more proud of the trust and appreciation we have earned from the tenants within our portfolio.

Glenview Management Limited

190 O’Connor Street, 11th Floor

Ottawa, Ontario K2P 2R3

613.748.3700

www.glenview.ca

Back to Normal

That’s the motto for 2023 as determined by the Board of Directors. After three years of no programming or partial programming, the BOMA Board of Directors has set as its goal to offer a full program of activities in 2023. Starting with the BOMA Curling Funspiel and ending with the famous BOMA Holiday Lunch we will be offering 10 different professional development opportunities and 10 different networking opportunities. In addition BOMA committees will continue their work on the industry’s behalf serving as the voice of Commercial Real Estate in helping stakeholders, politicians and all levels of government staff to understand our issues and needs.

Underpinning all that BOMA will be doing in 2023 will be a new Strategic Plan that will run until 2028. The specific projects, programs and goals will be announced as they become reality, but all based on three broad objectives.

ADVOCACY

As the voice of the commercial real estate industry, BOMA Ottawa will be recognized as the industry expert and contribute to strategy and policy development through consultation and information dissemination.

PROFESSIONAL DEVELOPMENT

BOMA Ottawa will be the ‘go to place’ for profesional development and resources for the commercial real estate industry.

MEMBER EXPERIENCE

BOMA Ottawa will deliver a positive and meaningful experiences for members across all lifecycles while supporting the overall needs of the commercial real estate industry.

We hope we meet the expectations of all our members and invite everyone to share you ideas, concerns and issues with us as we refine all of our current programming and develop new initiatives.

Publisher Michael Curran

Editor in Chief

Anne Howland

Advertising

Wendy Baily

Eric Dupuis

Victoria Stewart

Creative Director

Tanya Connolly-Holmes

Graphic Designers

Deborah Ekuma

Celine Paquette

Directory Production

Patti Moran

BOMA Ottawa Staff

Dean Karakasis, Executive Director

Peg Gallison, Senior Manager Events and Member Programs and Listings Coordinator

BOMA Ottawa Office

141 Laurier Avenue West, Suite 1005 Ottawa, Ontario K1P 5J3 Tel: (613) 232-1875

bomaottawa.org

Ottawa Business Journal is a publication of

©2023 Ottawa Business Journal The BOMA Ottawa Commercial Space Directory is published by Ottawa Business Journal on behalf of the Building Owners and Managers Association of Ottawa. This publication contains information considered accurate at the time of printing. However, the publisher and/or BOMA Ottawa are not responsible for any errors or omissions that may occur. Reproduction in any form is prohibited without the written permission of the publisher.

Executive and Board Members | BOMA 2022-23

Executive Committee

Erin Nagy President

Jones Lang LaSalle

Erin.nagy@jll.com

613.566.7062

Directors

Sarah Vandenbelt Vice President

Koble Commercial Real Estate & Brokerage

sarah@koble.ca

613.237.0123 ext. 205

Warren

Metcalfe Realty

jarbuckle@metcalferealty.com

613.230.5174

Colliers International warren.wilkinson@colliers.com 613.683.2207

KATIE BILLINGSLEY

Morguard kbillingsley@morguard.com

613.237.6373

Bart Brennan

Domus Building Cleaning Company

bbrennan@domuscleaning.com

613.741.7722

Director at Large

Paradigm Properties

ahopkins@paradigmproperties.ca

613.728.4111 ext. 221

Shawn Hamilton Past President

Canderel shamilton@canderel.com

613.688.2286

Committees and Chairs | BOMA 2022-23

ALLIED COMMITTEE

Bart Brennan

Domus Building Cleaning Company

613.741.7722

bbrennan@domuscleaning.com

EDUCATION

Jeff Garland, Chair Hays Recruitment Agency

613.288.2064

jeff.garland@hays.com

EMERGING LEADERS COMMITTEE

Sarah Vandenbelt

Koble Commercial Real Estate & Brokerage

613.237.0123 x205 sarah@koble.ca

ENVIRONMENT AND ENERGY

Glenn Mooney, Chair Energy Ottawa

613.225.0418

glennmooney@energyottawa.com

Michael MORIN

District Realty

michaelmorin@districtrealty.com

613.759.8383 x 241

FINANCE

Sarah Vandenbelt, Chair

Koble Commercial Real Estate & Brokerage

613.237.0123 x 205 sarah@koble.ca

GOVERNMENT AFFAIRS

Nancy Meloshe, Chair Stantec

613.726.8028

nancy.meloshe@stantec.com

Jennifer Arbuckle Treasurer

ASHLEY HOPKINS

Wilkinson Secretary

joseph.pamic@power-tek.on.ca

Paula

QuadReal Property Group paula.partner@quadreal.com

613.690.7391

Jennifer

Skyline Commercial Management Inc.

jpatton@SkylineGRP.ca

613.249.9696

LIFE

Andy Romanowski, Chair

Romanowski Virtual Services Inc.

- Secured Worx

613.286.8228

andrew.j.romanowski@gmail.com

MARKETING

Jeffrey Supino, Chair Allen Maintenance

613.241.7794

jsupino@groupcna.com

SKI

Michael Zanon, Chair

GWL Realty Advisors

613.238.3234

michael.zanon@gwlra.com

TECHNOLOGY

Derrick Hanson, Chair

The Attain Group Inc.

613.739.9424

derrick.hanson@theattaingroup.com

WOMEN@BOMA

Sarah Oakley, Chair Parallel 45 Design Group Ltd.

613.738.7600 x112

sarah@parallel45.ca

Patton

Partner

Balance Community Lifestyle

The Right Fit

Safety in our Spaces

Transform the space of your choosing into an ambiance that encourages organizational evolution. Our tailored solutions will speak for you, promoting the internal culture you desire to achieve.

