Issuu

Apartment CANADIAN

VOLUME 18 / NUMBER 6 / NOVEMBER 2021

SMART & SUSTAINABLE A WATERFRONT OASIS IN THE MAKING

plus

PA R T O F T H E

Q4 MARKET REPORT

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BUILDING

TECHNOLOGY CYBER PROTECTION

P A R T

O F

T H E

Yes, we can! Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more effectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, finance and accounting, to actual physical, on-site management, we oversee everything. We concentrate on revenue growth, controlling expenses, and strategic capital investment in your property to maximize your profitability over the long term — when you’re ready to discuss a better option; we’ll be there. You can count on it. Kazi Shahnewaz Director, Business Development Office: 416.340.1600 x504 C. 647.887.5676 k.m.shahnewaz@metcap.com

www.metcap.com

EDITOR’S NOTE>>

A NEW ERA FOR GREEN TECH

/cammediaedge /cdnapartmentmag /mediaedgecam

Since the COVID-19 pandemic began, technology has played a crucial role in keeping our society functional and connected while also keeping us physically distanced. From our ability to “Zoom” and make seamless digital payments, to the critical advancements we’ve made in telehealth and robotics, COVID has accelerated several key technological areas. In this issue, we explore how the world has changed since March 2020, and the widespread adoption we’re seeing of green technologies that not too long ago were considered pipe dreams. Look no further than Lakeview Village for an example. The soonto-be vibrant waterfront community is rising out of the ashes of an unsightly power plant that left the surrounding habitat in ruin. Since 2018, the partnership behind the project has been seeking out exceptional new ways to transform the 177-acre brownfield site into a “green model of sustainability.” Read our cover story for an in-depth look at this impressive, ongoing transformation. We’ll also bring you the scoop on the current housing situation in Northern Canada, update you on the latest apartment transactions, and provide key insights into recent regulatory changes like Toronto’s new inclusionary zoning policy. Other topics include a deeper look at cyber insurance, the aesthetical implications of 5G antennas, and the risks and rewards of property conversions. All that and so much more in our last issue of 2021. Wishing you a safe and happy holidays! Sincerely, Erin Ruddy @cdnapartmentmag

Erin Ruddy

Art Director

Annette Carlucci

Graphic Designer

Thuy Huynh

Production Manager

Rachel Selbie

Contributing Writers Andy Schwartze, Barbara Carss National Sales

Bryan Chong

Digital Media Director

Steven Chester

Circulation

Rob Osiecki For sales information call (416) 512-8186

Canadian Apartment Magazine is published six times a year by:

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President Kevin Brown Group Publisher Sean Foley Copyright 2021 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation 416-516-8186 ext. 234 circulation@mediaedge.ca Subscription Rates: Canada: 1 year, $50*, 2 years, $90*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes Requests for permission to reprint any portion of this magazine should be sent to Erin Ruddy.

Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor. The opinions expressed are those of the authors of articles and do not necessarily reflect the views of Canadian Apartment Magazine. This information is general and is not a substitute for legal advice.

HOUSING-RELATED FACTS & FIGURES

The housing sector currently emits 6% of greenhouse gases in Canada

Editor

Authors: Canadian Apartment Magazine accepts unsolicited query letters and article suggestions.

rent trends

About 1.7 million households in Canada are in housing need

Apartment CANADIAN

Average rent for a GTA condo apartment has risen 11.8% since October 2020

Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Apartment Magazine 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.

B.C.’s maximum allowable rent increase for 2022 is 1.5%

Rents in Kitchener, ON, increased by

14% in 2020 and 15% in 2021

Our Business is to Make Yours Shine! Whiterose is an Industry Leader with a long list of condos in the downtown and surrounding areas Whiterose Janitorial Services Ltd. believes in servicing its customers with professionalism, communication and appreciation. The Key to our success is service, quality and value. We clean beyond the surface! Quality management begins behind the scenes prior to commencing a job all employees are evaluated and or training to the whiterose standard given special attention to health and safety policies. Whiterose Janitorial Services is a full service company and a member of ACMO and CCI. Specializing in cleaning and live in & live out Superintendents for the past 30 years. Spectrum of Cleaning Services: • Facility assessment • House keeping and general cleaning services • Customized cleaning service plan • Customized cleaning schedules • Window cleaning (Exterior high rise) • Garage cleaning • Marble restoration & Polishing • Carpet cleaning

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Apartment CANADIAN

VOLUME 18 / NUMBER 6 / NOVEMBER 2021

FEATURES 14 A Telecommunications Conundrum 5G rollout could bring clutter of antennas

24 S MART PARKING, SMART INVESTMENT Leveraging your parking assets during lease-up and beyond

COLUMNS 8 Transactions Apartment Market Update 10 CMHC Supply and Demand in Canada’s North 26 Ask the Expert Repurposing your Commercial Space 28 Newsworthy Industry Hot Topics 32 Insurance Cyber Insurance Panic by Andy Schwartze

COVER STORY

DEPARTMENTS

Apartment

18 A Model in Green, Sustainable Living Lakeview Village in Mississauga transforms polluted industrial lands into a thriving waterfront community by Erin Ruddy

SMART & SUSTAINABLE

For daily industry news, please follow us on Twitter at: @cdnapartmentmag @REMINetwork

CANADIAN

Editor’s Note

ON THE COVER:

VOLUME 18 / NUMBER 6 / NOVEMBER 2021

Lakeview Village in Mississauga, ON

A WATERFRONT OASIS IN THE MAKING

34 Smart Ideas plus

PA R T O F T H E

Q4 MARKET REPORT

PM#40063056

BUILDING

Or visit our award-winning website: www.REMInetwork.com

TECHNOLOGY

P A R T

O F

T H E

P A R T

CYBER PROTECTION

O F

T H E

DIVERSIFIED CONSTRUCTION

24 HOUR EMERGENCY SERVICE ASPHALT PAVING CONCRETE PAVING SITE servicing LANDSCAPE CONSTRUCTION BUILDING RESTORATION WINTER SNOW SERVICES service@forestgroup.ca 416.524.3000 www.forestgroup.ca

Q4 2021 Rental Market Update Demand expected to keep rising in early 2022 Rental demand has been steadily strengthening since the return of post-secondary students to in-person classes in most major cities across Canada. At the same time, government income supports are beginning the wind-down phase, which will likely result in modest downward pressure on demand.

hat said, according to Morguard’s Director of Research, Keith Reading, the anticipated loosening of pandemic restrictions will support markedly stronger demand in early 2022. “Occupancy levels have increased of late, resulting in modest upward pressure on

rents in most regions,” he said. “New supply in the GTA and other regions will support increased demand supply balance in some submarkets over the near term. However, as 2022 progresses rental markets will continue to tighten as demand improves. Longerterm demographic trends and increased

immigration will set up the sector for healthy performance characteristics and rental market conditions over the next few years.” The strong rental market outlook will support the continued inflow of investment capital into Canada’s multi-suite residential rental sector in 2022 and beyond. Investment

New & Notable Transactions: Address

City

# of Units

Sale Price (Millions)

Sale Price/ Unit

Purchaser

110 Nonquon Road

Oshawa

114

$26.1

$228,947

Starlight Investments

2. 30 Edith Ave, 919 Dufferin St.

