Building March April 2020 by IQ Business Media

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DEPARTMENTS

OFF TO WORK WE GO Co-working has the capacity to shape not only our offices and the way we work, but our cities as well. By Matthew Hague

CAPITAL GAINS Staying ahead in Ottawa’s commercial real estate market requires understanding the region’s attractiveness for investors, business owners and citizens. By Michael Swan

NOT YOUR PARENTS’ CITY The next four decades will be crucial as city builders must adapt to a radically changing urban world. By Patrick M. Condon

05 06 08 10 29 32

Editor’s Notes Market Watch Legal Briefs Where We Work Site Visit Powers That Be

BUILDING.CA READ COVID-19 and the Construction Industry The Construction Law Group at Cassels offers key points for industry leaders during this crisis.

EXPLORE Corten Pavilion Les Architectes Labonté Marcil design a park chalet that is out of the ordinary.

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Volume 70 No. 2

Editor in Chief Peter Sobchak Art Director Roy Gaiot Legal Editor Jeffrey W. Lem Contributors John T. Anderson, Patrick M. Condon, Daoust Vukovich, Matthew Hague, Shannon Moore, Kevin Powers, Michael Swan Customer Service / Production Laura Moffatt, 416 441 2085 x104 Press Releases pressroom@building.ca Circulation Manager circulation@building.ca Associate Publisher Faria Ahmed, 416 441 2085 x106 fahmed@building.ca Vice President & Senior Publisher Steve Wilson, 416 441 2085 x105 swilson@building.ca President, iQ Business Media Inc. Alex Papanou Design Consultation BLVD Agency

Building magazine is published by iQ Business Media Inc. 101 Duncan Mill Road, Suite 302 Toronto, ON M3B 1Z3 (416) 441 2085 x104 info@building.ca www.building.ca SUBSCRIPTION RATE: Canada: 1 year, $30.95; 2 years, $52.95; 3 years, $64.95 (plus H.S.T.) U.S.A.: 1 year, $38.95 USD. Overseas: 1 year, $45.95 USD. BACK ISSUES: Back copies are available for $15 for delivery in Canada, $20 USD for delivery in U.S.A. and $30 USD overseas. Please send prepayment to Building, 101 Duncan Mill Road, Suite 302 Toronto, ON M3B 1Z3. Subscription and back issues inquiries please call (416) 441 2085 x104, e-mail: circulation@building.ca or go to www.building.ca Please send changes of address to Circulation Department, Building magazine or e-mail to addresses@building.ca Building is indexed in the Canadian Magazine Index by Micromedia ProQuest Company, Toronto (www.micromedia. com) and National Archive Publishing Company, Ann Arbor, Michigan (www.napubco.com)

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BACK TO GOOD

IT SEEMS NOT only pointless but also a little tone deaf to be talking about anything other than the COVID-19 pandemic turmoil right now, doesn’t it? As is the world of print media, this issue of Building was mapped out long before the current situation we are currently living through settled in, but I acknowledge it seems a tad odd to be reading about the changing nature of the workplace (“Off to Work We Go”) when everyone is working from home; or assess the rapid densification of cities when the streets feel like ghost towns due to self-isolation (“Not Your Parents’ City”); or comment on the Coastal GasLink pipeline dispute, which appears to be fading fast in the rearview mirror. However, consider this: according to the economics teams of industry forecasters, as recently as a few weeks ago Canada’s economic outlook for 2020 was relatively positive and well-positioned to at least match, and possibly exceed, 2019 levels both this year and next. “Last year was nearly unprecedented for the Canadian commercial real estate industry. Canada outperformed its G7 peers riding on the strength of its welcoming immigration policies, attractive labour pool and stable operating environment,” was the opening statement of CBRE’s 2020 Real Estate Market Outlook report. Exceptional growth in both provincial population and jobs last year, alongside lower mortgage interest rates as well as the easing of trade tensions and imminent (now realized) Canadian ratification of the USMCA, all pointed to a slightly stronger performance moving through the year. That, of course, was before the unforeseeable one-two punch of COVID-19 and plunging oil prices. As we go to press, the depth and duration of this economic disruption remains uncertain, to put it mildly. “The major forecasters in Canada are starting to sharply reduce their outlooks for the economy, with the consensus view that

Peter Sobchak Editor in Chief We welcome your feedback. Send your questions and comments to psobchak@building.ca

seems to be emerging as of mid-March being a technical recession, with some recovery in late fall but essentially no growth in real GDP for the year as a whole,” says Patricia Arsenault, editor of the Altus Group Housing Report. It is an understatement to say the world has quickly changed. But while all the forecasts seem painfully outdated (and literally changing on a daily basis), we feel it is important for our readers to understand that the solid fundamentals that put the real estate development industry on very solid ground before the recent shocks are still there, albeit somewhat in the background for the time being. In other words, the real estate development sector went into the current environment in as good a position as possible to be able to post a quick recovery once everyday life goes back to normal. Keep that in the front of your minds while we hunker down and weather this storm: things will go back to normal. In fact, in the opinion of many experts, the recovery won’t just be quick, we’ll come out much stronger on the other side. Until then, our wish to you, our readers, is this: be diligent, be proactive and above all, be safe.

