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VOL. 31 NO. 1 • MARCH 2016
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editor’snote DEFERRED MAINTENANCE might support a balanced budget, but it's a tangible liability. In a building, it undermines asset performance and value, and can compromise occupants' productivity. When occurring in water and wastewater systems, transportation networks, electricity grids and/or key institutions like schools and hospitals, deferred maintenance threatens public security and the underpinnings of the economy. Spending pledges in the recently unveiled 2016 Canadian budget could be conceptualized as taking on a known and manageable deficit in the place of a more odious, lurking one. Because – as engineers, asset managers and insurers will attest – when it comes to municipal infrastructure, there really are monsters under the bed. The federal government's new infrastructure plan might just as accurately be called the deferred maintenance budget. Much of the nearly $12-billion outlay has been allotted to municipalities with an emphasis on water and wastewater ($5 billion) and public transit ($3.4 billion) along with a range of other needs that local governments fulfil for their constituents such as flood protection, affordable housing, cultural and recreational facilities. As Toronto's arguably most beloved former mayor – David Crombie, of course – has observed, the sudden disappearance of upper levels of government wouldn't immediately register with a lot of people. Federal and provincial responsibilities are surely critical to how Canadians live and prosper, but we don't need trade deals or consumer regulations to flush the toilet. Whereas, municipal infrastructure is the essence of civilization. Similarly, the real estate industry's interests tend to be most aligned with local government. Providers of built space inherently want the surrounding environment to be robust. For example, federal infrastructure spending earmarked to support municipalities' climate change adaptation strategies complements work the Building Owners and Managers Association (BOMA) of Toronto has been leading to promote preparedness for increasingly frequent and volatile episodes of extreme weather. Adherents of the notion that government should operate like a business sometimes conveniently overlook the fact that governments are obliged provide services that few profit-oriented companies would ever try to take to the market. Applying a business analogy, however, successful managers recognize the importance of reinvesting in company development and growth even if that diminishes profit margins in the short term. Deferred maintenance is ultimately no benefit for shareholders or taxpayers. Fittingly with a discussion of well-managed companies, this issue features the 21st annual Who's Who in Canadian Real Estate survey. Thank you to Jovel Fernandes and Daniel Ross for collecting and coordinating this year's results.
Barbara Carss barbc@mediaedge.ca @BarbaraCarss
VOL. 31 NO. 1
MARCH 2016
Editor-in-Chief
Barbara Carss barbc@mediaedge.ca
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TEL: (416) 512-8186 • FAX: (416) 512-8344 Published and printed eight times yearly as follows: Feb./ Mar., April, May, June/July, Sept., Oct., Nov., Dec/Jan. by MediaEdge Communications Inc. 5255 Yonge St., Suite 1000, Toronto, Ontario M2N 6P4 (416) 512-8186 Fax: (416) 512-8344 e-mail: circulation@mediaedge.ca Subscription Rates: Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $12* Outside Canada: US 1 year, $85 International $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca. Copyright 2016 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 0834-3357 Authors: Canadian Property Management Magazine accepts unsolicited query letters and article suggestions. Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor. Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Property Management makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada
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contents
Focus: Real Estate News & Trends 6
Real Estate Markets Diverge: 2015 results from REALpac/IPD Canada Property Index show a significant slump in investment returns in Calgary and Edmonton versus gains elsewhere.
11 Who's Who in Canadian Real Estate: The 21st annual survey of office, industrial, retail and multi-residential portfolios. 28 Sustainable Investment: Leading international real estate organizations develop guidance for integrating climate risk awareness into ESG frameworks and decision making strategies. 36 Career Prospects: Property and facilities employers in many Canadian centres report they're anticipating business growth in the coming year, and many expect to hire more staff. 40 Leasing Decision Drivers: Property managers reflect on tenants' expectations and wish lists.
Articles: 25 Memories of a Mentor: Lauchie MacLeod's four decades in commercial real estate. 32 Parking Management: Smart technology and urban planning trends make private off-street parking a potentially lucrative asset. 44 Greener Cleaning Options: Engineered water systems lose weight, gain wider adoption.
Departments 3
4 March 2016 | Canadian Property Management
Editor’s note
THIS MONTH’S ONLINE EXCLUSIVES ALL THE BUZZ
Push for gender equality in CRE industry The struggle for gender equality in the Canadian workplace is a matter of continuing priority as recent studies reveal a lack of women in corporate leadership roles. Prime Minister Trudeau touched upon this issue at a United Nations women’s conference last week.
Accommodating accessibility requests in condos New condominium corporations are almost always equipped with adequate accessibility. However, some older condominiums were built before accessibility was a legislative or societal imperative.
Pacific NorthWest LNG closer to final decision Pacific NorthWest LNG is one of 20 proposed LNG projects in B.C. which will see a $36 billion LNG export facility built on Lelu Island in the District of Port Edward.
How our culture on shaping tech company workplace design trends.
FROM THE GREEN BIN
Green construction and retrofits are on the upswing.
EXPERT ADVICE
A guide to rolling out the latest generation of integrated workplace management systems.
CONNECT WITH US ON:
www.REMInetwork.com
investment
CROSS-CANADA MA Mild Symptoms of a Waning Cycle
Institutional Investors Appraise 2015 Returns on Real Estate By Barbara Carss
6 March 2016 | Canadian Property Management
SUPPOSITION ABOUT 2016 figured prominently in an analysis of 2015 investment returns when real estate professionals gathered in Toronto earlier this winter for the release of annual results from the REALpac/ IPD Canada Quarterly Property Index. While still digesting the news of an improvement over 2014 – for a total return of 8% on the 42 index participants' directly held standing assets – industry insiders participating in an associated panel discussion reiterated that many others are watching Canada's low dollar and resourcerelated vulnerabilities with growing interest. "Rumours are accelerating that foreign money is going to come in and swoop up one of our top REITs," reported Derek Warren, Assistant Vice President with Lincluden Investment Management. "Calgary is the place where people are starting to hover for the opportunities," added Mark Rose, Chairman and CEO of Avison Young.
"We're seeing a lot of U.S. investors coming here looking. I think we're going to start seeing a lot of trades," concurred Ted Willcocks, Global Head of Asset Management, Real Estate, with Manulife Financial. Still respectable performance as Canada moves along the down slope of its real estate cycle could also factor into the allure, reinforcing an international reputation as a politically stable environment with growing urban centres and presumed inevitable resources booms to offset the occasional bust. "It's probably safe to say these numbers will surprise on the upside," said Simon Fairchild, Executive Director with the index producer, MSCI Inc., as he unveiled the 2015 results at the event sponsored by the Real P roper ty Association of Canada (REALpac). "So far, at least, it seems like the market has avoided sharp corrections we've seen in
investment
ARKET DIVERGENCE the 1990s and following the financial crisis in 2008."
HUGE DIFFERENCES IN CAPITAL GROWTH PATTERNS
CALGARY SLIDES, TORONTO SURGES 2015 COMPONENTS OF TOTAL RETURN IN CANADA Nevertheless, last year's seeming stable BY PROPERTY SECTOR AND GEOGRAPHIC SEGMENT performance across the total index of 2,440 CAPITAL GROWTH (%) properties valued at nearly $136 billion nationwide hides fairly dramatic divergence 2.8 ALL PROPERTY among the 11 surveyed markets. Perhaps most All Retails 4.0 All Residential 3.4 notably, returns in Calgary plunged to 0.9% as All Offices 1.8 the fallout from sustained low oil and gas prices All Industrials 0.0 walloped the Alberta economy. In contrast, Toronto 7.4 Vancouver 7.4 properties in Toronto, Vancouver, Regina, Regina 5.5 Victoria, Ottawa/Gatineau and Montreal Victoria 4.0 Winnipeg 3.0 delivered improved returns, with Toronto Ottawa/Hull 1.4 Montreal 1.0 posting a chart-topping total return of 12.8%. Rest of Canada -1.3 "We are seeing a pulling apart of the market," Edmonton -2.5 Calgary -4.1 Fairchild reflected. "Looking at individual Halifax -6.8 Source: MSCI portfolios, some will outperform and some will underperform based on location." The gradient among property types is not so Source: MSCI steep, but there has also been a reordering of status. Industrial was the top performing sector
INCOME RETURN (%) 5.1 4.7 4.4 5.6 6.0 5.0 4.8 5.5 5.4 5.2 5.1 5.0 5.2 5.9 5.2 5.1
Canadian Property Management | March 2016 7
17
investment of 2014 with a total return of 8.7%, but that dropped to 6% in 2015 to trail retail, residential and office. Meanwhile, retail's leading 8.8% performance, which might seem counterintuitive in a year of chain closures and surging e-commerce competition, is attributed to the weighting of super-regional malls in the index. "You have to think about the quality of the assets that are showing that return," observed Sharm Powell, a Director with the Ca nad a Pension Pla n I nvest ment
Board (CPPIB) and one of the four panellists sharing their on-the-spot reaction to the 2015 index results. Others suggest that's something of a defining trend for the year. "Anything that was deemed 'quality' or 'core' did actually have pretty good returns," Warren said. "But there is still such a spread between Cs and As." CAPITAL GROWTH AND INCOME YIELDS Index-wide capital growth at 2.8% was
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stronger than 1.9% recorded in the previous year, while capital growth for retail properties measured what Fairchild typified as a "robust" 4%. Regionally, Toronto and Vancouver saw capital growth of 7.4%, while Halifax, Calgary, Edmonton and the eponymous Rest of Canada representing an amalgam of secondary markets all tumbled into negatives. In drawing out the five key messages from the 2015 results, Fairchild acknowledged that he had simply copied one from last year's presentation: "income yields continue to fall into historically low territory, although premium over government bonds remains." This is expressed in a fractional overall slippage in income return from 5.2% in 2014 to 5.1% in 2015. Across the entire index, office properties held steady with an income return of 5.6%, while retail, residential and industrial experienced a slight decline. Victoria, Ottawa/Gatineau and Edmonton were the only markets to see gains, with Edmonton emerging with the highest income return of 5.9%. Vancouver bottomed out the list at 4.8%. Index participants' 2015 investment returns on directly held real estate outshone 9% losses on equities, 0.5% losses on REITs and a 3.1% return on bonds – a pattern of performance against bonds and equities that largely holds ups for the long term with 10-year returns of 10.3% versus 10-year returns of 5.8% on bonds and 4% on equities. Although Fairchild sees something of a new order in the drop of income return from 8% in 2005 — "It just shows very clearly we're in a different world than 10 years ago," he said — the property yield to bond yield spread remains consistently favourable to the index. In contrast, listed real estate has been much more volatile with a three-year return of 17.4 per cent to put against last year's dip, smoothing out to a 10-year return of 8.3%. "REIT investors are real estate investors on Ritalin," Warren quipped, while maintaining this illustrates the pluses of institutional investors' disciplined, long-term approach. PORTFOLIO ADDITIONS Plotting Canada among global markets, its performance fell to the middle of the pack in 2015 well behind Ireland, the United Kingdom and the United States, while outperforming 12 European Union nations, China, Taiwan and Hong Kong. "So, a below par year. It's underperforming maybe globally, but certainly outperforming
14-02-19 3:41 PM
RELATIVE TO OTHER ASSET CLASSES… …NOT A BAD YEAR FOR PRIVATE REAL ESTATE EQUTIES BONDS RE - LISTED RE - ASSET LEVEL RE - FUND LEVEL
CANADA MULTI-ASSET CLASS PERFORMANCE ANNUALIZED RESULTS AS OF DECEMER 31, 2015
1 YEAR
3 YEARS
% pa
15 8.0
10 3.1
5 0
5.6
13.4 11.110.3
8.7 7.2
5.3 5.0
2.3
4.9
4.0
5.8
8.3
10.3 9.2
-0.5
-5
RE (fund)
RE (asset)
Bonds
RE (listed)
Equities
RE (fund)
RE (asset)
Bonds
RE (listed)
Equities
RE (fund)
RE (asset)
Bonds
RE (listed)
Equities
RE (fund)
RE (asset)
Bonds
RE (listed)
-9.0 Equities
-15
10 YEARS
17.4
20
-10
5 YEARS
COLUMN > RESTORATION SPONSORED BY
Note: Results shown here for direct real estate and fund-level real estate are based on separate quarterly samples Sources: JP Morgan (bonds); MSCI (equities, property equities, direct real estate, and fund-level real estate)
11
…BUT IN HISTORICAL CONTEXT, IT WAS A SLOW YEAR TOTAL RETURN HISTORY FOR CANADA ANNUALIZED STANDING INVESTMENTS CAPITAL GROWTH INCOME RETURN TOTAL RETURN ANNUALIZED TOTAL RETURN (15 YEARS)
% pa 25 20
18.5
16.8
15.4 11.2
10 3.8
5
14.2 11.0
10.1 7.2
10.3
10.7
8.0
-0.4
0
-5.5-6.4
-5
4 YEARS 10 YEARS 15 YEARS
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Russell, MSCI
other asset classes," Fairchild mused. "This is still an asset class that institutional investors want to be in and want to add to their portfolios." The U.K. and U.S. ascendance is also good news for Canadians in general since Powell noted the largest portion of CPPIB's $40-billion real estate holdings is in those countries. Within Canada's borders, though, the fund remains open to arising opportunities. "We like retail. We like office in the major markets. We like Toronto. We like Vancouver," she affirmed. Si m i l a r l y, W i l l c o c k s r e p o r t s Manulife is considering the domestic field, while also actively acquiring in the U.S. "We want to see what Q1 looks like in '16," he said.