Toronto

285

$125.0

$438,596

InterRent REIT

Quebec City

260

$72.8

$280,000

CAPREIT

4. 345 Sentinel Road

Toronto

$23.7

$300,000

Reserve Properties

5. 3583 Kingsway

Vancouver

104

$52.0

$500,000

InterRent REIT/Crestpoint

1. 3.

Quebec City Portfolio

Source: Morguard

8 | Canadian Apartment | Part of the REMI Network |

TRANSACTIONS >>

NexLiving acquires 10 Properties in New Brunswick

sales will remain at or near record-high levels, given an abundance of available investment capital and limited supply. Consequently, property values will rise and cap rates will compress. In short, Reading says the sector outlook looks broadly positive, which will support healthy rental and investment market conditions over the next few years.

In mid-November, NexLiving Communities announced it acquired ten recently constructed apartment properties located in Moncton and Riverview, NB, for an aggregate purchase price of $72.6 million. Comprising 370 units in total, one of the buildings is currently in the initial lease-up stage, while another (“Mountain Road Properties”) is still under construction with an expected completion date of March 31, 2022. “We are proud to announce these transformative acquisitions that provide both operational and financial scale to the company,” said NexLiving’s CEO, Mike Anaka. “Over the past three years, NexLiving has grown from one building and 31 units to 18 buildings and 549 units. The acquisitions allow us to nearly double the portfolio to 919 units, while providing significant FFO accretion to shareholders.” NexLiving has structured the acquisition as four separate transactions, which will allow it to assume a CMHC mortgage on one of the buildings with an interest rate of 1.76 per cent, and also allow the Mountain Road Properties to stabilize and meet lease-up and income thresholds prior to completing the purchase. Upon full construction and lease-up of the Mountain Road Properties, anticipated to occur in Q2-2022, the portfolio is expected to generate $3.6 million in net operating income, which implies an overall portfolio capitalization rate of approximately 5.0 per cent.

ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PORTFOLIO/PROPERTY?

CBRE Limited, Real Estate Brokerage

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Over $7.9B

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Over 56,900

Suites Sold

$80,200,000 30 Edith Drive Toronto, ON 172 Units - $466,279 Per Suite

DAVID MONTRESSOR Vice Chairman Sales Representative

30 Years

david.montressor@cbre.com Scan to receive Apartment Listings and Market Research

of Experience

$63,000,000 100, 120 & 170 Old Carriage Drive Kitchener, ON 218 Suites - $288,991 Per Suite

$9,650,000 1911 Bayview Avenue Toronto, ON 22 Suites - $438,636 Per Suite

This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.

| www.REMInetwork.com | November 2021 | 9

Supply and Demand in Canada’s North Highlights from CMHC’s 2021 Northern Housing Report For residents living in Whitehorse, Yellowknife and Iqaluit, finding an affordable place to call home has never been an easy pursuit. With three main housing providers serving the three major centres—Yukon Housing Corporation, Northwest Territories Housing Corporation and Nunavut Housing Corporation—market activity is limited at the best of times. Add in widespread temporary shutdowns to contain the effects of a pandemic, and the resulting declines in employment, incomes, and migration only exacerbate that market stress.

10 | Canadian Apartment | Part of the REMI Network |

CMHC REPORT >>

ccording to the new report, a significant factor contributing to the region’s affordable housing shortage has been the closure of lumber mills. Intended to slow the spread of infection, the closures also meant suppliers were unable to keep pace with the strong demand for lumber that persisted throughout the pandemic, causing volatility in lumber prices across Canada. The Territories, which have always faced affordability challenges due to the high cost of land, labour, and construction, now faced even higher costs, which led to numerous housing projects being cancelled.

Whitehorse, Yukon In Whitehorse, positive interprovincial migration and improving labour market conditions in the first quarter of 2021 contributed to the downward pressure on apartment vacancies. Notably, the vacancy rate declined while the rental apartment universe increased slightly between April 2021 and October 2020. The median rent in Whitehorse for buildings with 3+ units was $1,071 in April 2021, compared to $1,050 in October 2020. For 2-bedroom units, the median rent increased to $1,250 in the spring of this year from $1,200 during last fall. The average rent was $1,296 in April 2021, compared to $1,248 in October 2020. In buildings consisting of three or more suites, the number of units in the rental universe was 1,095 in April 2021— up from 1,069 in October 2020. There were 104 rental apartment completions in 2020, most of which occurred during the first and third quarters. There were 350 rental apartments at the end of Q2-2021 in various stages of construction. Upon completion, these will increase rental supply in Whitehorse in the months ahead and potentially put upward pressure on the apartment vacancy rate.

Yellowknife, North-West Territories According to the October 2020 Rental

The Territories, which have always faced affordability challenges due to the high cost of land, labour, and construction, now faced even higher costs, which led to numerous housing projects being cancelled. Market Survey, apartment vacancy rate in Yellowknife declined from 4.1 per cent in 2019 to 3.6 per cent in 2020. Both 1-bedroom and 3-bedroom+ units saw lower vacancy rates in 2020, at 2.1 per cent and 6.9 per cent respectively. Meanwhile, the vacancy rate in 2-bedroom units increased modestly to 4.3 per cent. Although this may indicate strong demand for rental apartments, supply constraints were also a factor, having decreased by 2.2 per cent. A decline in universe size was captured across all bedroom types this year, with average rents increasing marginally. Median rent in bachelor units rose by 5.6 per cent, while 1- and 2-bedroom units saw increased median rents of 3.8 and 2.9 per cent respectively. Apartment turnover rates fell to 21.1 per cent from 27.3 per cent in 2020, as effects from the pandemic, restrictions, and economic volatility altered renter behaviour. Renters were more likely to stay in place than move throughout 2020. Nearly 30 per cent of the apartments in Yellowknife’s rental universe were built in 2000 or later. The remainder were built before 2000, including about a third that were built before 1979. Private apartments built after 2000 had a vacancy rate of 3 per cent, lower than the citywide average of 3.6 per cent. Units built from 1960 to 1979 had a vacancy rate of 4.2 per cent. Tight supply has contributed to current rental market conditions, with only 10 rental units completed between the third quarter of 2020 and the second quarter of 2021.