BUILDING.CA

market watch Spotlight: Construction

Trade Uncertainty and Commodity Pricing Temper Optimism

WITH SOLID PROVINCIAL wage growth and the possibility of lower interest rates, Canada’s economic outlook for 2020 is relatively positive, says Turner & Townsend in their 2020 Canadian Market Intelligence Report, which examines economic conditions and outlooks across the country for the construction sector. However, a negative or delayed resolution in the USA-China trade negotiations may hinder growth, given Canada’s significant exposure to international trade. “We see a number of positive signs for the Canadian economy that will help to underpin growth. There is low unemployment, inflation has remained controlled and wage growth is positive. Prices on steel and aluminum have stabilized following the conclusion of trade negotiations and the removal of tariffs,” said Gerard McCabe, Managing Director Canada for Turner & Townsend.

B.C.’s economy is expected to outperform the Canadian average with GDP growth of up to 2.5%

April/May 2020

Non-residential construction investment is unlikely to see a marked increase over the year, but the moderate project pipeline should help some construction markets remain buoyant. The residential sector is forecast to make a modest recovery over 2020, though will be limited by household debt, which is expected to reach an all-time high. Infrastructure and transport projects will drive construction through 2020–21 while other sectors remain subdued. In British Columbia, significant investments in the energy sector and rising demand for real estate and transportation due to an increasing population continue to make the construction industry a major contributor to economic growth, and the residential sector is forecasted to have a modest recovery in 2020 driven by steady population growth and a robust job market enabling solid wage growth. Alberta will continue to be challenged by the uncertainty caused by oil production curtailments and a subdued labour market. Despite that, new projects have helped expedite recovery to consumer spending and residential construction, which was the result of the sluggish labour market and high unemployment rate. Significant transport projects include the $4-billion Green Line LRT in Calgary and various sections of the $2.6-billion Edmonton LRT. These projects are likely to create a shortage of skilled civil and engineering trades in the market. In Saskatchewan, the economy is driven by commodity output and has the most at stake amid rising trade tensions between the U.S. and China. Uncertainty surrounding commodity prices has stalled new investment. Following the completion of several major mining projects, workers have left the province to find other opportunities. Major projects in health, highways, and utilities are winding down, leaving significant spare capacity in the labour market. Saskatchewan’s housing market showed weak growth

through 2019 and is not likely to pick back up through 2020. Similarly, Manitoba shows little sign of a marked improvement as a result of the region’s heavy reliance on exports. Several large projects are coming to completion in 2020 with few new major projects in the pipeline. Northern Ontario’s economy is expected to remain flat, with economic growth in the next decade expected to be driven by the mining sector. Increasing global economic pressures on natural resources are expected to be the cause of lukewarm growth, due to the region’s dependence on mining exports. A critical issue hindering regional economic growth is a shortage of skilled workers as qualified journeypersons continue to exit the workforce due to age. With a predicted 1.5 per cent growth for the second half of this year, the outlook for the Toronto market is cautiously optimistic. However, wage increase pressures, continued lack of availability of skilled resources, and low unemployment rates are contributing to a softening in the economy. In Ottawa, the construction market is forecast to have healthy growth in 2020, largely driven by the continued development of the region’s LRT and the continuation of federal projects. A healthy employment market and favourable labour conditions are driving growth in the region’s population and increasing levels of immigration.