Our enhanced health & safety protocols remain our top priority and commitment to protecting the wellbeing of our tenants, customers, suppliers and individuals accessing our properties.

A community that thrives

Our Services

Beautiful Views

35 years of experience you can trust. Let our team of professionals help you create an environment that checks all the boxes and, most importantly, aligns with your corporate culture. After all, your employees are your most valuable asset!

Gain access to the biggest technological park in Canada, allowing you to connect your business to like-minded organizations and individuals, while discovering resources and opportunities to stay on top of the latest high-tech events, to thrive in this everchanging industry.

A lifestyle your organization needs

Our spaces, amenities and local attractions will provide the balanced lifestyle your employees are craving, while they sustain a healthy life-work balance.

Our Parks, bordered by exceptional green spaces, nature trails, and bike paths, offer the occasion to break away from the office and take work outdoors to one of our many wifi-supported spaces. Take advantage of our soccer fields, ice skating, golf, mini putt, volleyball, or simply take a walk and recharge while enjoying the picturesque sights. All in as little time as it takes you to exit the building.

Is it worth the commute?

By Brian Dryden

Landlords and property owners looking for a template to design the hybrid office of today will likely be sorely disappointed, experts in the field suggest.

“There is not a one-size-fits-all, there’s no real silver bullet, there’s no overall template,” argues Lisa Fulford-Roy, senior vice-president of client strategy with CBRE.

“Successful and thoughtful hybrid programs are based on what is fundamental to the business in order to achieve its goals,” she continues. “A hybrid office space needs to offer companies flexibility. The traditional office space of the past was often a lot of individual offices for managers, with desks for employees. A hybrid office needs to offer space to experiment with different configurations.”

The COVID pandemic, which required most employees to work from home, only accelerated changes in office design that were already underway, prompted and enabled by technology.

Continued on next page

Tenants are looking for hybrid office spaces that provide ‘moments that matter’

Continued from previous page

“Technology is changing how and when people work. No longer are employees sitting at desks processing paper, but instead are moving around the workplace or offsite as they collaborate with colleagues and clients,” says Michele Fischer, a senior advisor in real estate with Deloitte.

“Most employees do not want to feel tethered to their desks for eight hours per day.”

Fischer agrees that there is no one-size-fitsall template for how to create a hybrid office, which combines remote work with an in-office presence. It all depends on business goals and the expectations of what such an office can do for the company and employees, she says.

“As long as they’re being effective, many employees realize they can work from home and do their jobs and they like the flexibility that that allows,” Fischer notes, adding that employees have to be enticed to return to the office now that the pandemic is not disrupting daily life. “It’s hard putting that genie back in the bottle.”

Her recommendation is that office space use an activity-based work (ABW) model and move away from a traditional office design with dedicated work areas.

“In an ABW environment, employees choose between a variety of different workspaces,” she explains. “Employees do not have a single dedicated workstation and can work in the kind of space that best supports the type of work they are going to be doing on any given day.

“Spaces are designed to create opportunities for a variety of activities, from focused work to impromptu collaboration or more formal meetings,” she adds.

Just as many companies have been examining the pros and cons of a hybrid office, landlords have to think about how to make their properties more attractive to rent in the new reality.

Fischer, who herself works in a hybrid office, says most businesses are considering moving to a hybrid office situation, if they haven’t made the change already. She suggests companies discuss the idea with employees and use a pilot project to determine what works best.

From July 2021 through November 2021, Deloitte conducted an online assessment that garnered responses from more than 8,000 business professionals from hundreds of organizations and asked their preferences for virtual versus in-person work.

Just over 10 per cent of respondents said they want to work almost exclusively virtually,

and just under 10 per cent said almost exclusively in person. At the same time, 22 per cent said they would prefer a bit more in person time, 23 per cent preferred a bit more virtual time, and 35 per cent preferred half and half.

“Planning to make sweeping changes that will affect your organizational culture and performance for years to come could be a risk without a clear understanding if these changes are the right solutions for your organization. Piloting new spaces provides a low-risk and high-reward solution,” Fischer says.

One way to make the physical office attractive to employees, she says, is by emphasizing the social aspect and “celebrating the unplanned by fostering a sense of being together in a post-pandemic office.”

“During the lockdowns, we’ve said goodbye to casual connections or ‘collisions’ where we had impromptu conversations,” Fischer says.

“If we think about the physical space, it really has to deliver on a great experience in order to make it worth the commute, so you’re really competing with the comfort of home that has developed over the past couple of years and then also competing with whether or not it’s worth making the commute in and out of the office,” says Fulford-Roy.

“That doesn’t mean there’s necessarily pool tables everywhere and free food all day everyday, but thinking effectively about what the experience needs to be to connect back to the business priorities, objectives and culture of the organization.”

Fischer stresses the need to create spaces around what she calls “moments that matter” by using the 5Cs (collaboration, community, creativity, coaching and culture). There needs to be space for in-person collaboration and shared workspaces for “teaming,” she adds.

The goal is to provide an “environment rich with opportunities for interaction, connection and socialization,” she notes.

Fischer cautions that remote work reduces opportunities for spontaneous creativity. Equally, she says, engaged employees need strong connections and development opportunities with managers and other team members.

“The 5Cs are meant to represent the common motivations for employees to come to the office – not necessarily to work solo on a spreadsheet or spend the day on calls.

“What spaces do companies need to enable the 5Cs in the physical workplace? In blanket terms, the answer is often more open space, conference space, whiteboard, collaboration and interaction space,” Fischer says.

How the intersection of the physical and digital worlds will impact the workplace

The headquarters location likely will be less dense, with a greater emphasis on shared collaboration space rather than dedicated individual space. Activity-based workplaces will become even more in vogue. Higher-quality build-outs with the finishes, furnishings, technology and amenities that draw employees into the workplace will be more commonplace. Desk-sharing will be integral to satisfy a more mobile workforce that uses the office on a part-time basis, while promoting cost efficiency.