Iqaluit, Nunavut Rental housing for residents of Nunavut is primarily non-market housing based with very few in Iqaluit interacting with the private rental market. Most of the area’s residents live in social housing, subsidized housing for government employees, public housing provided by the Nunavut Housing Corporation, and housing provided to employees by private firms. Rental demand remained strong in Iqaluit in 2020, where the vacancy rate was less than 1 per cent for the third consecutive year. The average rent in 2020 was $2,752—roughly $83 more than in 2019. All bedroom types posted rent increases. Average rents ranged from a low of $1,641 for a bachelor unit to $3,676 for four or more bedrooms as rents tend to be higher as the number of bedrooms is increased. Demand remained strong for more affordable units, as well. This was reflected in low vacancy rates for bachelor units, 0 per cent, compared to a vacancy rate of 2.9 per cent for four or more bedroom units. The majority of the universe is in 1-bedroom units. It represented 37 per cent of the total rental universe in 2020. Larger rental units, of three or more bedrooms, represented 24 per cent of the total rental universe in Iqaluit, compared to 11% of the National purposebuilt rental market. This is in line with the larger households that typically exist in Iqaluit and Nunavut compared to the rest of Canada

To find out more about the changing topography of the rental housing landscape, and specifically, what’s driving residential evictions, visit: www.cmhc.ca. | www.REMInetwork.com | November 2021 | 11

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transactions with less paperwork. In other words, it can help streamline accounting processes and accelerate a paperless office strategy. For a property manager or landlord, this could mean being able to accept or request payments directly from tenants with immediate access to funds, paying contractors and invoices for work specific to the property with greater ease and retaining payment confirmations. Further, property managers and landlords could send a reminder for rent payment via request-to-pay capability and easily reimburse tenants for costs incurred on behalf of the property manager or for payment returns. Receiving payments instantly in this way can also be a game changer if a manager is largely reliant on cheques, eliminating any uncertainty around when one will arrive in the mail or whether it will clear. With Interac e-Transfer for Business, property managers can receive payment instantly, reducing the number

of cheques and cash they receive, eliminating the risk of late payments, and gain easy visibility into what the payments are for using structured data. Eight in 10 (80 per cent) business decision makers surveyed agree that moving from traditional payment options to digital ones will be essential to post-pandemic growth . Assessing how a business can revamp its payment processes and financial management to become more efficient and effective with tools like Interac e-Transfer for Business can help to equip the commercial property industry as it embarks upon growth and recovery plans. Those interested in using the solution are invited to learn more by visiting Interac.ca/business, In The Know and to discuss the offering with their financial institution. Interac and Interac e-Transfer are registered trademarks of Interac Corp..

(1)Interac commissioned Hill+Knowlton Strategies to conduct a national survey of adult Canadians. A total of 1,000 adult residents of Canada were surveyed online in April 2021. The sample was randomly drawn from a panel of potential survey respondents. An associated margin of error for a probability-based sample of this size would be ±2.5%, 19 times out of 20. (2)Interac commissioned Phase 5 Consulting to conduct an online survey of 152 financial decision-makers in Canadian midsized businesses with 100-499 employees. Participants were recruited via an online research panel. Fieldwork was conducted in English and French in May 2021. (3)Interac participated in RFi Group’s online commercial banking and payments syndicated survey of decision makers at 363 commercial enterprises with revenues between $10M and $100M. Fieldwork was conducted in English and French in June 2021. Note: Finance transformation describes any strategic initiative meant to create new opportunities for the finance function to add value to the business and align with overall company strategy.

FEATURE >>

A TELECOMMUNICATIONS CONUNDRUM 5G rollout could bring clutter of antennas by Barbara Carss Making buildings smarter could force some aesthetic trade-offs as the 5G rollout gets underway in commercial real estate. Mid-band and high-band spectrum carrying the next generation of digital telecommunications will need a boost from a proliferation of new antennas to infiltrate the dense structure and floorplan configurations of typical office and multi-residential towers.

lthough distributed antenna systems (DAS) are already a staple of inbuilding wireless networks, they’re conveying data that’s riding on more invasive waves in the low band of the spectrum. Extra support will be needed when 5G services begin arriving via meeker travellers. Industry insiders are now tagging a potential clutter of

14 | Canadian Apartment | Part of the REMI Network |

small-cell antennas among the many factors to consider in 5G feasibility studies and implementation strategies. “The higher spectrums don’t penetrate the buildings very well, especially with the new glass that’s used for energy efficiency. It reflects the radiofrequency signals. So carriers are going to have to deploy

in-building networks that will be able to support 5G,” Maria Andonovsky, director of operational excellence with BentallGreenOak, noted during a webinar at the Building Owners and Managers Association (BOMA) of Canada’s recent virtual annual conference. “How is that going to look visually in the building? I don’t

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think owners want these antennas splattered throughout the building. If there are multiple carriers in the building, aesthetics will be a major issue.” Other properties of the mid and high bands — which are at various stages of regulatory release for telecom carriers’ use — are more optimally suited for 5G. Also participating in the webinar, Peter Leathley, director of technology strategy with Telus, stressed that speed, capacity and security are critical for the scale of smart, integrated technology it’s envisioned 5G will enable. Ultimately, that includes up to a million connected devices per square kilometre with consistently instantaneous timing between transmission and reception of data — a relay known as latency — to serve up the applications and assurance for a range of real-time analysis and response aligned with a smart future. “Low latency is a must for future cloud networks and the current networks can’t support very low latency requirements,” Leathley said. “Another major consideration is cybersecurity. When millions of devices are connected wirelessly, the current networks cannot process the large amount of encrypted data at a fast enough rate.” No rush to early adoption For now, 5G rollout is at early stages and mostly still keeping company with 4G on the low band of the spectrum. Andonovsky and Leathley sketched out some issues for owners/managers to think about in advance of the looming developments, with Leathley highlighting the upside of the promised transformative change and Andonovsky examining some of the practicalities of being an early adopter. From an operational perspective, 5G is a means to take building automation, monitoring and controls to an enhanced level, opening up new predictive smart technologies like digital twin. From a market competitiveness perspective, Leathley suggests it’s an amenity than can underpin higher rental rates and increased asset value. “We need smart buildings because demands on the built environment are changing. We need our buildings to be more sustainable, safer and competitive,” he submitted. “These are additive technologies that produce more capabilities as they go. We’re going to be talking about maybe changing how you do parking or changing how you do facilities management or 16 | Canadian Apartment | Part of the REMI Network |