INFRASTRUCTURE AND TRANSPORT PROJECTS WILL DRIVE CONSTRUCTION THROUGH 2020–21

Despite external headwinds and domestic downturns, Québec’s economy has strengthened over 2019 with growth forecasted to continue through 2020. Low unemployment and high job vacancy have resulted in strong wage growth and a healthy job market there, and increased infrastructure spending along with a steady demand for new housing will also support the region’s growth. For the third year in a row, the Montréal economy will post annual growth above three per cent as it continues to benefit from strong housing, hi-tech, manufacturing, and industrial markets. The Atlantic region can outperform the national average subject to the steady flow of immigration and positive conditions in the oil and natural gas sector. Newfoundland’s economic outlook remains tied to resource investment projects and global commodity prices. Economic activity in Prince Edward Island has been supported by continued population growth, including higher immigration targets and increased retention of immigrants. Nova Scotia has steady housing

The removal of U.S. tariffs on steel and aluminum has benefited Ontario’s metal manufacturers.

starts but is also supported by strong non-residential projects, such as the redevelopment of the QEII Health Sciences Centre and large-scale shipbuilding. In New Brunswick, industries are focused on exports which have seen decreases in 2019. However, increasing employment and housing sales have contributed to the province’s moderate growth. In addition, the upcoming development of an offshore oil site at Bay du Nord is expected to provide 11,000 person-years of in-province employment. Mining activity is expected to fuel growth in the Canadian North over the next decade. GDP is expected to grow above four per cent in 2020. Nunavut’s mining sector is expected to support the regional economy for the next couple of years. New mining activities will also contribute to the growth of the region. “The trends across Canada’s construction sector are clear: tight labour markets, and specifically the lack of skilled trades, will continue to slow developments and economic growth. Similarly, external factors like trade disputes will impact demand, which in turn will potentially impact commodity pricing,” said McCabe.

Newfoundland’s economic outlook is tied to resource investment projects and global commodity prices. BUILDING.CA

legal BRIEFS

Sometimes When You Win – You Lose!

In Relief from Forfeiture, tenants may find that the cost of victory is too high. By Daoust Vukovich

Daoust Vukovich LLP offers guidance and practical assistance on every aspect of commercial real estate law in Ontario and across Canada. Visit www.dv-law.com for more information. This publication is a general discussion of certain legal and related developments and should not be relied upon as legal advice.

April/May 2020

THE TENANT DEFAULTS. The landlord terminates. The tenant is off to court, seeking relief from forfeiture. The tenant succeeds. The court grants relief, allowing the tenant back into its premises on certain terms and conditions. Sounds like a win for the tenant, right? Well, not always. Sometimes, terms imposed by the court can be onerous: paying the rent; remedying all defaults; paying the landlord’s expenses and, possibly, honouring additional requirements. In a lease dispute involving Jungle Lion Management Inc. and its landlord, the Ontario Superior Court of Justice was presented with an application for relief from forfeiture. The landlord had terminated the tenant’s lease for non-payment of rent, just after the leased premises were damaged by a flood. The tenant denied that rent had not been paid, and claimed that it should be entitled to relief as, not only was it willing to pay any amounts owed, but the landlord had already allowed the tenant to repair damage caused by the flood.

of its business (which it will lose if the lease termination is upheld), and the amount of rent it failed to pay. Courts may refuse to grant relief from forfeiture where the tenant has displayed a total disregard for the covenants in the lease, has willfully breached the lease, and where the landlord cannot be completely compensated by money. The tenant must also come to court with “clean hands.” Tenants run afoul of this requirement when, for example, they break into the leased premises after the landlord has locked them out. This is an unlawful act that may spoil the tenant’s chances for relief. While relief from forfeiture may be perceived as readily available to tenants, landlords are well advised to make their defaulting tenant go through the process. Doing so ensures that the tenant will be ordered to remedy all defaults. More importantly, even if a tenant is forgiven for its first default, if it comes knocking a second time, its chances will be reduced.

Relief from Forfeiture

Jungle Lion: The First Flood

Relief from forfeiture is a discretionary remedy that enables a court to grant relief against penalties, failures and forfeitures, on terms that it considers just. In deciding whether to grant relief, the court considers (1) the conduct of the party seeking relief (and in particular, whether the breaches or defaults were willfull); (2) the gravity of the breaches; and (3) the disparity between the value of the property in question and the damage caused by the breaches. Courts frequently grant relief from forfeiture to tenants, based on the third part of the test. The tenant will generally be able to convince the court that there is large discrepancy between the value

On August 7, 2018, during a major summer rainstorm, a downpipe burst in the ceiling. The restaurant shut down due to the flood damage, which was not the fault of either party. The insurers repaired the flood damage and turned the premises over to the tenant in October 2018. For the next two months, the tenant did not diligently repair its premises and re-open for business as required by the lease. Instead it tried to assign the lease, bring in new investors, come up with a new concept and the like. Everything but get its restaurant open and operating as required by the lease. The landlord grew impatient and in early January 2019 gave notice of default to the

RELIEF FROM FORFEITURE IS AN ODD DUCK. TERMS IMPOSED ON TENANTS CAN BE ONEROUS.

tenant, requiring it to re-open by January 31, 2019. The tenant sought an injunction to prevent the landlord from locking its doors. The court ruled in favour of the tenant. It held that, although the tenant had wasted two months, it could be forgiven. It had invested over $3 million in the restaurant, and it promised to re-open in two months. The court ordered the landlord not to terminate the lease, provided the tenant began to operate by April 2, 2019. The tenant opened for business in time.