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18.7
15 11.5
Lessons we have learned
12
For his part, Rose speculated "2016 could very well look exactly like this. With zero to negative interest rates and the greatest flow of capital in the history of the world, this could continue. The question to ask is: do you have your plan for when something is going to change?" While 2011's 21.6% total return may now just be nostalgia in Calgary, he maintains today's scenario is also quite different from the collapse in the 1980s. "We're smarter, we're better capitalized and people are holding on longer," Rose said. "Strong hands in Calgary are going to be fine. Weak hands are going to drop out." zz
The preceding article is reprinted from the REMI network. See www.REMInetwork.com.
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WHO’S WHO 2016
BUILDING PROVIDED BY
45 BALLIOL STREET TORONTO, ON
PRESENTED BY:
TOP
TEN
MANAGED IN CANADIAN REAL ESTATE
MILLIONS OF SQ. FT.
RETAIL MANAGE ONLY
MILLIONS OF SQ. FT.
Brookfield Global Integrated Solutions
100.995
SNC-Lavalin Operations & Maintenance Inc.
30.000
SNC-Lavalin Operations & Maintenance Inc.
49.500
Bentall Kennedy (Canada) Limited Partnership
CBRE Limited
36.756
GWL Realty Advisors
29.185
Bentall Kennedy (Canada) Limited Partnership
26.879
Colliers International
15.460
Triovest Realty Advisors
OFFICE MANAGE ONLY
APARTMENT MANAGE ONLY
MILLIONS OF SQ. FT.
MetCap Living Management Inc.
18.569
The DMS Group
15.406
17.152
Greenwin Inc.
11.884
20 Vic Management Inc.
17.086
10.663
Brookfield Global Integrated Solutions
Gateway Property Management Corporation
16.321
10.435
Colliers International
9.393
Briarlane Property Management Inc.
Société de Gestion Cogir
6.178
14.540
Morguard
6.130
Oxford Properties Group
6.837
Morguard
5.970
Avison Young Real Estate Management
5.425
Canderel/Humford
5.736
Oxford Properties Group
5.187
Triovest Realty Advisors
INDUSTRIAL MANAGE ONLY
MILLIONS OF SQ. FT.
Bentall Kennedy (Canada) Limited Partnership
GWL Realty Advisors
9.487
CLV Group
8.842
Sterling Karamar Property Management
8.100
Société de Gestion Cogir
6.402
3.963
Shelter Canadian Properties Limited
5.364
OTHER MANAGE ONLY
MILLIONS OF SQ. FT.
CONDO MANAGE ONLY
MILLIONS OF SQ. FT.
39.416
Brookfield Global Integrated Solutions
25.634
First Service Residential Management Canada
107.670
CBRE Limited
22.729
CBRE Limited
23.647
Triovest Realty Advisors
17.155
72.924
17.134
11.900
Brookfield Condominium Services Ltd.
GWL Realty Advisors
SNC-Lavalin Operations & Maintenance Inc.
Del Property Management Inc.
67.522
Colliers International
10.774
Regional Group of Companies Inc., The
7.500
Wilson Blanchard Management Inc.
37.741
SNC-Lavalin Operations & Maintenance Inc.
9.000
Société de Gestion Cogir
5.822
Rancho Management Services
28.542
Blackwood Partners Corporation
8.524
Shelter Canadian Properties Limited
3.797
Pacific Quorum Properties Inc.
21.367
Colliers International
1.867
ICC Property Management Ltd.
18.911
The DMS Group
1.402
AWM-Alliance Real Estate Group Ltd.
18.073
Canderel/Humford
1.094
Harvard Property Management Inc.
17.381
0.685
Gateway Property Management Corporation Percel Inc.
9.800
Realspace Management Group Inc.
8.214
Avison Young Real Estate Management
4.325
EPIC Realty Partners
4.265
#
36
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12 March 2016 | Canadian Property Management
#
135
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TOP
TEN
OWNED & MANAGED IN CANADIAN REAL ESTATE
OFFICE OWN & MANAGE
MILLIONS OF SQ. FT.
RETAIL OWN & MANAGE
MILLIONS OF SQ. FT.
Dream Office REIT
23.000
Brookfield Office Properties
21.100
Choice Properties Real Estate Investment Trust
35.414
Cominar REIT
14.592
SmartREIT
29.030
First Capital Realty
23.600
Cadillac Fairview Corporation Ltd. Ivanhoe Cambridge
APARTMENT OWN & MANAGE
MILLIONS OF SQ. FT.
CAPREIT
37.059
Boardwalk Rental Communities
29.000
Realstar Management
26.100
Homestead Land Holidays Ltd.
22.508
17.163
Northview Apartment REIT
21.782
14.544
Starlight Investments Ltd.
21.300
Cominar REIT
12.845
16.735
H&R REIT
11.383
Timbercreek Asset Management
Westcliff Management
9.385
Skyline Apartment REIT
13.896
Morguard
9.214
Killam Apartment REIT
12.303
Oxford Properties Group
7.996
Minto Properties Inc.
12.115
MILLIONS INDUSTRIAL OWN & MANAGE OF SQ. FT.
OTHER OWN & MANAGE
MILLIONS OF SQ. FT.
Cominar REIT
CAPREIT
28.278
Manulife Real Estate
14.200
Cadillac Fairview Corporation Ltd.
14.003
Oxford Properties Group
12.567
Manulife Real Estate
12.140
H&R REIT
11.502
Allied Properties REIT
10.766
Morguard
7.686
Ivanhoe Cambridge
6.971
17.884
Pure Industrial Real Estate Trust
17.445
Dream Industrial REIT
17.000
Choice Properties Real Estate Investment Trust
5.514
Morguard
13.938
Realstar Management
5.500
Oxford Properties Group
11.659
CREIT Management LP
9.886
NorthWest Healthcare Properties
4.600
Beedie Development Group
9.081
H&R REIT
8.598
Prologis
7.960
Davpart Inc.
5.370
#
27
145 COSBURN AVENUE TORONTO, ON M4J 2L2
14 March 2016 | Canadian Property Management
Kevric Real Estate Corporation
1.948
Dorset Realty Group
0.950
Westcorp
0.945
Melchior Management
0.442
Northview Apartment REIT
0.343
Q. A.
what are the market strengths of the apartment sector?
Over the past 20 years the Canadian apartment sector has consistently delivered returns which have outperformed other real estate investment classes and the publicly traded real estate sector.
David Chalmers, Vice President, Asset Management www.starlightinvest.com
#
107
1800 AVENUE MCGILL COLLEGE MONTRÉAL, QC H3A 3J6
TOP
TEN OFFICE OWN ONLY
MILLIONS OF SQ. FT.
Healthcare of Ontario Pension Plan Inc. (HOOPP)
9.350
Manulife Real Estate
6.200
I.G. Investment Management, Ltd.
4.627
Fiera Properties
OWNED IN CANADIAN REAL ESTATE
RETAIL OWN ONLY
MILLIONS OF SQ. FT.
APARTMENT OWN ONLY
MILLIONS OF SQ. FT.
Crombie REIT
16.677
Ivanhoe Cambridge
23.164
Healthcare of Ontario Pension Plan Inc. (HOOPP)
8.000
InterRent REIT
7.502
One REIT
6.356
G3 Property Solutions Inc.
1.305
I.G. Investment Management, Ltd.
4.360
1.298
1.682
Lanesborough Real Estate Investment Trust
Melcor REIT
1.613
Ivanhoe Cambridge
2.753
Kroma Management Ltd.
0.822
Ivanhoe Cambridge
1.538
Partners REIT
2.516
Oxford Properties Group
0.752
Crombie REIT
0.989
Manulife Real Estate
2.450
I.G. Investment Management, Ltd.
0.561
iA Groupe Financier
0.612
CREIT Management LP
2.153
Concert Properties Ltd.
0.472
SmartREIT
2.025
Centurion Apartment REIT
0.306
Fiera Properties
1.054
Fiera Properties
0.263
OTHER OWN ONLY
MILLIONS OF SQ. FT.
Manulife Real Estate
19.410
Oxford Properties Group
3.273
Ivanhoe Cambridge
3.202 3.165
Cadillac Fairview Corporation Ltd.
0.395
Gitalis Group Inc.
0.240
INDUSTRIAL OWN ONLY
MILLIONS OF SQ. FT.
Healthcare of Ontario Pension Plan Inc. (HOOPP)
11.850
Manulife Real Estate
10.760
I.G. Investment Management, Ltd.
9.029
Temple Hotels Inc.
Davpart Inc.
5.318
Morguard
0.581
IAM Real Estate
4.650
PRO REIT
0.225
Fiera Properties
4.271
Cadillac Fairview Corporation Ltd.
0.188
Melcor REIT
0.108
Lanesborough Real Estate Investment Trust
0.106
Shelter Canadian Properties Limited
0.035
Concert Properties Ltd.