bringing augmented reality capabilities to your tenants — working with you to change how people are using the office in a postCOVID environment.” However, those should all be viewed as investments to be made on top of initial 5G implementation. “Connectivity is one component of the costs,” Leathley reiterated. “You’ve got the physical infrastructure, the digital infrastructure in your building that’s really critical, but, beyond that, you have platforms and applications that leverage the network and those are other costs to consider.” Andonovsky advises that prudent owners/managers will want to address everything from cost-sharing arrangements to cybersecurity vulnerabilities to the impact on the integrity of roof membranes before making a commitment. Consulting with tenants and other stakeholders will be key to forecasting demand for services, understanding operational requirements and calculating potential returns on investment. Given 5G’s current nascent stage, she deems there is time for thorough diligence and no real reason just yet to be the industry pioneer. “We really just experience 5G (currently) where the carriers have deployed their cell sites and picocells and it seems like the deployment focus right now is in venues such as stadiums and malls where there are a lot more users,” she observed. “With commercial office buildings, there are concerns about being able to obtain 5G due to the spectrums being used and the amount of antennas that will need to be installed in the buildings. I believe owners will need to wait and watch and make their decisions based on cases that come to light over time.” Building owners call for neutral distributed antenna systems For commercial buildings owners/managers, prospects for a neutral or “agnostic” DAS could be a large piece of the decisionmaking puzzle. This would ensure that the potential clutter of antennas is minimized as all carriers use the same system, and would

give landlords and tenants more flexibility in their dealings with carriers. “It’s an ongoing conversation between building owners and the major telcos,” Andonovsky reported. “I don’t know that we’ve come up with a solution yet, but I think it’s something that we all want to work towards and it would be more efficient in the buildings to have that.” Leathley affirmed that Telus is ensuring DAS are 5G-ready where they are newly installed. As mid-band spectrum becomes available, small-cell antennas can be added to meet system requirements, and they won’t necessarily look like the 4G-related antennas that Andonovsky likens to the size and shape of pizza boxes. “We’re talking about an increased number of antennas, closer to people, as you get into that mid and high band,” Leathley said. “This will be done with equipment that is smaller and integrates more seamlessly into existing space.” Nevertheless, any kind of retrofit can be cumbersome in older buildings that weren’t designed to accommodate modern telecommunications. “Some older buildings don’t have conduit or places to pull cable that are necessary for these antennas so that can be a challenge,” he acknowledged. “Undertaking an audit of your existing buildings, understanding the systems you have in place, and some of the details around space for equipment and accessibility to conduit, are really good steps to get ready for deployment of small cells and 5G technology,” Leathley added. Andonovsky concurs those steps have been part of her company’s strategic efforts to determine how 5G will fit into its operational and asset management agendas. She predicts commercial real estate owners/managers will approach 5G investment decisions in their customary manner. “Owners embrace technology when they understand the impact to net operating income, the value improvement to the property and that the risks have all been addressed,” she said.

Barbara Carss is editor-in-chief of Canadian Property Management.

STABILITY AND BALANCE

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A MODEL IN G SUSTAINABLE Lakeview Village in Mississauga transforms polluted industrial lands into a thriving waterfront community

By Erin Ruddy Once the site of the Lakeview Generating Station, the coal-burning station known for its “Four Sisters” smokestacks, Lakeview Village in Mississauga is on its way to becoming a vibrant mixed-use community. Since July 2018, the partnership at the helm of the evolving new development has been actively pursuing innovative green technology while engaging in the revitalization of the area’s natural environment. Future plans for the site include a range of housing options, spaces for education and offices, an innovation district, multicultural recreational programming, direct access to local transit, and an extensive parks system with access to the neighbouring 64-acre Jim Tovey Conservation Area.

COVER STORY >>

GREEN, LIVING

| www.REMInetwork.com | November 2021 | 19

COVER STORY >>

“In 2018, we purchased the brownfield site and began working with passionate locals on a shared vision for what this incredible transformation could bring to Mississauga’s waterfront,” explained Brian Sutherland, Vice-President of Development, Argo Development Corp and development lead for Lakeview Village. “Today we are building a vibrant and sustainable mixed-use community with solutions to address climate change, energy resiliency, waste management and mobility challenges.” Lakeview Community Partners Limited (LCPL) is comprised of several leading community builders, including TACC Construction, Greenpark Group, CCI Development Group, Branthaven Homes, and Argo Development Corporation. Supporting LCPL is a team of experts in architecture, planning, urban design, placemaking, and transportation engineering—all galvanized by the same goal of

20 | Canadian Apartment | Part of the REMI Network |

seeking out viable, sustainable, low carbon green technology and solutions. According to Sutherland, district energy is among the technologies currently under review. In late-November, LCPL announced it had partnered with Enwave to evaluate the environmental benefits and technical and financial feasibility of a district energy system based on the thermal energy produced at the nearby G.E. Booth Wastewater Treatment Plant. “If implemented, the effluent heat recovery system would be the first application of its kind and scale in North America,” said Sutherland. “The system at Lakeview Village would have the ability to provide for over 6,000 tonnes of carbon savings annually with the elimination of traditional (gas powered) heating and cooling systems in buildings.”

COVER STORY >>

The Lakeview Village sustainability strategy focuses on six priorities to help it achieve planned targets for key sustainable issues, infrastructure resilience and future-readiness: 1. Place - Public Spaces, Culture & Identity, Diverse and Affordable Housing. 2. Prosperity - Economic Development, Education, Innovation. 3.

Health & Wellbeing - Resilience, Active Living, Healthcare Access, Safety.

Connectivity & Mobility - Street Network, Smart Mobility, Smart City Services.

Living Infrastructure - Ecosystem Health, Connection to Nature, Natural Features

Resource Regeneration - Climate

Additionally, LCPL has been working with Envac, the City of Mississauga, and the Region of Peel to explore the technical and financial feasibility of incorporating a vacuum waste system at the new community. If adopted, the system would replace traditional curbside waste, recycling and organics pick-up, subsequently improving waste diversion rates and diminishing truck traffic in the community. Other critical benefits would include the elimination of overflowing garbage receptacles in parks and the reduction of plastics in the great lakes.

regional staff, travelled to Sweden on a fact-finding mission to observe green technologies in practice and to meet with industry-leading developers. “In Gothenburg, we visited an Innovation District and saw first-hand how the deployment of data-rich living labs will guide and inform our future development practices, as well as how Lakeview Village can provide statistically relevant data to address civic challenges,” said Sutherland. “In Stockholm, we experienced district energy and vacuum waste systems in practice. In Malmö, we explored how to implement world-class sustainable practices right on the waterfront. Our goal was to gather this knowledge and bring that level of world-class technology and leading-edge community planning to Canada.”