Conference rooms will be designed to create productive environments for in-person and remote workers to engage productively and on a level playing field. There will be techenabled rooms of all sizes with intuitive tools that allow participants to seamlessly connect and collaborate virtually and effectively. Telephone-only conferencing will no longer suffice. Providing meeting participants with the virtual technology to both see and hear each other whether in or out of the office is the way forward.

Mobile apps to connect employees with one another and to navigate the physical environment will become paramount for effective communication and company culture. These include building layouts and access, space booking, food delivery and adjacent amenities. In short, it will be necessary to offer employees the same things they have in the palm of their hands in their personal lives.

Portfolio strategies could become less centralized, providing more locations to satisfy the needs of a more mobile workforce. Creating a network of locations that are easy to access and evoke a feeling of belonging and familiarity for transient guests will be integral to future portfolio strategy. A premium value likely will be placed on flexible space options as a portion of this strategy. Pay-as-you-go “desk pass” systems may be more commonplace in the future. Source: CBRE US

Looking to lease to the federal government?

Criteria include standards around sustainability, accessibility, reconciliation

By Brian Dryden

For building managers looking to secure a federal government tenant, there are a host of criteria to consider, not the least of which involve the government’s growing desire to address issues of sustainability, accessibility and Indigenous participation.

The government’s leasing requirements have evolved and become more stringent in recent years to fall in line with government priorities, says Public Services and Procurement Canada (PSPC) senior communications officer Michele Larose.

Starting in 2021, leasing requirements changed to support the Greening Government Strategy, which specifies that all new office leases and lease renewals over 500 square metres must report building energy and water usage, greenhouse gas emissions and waste. By 2030, 75 per cent of domestic office new lease and lease renewal floor space must be in net-zero carbon, climate-resilient buildings.

According to PSPC, building managers wishing to host government offices should first consult the CanadaBuys website, the official site for doing business with the federal government and a single-stop place

to view tender opportunities for leasing space to government clients.

A building cannot be approved as eligible to host government offices before a tender has been posted, explains PSPC, the federal government’s central purchasing agent and property manager. Instead, building managers must wait for a contract to become available.

This applies even when a building has previously hosted government offices. PSPC says it does not maintain a list of buildings that are eligible to house government offices because each office space needed may have different requirements, depending on the contract.

“For each lease space acquisition, specific requirements are determined by the type of occupancy, as well as the operational requirements of the federal tenant that will occupy the space,” said Larose in an email. “Criteria are based on client needs and generally include usage of space area, geographical boundaries, floor loading capacity, start date and lease duration.”

PSPC explains that, when a competitive process for the acquisition of space is undertaken, an expression of interest is published, often in local newspapers and on CanadaBuys, in both official languages. Then, proponents deemed to be compliant are invited to present an irrevocable offer to lease to PSPC.

PSPC uses a grading system to evaluate buildings as

potential hosts for government offices.

The majority of competitive processes use a pass/fail evaluation based on qualitative requirements, PSPC explains. After that, a quantitative evaluation is performed. Complex leasing transactions may include point-rated criteria for the qualitative requirements, followed by a quantitative evaluation.

More recently, PSPC has committed to ensuring the stewardship of federal offices is in accordance with the federal government’s greening, accessibility and reconciliation objectives.

As related to Indigenous participation, the minister responsible for PSPC must work with the minister of Indigenous services and the president of the Treasury Board to create more opportunities for Indigenous businesses to succeed and grow by having at least five per cent of federal contracts be awarded to businesses managed and led by Indigenous peoples.

In addition, PSPC also looks at the building’s accessibility, sustainability and carbon emissions.

PSPC points to the Accessible Design for the Built Environment contained in the Accessible Canada Act.

PSPC also adheres to sustainable building certification requirements, including LEED, BOMA BEST and FITWEL.

LEED (Leadership in Energy and Environmental Design) is an international symbol of sustainability excellence and green building leadership. LEED’s approach helps buildings lower their carbon emissions, conserve resources and reduce operating costs by prioritizing sustainable practices.

BOMA BEST is Canada’s largest environmental assessment and certification program for commercial buildings and recognizes excellence in energy and environmental management.

FITWEL is a green building certification system that focuses on improving, enhancing and safeguarding the health and well-being of tenants in buildings.

PSPC explains that it strives to reduce the carbon footprint of its leased office space to achieve net-zero, climate-resilient leasing operations. According to PSPC, this is done by reviewing building sustainability data, legionella disease management and reporting obligations, and asbestos management.

On the road to net-zero: Developers up their game in the name of sustainability

By MIA JENSEN

As Canadian policy-makers across all levels of government search for ways to reduce greenhouse gas emissions, major developers working on projects in Ottawa are taking the lead in the building industry.

According to a recent report from the World Green Building Council, buildings are one of the most overlooked carbon emitters, accounting for nearly 40 per cent of global carbon emissions. Retrofitting existing buildings to improve their energy efficiency is a primary goal of the federal government when it comes to meeting its netzero targets.

While developers and real estate investors are well positioned to play an essential role in fighting climate change, attitudes across the industry have been slow to change, according to Jamie GrayDonald, senior vice-president of sustainability at QuadReal Property Group.

“I think most developers are still pursuing a business-as-usual approach,” he said. “Everyone, including architects (and) mechanical engineers,

are used to doing buildings a certain way. So that’s just the norm.”

As one of several global development companies working on projects in Ottawa with sustainability at the forefront, QuadReal is undertaking a major renovation of the World Exchange Plaza, its downtown office and retail complex at the corner of Metcalfe and O’Connor streets. First built in 1991, the property is one of many that will be modernized not only for functionality and aesthetic, but also for energy efficiency, said Gray-Donald.