1.237
Ivanhoe Cambridge
1.069
PRO REIT
0.766
Melcor REIT
0.231
#
11
LE MILLE NEUF MONTREAL QC
16 March 2016 | Canadian Property Management
Q. A.
How can owners/managers inspire sustainable practices among their tenants? Communication is the key driver in the tenant/landlord relationship, and it fosters and sustains lasting relationships. The landlord needs to be able to be available 24/7 — in the medium that the tenant chooses — and provide responses in an acceptable turnaround. Happy tenants inspire a healthy environment. Shane Haskell CEO & President www.lionheartpm.ca
#
93
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CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2016 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)
Brookfield Global Integrated Solutions
OWN
INDUSTRIAL BOTH
MANAGE
OWN
RETAIL BOTH
142.950 100.995
MANAGE
OWN
APARTMENT BOTH
MANAGE
OWN
CONDO BOTH
MANAGE
16.321
OTHER MANAGE
107.670
SNC-Lavalin Operations & Maintenance Inc.
100.400 49.500
9.000
30.000
Bentall Kennedy (Canada) Limited Partnership
86.989 26.879
39.416
17.152
3.542
CBRE Limited
85.522
22.729
0.911
1.479
Brookfield Condominium Services Ltd.
72.924
Manulife Real Estate
68.060
Del Property Management Inc.
67.522
36.756
0.420
23.647
6.200
12.140
10.760
1.170
2.450
0.290
0.600
0.420 67.522
66.801 58.923
29.185
Oxford Properties Group
54.313
6.837
Ivanhoe Cambridge
53.984
0.414
Morguard
52.594
5.97
0.619
0.844 17.134
3.116
12.567 1.538
6.971 7.686
1.069 0.817
5.187
0.151
0.177
13.938
6.13
28.278
2.753
7.996
0.752
14.544
23.164
9.214
3.273 3.202
6.482
45.710 0.045
Colliers International
41.866
15.460
10.774
9.393
1.874
2.497
1.867
Wilson Blanchard Management Inc.
40.115
1.268
0.645
0.355
0.100
37.741
0.006
Triovest Realty Advisors
36.212
14.540
17.155
3.963
0.554
Rancho Management Services
35.176
1.213
2.059
3.295
Cadillac Fairview Corporation Ltd.
32.650
31.483
Healthcare of Ontario Pension Plan Inc. (HOOPP)
29.200
Boardwalk Rental Communities
29.000
Gateway Property Management Corporation
28.984
Starlight Investments Ltd.
23.631
First Capital Realty
23.600
Northview Apartment REIT
0.395
0.336
0.148
0.64
11.502
0.049
0.196
0.127
23.000
23.000
Homestead Land Holidays Ltd.
22.508
Pacific Quorum Properties Inc.
21.965
CREIT Management LP
21.951
Société de Gestion Cogir The DMS Group
29.030
10.663
21.782
0.014 0.019
2.932
2.153
0.584
21.367
0.879
18.073 0.441
6.961
0.418
0.279
6.178
6.402
19.155
0.417
1.256
0.674
15.406
18.743 18.569
Minto Properties Inc.
17.865
Crombie REIT
17.666
Pure Industrial Real Estate Trust
17.445
18 March 2016 | Canadian Property Management
3.276
9.886
19.573
Canderel/Humford
0.343
22.508
0.893
MetCap Living Management Inc.
17.381
23.600
0.377
18.911
5.500
21.300
0.497
18.785
0.179
0.035
17.086
ICC Property Management Ltd.
28.542 0.188
0.760
I.G. Investment Management, Ltd.
0.067
5.514
29.000 0.390
Dream Office REIT
20.719
2.025
0.079
8.000
0.259
AWM-Alliance Real Estate Group Ltd.
17.163
0.389 0.001
11.383
11.850
0.885
21.122
0.901
8.598
9.350
23.268
21.100
35.414
26.100
0.091
Brookfield Office Properties
2.861
14.003
2.205
20 Vic Management Inc.
12.845
0.581
45.008
0.609
17.884
1.78
6.043
Choice Properties Real Estate Investment Trust
H&R REIT
14.592
11.659
37.059 9.487
Cominar REIT
31.695
14.200
11.900
72.924
GWL Realty Advisors
31.600
19.410
107.670
CAPREIT
SmartREIT
BOTH
25.634
First Service Residential Management Canada
Realstar Management
OWN
21.100
5.822
0.033
1.402 18.911
5.736
4.627
0.209
0.084
3.793
9.029 3.867
4.360 0.306
3.459
0.561 0.322
1.094 18.569
0.913
1.298
0.481
0.989
16.677 17.445
3.058
12.115
0.082
CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2016 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)
Dream Industrial REIT
17.000
Shelter Canadian Properties Limited
17.143
OWN
INDUSTRIAL BOTH
MANAGE
OWN
RETAIL BOTH
MANAGE
OWN
0.356
0.011
0.074
0.889
0.020
0.101
0.205
16.818
Greenwin Inc.
16.006
0.245
Avison Young Real Estate Management
15.075
4.725
Dorset Realty Group
15.047
0.665
0.127
1.515
14.337
0.440
14.064
1.573
ComField Management Services Inc.
12.330
0.080
Briarlane Property Management Inc.
12.323
0.371
Killam Apartment REIT
12.303
Sterling Karamar Property Management
12.242
Westcliff Management
11.618
5.318
1.751
0.802
0.715
10.435
0.447
1.361
2.106
1.550 0.206
0.295
10.760
1.372
8.524
0.864
Regional Group of Companies Inc., The
10.310
0.500
0.200
0.500
2.083
1.237
1.191
8.214
0.807
4.265
10.211
Drewlo Holdings Inc.
9.589
Beedie Development Group
9.261
0.005
9.081 1.448
9.034
0.050
9.022
0.180
Berkley Property Management Inc.
8.550
Prologis
7.960
NewWest Enterprise Property Group Inc.
7.676
6.258
7.101
0.950
6.000
0.228 0.153
0.052
0.472
2.601
1.250
0.360
7.500
0.109
0.021
0.044
0.048
7.489 8.842
0.750
0.400
3.543
2.039
0.250
5.100
0.250
1.800
7.960 1.995
0.099 7.502
1.682
4.271
0.051
1.054
0.080
0.263 0.050
0.515
0.050
6.457
7.109 1.901
0.06
0.796
0.110
1.316
2.205 6.356
0.016
0.077
GPM Property Management Inc.
6.179
iA Groupe Financier
6.142
0.881
Downing Street Property Management Inc.
6.071
0.748
Shindico Realty
6.029
0.793
LaSalle Investment Management
5.986
1.247
0.685
0.594 0.134
6.508
0.300
5.958
0.356
0.183
4.363
0.114
0.212
0.005 0.612
6.174 4.015
0.206 2.224
0.101
5.931
SDM Realty Advisors Ltd.
5.533
2.000
Kevric Real Estate Corporation
5.481
0.068
Colonnade BridgePort
5.427
2.700
0.478 2.388
5.352
2.911
0.738
0.475
3.132
Northam Realty Advisors
20 March 2016 | Canadian Property Management
3.300
9.589
Park Property Management Inc.
6.226
0.091
9.800
CLV Group
Globe General Agencies
0.035
1.32
9.800
M&R Holdings
3.797
9.385
4.597
Realspace Management Group Inc.
6.658
4.684
10.766
Percel Inc.
6.950
0.200
8.100
0.235
Blackwood Partners Corporation
Mainstreet Equity Corp.
BOTH
12.303
5.226
One REIT
OWN
1.778
5.250
10.811
7.074
11.884
1.000
EPIC Realty Partners
Harvard Property Management Inc.
MANAGE
0.600
5.370
0.600
7.109
MANAGE
13.896 0.052
11.249
7.203
0.348
3.415
10.826
Plaza Retail REIT
BOTH
5.425
Concert Properties Ltd.
Canlight Hall Management Inc.
5.364
0.933
Allied Properties REIT
7.270
OWN
OTHER
16.735 0.109
4.325
Skyline Apartment REIT
7.502
MANAGE
0.083
Davpart Inc.
InterRent REIT
BOTH
CONDO
17.000
Timbercreek Asset Management
Fiera Properties
APARTMENT
0.104 0.151
0.521
3.074
0.085
0.308
0.464
0.000 1.605 0.356
0.605 0.010
0.136
0.158
0.115
2.600
0.850
0.464
0.050
1.600
1.000
0.083 0.041
1.948 0.089
0.038
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CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2016 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)
360 Community Management Ltd.
OWN
INDUSTRIAL BOTH
MANAGE
OWN
RETAIL BOTH
MANAGE
OWN
APARTMENT BOTH
MANAGE
OWN
CONDO BOTH
5.394
BTB Real Estate Investment Trust
5.138
Crown Property Management Inc.
5.100
Agellan Capital Partners
5.000
IAM Real Estate Group
4.987
Skyline Commercial REIT
4.895
Warrington PCI Management
4.886
Firm Capital Properties Inc
4.862
MANAGE
2.104 2.470
1.982
2.000
3.000 4.650
0.337 4.895
1.463
0.515
1.672
0.687
0.330
1.540
0.905
0.231
2.234
0.55
1.000
0.965
0.758
3.608
0.202
CitiGroup Properties Limited
4.675
0.312
0.029
0.319
0.825
2.617
Devon Properties Ltd.
4.638
0.143
0.129
3.901
0.466
Hollyburn Properties Ltd.
4.628
NorthWest Healthcare Properties
4.600
Centurion Apartment REIT
4.556 4.372
0.193 0.825
3.400
1.623
0.213
Dayhu Investments Ltd.
3.788 3.692
Westcorp
3.460
Canadian Urban Ltd.
3.440
Shape Property Management Corp.
3.380
Melcor Developments Ltd.
3.267
IMMOMARKETING INC.
3.264
Bosa Development Corporation
3.202
Temple Hotels Inc.
3.165
3.111
1.613
0.231
Melchior Management
2.535
0.185
0.104
0.175
0.067
1.052
0.003
0.090
0.760
0.739
0.195
0.504
0.945
0.108 3.100
0.072
0.534
0.064
0.021
0.193
0.977
1.931 3.000
0.231
0.255
1.052
0.317
0.392
0.259
0.108
0.017
0.111
1.305
0.228
0.432
0.923
0.138
0.142
0.350
0.161
0.105
0.983
0.431
0.009
0.543
1.292
0.442
2.516 2.167
0.294 2.450
0.011
0.067
0.502
1.279
0.409
Arnon Corp.
2.410
G3 Property Solutions Inc.
2.362
Greenrock Property Management Ltd.
2.161
0.300
State Building Group
2.100
0.100
O'Shanter Development Company Ltd.
2.025
22 March 2016 | Canadian Property Management
1.971
2.800
0.734
2.450
0.177
2.074
1.613
0.055
2.444
0.062
3.165
2.781
Brown Group of Companies Inc.
3.501
0.457
0.401
2.648
Skywater Property Management
3.455
3.38
Gulf Pacific Property Management Ltd.
2.516
0.047
0.041 2.197
Lawrence Construction/Grant Management
2.461
0.206
1.065
0.296
0.154
Partners REIT
0.136
3.523
0.787
0.070
McCor Management (East) Inc.
1.357
0.284
3.147
3.005
0.797
0.088 0.268
3.070
2.800
3.767
1.069
0.224
Kelson Group Melcor REIT
0.306
0.700
Old Oak Properties Inc.