Green inspiration: a fact-finding mission to Sweden In 2019, key members of the LCPL team, along with Mississauga Mayor Bonnie Crombie and other city and

Restoring the natural habitat Meanwhile at home, LCPL has undertaken several key initiatives to restore the natural habitat that pre-dated the coal-burning days of the late 1950s,

| www.REMInetwork.com | November 2021 | 21

COVER STORY >>

when the Lakeview Generating Station was constructed. LCPL’s efforts to undo decades of damage include a multi-year coastal habitat project which aims to create a green oasis for local wildlife, flora and fauna. To date, LCPL has excavated and donated over 250,000 tonnes of concrete to help construct the 22 | Canadian Apartment | Part of the REMI Network |

foundation and breakwater for the Jim Tovey Lakeview Conservation Area. Additionally, Serson Creek—a degraded piped water course that runs under the G.E. Booth Wastewater Treatment Plant—is being restored with a new low-flow channel to divert flows out from underneath the treatment plant. The corridor,

which leads out to Lake Ontario, was designed to create a fish and wildlife habitat and promote ecological connectivity. “This restoration approach is anticipated to create a source of native biodiversity that, over time, will spread into other adjacent areas and benefit

COVER STORY >>

many species of native fish and wildlife,” Sutherland said. Field of a million sunflowers In 2019, LCPL planted a field of one million sunflowers to help remediate the site’s soil and reduce the concentration of contaminants in the surrounding environment. Aside from its obvious beauty, local residents are now enjoying the return of native butterflies and bees—pollinators that play a critical role in every aspect of the ecosystem, supporting the growth of vegetation and providing food and shelter for local wildlife. “Very soon, Lakeview Village will be a place where we can welcome local residents and people from around the world to show them our amazing accomplishments in responsible, environmentally conscious development,” said Sutherland. “We are in an incredibly unique position to take the site of a former coal refinery and turn it into a future ready, sustainable community, right on the shores of Lake Ontario, while propelling Canada’s leadership position on climate and sustainability on the international stage.” Housing plans for Lakeview Village In terms of what can be expected on the residential front, current plans include a mix of housing options creating more than 8,050 needed units. “We’ve entered into a commitment with the City of Mississauga to make five per cent of the housing (over 400 units) affordable,” said Sutherland. “This commitment will be delivered in a variety of different forms throughout the development and will be accomplished through various phases of construction.” Key structures within the Lakeview Village development are already underway, including the Discovery Centre, a multi-storey event and learning space. When complete, the 20+ acre Lakeview Village Innovation District will be a centre for employment and crosssector business innovation in the GTA. LCPL is anticipating the creation of 9,000 long-term jobs in partnership with the City of Mississauga’s Economic Development Office. To learn more about Lakeview Village and how it is bringing a sustainable 15-minute community to Canada, visit: www.mylakeviewvillage.com.

About the Lakeview Generating Station The Lakeview Generating Station was an Ontario Power Generation coal-burning station known for the “Four Sisters” stacks that could be seen from as far away as Burlington to the west and downtown Toronto to the east. Constructed between 1958 and 1962, the station was shut down in April, 2005, after 43 years of service, then demolished completely by June of 2007. Lakeview ran at its highest capacity as a baseload plant from the late 1960s to the early 1980s and met about 17 per cent of the province’s energy needs. But in that time it took its toll on the natural environment, polluting the air and water, and decimating the area’s delicate ecosystem.

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SMART PARKING, SMART INVESTMENT Leveraging your parking assets during lease-up and beyond by Jeremy Zuker Anyone in the multifamily industry knows how crucial the lease-up period is for ensuring a building’s longterm success. With these periods lasting longer in the era of COVID, apartment owners in some cities are attempting to mitigate their profit losses by temporarily using their empty units as short-term rentals. But this strategy isn’t permitted everywhere, and it only leverages a building’s most obvious asset—the apartment units. What about all those empty parking stalls? Most multifamily buildings in lease-up have at least as many unused parking spaces as they do unused apartments. Finding creative ways to use them has never been easier, thanks to current trends and technology. The key is to know the zoning laws and restrictions for your area that may impact your approach. When and how to profit from your parking In simple terms, a lease-up period is the time between when a multifamily apartment community announces its launch until about six to twelve months after its official opening. With lead-up time, a lease-up period can last up to fifteen months, during which your occupancy is expected to reach above 90 per cent with residents paying rent at market rate. Building owners typically use the lease-up 24 | Canadian Apartment | Part of the REMI Network |

period to establish their property’s brand and website, and to become a presence within the community. But it is often a period in which the building isn’t performing to its full capacity and may even need to be run at a loss. Yet, each empty parking spot represents an opportunity for the owner. Ideas for use include renting the spaces out to local restaurants for valet parking, curbside pickup, or even a specialty food truck.

Retail stores may also rent out spaces to serve as designated parking for customers, or for a temporary “pop-up” location. And how about those entrepreneurs offering car-centric services like car washes and detailing, minor repairs and diagnostics? A location in a parking lot couldn’t be more ideal. All of these uses have the added benefit of creating a sense of community around your

FEATURE >> building. Those once-empty concrete spaces are now serving a purpose, bringing more foot traffic and interest to your property while giving residents a deeper attachment to their new home. Not only that, but visitors lured by an exciting pop-up might just fall in love with the location and inquire about living arrangements. Of course, all of this depends on zoning restrictions and neighbourhood regulations governing such amenities, but by finding good uses for parking, building owners can attract new renters and thus reduce the time spent leasing up to full capacity. Smart parking: the simplest solution While it is lovely to imagine your unused parking spaces serving as the site for hip pop-ups and tasty food truck eats, the most straightforward way to monetize those free spaces is by offering them up to non-tenant drivers. Building owners looking to unlock a new revenue stream to help keep a property solvent during the lease-up period may want to consider “smart parking” first. Smart spaces are created when technologies like augmented reality, the internet of things (IoT), and mobile communications partner with

data, analytics, and machine learning to create guided, next-level experiences of moving through a location. Smart parking applies this concept to the act of parking one’s car using automated processes to make finding and reserving a spot easy and painless, and payment intuitive or even automatic. These principles (or at least the infrastructure to install them) should already be in place in any new construction, and they can vastly improve the ability of parking spots to generate income. Smart parking lots can include digital signage to help people find their spots faster, the ability to reserve online, and navigation to make finding spots easier. By fitting your parking spaces with sensors to detect the presence or absence of cars, building owners can create an automated, efficient parking lot that will serve you well for your property’s lifetime.