The redesign is expected to bring the property up to LEED Platinum standard, the highest certification awarded for sustainability by the Canada Green Building Council.

“What we want to do with our buildings is try and take them to the highest standard,” he said. “This team in particular is very strong at achieving excellent results. In general, we’re strong supporters of green certification, but you can’t stop there. We think net-zero is the next level that needs to be achieved.”

By 2030, 75 per cent of buildings will be

ones that already exist today, rather than new construction. When it comes to updating existing properties to meet emissions targets, Gray-Donald said QuadReal wants to be a leader among real estate investors.

In October, the company announced its plans to decarbonize its entire portfolio by 2050. That includes a 50-per-cent carbon reduction of its Canadian portfolio by 2030 and net-zero emissions for all office buildings globally by 2040.

“We can typically get to be 30 to 40 per cent more energy efficient, but the focus is now shifting to carbon efficiency,” Gray-Donald said. “We look at the lifecycle of major pieces of equipment and buildings and understand when they would typically be replaced. How do we create a roadmap to 2040 to have these buildings be zero-carbon?”

When it comes to buildings, carbon emissions are divided into two primary categories: embodied carbon and operational carbon.

Embodied carbon is attributed to emissions that occur due to the production and transportation of materials, as well as construction, while operational carbon is emissions from everyday use, including heating and electricity.

When it comes to reducing operational carbon, sustainability-focused developers have two main priorities: higher-performing envelopes (building facades that lessen heat transfer in both directions, thereby reducing heating and cooling needs), and tapping into renewable energy sources. This is something that retrofit projects and new developments can achieve.

In Ottawa, a proposed mixed-use sustainable community in LeBreton Flats is building sustainability into its design.

Dream LeBreton is intended to be the first development built into the National Capital Commision’s LeBreton Flats Master Concept Plan. The 2.5-acre Library Parcel site will become home to two residential towers with 601 rental units. Operated in partnership with the MultiFaith Housing Initiative, 41 per cent of those units will be affordable.

The project is pursuing a number of sustainability targets, prioritizing a highperformance building envelope, solar panels and regionally sourced, sustainable materials.

While energy efficiency is a cornerstone of the development, the developers are careful to say that they’re striving for “very close to zero operation carbon” and “low-embodied carbon.”

Local architecture firm Perkins&Will is one of the leading companies for the development. According to global design principal Peter Busby, the specific language stems from the fact that it isn’t really possible to achieve zero carbon right now.

“Generally speaking, electricity across Canada has different carbon footprints,” he said. “So this is an all-electric building, but the carbon footprint

does exist. We can’t say zero.”

Achieving net-zero carbon is most difficult in provinces like Alberta and Nova Scotia, which still rely heavily on natural gas and coal to power their electrical grids. But provinces such as Manitoba and Quebec run entirely on hydro electricity, meaning their grid is carbon-free.

Ontario is somewhere in the middle. Approximately 59 per cent of electricity generation in the province is driven by uranium, 24 per cent by hydro, and seven per cent by wind.

“Depending on where you are on the grid, it’s somewhere between eight and 17 per cent fossil-fuel driven, so the carbon footprint does exist,” said Busby.

While the electricity grid is out of their control, the LeBreton project architects hold the reins on everything else.

“There are no fossil fuels being used in this building,” said Busby. “There’s no gas fireplaces, there are no gas appliances, there’s no gas boiler in the buildings; everything is electric.”

They’re also reducing embodied carbon with designs that limit carbonheavy materials like concrete and by bringing in more sustainable options like wood.

“We’ve absolutely minimized the amount of concrete that we’re using,” said Busby. “We will use low carbon concrete and we do use non-concrete finishes wherever we can. We also looked at carpet and glazing and aluminum, for example.”

When Justin Robitaille talks about the LeBreton development, he is most keen to discuss plans to implement an innovative sewer heat recovery system right into the property.

Robitaille is vice-president of development for Dream Unlimited, another of the principal companies overseeing the project.

Dream has set its sustainability ambitions high. Based on current designs, the completed buildings are set to be operationally net-zero carbon, LEED Gold certified, and One Planet Living Accredited. But the cost of reaching these targets can be high.

According to Robitaille, the twobuilding development on the 2.5 acre parcel currently has a price tag of over $300 million.

The sewer heat recovery system will be one of the major investments.

“(The system) involves tapping into the sewer line beneath the site as an energy source to provide all heating, air conditioning and domestic hot water needs for the buildings on a zero-carbon basis,” he said.

TAPPING INTO THE SEWER SYSTEM

These systems have found success in other developments across Canada. In Burnaby, B.C., Canadian-based company SHARC International Systems installed a system in several local buildings, including a 172-unit condominium complex. Depending on the size of the building, the system can cost anywhere from $200,000 to more than $1 million.

The LeBreton property will have the central plant built into the development itself. Utilizing heat recovery chillers and heat pumps connected to the city sewer system, the system will be able to produce enough energy to heat and power most of the building.

To offset the demand on the building’s heating and electrical system, designers are also looking to integrate additional sources of renewable energy, like solar.

The design integrates solar photovoltaic panels into the facade of the building. The positioning of the two buildings, offset from each other and oriented at different angles, is meant not only to maximize the view for both buildings, but also to reduce the amount of shade throughout the day to optimize sunlight-harvesting potential.

“We really tried to optimize the design for solar power generation through placing panels on juliet balconies for instance — which would minimize solar shading — and the orientation of panels to maximize solar availability.”

In the 40 years Busby at Perkins&Will has worked in Canadian architecture, high-cost investments in sustainable technology have been a tough sell. But that’s changing.

“Developers across the country now are really getting it and want to do low carbon,” Busby said. “They see climate change as a threat to their business.”