KRP Properties
0.572
4.600
4.225
Prospero International Realty Inc.
0.120
0.132
0.483
Redbourne Properties
4.039
1.750
4.628
Canreal Management Corporation
Pinedale Properties Ltd.
0.375
0.171
4.760
4.155
BOTH
1.051
4.700
4.126
OWN
2.630
Martello Trusted Real Estate Advisors
Menkes Property Management Services Ltd.
MANAGE
5.394
Landmark Properties Inc.
Bayshore Property Management
OTHER
0.020
0.052
0.397 1.305
0.03
1.057 1.831
1.000
1.000 0.405
0.266
1.620
0.007
CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2016 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)
OWN
INDUSTRIAL BOTH
MANAGE
OWN
0.464
RETAIL BOTH
MANAGE
Ronmor Holdings Inc.
1.923
WJ Properties
1.921
Tillyard Management Inc.
1.831
0.726
1.010
0.095
Atlantis Realty Services, Inc.
1.806
0.136
1.408
0.228
Canpro Investments
1.730
0.770
Madison Properties Inc.
1.705 1.667 1.623
0.019 0.300
1.550 1.534
Axwood Enterprises
1.529
Skyline Retail REIT
1.513
IMP Group International
1.462
Lanesborough Real Estate Investment Trust
1.404
Huntington Properties Ltd.
1.394
BUSAC Real Estate
1.359
Antrev Management & Consulting, Inc.
1.278
Sabjoy Inc.
1.200
1.000
Merkburn Holding Limited
0.919
0.066
Tower Building Management
0.909
0.354
Twin City Management Ltd.
0.903
Armadale Property Management
0.834
Kroma Management Ltd.
0.822
Condominium Living Management
0.819
0.637
0.113
0.45
0.700
0.285
0.669 0.054
0.424
1.124
0.283
0.790
0.080
0.311
0.213
0.106 0.419
0.137
0.196 0.021
0.007 1.200
Rathcliffe Properties
Gistex
0.443
BOTH
0.225 0.095
1.163 0.589
1.010
0.645
0.523
1.298
1.063
0.660
0.304
0.105
Concorde Group Corp.
Equity Hill Properties Group
0.013
OWN
1.513
Preston Group
Aldgate Group
1.819
MANAGE
0.215
0.651
0.056
1.161
0.675
MANAGE
0.034
0.147 0.100
0.019
1.105
0.663
BOTH
0.455
0.766 1.248
0.215
York Heritage Properties
Gillin Engineering & Construction Ltd
OWN
OTHER
1.152
0.450
0.154
Lionheart Property Management Inc.
Shepherd Village Inc.
MANAGE
CONDO
0.745 0.800
PRO REIT
Richmond Property Group Ltd.
0.307
BOTH
0.089
Metcalfe Realty Company Limited
Bluestone Properties Inc.
OWN
APARTMENT
0.337 0.250
0.100
0.824
0.756 1.063 0.100
0.540
0.370
0.300 0.238
0.097
0.100
0.498
0.200
0.600 0.019
0.355
0.050 0.077
0.183
0.159
0.853 0.327
0.024
0.064 0.822 0.819 0.210
0.647 0.195
0.430
0.079
0.332
0.035 0.051
0.080 0.210
0.134
0.017
0.013 0.170
Taft Management Inc.
0.608
Fana Group of Companies
0.600
0.018
Glenview Management Ltd.
0.583
0.226
0.208
0.051
0.042
0.014
Fyrst Avenue Property Management Inc.
0.575
0.300
0.065
0.110
0.030
0.035
0.501 0.387
0.134
0.246
0.600
Plaza Cote des Neiges
0.543
Northland Properties
0.496
0.113
Apollo Property Management Limited
0.451
Lloyd Zerker Realty Ltd.
0.440
0.013
Loncom Property Management
0.438
0.055
Allstate Insurance Company of Canada
0.400
0.400
Gitalis Group Inc.
0.376
0.018
0.024 0.035
0.430 0.496
0.16
0.253
0.038
0.225
0.202 0.250
0.240
0.036
0.040
0.018
0.075
0.100
Canadian Property Management | March 2016 23
CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2016 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)
The Vancor Group Inc.
0.371
Gold Castle Holdings Ltd.
0.352
Summa Property Management
0.345
Edie & Associates
0.344
OWN
INDUSTRIAL BOTH
MANAGE
OWN
RETAIL BOTH
MANAGE
OWN
APARTMENT BOTH
MANAGE
OWN
0.039 0.300
CONDO BOTH
0.033 0.201
0.332
0.178
0.134
0.143
0.287
Bedford Properties & Estates Ltd.
0.284
Goodwood Property Investment Ltd.
0.284
0.004
Chester Developments Ltd.
0.279
0.040
0.239
CIVDEV INC.
0.277
0.035
0.200
0.287 0.284 0.010
0.270
0.042
Mutual Developemnt Corp
0.275
RW Commercial Property Management Inc.
0.250
Southwest Properties
0.239
0.038
Nelson Education Ltd.
0.233
0.233
17A Properties
0.191
0.191
Marklyn Management
0.113
0.058
Leimerk Developments Ltd.
0.109
Sluis Properties
0.090
Oak Bridge Properties Inc.
0.064
Provincial Property Management Limited
0.027
Parkhurst Asset Corp.
0.013
0.005
0.090
0.180
0.250 0.201
0.056
0.109 0.090 0.014
0.050 0.006
0.020 0.013
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industryleadership
A MAN OF REAL PRESENCE
Lauchie MacLeod's Peers Salute an Outstanding Career By Barbara Carss IN A 40 + -YEAR CAREER i n com mercia l rea l estate, Lauch ie MacLeod mastered and applied a wide range of skills in property management, building operations, service deployment and talent grooming – all the while sharing his expertise and enthusiasm with clients, co-workers and industry contemporaries. His death in early January saddened many who have benefited from his guidance and friendship, while leaving them impressed with his fortitude in facing the serious health challenges that forced him to step away from the work he relished. "Lauchie's love of the industry was second only to his love of his family," observes Peter Riggin, President of NorthWest Healthcare Properties REIT's Canadian division, Lauchie's final employer, where he served as Regional General Manager, Ontario, from 2006 onward. "He just loved the industry – the people in it, the professionalism, the mentoring and all the innovation and advancements that we're seeing in areas like technology and energy efficiency." These days, a look at baby boomers' employment history invariably leads to
a conversation about the extraordinary wo r k p l a c e a n d l a b o u r m a r k e t transformations they have encountered. Operationally, manual and paperbased processes have given way to automated IT-driven environments and ensuing expectations for response at any time from anywhere, while, on the business front, almost every industry sector exhibits a long trail of company launches, demises, mergers and/or brea k-ups. Lauch ie's ca reer path exemplifies this reality. HANDS-ON KNOW-HOW Hearkening back to 1973, some of his former employers are now consigned to real estate history, but long-time peers and friends confirm he learned at each step, synthesized the knowledge and carried it forward. Ross McKerron, a colleague at Lauchie's first jobsite, the 827,000-square-foot Canada Square office complex in midtown Toronto, outlines the hands-on training that provided a grounding in basic building functions and services. "He was exposed to most of the aspects of building operations, working for stints in
the power house with the stationary engineers, working with the construction group – plumbers, electricians and carpenters – and dealing with general building maintenance and housekeeping issues," McKerron recounts. "He often referred to this time as the golden age of property managers," notes Greg Chapman, Business Development Manager with Impark, who worked closely with Lauchie in the early 2000s. "This was management by walking around the shop floor. Lauchie knew this has now fallen out of favour, but he also understood how important it really is." In addition to senior positions with commercial real estate companies, he also filled out a noteworthy resumé with executive roles in key support industries: parking and telecommunications. That multi-disciplinary know-how later bolstered NorthWest Healthcare Properties' expansion plans, as the REIT acquired older facilities with on-site parking and what Riggin characterizes as "often unique" existing building systems. "We needed someone with Lauchie's depth of experience and knowledge," he says. "We also gained another asset, Canadian Property Management | March 2016 25
industryleadership
“Lauchie rarely answered operational questions directly, but, as a manager, made staff think through the problem, come up with solutions then implement them.” which was his strength in recruitment, particularly in hiring talented young people with potential." A GIVING, YET DISCERNING MENTOR A striking figure at 6' 4" with eyecatching white hair and a laugh that reverberated throughout the office, he's remembered for sporting a kilt of MacLeod tartan on Robbie Burns Day and for a personable manner that could turn imposing when warranted. While typically managing with warmth and generosityIndigo_CPM_March_2016_FINAL.pdf of spirit, those who worked1 with and for him were always aware of standards that must be met.
26 March 2016 | Canadian Property Management
"He challenged the people around him to become better managers," reflects Peter Willmott, Director of Operations at the MaRS Discovery District, who served with Lauchie on the board of directors of the Building Owners and Managers Association (BOMA) of Toronto. "Lauchie rarely answered operational questions directly, but, as a manager, made staff think through the problem, come up with solutions then implement them." A longstanding member and past president BOMA Toronto, he was 2016-03-21 of 2:39 PM actively involved in organizing BOMEX – the annual national gathering of BOMA
local chapters from across Canada – when it occurred in Toronto in 1991 and 2000. Many BOMA members also enjoyed his camaraderie on the golf course. "Lauchie was present to witness my only ever hole-in-one during a BOMA convention in Tennessee, and he was as genuinely excited as I was," recalls Kevin Brown, P resident of Media Edge Communications and a fellow BOMA and BOMEX organizing committee member. "Over the years, we had many golf outings as well as more serious meetings. He was always engaged and engaging, fun, honest and giving. We will miss him greatly." That's a sentiment especially noticeable in the corporate offices of NorthWest Healthcare Properties REIT. "One of the things that really struck me when he was battling the illness was that so many young people, whom he had hired and managed and mentored, were just so emotionally invested," Riggin says. zz Donations in Lauchie's honour can be made to the Gerry and Nancy Pender Brain Trust (http://thepmcf.ca) or the Dorothy Ley Hospice (www.dlhospice.org).