Choosing the correct application Ultimately, turning a parking lot into a profit generator is as easy as choosing the right parking app to administer the process. By interfacing with the sensors, and using the data available from past driver behaviour, a parking app can help individuals reserve their spots, navigate to their empty space, and pay for their parking, all in one seamless interaction. These apps can even be flexible enough to adjust parking availability day by day as residents come and go. Choosing the right parking app can mean the difference between an expensive, high-maintenance headache and a minimum-friction source of unexpected income. Even long after building lease-up is complete, the right parking plan paired with the right parking app can ensure any unused spaces remain reliable sources of revenue, serving you and your building well for the long haul.

Jeremy Zuker is the co-founder of WhereiPark, a technology company that enables multifamily residential and commercial property owners to discover new revenue sources through innovative solutions that leverage unused parking spaces.

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ASK THE EXPERT >>

Repurposing your Commercial Space Key considerations before undergoing a property conversion by Dru Douglas Real estate has been impacted in a variety of ways since the advent of COVID-19. Office buildings, storefronts, and restaurants continue to be affected, and it remains to be seen whether these hard-hit markets will ever recover completely.

But for property owners facing continued uncertainty, there is hope. What used to be a storefront doesn’t have to remain that way, just as a vacant restaurant doesn’t have to be replaced by a new eatery. With warehouse spaces and rental housing now in hot demand, many real estate owners are choosing to undergo a property conversion to breathe new life into their lagging investments. While repurposing a property may be the best way to turn an empty eyesore into a vibrant, active commercial space, 26 | Canadian Apartment | Part of the REMI Network |

it’s also a recipe for increased risk. Before undergoing a conversion, consider the following implications: Local codes and zoning laws – Changing a building’s zoning designation takes time, and it may require additional costs to renovate or adapt the building for its new purpose. Additionally, the new space won’t be grandfathered in and will need to meet the updated codes—and don’t forget, legal fees will be required to petition the municipal zoning board.

Building ordinance upgrades – Renovating a property will always come with a requirement to include recent ordinance upgrades, which can include stricter guidelines than were originally required. Make sure you consider other improvements that may be needed before you proceed. Vacancy clause – If your property has been vacant for a period of time, your insurance coverage may have lessened significantly. Obtaining new coverage for a repurposed property will be a challenge

ASK THE EXPERT >>

until the vacancy is cleared. Check with your insurance carrier to determine the level of coverage you currently have. Triple Net Lease – Similarly, owners/ operators of large properties, such as a big box retail outlet, may encounter challenges with a Triple Net Lease. In this case, the tenant is responsible for all costs in exchange for reduced rent, including insurance coverage. But when the tenant leaves, the coverage disappears, and the building owners must secure coverage quickly to protect against vandalism or fire. What a conversion could mean for your insurance Repurposing a property can lead to significant insurance implications, which is why many real estate owners and operators are reaching out to their insurance brokers for a quote, long before committing to the change. Here are some important insurancerelated considerations:

impossible to repurpose your space— especially if you are adequately prepared for the intended industry. Preperation can be achieved in the following ways: Learn all you can – A new industry may create different legal liabilities for the owner/ operator. A successful shift can only happen when the owner/operator seeks to understand the new industry deeply. For example, a warehouse owner has responsibility for all products and materials housed in the space, so a liability policy is necessary to protect the owner from the financial consequences of a fire, theft or negligence. Determine your risk profile – A repurposed property is subject to a different risk profile, which could require an entirely new insurance policy, complete with additional limits

and extensions. Part of learning about the new industry is understanding the owner/ operators’ responsibilities and liabilities. Consider building ordinance coverage – Building ordinance coverage, an extension to a property policy, covers a facility for upgrades required by ordinances passed after the building was constructed. If you are shifting into a different type of retail space, for example, you may need other upgrades to prepare the space adequately, and this coverage can help you foot the bill. In conclusion, repurposing property can go a long way toward helping real estate owners and operators weather the challenges of the commercial real estate market. But real estate owners need to take active steps to reduce their risk and become more attractive to the underwriters.

Dru Douglas is an account manager for the Ontario region for global insurance brokerage Hub International. He specializes in insurance and risk solutions for the office, retail, industrial and multi-family sectors of commercial real estate.

Insurance capacity depends on the industry – Some carriers specialize in different types of property coverage, so it may not be possible to switch your current insurance to cover the new purpose. Be sure you can secure appropriate coverage before offering your space to a specific tenant in another industry. The “hard” commercial insurance market has become more selective – Because of rising catastrophic claims and an increasing number of water damage claims, underwriters have become pickier about what they choose to insure – and premiums have risen in response. As a result, a repurposed space may not be able to secure coverage as simply as a renewal would. The reinsurance market can be restrictive – It carries a lot of weight and can restrict underwriters from taking on a risk they may have been comfortable with. There is very little underwriters can do to fight back. If reinsurers decide they aren’t willing to take a risk, you won’t be able to secure coverage.

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Industry Hot Topics GWL Realty Advisors opens “Chronicle” in Vancouver

WL Realty Advisors announced it has officially opened Chronicle, a 21-storey, 128-unit market rental tower located at 825 Nicola Street at Robson. The new purpose-built rental building adds significant rental stock to the Lower Robson neighbourhood, which has not seen a new rental property open in decades. “GWL Realty Advisors is proud to have brought new rental housing to Vancouver’s West End,” said Ralf Dost, President, GWL Realty Advisors. “Chronicle is a reflection of our focus on building strong, engaged, liveable communities in cities like Vancouver. We’re looking forward to welcoming individuals and families who want to love where they live, build a life in the downtown core, and enjoy all that connected urban living has to offer.” Described as “more than a collection of rental units,” Chronicle was designed to be a community for its residents. More than a 28 | Canadian Apartment | Part of the REMI Network |

third of Chronicle’s units are two- and threebedrooms in response to the shortage of family-oriented rental housing in the area. The property offers indoor and outdoor amenities including fitness and yoga rooms, a rooftop patio with an outdoor fireplace, seating area and dining space. Chronicle is pet-friendly with amenities geared toward pet owners that include a pet spa with dog washing and grooming facilities and a “bark park”, an outdoor space for pets on the building’s second floor rooftop. “In a city where over 50 per cent of people are renters, increasing our supply of secured market rental apartments is critical. The completion of Chronicle represents an important next step in expanding the range of rental options in downtown’s West End,” said Mayor Kennedy Stewart. “By increasing the supply and diversity of housing in highly desirable, family-friendly, transit-connected neighbourhoods—as this project does—

we are taking a step in the right direction and moving closer towards making Vancouver a city that works for all of us.” Chronicle was the first project on the Robson corridor approved under the new West End Community Plan, and it delivers on the City’s efforts to increase rental housing density in the area. The Lower Robson neighbourhood has some of the highest land costs in the city and, until now, new developments have tended to take the form of luxury condominiums. As a purpose-built market rental tower from an institutional developer that intends to hold and manage the building on a long-term basis, Chronicle has broken that trend. GWL Realty Advisors developed the project on behalf of the project owner, The Canada Life Assurance Company. Chronicle was designed by architect the IBI Group. The building will be professionally managed by GWL Realty Advisors Residential.