Experts forecast

‘bumpy road’ ahead for Ottawa landlords

By David Sali

Ottawa’s office vacancy rate jumped more than a full percentage point in the fourth quarter of 2022, CBRE says, and many experts predict vacancies will continue to rise in 2023 as employers reassess their need for space in an increasingly hybrid work world.

The capital’s office vacancy rate was 11.1 per cent at the end of December, the national real estate brokerage said in its latest market report.

That’s up from 10 per cent in the previous quarter and more than four percentage points higher than it was in late 2019, before the pandemic triggered a dramatic shift to remote work that hollowed out office towers across North America.

CBRE senior vice-president Louis Karam said Ottawa’s situation mirrors the rest of the country.

Canada’s overall office vacancy rate rose to 17.1 per cent at the end of 2022 after holding steady at 16.4 per cent in the two previous quarters. The only urban areas in which vacancy rates fell in the fourth quarter were Halifax, Waterloo Region and Winnipeg.

“It’s consistent with the rest of Canada,” Karam said of Ottawa’s performance. “It’s not coming as a surprise.”

The fourth quarter saw numerous big chunks of real estate returned to the market, both downtown and in the suburbs.

At 77 Metcalfe St., for example, 130,000 square feet of space became available when NAV Canada’s lease ended last fall, while 57,000 square feet was vacated on Innovation Drive in Kanata and another 40,000 square feet at 560 Rochester St. in Little Italy.

In total, nearly 380,000 square feet of space was put back on the rental block last quarter, including more than 230,000 square feet outside the downtown core. The downtown vacancy rate rose to 12.2 per cent, up from 11.5 per cent in the previous quarter, while the suburban rate increased to 10.2 per cent from 8.8 per cent.

Karam said he expects the city’s vacancy rate to tick up in the months ahead. He cited a number of factors for the continued market turbulence, including the fear that a looming recession will dampen revenue growth and business profits, widespread downsizing amid a massive market correction in the tech sector and “general

uncertainty around hybrid work patterns” that has prompted many employers to press pause on return-to-office plans.

“It’s going to continue to be a bumpy road,” Karam said, adding the federal government’s mandate requiring workers to return to the office two or three days a week that began in January could be the “light at the end of the tunnel” landlords were hoping for to help kickstart leasing activity.

Veteran broker Martin Aass, who represents tenants across the city, said Ottawa will likely continue to be a renter’s market throughout 2023.

“I think it’ll get worse before it gets better for people who own buildings,” said the managing principal at the Ottawa office of multinational real estate firm Cresa.

Aass said more and more landlords are dangling significant inducements in a bid to lure tenants who suddenly find themselves spoiled for choice in what’s traditionally been one of the country’s tightest office markets.

In addition to “goodies” like months of free rent, renovation allowances and more flexible lease terms, some property owners are now offering tenants free parking, he explained, “which is something I’ve never seen in 20 years of real estate.”

Still, Aass said he doesn’t believe the work-fromhome trend will become permanent. Even many hybrid arrangements will gradually fade away, he argued, as more businesses mandate a full-time return to the office.

“I think that the air coming out of the economy is going to make it more likely that employers kind of get what they want,” Aass said.

“I speak to enough senior leaders that say their productivity has been crushed over the last three years. They’re all saying people have got to be together. I just think in time it’ll be back to what it was before COVID. It’s a question of how long it takes.”

Shawn Hamilton, Canderel’s Ottawa-based vice-president of business development, said office tenants are trying to navigate economic headwinds at the same time they’re grappling with the changing nature of work.

“This isn’t unheard of,” Hamilton said. “It’s just a natural reaction to business pulling back a bit in the face of uncertain times.”

Montreal firm floats plan for mixed-use development in Overbrook

A Montreal company plans to build a major mixed-use development in Ottawa’s east end that would include seven highrises with about 1,700 residential units.

Group Oradev recently filed a development application that calls for the industrial building and attached three-storey office complex that currently occupy 400 Coventry Rd. to be torn down and replaced with seven mixed-use towers ranging from 18 to 30 storeys.

The development would also feature a half-acre public park as well as about 1,300 underground and surface parking spots and more than 950 spots for bicycles.

The rectangular-shaped parcel of land spans nearly five acres at the southwest corner of Belfast and Coventry roads, just north of the Queensway about 800 metres west of St. Laurent Shopping Centre and 850 metres from the Tremblay LRT stop at

Ottawa’s train station. It was previously owned by energy giant Enbridge Gas, which currently operates a distribution facility on the site.

In planning documents filed with the city, Group Oradev says the development would be separated into northern and southern blocks by a proposed public road running from east to west.

The northern block would include three highrises of 18, 20 and 25 storeys with a total of 615 residential units ranging from bachelor apartments to three-bedroom units, along with nearly 18,000 square feet of commercial space along Coventry Road. The area would also include a public park and an underground parking garage that connects the buildings.

The southern block would feature four towers – a 23-storey building on the northwest corner, two 27-storey highrises on the eastern end and a 30-storey tower

on the southwest side. All four towers, which would include a total of 1,075 residential units, would also be linked by an underground parking garage.

The application does not specify whether the units would be rentals or condominiums. Group Oradev president Simon Ethier did not immediately return requests for comment from OBJ this week.

The development application prepared by Fotenn said the proposal would “contribute to providing new housing options and price ranges in the OverbrookMcArthur neighbourhood,” adding it “will contribute to achieving residential intensification in an appropriate location at the edge of an existing community, where existing services, such as and including servicing and public transportation, already exist.”

Current zoning allows for maximum building heights of 34 to 90 metres at the site, and the developer is asking for amendments to permit taller highrises. Oradev is also requesting a reduction in required minimum front, rear, corner and interior side lines as well as reduced setback requirements and relief from stepback requirements. — By David

Sali

District Realty is pleased to announce that Ken Halef has accepted the position of vicepresident of operations & finance.