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A ROADMAP FROM PARIS Climate Action Via Real Estate Investment CLIMATE RISK AWARENESS is essential to future-proof the value of real estate, the developers of a new guidance document for integrating mitigation and adaptation considerations into investment decisions maintain. Sustainable Real Estate Investment, Implementing the Paris Climate Agreement: An Action Framework – a collaborative project of the United Nations Envi ron ment Program Finance Initiative (UNEP FI) and five industry advocacy bodies representing institutional investors, fund ma nagers, proper t y compa ny professionals and affiliated consultants and service providers worldwide – is an effort to translate big-picture goals and targets into tangible measures. "It is a user-friendly map of tools and guidance that can support us with the a c t u a l i mple m e nt a t io n of E SG (environmental, social and governance) and climate risk strategies. They also make it easier to value sustainable buildings and, ultimately, enhance market transformation as well as de-risk investments," explains Martin Brühl, President of the Royal Institution of Chartered Surveyors (RICS). "Increasingly, global investors are now aligning their investments to sustainable investments," concurs Michael Brooks, Chief Executive Officer of the Real Property Association of Canada (REALpac), who advised the
framework developers on the Canadian commercial real estate perspective. "This framework will be a very valuable tool for those global investors to pick the best advisors, with the best governance framework and the best assets. It will enable these investors to choose the best de-risked, future-proofed assets." Last December's COP 21, Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in Paris, saw participating national g ove r n m e n t s b r o a d ly r e a f f i r m commitments to curb the rising global temperature, but the emitters they govern will ultimately carry out the mandate. Investment buildings currently account for about 30% of global greenhouse gas (GHG) emissions annually, positioning the commercial real estate industry as a significant player in the so-called non-state actor zone for climate change (NAZCA). This growing list of private sector ventures, local and state/provincial governments and non-governmental organizations (NGOs) have made commitments of their own to support the official nationally determined contributions (NDCs) in the jurisdictions where they operate. Notably, the Global Alliance for Buildings and Construction, which was launched at COP 21, promotes energyefficient construction and retrofits and sustainable practices throughout the entire building life cycle, including the construction
supply chain, to achieve emissions reductions and climate change resiliency. "Public private collaboration will be essential to finance a low-carbon economy, including the buildings sector. This new framework will allow real estate investors to play their role in making this transition happen," maintains Eric Usher, acting head of UNEP FI. Advocates for sustainable real estate investment argue the Paris Agreement creates a fiduciary duty to manage climaterelated risks through business practices and decision-making processes. However, they also highlight the business rationale that should make the duty less burdensome. "In real estate, the value proposition has been proven through numerous research publications, expert practices and practical case studies. More efficient and green proper ties can reduce operating expenses, support efforts to achieve top-of-market rents, reduce vacancy and void periods, lower risk of mortgage default and meet the increasing need of occupiers who are using their offices to make their employees more engaged, healthier and productive," the guidance document states. The action framework sets out five key steps for ensuring that occurs – strategy; execution; alignment; feedback; and market engagement – each with a checklist of must-do and further suggested measures. Three separate frameworks tailored to Canadian Property Management | March 2016 29
Sustainable Real Estate Investment investment
STEPS
$ Strategy: Develop ESG & climate Strategy
Real Estate Investors
Owners & Advisers
Direct Investor
Owners & Advisers
Equity Bonds Debt
Direct investors
Alignment: Advisers and consultants selection process
Feedback loop: Monitoring & Reporting
Include ESG in investment calculations, due diligence with targets for green certification & benchmarking.
Equity/REITs: Select managers with proven active investment approaches; Be active in engagement & proxy voting.
ESG in selection requirements: Require proven knowledge of sustainability; set clear and prescriptive ESG expectations.
Monitor delivery of ESG and climate strategies and targets, focusing on impact to value using Sustainability Management Systems.
Develop ESG and climate strategy based on materiality and value assessment.
Active ownership: Prefer investment managers with proven active management approaches.
Active Management: Clear set of ESG, community and climate targets and minimum requirements for green developments.
Bonds: Require green property bonds to be certified by recognised standards and information on assets' sustainability performance.
Include ESG and climate expectations and targets in legal contracts for investment mandates & service agreements.
Report performance to clients and the public, on agreed frequency, using recognised industry standards.
Set ESG and Climate targets at all levels of the investment process and across the supply chain.
Active engagement & proxy voting: Require equity and REIT investors to use shareholder power.
Supply Chain: Work with occupiers to address split incentives and include ESG in sub-contractors agreements.
Debt: Integrate ESG in due diligence at transaction, valuation assessment and include in loan documentation.
Incentivise and reward contractors based on delivering sustainability goals.
Contribute to sustainability benchmarking at portfolio and operational levels and assess performance results.
Source: Sustainable Real Estate Investment Action Framework ‘Investing in a time of climate change’ Mercer 2015
Equity, Bonds, Debt
All
G
Execution: Integrate ESG & climate in Investment Strategy
Passive mandates: Base selection on sustainability benchmarks and green property ratings.
Assess material risks and opportunities that impact value.
MUST DO ACTIONS
W
Audiences
Implementing the Paris Climate Agreement: An Action Framework
‘The-21st-centuryinvestor-ceresblueprint-forsustainable-investing’ Ceres 2013
Market Engagement
Engage on public policy with sector organisations to ensure regulation matches with market needs.
Support research initiatives to understand risks and integrate ESG.
Strategy
Asset Owners & Their Advisors
ICGN model mandate initiative ICGN 2012
Strategy Develop a material ESG and climate strategy ‘Developing an asset owner climate change strategy’, PRI 2015
‘G4 Sustainability Reporting Guidelines: Construction and Real Estate Sector Disclosures’ GRI 2015, Global.
Em of t benefi
Offe alignm ch for
Asset Owners & Their Advisors
‘Advancing Responsible Business in Land, Construction and Real Estate Use and Investment’, RICS / UN Global Compact, 2015
Exp ass
‘PRI Policy Frameworks for Long-Term Responsible Investment: The Case for Investor Engagement in Public Policy’, PRI 2015, Global
RECOMMENDED RESOURCES
Develop a material ESG and climate strategy differing real estate pursuits and financial regulations sur rounding ‘Aligning Managing and monitoring of asset expectations: ‘Trustee’s Guide: ‘PRI reporting ‘Advancing Responsible guidance for asset Protecting value in real framework – Asset ‘Climate Change investment approaches are in climate change risk disclosure, and owners managers’ sustainability performance Business included in Land, ‘Developing an asset on incorporating estate through Owners, Direct, Construction and Real Investment Solutions Key elements owner climate change ESG factors into manager better climate risk Equity and Debt Estate Use and Guide’, IIGCC 2015 strategy’,All PRI 2015 are intended the guide. to RICS "help real rating has become simpler and selection, appointment management’ methodologies by mainstream investments’, PRI, more transparent Investment’, / UN and monitoring’ , PRI 201 Key elements IIGCC 2014 Global Compact, 2015 Pro Preparing and drafting an ESG and climate risk and opportunity policy Stakeholders shouldGlobal also decide which targets are appropriate for estate investment stakeholders identify groups such as and Bloomberg, Moody’s with uptake a and large strategy which focuses on material risksand and opportunities will the theiremergence investment strategies, and and which will be madeof public, which fordem Preparing and drafting an ESG and climate opportunity policy Stakeholders should also 'Global Real risk and ‘Assessing climate ‘Trustee’s Guide: enable asset‘The-21st-centuryowners to understand the evidence and decide what remain private. It is understandable that not all may be appropriate for ‘Sustainability metrics:er Estate change risks and as well as ESG groups such as key drivers and overcome the nu mb of ongloba lhelpandastakeholders nd reg iona l strategies,fra MSCI, Protecting value in real most and strategy which focuses material risks opportunities theirand investment investor-ceres-approach for them to manage these is the most appropriate risks. guide will set will reasonable translation andItimpactthe public domain. The ‘Climate Change Sustainability opportunities for estate through p enable assetachievable owners togoals, understand thebeevidence blueprint-foron property investment Benchmark' enables asset owners, trustees and their advisers to better identify which can stretchedand overdecide time. what remain private. It is understan Investment Solutions investors - Property and better climate risk common barriers for action". benchmarks reporting Sustainalytics, Oekom, sustainable- Trucost, and andsustainability management’ is the most appropriate approach for 2015 them to manageand these risks. It the public domain. The guide GRESB Construction Sector’ management’ Guide’, IIGCC 2015 and manageinvesting’, those risks and opportunities in a way that is consistent Ceres 2013 UNEPenables FI et al 2014 (annually) IGCC 2013 IIGCC 2014 asset owners, trustees and their advisers to better identify achievable goals, which can b with their fiduciary duty to exercise due care, skill and diligence in the When a strategy is in place, such targets may be more uniquely Intensifying regulation, new requirements others. guidelines. and managetailored those risks andstakeholder. opportunities in a way is consistent pursuit of the best interests of fund beneficiaries . to the However, thethat action of setting targets can with their fiduciary duty to exercise due care, skill and diligence in the When a strategy is in place ‘Greening the engaged in this process should factor inaexisting and Real likely stand on its own. important isshould to define whatintegrate the targets are, Green Property 'Sector ledMost operational attached‘The-21st-centuryto gaining access'Investing to through capital and estate investors Keythe energy elementsStakeholders of this process include ‘Unlocking pursuit best of fund beneficiaries . tailored to the stakeholder. H building Bonds Standards, changes in the regulatory environment over the investment horizon,of thewho isinterests responsible benchmarkfor andmeasuring indexes for them, how they will be measured, efficiency retrofit investor-ceresan adaptation lens' Stakeholders in thisInvestors, process factor in existing likely stand on its own. Most impo supply chain’ investment opportunity’ Climate Bonds Direct Realbe Estate financial regulations surrounding climate change risk disclosure, and and atengaged what frequency they should will reported on, andand what the incentives growingblueprint-formarket expectations ESG climate risk management review and understanding of the ESG IGCC 2015 related to UNEP SBCI changes in the regulatory environment over the investment horizon, who isorresponsible for meas UNEP FI 2014 sustainable-investing’ Initiative 2015 Companies and theirare Advisers rating methodologies by mainstream groups such as Bloomberg, or expected consequences if the targets are met, exceeded, Ceres 2013 2014, Global regulations surrounding climate change risk disclosure, and financial at what frequency they will Moody’s, and MSCI, as well as ESG groups such as Sustainalytics, missed. ESG are among the drivers, as is real estate's and climate risks requirements into their supply chains in consequences a and opportunities, the rating methodologies by mainstream groups such as Bloomberg, or expected Oekom, Trucost, and others. Moody’s, and MSCI, as well as ESG groups such as Sustainalytics, missed. 'Global Realareas Estate vulnerability to extreme weather and all where investment managers development and selection of dedicated ‘Sustainability and 'Green bond 'Investing through Oekom, Trucost, and others. Sustainability commercial property Key elementsguidance of thisfor process include a review and understanding of adaptation lens', Benchmark' valuation - Professional Dis estate sector' ensuinganIGCC demands from insurers. Meanwhile, have control and influence. To do this, and climate risk policies andthe development relevant ESGreal and climate risks and opportunities, 2015 Asset Owners & Their Advisors ESG Guidance Note, Global’, GRESB Key2015 elements of this process include a review and understanding of into and selectionGRESB of dedicated ESG and climate risks policies and strategies RICS 2013 (annually), Global and climate risks and opportunities, the development relevant the scale of required retrofitsStrategy presents a strategies together they need to ensure that their proper with the determination and the determination of which measurements are appropriate for ESG helps and selection of dedicated ESG and climate risks policies and strategies target setting. ma 6 and the determination ofhave which measurements are appropriate for significant investment opportunity with and setting of targets responsibility and that are actionable employees target setting. Develop a material ESG and climate strategy documented paybacks. empowerment to drive compliance with and transparent. Nevertheless, framework developers these procedures. suggest that a surfeit of unconnected Execution Key elements information may be immobilizing some Investors should integrate Alignment Preparing and drafting an ESG and climate risk and opportunity policy Stakeholders should also decide $ which targets are appropriate for and strategy which focuses on material risks opportunities willfactors their investment public, and which proponents. The action framework offers ESG andand climate in strategies, and which will be made T he mater ial ESG a nd $ enable asset owners to understand the evidence and decide what remain private. It is understandable that not all may be appropriate for is the most appropriate approach for them to manage these risks. Strategy: It the thei public domain. The guide will help stakeholders setAlignment: reasonable and Execution: direction. each element of r climate risk components Feedback loop: Integrate & Market enables