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CAPACITY BUILDING Skills & Resources for Disruptive Times
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VOL. 32 NO. 5
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editor’snote INNOVATION IS rightfully framed as a big economic driver, which is necessarily tied to research and development and requires venture capital for commercialization. However, it also has a low-cost/no-cost side that rolls out every day in homes and workplaces. Sometimes change is introduced through value-neutral tests of new products or services that were in the budget anyway; sometimes — reiterating how "necessity is the mother of invention" became an adage — a trouble-shooting fix turns out well and becomes the new norm. Commercial real estate is a venue where big innovation and the smaller scale variety often intertwine. Energy management is an obvious example. Technological advances are steadily reducing the amount of power that key building systems consume, but still more savings have been achieved through operational vigilance and adjustments that weren't so commonplace a decade ago. Property managers are also actively targeting energy demand through tenant engagement programs, thus delivering the third element of what's now seen as a whole-building approach to conservation. Energy-saving technology is capital intensive so, in addition to measurably boosting savings, the operational and tenant engagement pieces are really an expenditure to protect and augment the payback on that investment. Our Focus on staffing and service delivery provides similar examples of this kind of thinking around telecommunications and accessibility. Demands for both are heightening awareness of how building occupants use space, and has owners, designers, property and facilities managers thinking about ways to provide flexibility for the future. Lorri Rowlandson, Senior Vice President with BGIS, comments about the growing demand for assurance of building connectivity in our lead feature story and underscores the importance of what she terms a "readiness strategy" — noting that the vast potential of the Internet of Things can be difficult to conceptualize. "I think we haven't fully anticipated the demand that these types of devices are going to place on our networks," she says. Meanwhile, with accessibility demands, we very much know what's coming as the Canadian population grows steadily older. Accessibility audits, like the one recently conducted at the University of Manitoba, should be part of that readiness strategy. Savvy, skilled professionals who are open to change and committed to sustainability and inclusiveness are going to drive the process. We also look at real estate employers' strategies to find and hold onto the talent the industry will need.
Barbara Carss barbc@mediaedge.ca @BarbaraCarss
contents
Focus: Staffing & Service Delivery 6
Certifying Telecom Infrastructure: WiredScore comes to Canada, offering a program for third-party verification of building connectivity.
8
Evolving Building Technology: 20th century tenant hotline was a gateway to 21st century data analytics.
10 Co-working Space: Office configuration born of recession, but thrives in step with economic growth. 13 Campus Accessibility Audit: University of Manitoba scrutinizes building interiors and outdoor spaces. 16 CRE Employment Challenges: Senior executives discuss staff recruitment, deployment and advancement. 20 Young Professional Perspective: Millennials discuss career options and trajectories at the intake end of an aging workforce.
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FUTURE-READY
CONNECTIVITY WiredScore Certification Provides Third-party Validation of Telecom Infrastructure By Barbara Carss
A NEW CERTIFICATION for connectivity targets a building system that is both increasingly critical to tenants’ operations and often perplexing for non-IT professionals. WiredScore, a four-level scale for defining the capacity and resiliency of buildings’ telecommunications infrastructure, is becoming available in the Canadian commercial real estate market. Proponents and early adopters suggest the program can provide simplified credibility for landlords and simplified assurance for tenants via a formal third-party building assessment and an easily decipherable rating system that is tied to rigorous criteria. WiredScore assessors might also be described as the telecommunications equivalent of energy auditors since they are additionally tasked with identifying how owners/managers can make improvements to their buildings. “Connectivity is a very tricky subject for many tenants to grasp,” says Sean Menkes, Development Manager with Menkes Developments Ltd, speaking from the company’s Wired Certified Gold head office in Toronto. “WiredScore helps us to communicate what’s behind the walls, which isn’t visible or always easily 6 Canadian Property Management | Part of the REMI Network
understood when prospective tenants are visiting the site.” Menkes has achieved the top rating, Wired Certified Platinum, for its new tower at One York Street in Toronto’s southcore and Gold for its 30-year-old building on north Yonge Street ahead of the program’s official launch in the Greater Toronto Area, which is slated for late October. In other new development, Ivanhoé Cambridge and Hines’ planned two-tower, 2.9-million-square-foot office complex in Toronto’s southcore is also designed to achieve Wired Certified Platinum. Industry insiders foresee growing interest as the program rolls out in Toronto and engineer-evaluators are available for site visits and/or to review construction plans. Since its 2013 genesis through the auspices of the New York City Economic Development Corporation, WiredScore has spread to 80 cities throughout the United States and Europe with approximately 950 properties encompassing 350 million square feet of space now boasting some level of certification. Participants pay fees based on building size and, as with other types of building certification, institutional real estate players have been prominent among the first patrons.