Morguard acquires stake in Slater Street office complex for $28.1M

By David Sali

Morguard has added another marquee property to its growing commercial portfolio in Ottawa, acquiring a stake in a class-A office tower on Slater Street that is best known as the local headquarters of telecommunications giant Telus.

The Mississauga-based real estate firm said it finalized a deal in late December to purchase a 50 per cent share in 215 Slater St. from TD Asset Management for $28.1 million.

Morguard will also take over property management duties at the nine-storey, 109,000-square foot building at the corner of Bank Street, which was previously managed by Montreal-based Canderel.

The transaction comes on the heels of Morguard’s $64.5-million acquisition last summer of another blue-chip property, softwaremaker Kinaxis’s new 163,000-square-foot head office on Palladium Drive in Kanata.

Morguard now owns or manages more than five million square feet of office, retail and industrial space in the National Capital Region.

Its other notable properties include Performance Court at 150 Elgin St. and the St. Laurent Shopping Centre.

The firm’s Ottawa-based assistant vicepresident of property management and office and industrial leasing, Michael Swan, cited 215 Slater’s prominent downtown location and stable, longterm tenant base as major selling points.

Calling the building a “trophy-calibre asset,” Swan noted that Morguard served as the original property manager at 215 Slater, giving the firm a level of familiarity with the site that helped cement the deal.

“Our building operators know every inch of the building,” he said. “It was something we were comfortable with.”

Telus, which has been the main tenant since the distinctive LEED-gold-certified building opened in 2007, occupies about 80 per cent of the space on a lease which has nearly seven years remaining, with multiple five-year renewal options.

Shipping company DHL and smoothie bar Juice Monkey rent commercial space on the ground floor. The top floor as well as about 2,600 square feet of ground-floor space previously occupied by Second Cup and another retailer are currently vacant.

The transaction comes at a tumultuous time for the commercial real estate industry as it grapples with rising office vacancy rates amid a widespread shift to remote work during the pandemic.

But Swan said class-A buildings remain coveted assets, noting Ottawa’s downtown vacancy rate for office space in that category was still well below 10 per cent at the end of September. He said he expects modern, energy-efficient properties like the Telus HQ will continue to be a magnet for top-flight tenants.

In addition, with few new office construction projects on the horizon, buildings like Palladium Drive and 215 Slater should retain their status as flagship properties well into the future, Swan added.

“We don’t feel there are going to be a lot of new office buildings going up, so we feel that these are good-quality investments that will be trophy assets for a long time,” he explained.

While Ottawa’s commercial real estate market has seen record transaction levels in recent years as investors sought comfort and stability in the capital’s government-based economy, some industry observers suggest rising interest rates and persistent high inflation could dampen the sector’s outlook for 2023.

But Swan said Morguard won’t hesitate to explore more opportunities in the region.

“We believe in the Ottawa market,” he said. “Interest rates and inflation have certainly had an effect on real estate, but we believe the long-term fundamentals are there.”

Jennings Real Estate buys Tudor Hall, plans to build multi-residential complex

An Ottawa real estate firm says it’s looking for a new management group to run Tudor Hall after recently acquiring the iconic south-end conference facility and the adjoining land from their original owners.

Jennings Real Estate bought the 1.66acre property just off Riverside Drive near Hunt Club Road from Franco Giammaria and his family, who opened Tudor Hall in the mid-1970s and owned and operated it ever since. Terms of the deal were not disclosed.

Jennings co-owner Ken Jennings said the 20,000-square-foot building tucked beside the Ottawa Hunt and Golf Club on North Bowesville Road will continue to serve as a venue for weddings, banquets, corporate meetings and other gatherings for the foreseeable future.

“It’s an institution,” he added. “It’s somewhere pretty well everyone in Ottawa

has been for a wedding or event or other type of celebration.”

Opened in 1975, Tudor Hall has a capacity of up to 1,000 people. The Giammaria family stopped operating the facility at the end of October and it has remained closed since.

Jennings said his firm is currently talking with several hospitality groups that are interested in leasing and operating the facility. He said the site is zoned for a range of uses, calling it “flexible space for a lot of different users and tenants” due to its variety of rooms that include 12,000 square feet of combined ballroom and meeting space that is unobstructed by posts or columns.

Currently zoning rules also permit multiresidential buildings of up to 14 storeys at the site. Jennings said the company’s long-

term plan is to redevelop the property with rental apartments or condos.

“That neighbourhood is becoming more and more central to the city as the city grows south,” he said. “That area definitely could use some (residential) density. We’re bullish on the city generally and that area in particular.”

Acquiring Tudor Hall is just the latest high-profile deal for Jennings Real Estate, which was founded in 2018 by Jennings and his brother Christian.

The firm made headlines last year when it bought the 12-storey Gillin Building at 141 Laurier Ave. W. and launched a major renovation of the art-deco-style office tower that was built in 1964 and last underwent a makeover two decades ago.

Earlier this year, Jennings Real Estate made its first acquisition outside the National Capital Region, a 12,000-squarefoot industrial complex in the Halifax suburb of Dartmouth.

The company now owns and manages nearly half a million square feet of property. Its portfolio includes several industrial properties in Nepean and Kanata as well as office buildings on Hunt Club and Walkley roads. — By David Sali

Hiring trends to watch for in Facilities and Property Management

Salary expectations: demand for talent continues to rise

As the demand for talent continues to rise, real estate management companies of all sizes must adapt their compensation packages to attract and retain top quality candidates. The 2023 Hays Salary Guide reconfirms that salary is the main motivator for employees to leave their current job and pursue new opportunities.

Recent data collected by Hays shows that the demand for facilities and property management workers has steadily increased over the last few years, with many companies reporting a shortage of qualified candidates to fill open positions.