asset owners, trustees and their advisers to better identify goals, which can be ESG stretched over time. Advisers and Developachievable ESG & consultants Alignment: climate in Execution: engagement & climate Strategy: and manage those risks and opportunities in a way that is consistent investment, asset management identified in theMonitoring first reporting Feedback selectionESG Advisers and investment Integrate ESG & two strategy Develop with their fiduciary duty to exercise due care, skill and diligence in the When a strategy is in place, such targets may be more uniquely Monitor process consultants strategy climate in & climate reporti pursuit of the best interests ofand fund beneficiaries . tailored to the stakeholder. However, the actionsteps of setting targets can to be integrated selection investment KEY ELEMENTS operational processes. need in strategy process strategy Stakeholders engaged in this process should factor in existing and likely stand on its own. Most important is to define what the targets are, in the regulatory over theprocesses investment horizon, who is responsible for measuring them, how they measured, T he followi ng excer pt changes f rom the environment These cover thewill beselection of contracted financial regulations surrounding climate change risk disclosure, and at what frequency they will be reported on, and what the incentives governance, strategyor expected and consequences targets, parties. Key elements of this Sustainable Real Estate Investment rating methodologies by mainstream groups such as Bloomberg, are ifrisk the targets are met, exceeded, or Develop ESG and Set ESG and Climate Assess material risks and Moody’s, and MSCI, as well as ESG groups such as Sustainalytics, missed. climate strategy based targets at all levels of the opportunitiesmanagement that and process comprise theESG selection process, guidance document outlines the Oekom,five Trucost,key and others. assessment, active Develop and Set ESG and Climate on materiality and value Assess material risks and investment process and impact value. climate strategy based targets at all levels of the assessment. opportunities that chain. ESG and climate portfolio across the supply monitoring, comparability having clear steps as they apply to direct Keyreal estate on materiality and value elements of this process refurbishment, include a review and understanding of investment process and impact value. assessment. risks and opportunities, the development across the supply chain. and reporting across expectations, setting clear targets based i nve st m e nt m a n a ge r s, relevant p selection r oESG p eofandrdedicated tclimate y ESG and and climate risks policies and strategiesthe portfolio, extending and the determination of which measurements are appropriate for throughout the industry to stakeholder and o n a b s o l u t e p e r fo r m a n c e and compa n ies a nd thei r rea l estate target setting. sector engagement. performance against benchmarks to be consultants: Beyond the investment manager’s own included in the service agreement with Strategy portfolio, it supports improvements in reference to economic incentives, Stakeholders engaged in transparency and comparability across rewards and penalties as appropriate. this process should factor in markets, enabling asset owners to better While rewarding property managers $ existing and likely changes engage with investment managers on the for hitting sustainability targets is Alignment: Execution: Strategy: Integrate in the regulatory im pl eESGm& e n t a t ioAdvisers n andof r e s pFeedback o n sloop: ib l e currently the exception rather than the Market Develop ESG Monitoring & consultants climate in engagement & climate reporting selection investment strategy envi ron ment over t he investments and for investment managers norm, it is one that could be among the process strategy i nvest ment hor i zon, to gain market visibility for their efforts. most impactful. At a mi nimum, Assess material risks and 30 March 2016 | Canadian Property Management opportunities that impact value.
Develop ESG and climate strategy based on materiality and value 16 assessment.
Set ESG and Climate targets at all levels of the investment process and across the supply chain.
16
ments
and drafting an ESG and climate risk and opportunity policy Stakeholders should also decide which targets are appropriate for egy which focuses on material risks and opportunities will their investment strategies, and which will be made public, and which set owners to understand the evidence and decide what remain private. It is understandable that not all may be appropriate for st appropriate approach for them to manage these risks. It the public domain. The guide will help stakeholders set reasonable and sset owners, trustees and their advisers to better identify achievable goals, which can be stretched over time. age those risks and opportunities in a way that is consistent fiduciary duty to exercise due care, skill and diligence in the When a strategy is in place, such targets may be more uniquely the best interests of fund beneficiaries . tailored to the stakeholder. However, the action of setting targets can ers engaged in this process should factor in existing and likely stand on its own. Most important is to define what the targets are, n the regulatory environment over the investment horizon, who is responsible for measuring them, how they will be measured, regulations surrounding climate change risk disclosure, and at what frequency they will be reported on, and what the incentives ethodologies by mainstream groups such as Bloomberg, or expected consequences are if the targets are met, exceeded, or and MSCI, as well as ESG groups such as Sustainalytics, missed. rucost, and others. Asset Owners & Their Advisors
investment managers could notify their factors and offer decision makers with Strategy property managers that a minimum level relevant information. Monitoring should of expertise, service sustainability also involve feedback about the progress Developand a material ESG and climate strategy performance is required in order to keep of the various strands of activity outlined or win their business. and agreed in the Strategy Review for Key elements direct investors, property companies and Preparing and drafting an ESG and climate risk and opportunity policy consultants Stakeholders should also decide which important targets are appropriate to for Feedback Loop their It is and strategy which focuses on material risks and opportunities will their investment strategies, and which will be made public, and which enable asset owners to understand the evidence and decide what remain private. It is understandable that not all may be appropriate for A l l st a kehold e r s h ave demonstrate how the property portfolio’s is the most appropriate approach for them to manage these risks. It the public domain. The guide will help stakeholders set reasonable and $ asset owners, trustees and their advisers to better identify achievable goals, which can be stretched over time. changed responsibility inenables monitoring sustainability performance has and manage those risks and opportunities in a way that is consistent progress against goals and over previous months and years, and to with their fiduciary duty to exercise due care, skill and diligence in the When a strategy is in place, such targets may be more uniquely Alignment: Execution: Feedback loop: . pursuit of theand best interests of fund beneficiaries Advisers Integrate ESG & Market tailored to the stakeholder. However, the action of setting targets can Monitoring & in existingbe consultants targets are set – as per able to present such changes on a likeclimate which in engagement Stakeholders engaged in this process should factor and likely stand on its own. Most important is to define what the targets are, reporting selection investment in the regulatory environment over the investment horizon, who is responsible for measuring them, how they will be measured, process Stepstrategy 1 & 2 – tochanges demonstrate for-like basis, financial regulations surrounding climate change risk disclosure, and at what frequencynormalized they will be reported on, for and whatweather the incentives rating methodologies by mainstream groups such as Bloomberg, or expected consequences are if the targets are met, exceeded, or that ESG and climate and occupancy (or instead of occupancy Moody’s, andchange MSCI, as well as ESG groups such as Sustainalytics, missed. Oekom, Trucost, and others. risks and opportunities are being some other measure of intensity). Develop ESG and ESG and of Climate Key Set elements this process include a review and understanding of managed and acted upon to the best ofthe development Additionally, controlling for boundaries climate strategy based targets at all levels of the relevant ESG and climate risks and opportunities, on materiality and value process and ESG and climate risks policies and strategies and investment selection of dedicated theassessment. ability of alland those involved. andfor being consistent in measuring across the supply chain.of which measurements are appropriate the determination setting. The regular target observation, evaluation, withi n these bounda r ies is ver y benchmarking and recording of ESG important. and climate risk management activities should take place routinely within a pre- Market Engagement agreed monitoring and repor ting Over 1,400 finance sector $ institutions managing over schedule with the appointed manager US$59 and advisers. Reports should be practical Alignment: trillion of assets Execution: Strategy: Feedback loop: Advisers and Integrate ESG & Market Develop ESG Monitoring & consultants climate in subscribe to the United a nd or iented towa i ng engagement & climaterds deliver reporting selection investment strategy strategyrisk N a process tions supported performance on ESG and climate
ents of this process include a review and understanding of ESG and climate risks and opportunities, the development tion of dedicated ESG and climate risks policies and strategies determination of which measurements are appropriate for tting.
ategy: lop ESG limate ategy
material risks and unities that value.
investment
Assess material risks and opportunities that impact value.
Develop ESG and climate strategy based on materiality and value assessment.
Principles for Responsible Investment and it is likely that the level of engagement b et we en busi ness a nd publ ic policymakers will increase, especially as more and more real estate investors integrate ESG and climate risks into their business practices, and regulations on these matters become more developed. Real estate investors should consider taking an active role in public policy and sector engagement to promote acceptance and implementation of ESG and climate risk measures across the real estate industry. This ensures sector-wide tools a re developed enabli ng i ndust r y comparison and better monitoring of the sector’s and portfolio’s performance. zz The complete text of Sustainable Real Estate Investment, Implementing the Paris Climate Agreement: An Action Framework can be found at www.unepfi. org/fileadmin/documents/ SustainableRealEstateInvestment.pdf
Set ESG and Climate targets at all levels of the investment process and across the supply chain.
16
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operations
LOTS OF POTENTIAL Cities Increasingly Putting Limits on Free On-Street Parking
By Louis Jacob, Daniel Germain, Erick Lord and Danielle Desjardins FREE ON-STREET PARKING is a recognized factor in traffic congestion, with estimates that space-hunting drivers can account for as much as 50% of traffic volume in the downtown cores of large cities. In turn, ancillary parking lots are assets with potential as local authorities reconsider how to allocate the valuable public space that on-street parking occupies and address the environmental fallout of congestion. Policies to limit free on-street parking depend on private sector alternatives, while parking lot owners can improve profitability through sound management and technology that supports optimal operations. Control equipment and data management are key elements. CONTROL EQUIPMENT Gateless parking with a pay-on-foot machine works on the honour system: users pay for a set time, in advance, based on how long they expect to stay. This type of operation is generally suitable for small parking lots or long-term parking. Among the advantages, it requires very low upfront investment, entails modest maintenance costs and needs few or no staff to ensure problem-free entry and exits and collect payment. 32 March 2016 | Canadian Property Management
However, non-payment is a persistent problem. Parkers staying beyond their purchased time period currently account for losses equivalent to about 30% of total revenues. Adva ncements in automatic license plate reader (ALPR) technology should help to address this issue and ensure more turnover of spaces, but the technology can still be compromised by bad weather and, for now, needs further refinement. Gated parking with a cashier offers the advantage of the human factor. It enables personalized customer service – cashiers can quickly intervene to solve problems and their steady presence increases security and customers' confidence of security. The disadvantages of this approach can also be attributed to the human factor. Staff costs more than machines, can be harder to manage (discipline, grievances, workplace accidents, etc.) a nd necessit ate administration and costs (payroll, vacations, absences, etc.). Plus, of course, the human factor increases the potential for fraud. Parking with gates and an automated payment system can control revenue losses attributable to non-payment without the necessity of hiring staff. Resulting operating cost savings can ultimately offset significantly higher equipment costs, but it's
important to match the technology to the needs of operators and users. Parking lot owner/operators are also advised not to lose sight of customer service. Some human interaction, even remotely through an audio-video or intercom system, is recommended to explain pricing, hear complaints and/or give instructions. In other cases, introducing the human factor can even be a way to maximize space and augment income – for example, by using valet parking to allow for double parking. DATA MANAGEMENT Whatever the control equipment used, to varying degrees they all store data about parking lot users, their habits and needs, which if properly analyzed a nd used, ca n improve customer ser vice and optimize parking lot operations. A good data management system can provide a detailed picture of the parking situation and ensure the accuracy, consistency and speed of accessing historic data. It can almost instantly perform many tasks that were once very costly in terms of time and resources, including: • Analyzing minute-by-minute occupancy; • Analyzing the rate structure;
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• Modeling the new rate structures and measuring impacts; • Maximizing profitability; and • Managing performance.
useful information about revenue. For example: the number of free spaces available to company executives and their value; or the best rate to offer based on parking volume.