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“Many of the landlords in Toronto approached WiredScore to bring Wired Certification to their buildings and development projects,” reports Phil Kanfer, the program’s Director of Business Development. “Tenants opening up new offices in the GTA marketplace have robust telecom needs and Wired Certification is a way to communicate advanced connectivity features to those tenants.” “I’m not sure the standard has a lot of visibility with tenants right now, but I don’t think that it will take much time to gain traction,” predicts Lorri Rowlandson, Senior Vice President with the real estate and facilities management service provider, BGIS. LEASING AND RISK MANAGEMENT TOOL Four levels of certification — Certified, Silver, Gold and Platinum — translate into a shorthand for the type of internet service a tenant can expect. At the basic level, Wired Certified indicates that the building can support tenants’ current connectivity requirements and has measures in place to “reduce the risk” of service interruption or loss. At the top of the scale, Wired Certified Platinum denotes “best
in class” for number and quality of service providers, redundancy and resiliency of telecom infrastructure, ease of installation and capacity for future new services. There are separate streams for existing buildings and new development, promising a process that takes just a few weeks for existing buildings or that can be completed in time for pre-leasing of those under construction. Certification is valid for a two-year period. As a new and still largely untested product in the Canadian market, its backers are framing it as a tool to help leasing professionals match tenants’ needs to landlords’ offerings. “We have always known that the connectivity and infrastructure in our certified Gold building met the needs of sophisticated tenants, but the brokerage community might not be aware of this,” Menkes acknowledges. “Instead of them having to perhaps go to a consultant to assess that independently, they’ll have a WiredScore summary that comes from a reputable third party.” Evidence from LEED’s evolution hints that tenants with clout can be expected to start demanding WiredScore should it become entrenched in the market. Opting for Platinum or Gold space might www.REMInetwork.com | October 2017 7
servicedelivery also be risk management to balance longterm leases against rapid technological advances. “It’s more future-positioning than it is really about the here and now. The certification is an external verification that the building is resilient and has the capacity to accommodate clients’ needs five, 10 and 15 years from now,” Rowlandson maintains. “I really see this as a key readiness strategy for the Internet of Things and the backbone that we will need for what’s coming.” LINKING INTO THE SMART CITY Telecom specialists advise some refinements will be needed as a template derived for U.S. service models is applied in Canada. However, Jennifer Sicilia, Vice President and General Manager with RYCOM Corporation, a smart master integrator, commends the program for supporting transparency and developing a consistent approach for evaluating, reporting and comparing connectivity. “It’s great to see there is a certification in t he m a rket t hat is a dd ressi ng telecommunications,” she affirms. “It’s a really good first step in having an understanding of what is going on in buildings.” And what’s going on in buildings increasingly links to the broader economy. For example, JLL’s recently released comparative analysis of major global markets, Decoding City Performance 2017, labels Toronto as a “contender” or one of 10 cities jostling for position with the top echelon “big seven” of London, New York, Paris, Singapore, Tokyo, Hong Kong and Seoul — and projects the ascendancy of those that foster innovation, provide reliable infrastructure that includes “network coverage” and are smart with digital connectivity at “both city and asset levels”. “Real estate must adapt to this new reality where technology firms with more flexible workforces, substantial digital requirements and asset-light strategies are becoming the principal driver of absorption,” the report states. WiredScore strategists likewise see a lucrative market. “It is apparent that Toronto is a major hub for technology in North America,” Kanfer observes. “The more buildings we have that are certified and future-ready, the more we have the pieces in place for a smart city,” Rowlandson concurs. zz
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REAL ESTATE LEADERS PONDER INNOVATION
The instigator and inheritor of the customer service hotline that never sleeps fittingly fielded questions in front of a live audience earlier this fall at BOMEX 2017, the national conference of the Building Owners and Managers Association (BOMA) of Canada. The topic was building technology; Oxford Properties Group's 310-MAXX was a cited example; and among the assembled panel of senior real estate executives were Blake Hutcheson, current President and CEO at Oxford, and Jon Love, now the CEO at KingSett Capital, but at Oxford's helm in the 1990s when the hotline was introduced. "The thing that 310-MAXX did the most, in addition to getting our customer data, was it diagnosed our buildings," Love recalled. A process designed to efficiently respond to tenants' requests for temperature adjustments, replacement of burnt out lighting, cleaning, repairs and security also generated a trove of information about where those issues were occurring. Launched as a 20th century phone line, a platform for online requests was added in 2000. Each subsequent iteration of technological advancement has been a step toward today's data analytics and on-demand interactive communications. For example, shoppers on their way to one of Oxford's super-regional malls can now receive tips, via their smart phones, on available parking spaces closest to the stores they favour. "Our customer isn't necessarily just the tenant; it's the people who frequent the tenant," Hutcheson observed. Rapid innovations have also made flexibility a priority and propelled a migration to non-proprietary systems. Remco Daal, President, Canadian Real Estate, with QuadReal Property Group, warned that customized software and systems can be a bottleneck for integrating new technology and/or bringing new properties with differing systems into a portfolio. "A lot of times, organizations customize to the point of redundancy," he said. That might be counted among the growing pains of his newcomer company, tasked with managing British Columbia Investment Management Corporation's (bcIMC) previously outsourced real estate portfolio. However, the new conglomeration also provides opportunities to identify and promote best practices from its various component parts. "Invariably, when you bring 500 people together from different organizations, there are challenges," Daal acknowledged. "We had the benefit of continuing to use legacy systems from our predecessor organizations." Part of forging the way forward also lies in stepping back to contemplate what direction to take. "Property managers can't do this off the side of their desks. You need a lab; you need a think-tank around some of these issues," Daal said. "The world is changing and nobody knows exactly where it's going, but if you're not trying to figure it out, you'll be left behind," concurred Adam Paul, President and CEO of First Capital Realty. As evidence of the rapid pace of change, Love held his smartphone aloft. "How many people in this room have a smartphone on them today?" he asked. "Just reflect that this didn't exist 10 years ago."