NEWSWORTHY >>

Luxury rental community “The Parker” opens in Toronto

five-star rental community called “The Parker” has officially opened in midtown Toronto. Described by developer Fitzrovia Real Estate as an “innovative development that is set to redefine luxury rental living in Toronto,” the upscale residence includes a two-storey fitness centre designated an Official Hammer Strength Training Facility, a separate yoga sanctuary and spin studio, a rooftop pool with cabanas, an arcade and billiards room, two bowling alleys, a pet spa, a two-storey sky lounge and a children’s playroom containing a custom tree playhouse. “The Parker will offer an extraordinary level of hospitality and customer service inspired by the world’s most admired hotels,” says Adrian Rocca, CEO of Fitzrovia. “The Parker has confronted the status quo, offering its own dedicated 24-hour hospitality team, complimentary virtual healthcare from the Cleveland Clinic, highly curated monthly resident events, and so much more.” The Nordic-inspired interiors of The Parker were designed by the award-winning team at Figure3. According to Principal Dominic De Freitas, “The Parker is truly a stand-out community and has elevated rental living in Toronto to a new standard. The intense attention to detail, quality of interior finishes, and unique amenity offering make The Parker an exceptional rental option for those looking for a living experience centred around excellence.” One unique element that separates The Parker from other rental communities is the custom artwork, including an original largescale mural in the Lobby Lounge by renowned Canadian contemporary artist Cassie Suche. Parker residents will enjoy easy access to Boxcar Social in the Lobby Lounge, where freshly made espresso and baked pastries will be available in the morning, along with and new-world wines, craft beer, and bourbon in the evening. The Parker has also teamed up with Greenhouse Juice to offer residents locally crafted organic cold-pressed juices and kombuchas in two convenient locations, the Lobby Lounge and penthouse fitness centre. Meanwhile, each suite features Gigabit Internet by Rogers, Wifi-enabled NEST thermostats, and keyless entry, along with sophisticated kitchen finishes and decor. For more information visit: www.TheParkerLife.ca

Toronto says yes to Inclusionary Zoning

n November 9th, Toronto City Council announced it would be moving forward with the new Inclusionary Zoning policy framework, a subject of contention for the better part of a decade. Though tenant groups such ACORN have long advocated for a plan that would see more affordable units introduced into the market, they are not convinced the new policy goes far enough. “ACORN members are happy to have won the policy, but disappointed that it could have been much stronger,” the group said in a statement. “What council voted on today, units affordable for 99 years, IZ applying to the entire development, are huge victories that ACORN members and allies won through the hard work of organizing. That said, council voted to protect developer profits rather than the right to housing.” The City of Toronto is the first city in Ontario to implement inclusionary zoning which will require certain new residential developments to include affordable housing units. On November 9th, 2021, Council voted in favour of an Inclusionary Zoning Official Plan amendment, a Zoning Bylaw amendment and draft Implementation Guidelines, which will make it mandatory for certain new developments around Protected Major Transit Stations Areas to include affordable rental and ownership housing units beginning in 2022. “This comprehensive Inclusionary Zoning policy will get more affordable housing built in our city,” said Mayor John Tory. “Toronto’s plan supports its hard-working residents with low-to-moderate household incomes, builds inclusive communities and helps to ensure that affordable housing remains available well into the future. I’m pleased that City Council adopted this plan, which will help the City achieve its target of approving 40,000 affordable rental and 4,000 new affordable ownership homes across Toronto by 2030. Policies like this one are the right move forward to get thousands of homes built and it will ensure that our city remains vibrant and strong as it continues to grow.” Inclusionary Zoning will secure five to 10 per cent of condominium developments (over minimum unit thresholds) as affordable housing, increasing gradually to eight per cent to 22 per cent by 2030. The amount of affordable housing required will vary depending on where in the city the development is located and whether the units are intended for rental or ownership, with the highest requirements in the Downtown area, followed by Midtown and Scarborough Centre. According to the City’s official press release, Toronto’s Inclusionary Zoning framework sets out foundational requirements for affordable housing to be incorporated on a consistent basis in new developments and ensures affordability is maintained for 99 years. The policy will be closely monitored and reviewed after one year to allow for adjustments that may be required including changes to the phase-in and/or set aside rate, alterations to the minimum development size threshold and any other changes needed to ensure market stability and production of affordable housing units. Additional market analysis will be conducted in areas of the city currently undergoing a planning study, such as Little Jamaica and the Sheppard Subway Corridor, to identify opportunities to expand Inclusionary Zoning to other areas, with an update report by mid-2022. In the City’s policy, rent and ownership prices will be centred on new income-based definitions of affordable housing, targeting households with an annual income of between $32,486 and $91,611. This policy tool was developed based on detailed financial impact analysis and input received from extensive public consultations, which took place throughout the last two and a half years. The resulting balanced, forward-looking and equitable framework will help the City achieve the HousingTO Action Plan target of approving 40,000 affordable rental homes and 4,000 new affordable ownership homes by 2030. | www.REMInetwork.com | November 2021 | 29

NEWSWORTHY >>

New report urges widespread adoption of electric heat pumps

ccording to a new study from the American Council for an Energy-Efficient Economy (ACEEE), electric heat pumps in multifamily buildings cause less than half the greenhouse gas emissions of gas-fired water heaters, presenting a key climate opportunity. The new report released this week calls for policymakers to ramp up efforts to help multifamily building owners replace older, inefficient equipment. In residential buildings with five or more units, water heating uses more energy than space heating, cooling, or lighting, making it all the more imperative that this