Data on turnover, space occupancy, parking times and payment methods used by clients enable continuous business and facility improvements. This can be used to schedule cashiers' hours, identify optimal automation periods based on traffic, check for fraud and highlight causes of revenue losses. Data also gets translated into management reports that identify irregularity and inefficiency factors or provide
URBAN DEMANDS The era of the smart city is here – leveraging information and communications technology (ICT) to improve the quality of urban services or to reduce costs – and smart parking is one of those urban services. Smart technologies can generate new efficiencies, better control revenues and expenses, and improve customer service, and are in line with municipal moves to restrict free on-street parking. Cities are interested in solutions that would enable motorists, through a network of communicating sensors installed in the road, to see available parking spaces and rates in real time. Information could be posted on variable message signs (VMS), mobile phones and GPS to inform and guide drivers and provide additional services (e.g. to locate a parked car). Technological advances will be used to encourage the fluidity of movement (perhaps with an emphasis on providing advantages for electric cars), and payments (via Smartphones). Environmental considerations will also be important. Green parking infrastructure is already expanding with, for example, some operators installing solar panels. The Green Garage Certification, which assesses and promotes sustainable practices in the design and operations of parking facilities, is also now available through the Green Business Certification Inc. (GBCI). It's projected that global revenues from parking management – equipment, systems and services – will significantly grow from about US $5 billion in 2014 to more than US $9 billion by 2019. The emergence of smart parking solutions promotes fluidity and convenience, but will require increasingly targeted expertise. In the 21st century, the parking lot has become a strategic challenge for public authorities and institutions that receive many visitors. Sound management is not only desirable, but essential. zz Louis Jacob, Daniel Germain, Erick Lord and Danielle Desjardins are with Indigo, an operator of parking facilities and provider of parking management services for the commercial, healthcare and retail/ hospitality sectors. The preceding article is drawn from their white paper, Optimum Parking Management, Making Operations Profitable by Optimizing Management. For more information, see the website at https://parkindigo.ca.
34 March 2016 | Canadian Property Management Untitled-3 1
2016-03-24 2:17 PM
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humanresources
EMPLOYERS MOSTLY
FOR 2016
Some Pockets of Pessimism in Property and Facilities Job Market EMPLOYERS REPORT mor e difficulty filling openings for senior residentia l proper ty ma nagers, c om me r c ia l p r op e r t y m a n age r s, b u i l d i n g o p e r a t o r s a n d p owe r engineers than other positions in the property and facilities sector. The fo u r j o b f u n c t io n s e m e r ge d a s in-demand in a recent national survey from the human resources consulting firm, Hays Canada. Survey results also indicate that work opportunities in the real estate industry are generally on par with or better than nine other examined industry sectors. T he brea kdow n of h i r i ng a nd compensation trends shows nearly 37% of s u r veye d p r o p e r t y / fa c i l it i e s management companies increased permanent staffing levels in 2015, placing the sector as the fourth most 36 March 2016 | Canadian Property Management
active hirer after IT/telecommunications, pharmaceuticals and construction. Approxi mately 21% of su r veyed property/facilities employers cut staff in the same period — compared to 28% of respondents in the construction sector, 55% in resources and mining and nearly 63% of surveyed oil and gas companies. Prospects for property and facilities job growth also look upbeat, as nearly 35% of surveyed property/facilities employers expect to add more staff this year and nearly 57% are anticipating a pick-up in business activity. Employers in the professional services sector had largely similar expectations with 35% of respondents expecting to hire more staff and 53% projecting business growth, while 41% of banking/finance e m ploye r s i n d ic a t e d t h ey 'd b e
augmenting their workforces and twothirds are expecting business activity to increase. Both the latter scenarios should have positive spinoffs for the property/facilities sector that accommodates those pursuits. Even so, the survey sponsors highlight current well-documented economic incongruities. "T he sentiment a mong Alber ta respondents is markedly different than the rest of Canada. Fifty two per cent sa id thei r busi ness activity decreased in 2015," observes Rowan O'Grady, President of Hays Canada, in the introduction to the survey results. "The impact of this decline on business cuts to staff are clearly reflected in employers' 2016 outlook, with just 14% believing that it will strengthen in 2016."
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Your social media starting point By Steven Chester Perhaps you’ve finally decided that “now’s the time” to get started on social, or maybe you’re cringing at the thought of logging in to your Twitter account that hasn’t been touched in months.
OPTIMISTIC SALARY INCREASES STAY MODEST Roughly half of reported salary increases in the property and facilities sector were below three per cent last year, although approximately 21% of employees who received raises saw increases greater than 6%. For the coming year, 60% of employers report they'll proffer increases of no more than 3%. Thus far, jobseekers with in-demand skills and experience don't appear to be reapi ng not able remu nerative premiums. For example, although senior residential property managers are currently well placed to find employment, reported typical salaries are about 27% lower than reported typical salaries for senior commercial property managers and are even lower than the typical salaries commercial property managers earn.
The survey's comparison of salary ranges for various roles and regions reveals that commercial property management positions are more lucrative than equivalent roles in the residential sector at every level of responsibility, and that salaries are often higher in Vancouver, Calgary and Edmonton than major cities to the east. Reported typical salaries for commercial proper ty managers – ranging from a high of $89,000 in Calgary and Edmonton to a low of $65,000 in Winnipeg, Ottawa and Montreal – are higher than senior residential managers' earnings, ranging from a high of $79,000 in Vancouver, Calgary and Edmonton to a low of $60,000 in Winnipeg, Ottawa and Montreal. Building operator is among the lowest paid of all surveyed positions (although
If this is the place you’re in, it’s time to reassess what your social media goals are and get yourself to your social media starting point. Your goals could be just one or all of the below. In the case of the latter, take the time to rank the order of importance of each. • Building your brand: Are you looking to develop new relationships? Then it’s time to listen to what others are saying, craft messages designed to inform, entertain and captivate your audience. • Increasing website traffic: Have great content to share? Craft some meaningful messages to drive traffic to your content pages. • Customer support and outreach: Your customer demographic is changing, and so are their communication needs. You’ll need a space to answer questions and gather feedback for your company. • Sales leads: Yes, you can sell on social. In fact, if you’re not doing it, your competitor more than likely has the jump on you. LinkedIn, for example, is an incredible way to gather contacts and expand your reach through secondary connections. Next up, we’ll talk about outreach. Hint: You’re nowhere near ready to craft that first post.
Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca or call 416.512.8686 x224.
Canadian Property Management | March 2016 37
humanresources CANADA AT A GLANCE Ontario TEMPORARY/CONTRACT HIRING TRENDS IN CANADA “Contract work has grown at a rate that is nearly three times faster than permanent jobs. With hundreds of thousands of contractors, Uber has a ratio of contractors to employees which is nearly 10:1. The economy of sharing is here to stay, and the sharing of jobs is a huge part of this emerging market. Contract and temporary workers have allowed Canadian companies to manage slow and busy periods without going through mass layoffs, or sacrificing the high expectations of their customers. These opportunities allow workers to earn a competitive wage, while padding their resumes and gaining invaluable work experience.” Travis O’Rourke, Director, Contract Division
“The region is experiencing increased activity in export demand and manufacturing due to the lower Canadian dollar, and we’re also seeing increased investment in life sciences within the Greater Toronto Area. Due to the falling oil price and changing demand for labour in Alberta we have seen a small surge in candidates moving from that area. These candidates are taking lower salaries than they were receiving in Alberta, but this is still pushing compensation up in some industries and we expect 2016 to get more competitive with salaries.” Louisa Benedicto, Director, GTA
British Columbia
“With a diverse business base, boosted by the recovering US economy, BC is well-positioned for good economic performance. Demand in areas such as trades, construction and IT outweighs the current candidates in the market and recruitment and retention will remain a challenge for most employers. Overall, the outlook is increasingly that of a skills gap versus a skills shortage as employers face a mismatch with the availability of workers with the right qualifications compared with the number of people available for work.” Jackie Burns, Vice President, Western Canada
Eastern Canada
“Overall 2015 has been a steady year for Eastern Canada, with IT and construction seeing especially high demand for candidates. The federal election in October meant some slowing of hiring in the public sector, which is likely to pick up again in 2016. We are seeing more confidence in the market but many employers are making hiring decisions reactively instead of strategically and we would recommend assessing current and future needs in order to be able to implement a hiring plan that supports business goals.” Soley Soucie, Director, Eastern Canada
Central Canada
“2015 has been a challenging year in the Prairies, where the global oil price drop was especially strongly felt. Overall employers have now adjusted to the new economic conditions and are hoping for a more stable 2016.” Jim Fearon, Vice President, Central Canada
PERMANENT HIRING TRENDS IN CANADA “An increasing number of our clients are looking at how they can stay ahead of their competition by attracting passive job seekers. In order to attract the best talent they are promoting their brand and employee value proposition online and through social media. The challenges that they recognize are that developing a meaningful content strategy is complex and resource intensive and it takes time to build up a large enough network to promote their message. Only by having a consistent and committed focus will they be able to compete for top skills in the coming year.” Andy Robling, Vice President, Client Development
5 | 2016 Hays Compensation, Benefits, Recruitment and Retention Guide
2016 Hays Compensation, Benefits, Recruitment and Retention Guide | 6
Image courtesty of Hays Canada
out-earning maintenance workers, leasing assistants and residential site managers) with reported typical salaries ranging from a high of $65,000 in Calgary and Edmonton to a low of $45,000 in Winnipeg, Montreal and the Greater Toronto Area. Chief power engineers garner higher wages: from upwards of $80,000 in the Greater Toronto Area to a low-end range of $55,000 to $60,000 in Montreal. Among the survey's 14 other professional services categories, two real estate related functions are also identified as in-demand. Accounting and finance firms are looking for commercial and retail property accountants and law firms are seeking real estate lawyers. zz For more information about the 2016 Hays Compensation, Benefits, Recruitment and Retention Guide, see the website at http://hays.ca/ salaryguide/2016. The preceding article is reprinted from the REMI network. See www.REMInetwork.com
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38 March 2016 | Canadian Property Management
leasing&management
MANAGING OCCUPANT EXPECTATIONS Location Still Outweighs Green Considerations By Rebecca Melnyk
WHILE IT’S BEEN MORE than two years since BOMA released its 2013 study What Office Tenants Want: 2013 BOMA Global Office Tenant Survey Results, key findings, such as the importance of green space, are becoming increasingly more pertinent in conversations regarding tenant retention. While 56% of international tenants stated that green programs are important or very important, in Canada, 82% affirmed this and Toronto led the way with 100% in agreement. When asked if green occupancy creates a favourable impression on clients, 53% in Canada believed this to be true, with 10% in Toronto and 55% internationally. 40 March 2016 | Canadian Property Management
Findings such as these made their way into a conversation at last December's Buildings Show in Toronto during a seminar on managing occupant expectations. According to Patricia Murray, Director of Office Facilities at Home Trust Company, accessibility to transit is a key retention and selling factor. Neil Lacheur, Vice President of Property Management at Bentall Kennedy, noted that there is a difference in what tenants want in different markets. He notices that financial core tenants, such as law firms and banks, are more interested in connections to the below-grade PATH system, LEED quality buildings and
accessibility to Union Station, compared to those with offices on the periphery. “What we’re seeing in the periphery is more of an HR-driven decision. We’re trying to attract the vast 25-year-old talent coming out of the University of Waterloo and the University of Toronto [asking] what does that person want?” This is a group who wants to live and work in the same area, says Lacheur, rather than go west of Simcoe (in Toronto) where it’s “not cool.” CHARACTER & PRESENCE Gordon Oughton, Director of Leasing for Central and Western Canada at Allied
leasing&management
Properties REIT, focuses mainly on exposed brick-and-beam historical buildings where office tenants are looking for a “character” feel, along with access to amenities and cost. “But as you get to the 40,000-square-foot mark, many tenants need presence,” he adds. “They want to know their name is going to be a brand in the building.” Yet, along with these occupant needs, Oughton stresses how integral green programs are to tenant retention. “We have to start to adopt green programs. While the vast majority of assets that Allied owns are historical buildings, it doesn’t exclude us from still employing these different recycling programs and [making] less of a carbon footprint. It’s coming, and if you don’t do it now, you better start doing it; tenants want it.” From a somewhat different perspective, Lacheur says, on the leasing side, prospective tenants have never asked if the building was LEED certified. “From what I’ve seen, it’s something that becomes a part of their life after they are in the building,” he notes. While large banks like RBC and TD have such needs on their checklist before they relocate to buildings, Lacheur finds that small and medium-sized companies are not putting green programs at the forefront in their decision-making process. Discussion moderator, Michael Scace, a Partner at Ashlar Urban Realty, pointed out what tenants in the BOMA survey believed to be the most important factors in a renewal decision, with location at 61% and green building at 17%, showing that green issues remain an important topic, but are not the main reason for renewal.