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ENTREPRENEURIAL INCUBATORS
Co-working Space Serves Growth and Innovation By Jeannie Tobin IT IS ESTIMATED that more than 1.2 million people worldwide will work in co-working space by the end of 2017, representing a 140% increase since 2015. Technology has connected and mobilized more people than ever, accelerating the r ise of f reela ncers, independent contractors and remote workers. Already roughly a third of the U.S. workforce fits into this category and this figure is projected to rise to 40% by 2020. The co-working movement has taken advantage of the evolving workforce by offering small businesses and entrepreneurs a place to connect outside of the home and to experience a sense of community.
Co-working users have responded in a big way. WeWork, one of the most s u c c e s sf u l a n d fa st e st-g r ow i ng co-working companies in the U.S., is valued at US$16 billion alone. In commercial real estate terms, c o -w o r k i n g s p a c e s c o n s i s t o f thousands of operators, populated by well-known brands such as WeWork and Galvanize. Co-working spaces have traditionally been aimed at providing freelancers, entrepreneurs and contract workers the opportunity to work in a professional setting on a flexible basis.
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USER BENEFITS In the past, these workers had limited options and were either homebound or conducting business from a local coffee shop. Memberships in these shared workplaces are easy and fast to set up. Most memberships are month-to-month, but some offer co-working space in increments of as little as an hour. The co-working model offers many benefits to its users. A membership includes everything that one would need from an office, including Wifi, printers, conference rooms and computers. These costs alone would be a substantial investment for most small business
servicedelivery owners. Additionally, many co-working spaces offer other popular amenities, including foosball tables, free microbrewed coffee and even napping stations. At face value, co-working spaces offer people a place to conduct business. However, this description does not fully capture why co-working has become so popular. The intangible benefits of co-working space are the reasons why workers continue to sign up in large numbers, even when working from home makes more economic sense. According to LiquidSpace CEO Mark Gilbreath, co-working has achieved a high level of popularity because it develops a sense of community, a strong culture and creates opportunities for serendipitous interactions with likeminded professionals. The layout of co-working space, mainly featuring shared spaces and break-out rooms, is designed to encourage collaboration between individuals. RESPONSE TO RECESSION From a cost-savings perspective, co-working space really began to gain momentum during the recession, when occupier appetite for flexibility increased dramatically in 2008. In a tough economy, small businesses preferred f lexible daily or monthly leases compared with fixed commercial leases. From 2009 to 2012, there was intense scrutiny on cutting costs and reducing the employee footprint. Many companies implemented new plans during this time to make their office footprint more effective. For example, in 2011, AT&T announced the creation of Workplace 2020, a plan to transform the company’s work environment. The plan involved c o n s o l i d a t i n g wo r k s p a c e s a n d eliminating closed offices, thereby reducing AT&T’s office real estate footprint by roughly 40%. Through the economic recovery, companies wanted to grow in a much more methodical way. Co-working space offered start-ups and small businesses the flexibility to grow their companies. Some question the staying power of the co-working model through a downturn. While co-working space will, undoubtedly, lose many independent workers who cut costs by returning to the home office during the next downturn, small businesses that are either unable or unwilling to commit to a traditional office lease during a time of uncertainty are projected to fill this void.