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equipment operates efficiently. The analysis shows that converting gas-fired water heaters to electric heat pump water heaters (HPWHs) would cut resulting greenhouse gas emissions by an average of 58 per cent. Still, replacements in multi-residential buildings aren’t expected to take-off given the higher upfront cost and lack the incentive to invest in the technology. “Gas water heaters are the biggest energy users in multifamily buildings, but most owners don’t have the incentive to switch to a more efficient electric option,” said Amruta Khanolkar, senior project manager at NBI and report co-author. Hannah Bastian, research analyst at ACEEE and fellow co-author, added, “We need to get this critical carbon-cutting technology into millions of buildings. We need new utility programs, tax incentives, and training for contractors to install these water heaters, and quickly. Today’s natural gas prices are a reminder that relying on energy with big cost fluctuations can be a real risk for those paying the utility bills.” According to ACEEE, if all the gas water heaters in U.S. multifamily buildings were replaced with electric heat pumps, 175 trillion British thermal units per year of energy would be saved, and sigificant greenhouse gas emissions—equivalent to what’s produced by 1.4 million passenger vehicles—would be reduced. Electric heat pumps can also shift electricity consumption from hours of peak demand to times of low demand. They effectively serve as thermal batteries, reducing strains on the electric grid and helping enable the widespread use of renewable energy. The report finds that HPWH in multifamily buildings could together potentially store 3.5 terawatt hours of energy—an amount equal to the electricity used by 325,000 homes over a full year. “Heat pumps not only cut greenhouse gases but can heat the water at times when the electric grid has plenty of renewable energy and store it to be used when the grid is strained,” said Khanolkar. That said, there are cost challenges when replacing gas products with HPWHs in multifamily applications, particularly in cold climates and regions with low gas prices or high electricity costs—hence why federal, regional, and utility financial incentives and policy changes are key to their adoption.

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INSURANCE >>

Cyber Insurance Panic The demand for coverage is rising… by Andy Schwartze Just recently, an active client in the financial services sector called me with an urgent requirement for “cyber insurance”. Though the two-word phrase is increasingly becoming a talking point with my larger clients, I couldn’t resist wondering why the sudden panic to get this coverage in place. As the story goes, a sophisticated interference in a series of email communications between an employee and a client resulted in the transfer of a seven-figure sum to the hacker. The money is gone, somewhere in China, and recovery is all but impossible. Given Canada is often cited as one of the top targets for cybertheft of this nature, it’s no surprise there is a growing demand for this new type of insurance. That said, like all new forms of insurance, melding the need with the product is never easy. In the insurance 32 | Canadian Apartment | Part of the REMI Network |

world, the need often presages the actual availability of coverage, because inevitably something else happens that shifts everyone’s focus to a new exposure. Still, we’re getting there. Cyber insurance is far more readily

INSURANCE >> available today than it was just a couple of years ago. Lloyds of London was one of the first institutions to offer cyber liability insurance to companies with significant databases containing personal information. Vulnerable to class action lawsuits in the event of a hack, these companies rightly wanted protection. Interestingly, it has turned out that large-scale data breaches happen less often than other cybercrimes, like ransomware. This is when hackers get into a system, disable it, and politely inform the business that for a few million dollars they’d be happy to restore the system. Ransoms have been paid in some instances, and in one recent story there was even a happy ending. The FBI managed to figure out where the ransomed crypto money had been sent and was able to recover two thirds of the initial amount. On the insurance front, we now have some credible insurance underwriters who’ve grown comfortable with this niche and have acquired a clearer understanding of an applicant’s IT system(s), such that coverage can be offered and priced to some level of reasonableness. These underwriting procedures sometimes include a visit to an applicant’s IP addresses where someone snoops around and analyses just how easy it might be to penetrate the computer data systems. Applications differ significantly, and one underwriting firm now even allows insurance brokers to secure an online quote. Don’t take that too seriously—it’s a great way to hook someone with an interest in cyber insurance, but the underwriting goes a lot deeper than a few general questions on a website. Another reputable carrier has an extensively detailed application, which clearly indicates that the insurer has developed a small team of specialists that understand the topic. The availability of coverage from the Lloyds of London underwriting community has matured nicely. The applications are reasonably easy to work with and the coverage options are clear and easy to understand. What is not entirely well-established is the pricing of the various coverage options and the level of coverage offered by the few insurers in this niche. The dollar availability of insurance protection, and the price that is put on that, is not easily determined in the early stages of any new kind of insurance. It takes time to grow that ability, and this comes from a combination of learned underwriting costs and some claims history. We can likely expect this process to develop over the next five years. It is obvious that this is a developing insurance niche. We are seeing cyber insurance requirements being inserted into commercial contracts, thus cementing the need to maintain and annually renew such insurance policies. One should remember, however, that a contractual obligation entered into does not impose the obligation on one’s insurer to provide the required coverage. At the end of the day, insurance companies will offer what insurance they are comfortable with, not what you and I demand of them. My advice at this time is to work with an insurance expert who has a deep understanding of the insurance and risk management areas of contracts to avoid having to provide insurance that the market cannot, or will not, provide.

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Smart Ideas

WATER LEAK DETECTION New devices with dual purpose

Leaky taps and overflowing toilets are at the top of every property owner’s “DO NOT WANT” list. Wasteful and potentially costly, dripping faucets and unchecked water flow can lead to numerous issues down the road. Investing in water leak detection makes sense, especially given today’s impressive, easy-to-implement applications offer more than one purpose. Here what’s new on the market: The Rusco Smart Ball Valve Compatible with leading smart hubs, including Amazon Alexa and Google Home, the new Rusco Smart Ball Valve, released in November, is an app-driven device that serves the dual purpose of sediment flushing and flow shut-off. Research has drawn correlations between sediment and health risks, including exposure to harmful bacteria and viruses, contaminants of emerging concern and dissolved metals. Protect your property from leaky pipes while filtering out harmful sediment—it’s a win-win scenario for all. www.rusco.com SimpleSENCE Water Leak and Freeze Detector Launched this year for commercial businesses, the 34 | Canadian Apartment | Part of the REMI Network |

SimpleSENCE Water Leak and Freeze Detector is perfect for apartments in that it guards against structural or equipment damage from undetected water leaks and frozen pipes. Building and facility managers will enjoy the same benefits as residential users, including 24/7 monitoring and instant alert notifications and secure Wi-Fi operation, with easy setup and installation. www.sencentric.com Hytec Water Management System A Canadian company leading the way in soft water management, Hytec’s new system protects against soft water corrosion in a wide variety of large plumbing systems, including in high-rise and low-rise condo buildings. Larger buildings move large volumes of water continuously through their pipes. If left untreated, this “hungry” water seeks minerals from piping, and speeds the corrosion process. The downtime associated with repairing leaks can cost thousands of dollars and be extremely disruptive to the operation of the building. Hytec’s flexible water treatment solutions not only help maintain the building’s plumbing but can also assist management in the overall operation of the property. www.wasserresources.com/hytec-water

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