ENHANCING SERVICES As the conversation turned to what property managers can do to enhance services, Oughton suggested that the wellness aspect plays a larger role with issues such as a building’s air quality, employees taking less sick days and wanting to stay longer in a building due to feeling refreshed. Great communication is also key, adds Oughton, who says his tenants value responsiveness and presence, where they want to physically see a building operator in the building on a daily basis so issues can be dealt with in a timely manner. “It is my job to make sure everyone in the company can do their job and the building operators help me do that,” said Murray. “I look to the building operators as part of my team.” On the leasing side, notes Lacheur, communication between building operators and tenants is a critical relationship he sees upon a renewals process. “You can tell the difference between a good and bad building operator because you’ll hear complaints on ill service or [tenants] have no complaints and it’s a pure negotiation on lease terms.” From a strategic standpoint on the leasing side, Oughton makes sure to engage with a property manager before the renewals happen to make absolute certain they deal with any background problems that could be taken care of. zz Rebecca Melnyk is Canadian Property M a n a g e m e n t ' s O n l i n e E d i t o r. T h e preceding article is reprinted from the REMI network at www.REMInetwork.com.
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+1 613 267 4493 www.skylinegroupintl.com Canadian Property Management | March 2016 41
leasing&management
WORKSPACE & THE ORGANIZATIONAL IDENTITY Easy access to public transit tops the list of preferred attributes for office space among 50 non-profit organizations recently surveyed about workplace needs and priorities. Findings summarized in a newly released report from Colliers International highlight the sector's need to accountably advance its core purpose and costeffectively deploy funds. Convenient transit connections are seen as essential for attracting staff, board members and volunteers, serving stakeholders and broadening outreach. In contrast to corporate branding strategies, survey respondents gave little weight to projecting their organizational image in built form – an objective analysts suggest might be worth rethinking. "Office space plays a critical role in telling the story of a non-profit organization and its cause," submits Matt Johnson, Vice President and co-chair of Colliers' Not-forProfit Advisory Group. "Common words used to describe their desired office space
42 March 2016 | Canadian Property Management
were 'efficient', 'modest', 'professional', 'warm', 'inviting' and 'welcoming'. These adjectives illustrate the need for non-profits to diligently review if their space is providing their desired first and lasting impression." Along with transit access, survey respondents ranked increased efficiency, more collaborative space and flexibility for expansion or downsizing as favoured factors in choosing office space. The report also endorses so-called economies of sharing when organizations with common interests and goals locate in close proximity to support joint efforts and stretch resources and capacity. Cost-cutting through reduced space-toworker ratios is driving the move to the open office format among for-profit commercial tenants, while decision-makers in the non-profit sector are looking for more collaborative meeting space. Approximately 80% of the surveyed organizations lease their space and 60%
have been in their current quarters for at least six years. Only 18% are housed in completely open concept offices, although slightly more than half have a mixture of open space and private offices. While two thirds of survey respondents would like more collaborative space, such as informal meeting rooms, within their workplaces, only 26% endorsed moving to an open office format. Approximately the same number – 27% – stated a preference for more private offices. "Office space for non-profits is more than just a workplace; it can be a catalyst for impact and to promote an organization's identity and purpose," says Peter Davies, Vice President and co-chair of Colliers' Not-for-Profit Advisory Group. "This can result in a greater ability to foster productivity, promote knowledge transfer, attract and retain employees and, most importantly for not-for-profits, enhance access to potential funding in order to enhance their mission."
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maintenance&housekeeping
CHARGED FOR CLEANING
Engineered Water Gains Enhanced Powers By Matt Montage
ENGINEERED WATER is a term used to describe water that has been altered or infused with additional properties to enhance its power and offset the need for cleaning solutions. Facilities managers and their contractors are now turning to electrolyzed water, deionized water and aqueous ozone, while steam or vapour cleaning are longstanding examples of this approach to cleaning. Scientists have known since the 1930s that electricity could be used to convert water into a cleaning agent, but it was rarely economically or physically practical until fairly recently. When handheld systems were first introduced to the professional cleaning industry almost a decade ago, they were very expensive, at more than US $300 per unit, and heavy, with some handheld systems weighing as much as eight pounds when filled with water. Purchasers typically did not like the price, while users did not like the weight. Today's prices have become more affordable. The systems also contribute to a more lasting state of cleanliness, which means lower operating costs, since they leave behind no chemical residue to invite re-soiling. 44 March 2016 | Canadian Property Management
Recent research conducted at the University of Nebraska found a "statistically significant decrease in E. coli and Listeria" on treated surfaces, including lower levels of contamination in the drains carrying away excess water from the process. "There are huge environmental benefits: eliminating the extraction of raw materials that go into making cleaning chemicals; the plastic bottles used for packaging chemicals; and the cardboard shipping cartons and paper products; as well as the eventual disposing of these packaging items," adds Stephen Ashkin, an industryrecognized leader in green cleaning. Engineered-water cleaning systems include: • Steam or vapour cleaning, which heats water to about 250° F (121° C) to clean surfaces and kill many types of germs and bacteria. • Electrolyzed water is created with the addition of a small amount of sodium chloride before electricity is conducted through it. The process creates a gentle but effective cleaning solution that can
be used for all types of cleaning, from cleaning floors to polishing metal. • Deionized water is considered best suited for cleaning windows and mirrored areas because it leaves no streaks, although it is also used for some general cleaning tasks. • Aqueous ozone is a process in which ozone is mechanically infused into tap water. The system can be connected directly to a water outlet, with the aqueous ozone then poured into sprayers. Perhaps because its effectiveness has been evaluated more thoroughly than other engineered-water cleaning systems, it is being used in many more facilities. There is still a demand for disinfectants and, when called for, other products should not be used as substitutes. However, engineeredwater systems provide building managers with more green cleaning options to support the operation of facilities in a sustainable manner. zz Matt Montage is a Distribution Sales Manager with CleanCore, a manufacturer of engineered-water cleaning systems. For more information, see the website at www.cleancoretech.com.
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HORSEPOWER ASSISTING MANPOWER GOLF CARS IN AN URBAN FACILITY By Peter Butler
Gone are the days when a golf cart was purely for delivery nattily clad duffers, or getting Aunt Blanche to shuffleboard in Boca Raton. Today, a golf car in an urban setting is commonplace. Golf car dealers are delighted with this recent trend. Sure, you’ll still find golf cars at country clubs, retirement communities, cottages, and farms – however, the increase in urban golf cars (and their big brother, utility vehicles, UTVs) is testament to their versatility and popularity. PRACTICAL APPLICATIONS Many facility managers put golf cars to work daily. The list of applications continues to grow. Many city departments, police services and EMS organizations use golf cars. Most convention centres, airports, marinas, sport venues, theme parks, hospitals, universities, condos, warehouses, auto plants, commercial towers, urban malls and the larger parking facilities make use of a golf car. Generally speaking, the auto-centric urban development model is morphing. Golf cars and UTVs have a role – a change led by architects, urban planners and facility managers. Seasonal
considerations aside, many future Canadian developments seem onboard with this idea. OPTIONS ARE APPLICATION DRIVEN Outfitted correctly, a golf cart or utility vehicle can be a valuable asset in almost any facility application. Does electric or gas power best suit your application? Secondly, what options are needed? Typical outfitting would be the addition of a rear seat, or a utility box or a flat deck. Safety managers tend to request speed suppression, lights, a safety beacon and a horn. Some industrial users require foam filled “flatfree” tires or full weather enclosures. Others add roof racks for ladders, heaters or trailer hitches. NEW OR USED: IT’S ALL ABOUT BUDGET Cost for a refurbished used electric golf car, outfitted appropriately, will start at around $5,500, with new units starting around $7,500 for light-duty specifications. For heavier payloads (beyond 800lbs) your dealer will
suggest a utility vehicle (UTV). Used units in this category will start at $6,500 and go up to $18,000 for a new unit. Gas powered vehicles tend to be slightly higher in price. The good news is, most dealers will offer monthly rentals or service programs to meet budgets. BRANDS AND MAINTENANCE COSTS The principal golf car manufacturers are: E-Z-GO & Cushman (Textron), Club Car & Carryall (Ingersoll Rand), Yamaha and newcomer AGT Electric. All have solid engineering, similar features and a variety of add-on bells and whistles. Annual maintenance costs will vary by usage, but battery care is critical with full replacement over $1,200. Normal tire and brake wear will lead to servicing the car every 2-3 years. Local dealers will pick up your unit requiring service and often supply a loaner. Vehicle operators will require a valid driver’s license and training. --- Aunt Blanche was ahead of her time.
Peter Butler is President of Albion Golf Cars in Toronto; Ontario’s largest independent dealer since 1973. Read more on this subject at www.albiongolfcars.com/blog or call (416) 236-1001 for more information.
The golf car has come a long way from the country club! Strong, versatile, and sophisticated, Albion’s range of golf cars are making smooth connections from YYZ to the evolving world of urban property management. Contact us at info@albiongolfcars.com or 416.236.1001 and we’ll take you for a spin!
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