CHANGING EXPECTATIONS As millennials enter the workforce a nd d emog r a p h ics sh i f t , of f ic e tenants’ requirements continue to change. Environmentally friendly, open-plan spaces in amenity-rich buildings are becoming more of an expectation than a luxury. But to the millennial generation, how they work is just as important as where t hey work . T h is sh i f t i n behaviour will likely be the driving force for the continuation of the co-working model of the future. The rise of the co-working concept has mirrored the changing dynamic of today’s workforce. Co-working space users benefit from the flexible nature of the shared work area, allowing them to set their own hours and still have a reliable place to work. The co-work ing movement was once confined to creative types and i n d e p e n d e nt wo r ke r s. Howeve r, corporations are beginning to notice and have become more comfortable with implementing certain aspects in ord er t o r em a i n c omp et it ive i n recruiting talent. Ac cord i ng to E n t re p ren e u r magazine, 80% of employees consider the physical office environment as an important part of company culture, but 70% of those employees a re dissatisfied with their firm’s culture. These findings are in stark contrast to the views of co-working space users who, according to the Knoll survey, feel more fulfilled and engaged. Some corporations, including a few Fortune 500 companies, are leasing co-working space for a portion of t h e i r e m p l o y e e s . WeWo r k i s capitalizing on the corporate interest. M aj o r WeWo r k cl i e n t s i n clu d e Fa c e b o ok , I BM a n d M ic r o s of t . Up st a r t c o -work i ng spa c e is graduating from small sections of offices to multiple floors and this trend will likely continue. Some corporations are opting to bring the co-working model home by tur ning excess space into shared space. For example, Verizon recently converted two unused floors at its Washington, DC office into available co-working space as a way to become more engaged with the technology com munity. Office landlords a re doing the same, leading to increased occupancy in their buildings.
SMALL BUSINESS SYMBIOSIS Many small business owners are beyond the point of being home-based, but are not ready to commit to a long-term lease. They may find themselves unable to secure suitable space on their own, but are over-served by the traditional brokerage structure, which, in most cases, requires a minimum of a threeyear commitment. To a business just starting out, even a three-year commitment can seem daunting. Sublease deals can offer small businesses shorter lease terms, with sixto-24-month leases being fairly common. However, depending on the sublease space, tenant improvements and office maintenance costs can quickly add up. Co-working space offers these small businesses and freelancers a professional office where they can work, meet with clients and make connections that enable them to grow. During a downturn, these small businesses will likely continue to lease co-working space as a way to remain flexible while they wait out the uncertainty. The commercial real estate industry has much to gain from the co-working movement. Independent and contract workers, who are projected to make up 40% of the U.S. workforce by 2020, are returning to work in office buildings whereas, in the past, they were largely working from home. Co-working companies are leasing an increasing amount of office space to keep up with the strong demand. Globally, the number of co-working spaces grew to 11,000 from 160 between 2008 and 2016. Many freelance and independent workers would not be in an office environment at all if it were not for shared spaces. A growing number of these small businesses are using co-working space as a place to launch their business. Everyone benefits when businesses grow quick ly a nd intel l igently. W hen co-working facilitates growth for new businesses, those businesses, in turn, bring vibrancy to their cities and help grow the real estate market. zz Jeannie Tobin is a Regional Research Director with Avison Young. The preceding article is excerpted from her topical report, Co-working space: How its rise can foster dynamic growth in Denver's office market. The complete tex t c an be found at www.avisonyoung.us/en _ US/research www.REMInetwork.com | October 2017 11
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ACCESSIBILITY BEYOND
THE BUILDING CODE University of Manitoba Considers Year-round Campus Conditions By Rebecca Melnyk THE UNIVERSITY OF Manitoba has undertaken the largest accessibility audit ever conducted in the province, looking at both interior and exterior spaces across more than 100 buildings. Jeff Wilson, founder and Chief Executive Officer of Adaptability Canada, a national supplier of accessible equipment, construction and consulting services, was on site in the summer of 2017 leading an in-depth and photo-intensive study of the buildings’ barriers, looking at safety, compliance to codes and standards, and lack of services that may cause future liability or human rights issues. The project aligns with the fourth accessibility standard of the Accessibility for Manitobans Act (AMA), which is to be implemented by 2023 and targets the built environment beyond the Manitoba Building Code. The University of Manitoba, like other post-secondary institutions, is trying to “stay ahead of the curve” and go beyond what the AMA specifies to make the campus more inclusive. “They’ve done a pretty good job of removing as many barriers as they can,” Wilson observes. “What we’re doing is showing them the next level of change to look at, which goes beyond code. We’re focusing on the full spectrum of disabilities, not just physical. That means looking at barriers to invisible disabilities, such as confusing environments that may promote anxiety or depression.” COMMON BARRIERS Signage is one big barrier often encountered on campuses. There is often a lack of standard design among building portfolios; departments sometimes make their own signs, or signs are made by different firms at