Our results also show that candidates are expecting a salary increase ranging from 5-15% in 2023 to keep up with the cost of living. Salary expectations, flexibility and purpose are among the top requirements for job seekers in Canada.

[Figure 1.]

Culture, purpose, and values

We’ve found that people who feel their work is meaningful and aligns with their values are more likely to be satisfied long-term in their jobs. In contrast, people who are solely motivated by salary are often less satisfied with their work and

may be more likely to leave their employer for a higher-paying opportunity. However, salary isn’t everything. In fact, 27% of those who have changed roles over the last 12 months actually regret their decision. Quite simply, they find they miss their previous corporate culture. Another reason people regretted leaving their jobs, surprisingly enough, was that the job was not what they expected. We need to consider whether candidates are willing to move so quickly that they are not doing the proper research beforehand. Or, are companies taking enough time to properly qualify prospective candidates?

Are hiring managers taking enough time to fully inform candidates including discussions about venue, culture, expectations, job role etc.? Is the interview process itself appropriate to showcase the job? It’s not unusual in today’s market to see companies reaching back out to previous top-performers to attempt to re-hire them. The precursor to that, and a more effective strategy, would be to identify those top performers while they are already employees and taking appropriate steps to retain them. [Figure 2.]

It comes down to flexibility and benefits

Remote work is still a hot topic and it’s here to stay. We often see the working environment as a deciding factor when a candidate faces two competing offers. 82% of respondents want to work either fully remote or in a hybrid environment. In recent years, the trend towards remote work has become more prominent in other industries. Although the property management industry cannot always fully adapt to remote working requests, employers are forced to consider incorporating flexible working conditions when possible.

In addition to salary, comprehensive benefits are of increasing importance to job seekers. As workers seek more flexibility and work-life balance, the most requested benefit is additional vacation time rather than the standard 2-week statutory holiday. Retirement contributions and support for professional study are also highly valued.

“The job market in the facilities and property management industry is extremely favorable right now,” said Steve McVay, Senior Commercial Director at Hays, “we’re looking for candidates with a passion for this field, and a desire to use their skills to make a real impact on the buildings and properties they manage.” The job market in real estate management is looking bright for qualified individuals in the profession. If you’re interested in pursuing a career in this field, now is a great time to consider acquiring additional education, updating your skill set and networking with professionals in the industry. [Figure 3.]

About the Salary Guide

Our research is based on a survey carried out between September 22nd – October 17th 2022 from 5,495 professionals and employers across Canada. To discuss what this means for you and your business, download the guide here: hays.ca/ salary-guide and contact our Ottawa property management recruitment consultant, Georgia Wightman at Georgia.wightman@hays.com

Figure 1

Figure 2

Figure 3

Demand for industrial space ‘still huge,’ real estate leaders say

By David Sali

Ottawa’s industrial availability rate rose nearly a full percentage point in 2022 as a number of new projects boosted the city’s warehouse inventory, but rents continued their steady climb amid an ongoing wave of demand, CBRE said in January.

The capital’s industrial availability rate hit 2.6 per cent in the fourth quarter, the real estate firm said in its latest national market report, up 90 basis points from a year earlier.

While that was the biggest jump in any major Canadian city, Ottawa continued to be a red-hot market as 2022 came to a close.

Average net rents rose to $13.61 per square foot in the fourth quarter after cracking $13 for the first time in the previous three-month period, CBRE said.

The average sale price of $300.88 per square foot last quarter is also a record high, suggesting the market is showing no signs of slowing down despite nearly 300,000 square feet of new inventory coming online in 2022 and another

414,000 square feet currently under construction. While that new space will take time to absorb, longtime real estate executive Shawn Hamilton told OBJ it won’t “alter the supply-demand dynamics” of the Ottawa market.

“I would suggest the demand for industrial space is still huge,” said Hamilton, Canderel’s Ottawa-based vice-president of business development. “I don’t anticipate rental rates to come off.”

About 30 per cent of the industrial space now in the pipeline is already pre-leased, CBRE says, “with several deals expected to close in the coming weeks.”

CBRE senior vice-president Louis Karam agreed “demand is still high” for industrial and warehouse property in the National Capital Region, which has become a destination of choice for e-commerce and logistics giants like Amazon and FedEx due to its close proximity to the massive Toronto and Montreal markets.

Karam said the completion of a 131,000-square-foot building at Avenue 31’s National Capital Business Park near Hunt Club Road pushed up the availability rate in the fourth quarter because roughly half the space remains to be leased after FedEx recently occupied the rest of the site.

Still, there was net absorption of nearly 24,000 square feet in the final three months of 2022.

Industrial land has been changing hands at record prices in areas such as Barrhaven and Kanata that weren’t traditionally seen as warehouse meccas, Hamilton added, signalling the flood of new construction is likely to continue for years to come.

“People are looking at the west end with the same lens that they’re looking at the south end as well as the east end,” he said. “This opens up the city for more industrial development.”

Ottawa’s commerCIal space

DIRECTORY

Key facts, figures and contact details on office, industrial and retail space across Ottawa-Gatineau

DOWNTOWN

BYWARD

CENTRETOWN

OTTAWA EAST

OTTAWA WEST

GLOUCESTER

NEPEAN

KANATA

OUTAOUAIS

Note: listings are organized alphabetically by street name. For example, the downtown section starts with properties on Albert Street and ends with buildings on Sparks Street.

BOMA BEST® Program

BOMA BEST® is a national green building certification program launched in 2005 to address an industry need for realistic standards for energy and environmental performance of existing buildings based on accurate, independently verified information.

Commercial buildings that are BOMA BEST® certified will have a distinct advantage when it comes to attracting and retaining tenants. In most cases, it also costs less to operate and maintain the buildings due to increase in overall building efficiency.

For information regarding BOMA BEST® please contact the BOMA office at (613) 232-1875, or by e-mail at administration@bomaottawa.org.