different times. The result is what Wilson calls an unreliable “sign stew.” From life safety and directional to identification and wayfinding signs, placement is also central for an inclusive campus. Common exterior barriers also include the maintenance and connectedness of physical paths. “This isn’t just the physical, but how they logically connect to get you from place to place,” Wilson says. “How they connect from transit, from parking, from underground tunnel systems, from building to building.” Crosswalks, another common barrier, should use proper colours (yellow not white, because yellow is the last colour people see before they go completely blind) and flashing lights. People often take diverse amounts of time to cross a road for reasons like mobility issues or anxiety; incorporating speed bumps at crosswalks stops helps manage this process. Interior spaces like washrooms are often not truly inclusive because they are designed to code, which is a minimum standard. Two years ago, Adaptability Canada conducted a six-month research study on building codes across the country, as well as standards like CSA B651-12. “What we found was an iterative approach to continue to push minimal acceptable standards in building code,” Wilson reports. “Our big finding in relation to that was that the construction and development industry were using building code as an end point, not a beginning point. A myopic approach considering how code evolves over time.” These findings were integrated into the inclusive design methodology, “We like to future-proof buildings against changes in code and against changes
in the human condition,” says Wilson. “As people age and develop disabilities, regardless of the disability, a building needs to adapt to them, rather than people adapting to the building.” HISTORIC BUILDINGS Future-proofing also means approaching about 15 historical buildings at the University of Manitoba as though they are already designated heritage spaces. The team is considering how to preserve historical characteristics, while making the buildings as accessible as possible. Older buildings harbour barriers like bad lighting, basic access for mobility devices and multiple floors with inaccessible essential services, such as cafeterias and washrooms. Proper lighting, a cornerstone in accessibility, as well as health and wellbeing, is often assumed to be part of an energy audit, but is an important factor for people with low vision or cognitive and mental disabilities. “Every university campus is comprised of a mix of buildings including historic buildings and modern builds,” Wilson says. “In the end, many times, the modern buildings have as many issues with accessibility as the historic ones.” AUDITING AND MAINTENANCE The auditing team captured physical evidence through measurements and photos, allowing the senior team to analyze it against code and internal s t a n d a r d s , a n d r ef i n e m i s si ng information. From this comes a lengthy detailed report prioritizing properties according to the highest levels of risk in safety, compliance and services, along with universal design recommendations, both www.REMInetwork.com | October 2017 13
servicedelivery short and long term. A construction project report summarizes planned renovation projects to ensure they keep accessibility at the forefront. There will be a maintenance audit this winter since weather conditions can dramatically alter accessibility — paths and parking gets blocked; access is narrowed; and water and dirt collects near entrances and exits. “You can have the best designed building in the world, but if maintenance is poor, there are a lot of temporary obstacles and obstructions," Wilson says. There can be garbage cans obstructing fire pull stations, or salt and sand, leftover from winter, on ramps and stairs, which become a slip-fall hazard. Included in maintenance will be night time auditing, looking at how the grounds change inside and outside, after the sun goes down. “A path that is beautiful and clear during the day may not be so at night, depending on how lighting or other things are oriented along the path,” Wilson notes. A concluding report will offer recommendations on how to revise maintenance practices and processes.
“Many times, the modern buildings have as many issues with accessibility as the historic ones.” COMMITMENT “The maintenance staff has been really great in stewarding us around. You can tell there is a lot of pride among the staff and for buildings they are taking care of,” Wilson says, adding that the u n iver sit y, to o, is com m it t e d to delivering high levels of accessibility to students and staff. “Universities and colleges are small cities and towns and often have the ability to be more nimble in decision-making than traditional municipalities,” he adds. A number of stakeholders at the University of Manitoba have a vested
interest in what the repor ts will deliver, with the audit being not just a n a c c essibi l it y proje ct , but a n engi neer i ng a nd a rch itect u ra l planning initiative. “Inclusive design is about humancentric design, making things easy to find, understand, use and share with others; that’s the goal here, all to promot e a consist ent ly p osit ive experience." zz Rebecca Melnyk is Online Editor with the REMI Network at www.REMInetwork.com.
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leadership
HR MEETS ROI Staffing Embodies Real Estate's Upside Potential
By Barbara Carss THE QUEST TO REMAIN relevant in rapidly changing times challenges the commercial real estate industry as a supplier of product to the marketplace and as an employer. Tenants' increasing demand for space that expresses their corporate values and engages their employees is mirrored in the industry's own needs to retain top talent and attract successive generations of skilled professionals. Prominent senior real estate executives attempted to pin down the somewhat intangible concepts of leadership, teambuilding and inclusiveness during a panel discussion to kick off BOMEX 2017 — the national conference of the Build i ng Owners a nd Ma nagers
Association (BOMA) of Canada — earlier this fall in Toronto. Beginning with a few upfront quips to acknowledge the panel's prevailing age, gender and ethnicity in contrast to the workforces they lead, moderator Michael Brooks, Chief Executive Officer of REALPAC, probed how today's real estate organizations are recruiting, deploying and advancing personnel. Panellists represented a cross-section of key employers, including the public sector, pension funds, private equity and listed companies, but voiced some common staffing goals and concerns. "Building a high-performance team and a high-performance culture is a core
16 Canadian Property Management | Part of the REMI Network
focus of my career," said Jon Love, CEO of KingSett Capital, as a preface to his three-point strategy for attaining those results. That entails: 1) providing opportunities to lea r n, th rive and advance; 2) compensating staff in line with their achievements; and 3) having leadership in place to ensure that steps 1 and 2 occur. It's a philosophy other panellists echoed. "Our organization comes down to our people. People want to be part of something that's growing," concurred Blake Hutcheson, President and CEO of Oxford Properties Group. "The culture comes from a series of tiny and good
staffing RECRUITMENT GOALS AND CHALLENGES Toni Rossi, President of Infrastructure Ontario's Real Estate Division, decried levels of gender and ethnic diversity that lag other sectors and society at large. "It's actually a problem for our industry," she said. Rossi urged companies to be more proactive in "putting programs in place that make people want to be included." Suggesting efforts should be framed as targets, not quotas, — "Quotas cause people to have the wrong visceral reaction," she maintained — she pointed to the already existing targets for more women on boards of directors and in senior executive positions and advised that such policies must be backed up with active mentoring and monitoring. Hutcheson reported that Oxford, wh ich is t he rea l est ate a r m of OMERS (Ontario Municipal Employees Retirement System), one of Canada's largest pension funds, is "loading up the organization to get it right for the next generation" while the current leadership structure still skews largely toward white men. "We're not getting
it totally right at the most senior ranks," he conceded. The same is true of other companies represented on the panel, such as QuadReal Property Group, with just one woman on its six-member board of directors, appointed earlier this year. However, the newly formed real estate subsidiary of British Columbia Investment Management Corporation (bcIMC) has been on the frontlines of forging a corporate culture as its workforce has grown from zero to 500 in the course of about 16 months. This also involves absorbing assetlevel staff from the companies that had previously been the outsourced managers of QuadReal's $24.5 billion portfolio and melding them into a unified whole. "It's a journey," observed Remco Daal, President of QuadReal's Canadian division — noting that the company's human resources department is currently disproportionately larger and younger than other staff complements. Ambitious plans for growth and diversification, including significant
Building Science & Restoration Consultants decisions through which you demonstrate how to behave." Underpinning those value statements a re big cor porat e agend a s l i ke commitment to sustainability, openness to innovation and targets for growth that ma ke for a n i nvigorat i ng work environment, as well as the nuances of how expectations are stated, performance is evaluated and contributions are recognized. Among the challenges, panellists agreed there is both a need to inject commercial real estate's ranks with a steady and high-calibre supply of entry-level employees and to broaden its base to be more reflective of Canadian demographics circa 2017.
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staffing
“Every CEO, and any manager who's any good, is interested in what people are saying and thinking.” portfolio expansion outside Canada over the next decade, figure in hiring priorities. "If you want to attract younger workers, you need younger recruiters," Daal reasoned. Given the company's antecedents, it's perhaps not so surprising that securing outside expertise also remains central to the management strategy. "I would say our philosophy is: partner, partner, partner." he noted. LISTENING AND LEARNING Panellists stressed that effective leaders listen, draw lessons from a wide array of resources and make receptiveness a cornerstone of problem solving and strategic planning. "Every CEO, and any manager who's any good, is interested in what people are saying and thinking," Love asserted.
"I notice there can be a disconnect between young professionals and people in the organization who have more experience," ref lected Adam Paul, President and CEO of First Capital Realty. As a Gen Xer, he's called on to bridge a relatively equidistant gap to either the millennials or boomers on his team. To do so, he has devised some formal channels for reaching out in an informal way, including regular "coffee chats" with four or five staffers from different departments. Student interns are also encouraged to submit ideas for new ways of working or delivering service. "I was blown away by their intellect, their energy, their creativity," Paul said. "As leaders, if you simply spend some time with them, it goes a long way."