Space Directory

BOMA Ottawa and the Ottawa Business Journal work together to publish the annual BOMA Ottawa Commercial Space Directory, considered the most definitive guide to commercial real estate in our city.

Please find the latest Commercial Space Directory or a copy of the complete edition can be secured from the BOMA Ottawa office.

Advocacy

BOMA’s many volunteers play an important role in building strong partnerships with local, provincial and federal government members and staff.

Committee members identify and act on crucial issues that will impact BOMA members, the commercial real estate industry and the business community at large. We serve as a powerful and influential voice in government affairs on legislative issues impacting the commercial building industry.

BOMA monitors and maintains open dialogue with municipal, provincial and federal governments and works to identify, promote and, when necessary, resolve issues affecting BOMA and its members.

Education

BOMA regularly publishes articles and holds seminars on issues of importance as well as identifying Best Practices created and adopted by the commercial real estate industry through the BOMA educational program. In addition to this, through private sector partnerships, we support and promote alternative courses and programs of interest to the industry in general. BOMA Ottawa is the best source of educational programming for the industry, offering a variety of timely, relevant courses and seminars. We also support the industry’s leading professional designations, RPA® and FMA®, offered by BOMI through classes and study groups.

The commercial real estate industry is vital as both the physical and economic foundation of Ottawa’s economy. As the voice of this industry, BOMA Ottawa is the recognized advocate of building owners and managers in supporting their goals as professional and socially responsible businesses. These goals are achieved through Education, Standards, Networking and Advocacy.

NATIONAL GREEN BUILDING CERTIFICATION PROGRAM

BOMA BEST® demonstrates tangible environmental leadership. It is our hope that BOMA BEST® will not only promote increased environmental consciousness in the industry, but will also lead to healthier workplaces and sustainable building development and best management practices.

For information regarding BOMA BEST® please contact the BOMA office at (613) 232-1875, or by e-mail at administration@bomaottawa.org.

The voice of the Commercial Real Estate Industry

BOMA Ottawa would like to thank CB Richard Ellis for providing and compiling all the data that make up the Industrial listings.

Survey Criteria

Buildings included in the BOMA Ottawa Industrial Space Directory met each of the following criteria:

• Located within the municpal boundaries of the City of Ottawa

• Comprise a total building area of approximately 30,000 square feet or more, of which more than 50% is designed for industrial usage

• Privately owned with industrial premises currently leased or available for lease

The information contained herein is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed by BOMA Ottawa which neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information.

KANATA, WEST CARLETON, GOULBOURN 1

BELLS CORNERS, MORRISON, QUEENSVIEW, WOODWARD, CARLING 2

OTTAWA CENTRE 3

EAST-WEST MERIVALE, COLONNADE, RIDEAU HEIGHTS 4

SOUTH WALKLEY, OTTAWA BUSINESS PARK, OTTAWA SOUTH, STEVENAGE-BELGREEN, SOUTH GLOUCESTER 5

COVENTRY, BELFAST, CYRVILLE, SHEFFIELD, SHEFFIELD (LANCASTER)

QUEENSWAY CAMPUS, ORLEANS 7

BARRHAVEN TOWN CENTRE

3777 Strandherd Dr. Nepean, ON K2J 4B1

CHAPMAN MILLS MARKETPLACE

50 Marketplace Ave. Ottawa, ON K2J 5G3

CITY WALK CENTRUM Kanata

Avenue and Earl Grey Drive Kanata, ON

COLLEGE SQUARE

1371 Woodroffe Ave. Nepean, ON K2G 1V7

Denise Kirk, Centrecorp Management 905-477-9200

Lidgeia Blackburn, RioCan Management Inc. 416-866-3033 x23006

Joanne Vacheresse, PenEquity Realty Corp., 416-408-3080 X 2251

Dimitri Tsigos, First Capital

Your Independent Grocer; Shoppers Drug Mart; McDonald’s; BMO; CIBC; Dollarama; Swiss Chalet; Home Depot

Walmart; Staples; Winners; Indigo; LCBO; Kelseys; Reitmans; Loblaws

Landmark Cinemas; Best Buy; PetSmart; Golf Town; Sportchek; Baton Rouge; Moxie’s; Milestones; Pro Hockey Life; Jack Astor’s; Crazy Horse; CIBC

Women@BOMA Program

BOMA OTTAWA

Do you wish you had more time to get to know your exceptional female colleagues in the real estate industry? Are you interested in helping to build a stronger women’s network to enhance the already strong relationships in BOMA Ottawa? If so, this program could be for you.

It is often asked what is the importance of continuing professional development and why does it matter?

When you have finished your degree, completed practical experience requirements and started your career, it’s fair to say the first part of your mission is well and truly accomplished. Sit back and give yourself a pat on the back. But don’t take too long doing it or you’ll be lagging behind your colleagues. The same is true for professionals with many years experience in the workplace.

Continuing professional development is important because it ensures you continue to be competent in your profession. It is an ongoing process and continues throughout a professional’s career.

The ultimate outcome of well planned continuing professional development is that it safeguards the public, the employer, the professional and the professional’s career.

BOMA will be identifying resources, courses and organizing events to assist you in our own professional development.

COMMITTEE GOALS AND OBJECTIVES

• Provide a community of shared ideas to professional women within BOMA Ottawa.

• Support women in commercial real estate industry (both Corporate and Allied Members)

• Provide an opportunity to allow women to collectively contribute through events, social media, and newsletters with the goal of ultimately assisting members with further career development.

• Participate and contribute within an event supporting BOMA’s charity of choice.

• Facilitate an introduction to BOMA Ottawa for new members who may be seeking a peer-to-peer experience within our organization.

• Provide a new opportunity to enrich the value of BOMA Ottawa membership.

Professional Development is critical to anyone in the workforce.