18 Canadian Property Management | Part of the REMI Network
Rossi l i kew ise re cou nt e d how sum mer st udents successf ully introduced Yammer as an in-house social networking platform that now facil it ates bot h idea sharing and intergenerational communication for the entire organization. She sees entry-level staff and aspiring young professionals as a potential tonic for the current homogeneity of upper management. "It's the younger group that may start to leapfrog," she predicted. Nevertheless, Paul suggested the mid-career cohort has little to fear. "To be in your 40s and in the real estate business today is probably the best time to be in real estate," he enthused. "I think there's a ton of opportunities." zz
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Vyetta Sunderland Scholarship Award 2017
VYETTA SUNDERLAND
BOMI Canada with the support of BOMI
This year’s recipient is Augustine Imade. Augustine
International, established a scholarship in
is the Property Manager for Keegano Housing
recognition of Vyetta Sunderland’s focus on
Co-operative, one of Edmonton’s oldest housing
excellence and her lifelong commitment to
co-operatives. Augustine is committed to his
education. Having served as Chairman of BOMI
professional development along with the education
Canada from 1999-2004, Vyetta went on to be
of others. As a volunteer teaching undergraduate
a long serving member of BOMI International’s
student’s math and physics he also volunteers
Board (2000 - 2015) and served as their Chair
at his church as well as with the United Way. In
from 2008 - 2011.
response to accepting the award he noted that the scholarship represent an opportunity to fully focus
This annual scholarship of $2,000 is awarded to a
his attention on achieving the best that he can be
Canadian student who is in pursuit of advancing
in property and facility management. Augustine
their property management career or entering the
represents the focus and drive characteristic of
property management field.
many of BOMI’s students and we would like to
AUG USTI N E I M A D E PROPERTY MANAGER
congratulate him on being this year’s recipient of the Vyetta Sunderland Scholarship Award.
KEEGANO HOUSING CO-OPERATIVE Edmonton AB
BOMA_Awards_1/2_2017.indd 1
www.REMInetwork.com2017-10-18 | October10:20 2017 AM 19
staffing
NO SPACE FOR STEREOTYPES
Young Professionals Counter Some Misconceptions About Millennials By Michelle Ervin ARE MILLENNIALS really the acclaimcraving, job-hopping, social-media junkies they have variously been portrayed as? The answer, apparently, is a resounding no. That’s according to the Fortune magazine article Five myths about millennials in the workplace, whose message was recently reiterated by a panel of International Facility Management Association (IFMA) members. The panel of young professionals, who ranged in experience from fourth-year college student to more than a decade in the workforce, shared an industry-specific take on these myths earlier this year at the Facility Fusion Canada session Where’s the next FM? The takeaway was that while it may be tempting to turn to stereotypes as a mental shortcut, it may not be productive in terms of truly understanding the needs and wants of millennials. And understanding the needs and wants of millennials is critical for organizations as the battle to attract and retain talent heats up,
with baby boomers expected to make a mass exodus from the workforce over the next decade. Right now, IFMA is focused on building a career track starting from high school for a profession that moderator Geoff Williams, General Manager, Corporate Event Centre at CHSI, pointed out is commonly entered mid-career. “What I do see a lot in millennials is that they do want that plan in place, they want to see how that path is going to work,” said Nick Heibein, past president of IFMA Toronto and current PMO lead – RBC account at JLL. Heibein chafes at the generalizations made about millennials. He said he disagrees that his demographic cohort has different career goals and expectations, observing that aspirations and motivations will vary between individuals, as they would in any generation. COMMUNICATION CHANNELS Something that is undoubtedly unique about
20 Canadian Property Management | Part of the REMI Network
millennials is that they’re the first generation to grow up under the spotlight of social media — but that doesn’t mean they don’t know how to put down their phones or manage their online presence, as some would believe. Sarah Pinckard, Senior Project Manager, MovePlan, spoke, for example, of maintaining distinct personal and professional social media accounts. There may even be opportunities for organizations to leverage the social media expertise of millennials to promote their company brand on various platforms, she pointed out. When entrusted to do so, these young professionals are quite capable of working autonomously, said Drew Dickson, Enterprise Facilities Planner, Great-West Lifeco, contrary to any misconceptions. “If you have a strong leadership group who’s set clear expectations, you are empowered to make those decisions and you will make them independently,” said Dickson.
LIFESTYLE PHASE vs. LIFELONG CHOICE Millennials are anyone born between 1980 and 2000, making them an economic and demographic powerhouse. In the U.S. alone, they have roughly $200 billion in purchasing power, even though nearly 20% of them are 18 or younger. They’re also different from every preceding generation since they’ve grown up with personal computers and smartphones. They’re accustomed to a connected world in which information, goods, and services are readily available at the click of a button. This millennial mindset is shaping how tenants are looking for space and what they expect. The conventional wisdom says millennials crave the ability to “live, work, and play” in a single urban area. Easy access to public transportation, a variety of restaurants and stellar nightlife makes cities irresistible to them. Yet, other data has experts questioning the standard narrative of urban-focused millennials, leading them to believe that the millennial trend toward city living is more a function of age than entrenched preference.
For instance, a survey by the Urban Land Institute shows that 60% of millennials expect to live in a detached single-family home within five years. The drive to suburbanization is the same for millennials as it has been for other generations: marriage and kids. Although it is true that millennials are putting off marriage and family until later in life, that doesn’t mean they are putting it off indefinitely. Other experts theorize that since the 2008 recession, a big portion of millennials have only lived in cities because they have no other choice — that’s where all the jobs are. Plus, while millennials make up a huge percentage of the population in many cities, from a nationwide perspective, only about 30% of American millennials actually live in these urban areas. Migration statistics show that more of them are actually moving out of the cities and into the suburbs than vice versa. In 2014, 529,000 Americans ages 25 to 29 moved from cities out to the suburbs, while 426,000 Americans ages 25 to 29 moved from suburbs into the city.
Lots of millennials will live their entire adult lives in cities — just as many baby boomers and Gen Xers have before them — but commercial real estate owners are starting to account for the fact that plenty of them will settle down in the suburbs. Suburban offices can make a comeback if millennials can find the flexibility and collaborative capabilities they crave at work. Creative, modern office spaces are already following millennials from the cities to the suburbs. Retail owners, on the other hand, are keeping an eye on suburban downtowns that are starting to resemble cities more and more. There are huge opportunities for retailers in suburban towns that can provide millennials the urban feel they love — denser groupings of businesses, luxury condos and beautiful communal spaces.
Heibei n sa id t hat even young professionals who have strong opinions, such as himself, may solicit input from their colleagues in the interest of finding the best possible solution. “We’re being much more encouraged to collaborate with our colleagues,”
added Pinckard. “Of course you’re going to ask them to weigh in.” Confidence to stake out a clear position and act decisively may come with experience. “It kind of comes down to the name of young professional,” said Kamil
G l owa c k i , P M O a n a l y s t , R B C account, JLL. “We’re young in the profession, so why not reach out and get the opinion of somebody who’s actually done the work that you’re trying to do.”
Source: 3 Ways Millennials are Changing Commercial Real Estate, a VTS Resource. For more information, see http://on.vts
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staffing CAREER MOVES One of the obstacles to seasoned professionals sharing their knowledge with millennials may be the perception that members of the demographic cohort have a propensity to job-hop, so why invest the time? The panellists offered a number of reasons why young professionals may leave p o sit ion s p r em a t u r ely, such a s misalignment of core values and poor fit with the corporate culture. “If you’re not passionate about your work, should you be there? And it’s not so much about jumping ship, but it’s about finding something that engages you,” added Dickson. “The jumping ship piece – that’s just the nature that the world is going in: people aren’t working for companies for 30, 40 years anymore.” For his part, Dickson stands in contrast to some of the common stereotypes about millennials in the workplace. He has been with the same company for more than six years, having been given the opportunity to progress through five different positions there. And he has eschewed all social media platforms, except for the professional networking site LinkedIn. He said he suspects that baby boomers went through the same sizing up by the generat ions before t hem as t he
CULTURE INSPIRES LOYALTY By Rowan O'Grady
Employee retention is not a new challenge, but what is new is the reason why people are leaving. It’s no longer just about better pay or benefits, but also how happy employees are in their workplace. Survey results from HR consultant, Hays Canada, show that, depending on their seniority level, 30 to 40% of employees will not sacrifice their ideal fit for an opportunity with more money or incentives, while 25 to 30% are unsure. This means that more than half of the workforce has the potential to stay loyal to the organization simply because they are content in their current role. Company culture — or, essentially the organization's personality — bolsters that loyalty. It encompasses a variety of elements, including the company mission and values, and the workplace environment. The best way to determine if staff are happy in their roles is to ask them. By
demog raph ic cohor t entered t he workforce. “We need to break down some of those barriers and focus on knowledge transfer and building capabilities of the younger generation,” said Dickson. zz
identifying problems and taking steps to address them, employers can promote retention. Consider how employee responses fit with the company culture and don’t be afraid to make changes where needed. Identify the values of the organization and whether they are aligning with the needs of the staff. Change is difficult, but can bring significant rewards and benefits. The relationship between employee and company should be nurtured to build a trust between employee and employer. Make sure to review and address all problems, which could mean removing someone from the team, or reorganizing a team structure to enable a happier working atmosphere. Rowan O'Grady is President of Hays Canada. For more information, see the website at www.hays.ca.
Michelle Ervin is Editor of Canadian Facilities Management & Design. The preceding article was first published on the REMI Network at www.REMInetwork.com.
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