Jungle Lion: The Second Flood In October 2019, there were three separate mini-floods in the kitchen area, caused by leaking pipes which formed part of the tenant’s HVAC system. Each time, the landlord reminded the tenant that it was responsible for maintaining and repairing its HVAC system. The tenant did not heed the landlord’s warnings. On November 13, 2019, a pipe connected to the tenant’s HVAC system burst and flooded the premises. Once again, the restaurant closed due to flooding. In November, the landlord also terminated the lease for non-payment of the November rent. The landlord had delivered a notice of default on November 6. The tenant had submitted a rent cheque on November 11. The tenant seemed to have remedied its default. However, on November 18, the landlord was notified by its bank that the tenant’s rent cheque had not cleared its bank, because the CRA

had frozen the tenant’s bank account. The landlord immediately terminated for nonpayment of rent. The next day, the tenant tendered a bank draft for the full amount of rent owing. The landlord refused to accept it. This led to the application for relief from forfeiture.

In January 2020, the court granted relief from forfeiture on terms that would fully compensate the landlord for the tenant’s breaches. The tenant was ordered to: • remedy all breaches of the lease, including paying the November, December and January rent (totaling $197,690);

Terms of Relief The judge noted that the tenant had a less than stellar record. Since re-opening earlier in 2019, it paid rent late eight times (out of 11 months). It had failed to repair its HVAC system, causing the second flood. Following termination, the landlord discovered an outstanding fire code violation. Financial difficulties came to light: in addition to the frozen bank account, sales reports showed that the business was declining, and the landlord received a notice from a bank advising that the tenant was in default of an equipment loan. Other creditors of the tenant knocked on the landlord’s door, seeking to re-claim property. And the fire code violation led to an order. The judge commented that the tenant seemed more interested in making flood insurance claims than running its business. The judge found that the tenant had done little to foster confidence in the landlord, or to prompt the court to invoke an equitable remedy on its behalf. Nevertheless, the judge cited the disproportionate impact rule, noting that the tenant stood to lose its entire $3-million investment in the premises.

• pay the landlord’s legal fees of $37,357, and expenses of $8,563; • arrange with its bank for the rent to be paid by preauthorized debit as required by the lease; • put the premises in good order and firstclass condition and repair in accordance with the lease; and • use the premises continuously in accordance with the provisions of the lease. If the tenant did not comply with the first three terms within one week, then the landlord could terminate afresh and the lease would be at an end with no further right to relief. Tellingly, more than a week after the ruling in Jungle Lion, the restaurant had not re-opened because the tenant was unable to satisfy the onerous terms of the relief order. Relief from forfeiture is an odd duck. Tenants may find that the cost of victory is too high. Similarly, landlords may see a loss turn into a win.

BUILDING.CA

where we work The Flex is On Strategic Practices for Creating a More Agile Workplace in 2020 By John T. Anderson

AS ORGANIZATIONS STRIVE to achieve competitive advantage, creating a workspace that boosts collaboration, innovation and productivity is at the top of the agenda for facilities professionals in 2020. Employers are overseeing workforces that are more flexible than ever, both by necessity as workers demand the flexibility to work where and when they choose and driven by a desire to foster a creative and agile environment that can lead to greater productivity. Businesses worldwide have adopted flexible workspace policies, according to International Workplace Group’s (IWG) Global Workspace Survey, with 85 per cent of business leaders saying that productivity has increased in their organizations as a result of greater flexibility. The survey also found that four out of five workers preferred flexible work arrangements and said that, when faced with two similar employment offers, they would turn down the one that didn’t offer flexible working. We’ve identified three strategic workplace practices, each of which is driven by the increasing demands of a multi-generational and mobile workforce, that will be key to elevating the employee experience in the year ahead.

New imperative to design and drive exceptional “employee experience” John T. Anderson is CEO of Smartway2, which provides next-generation workplace scheduling solutions for all types of organizations and enterprises.

April/May 2020

Today more organizations are recognizing that workspaces can be a competitive differentiator and strategic tool in the effort to create a more innovative, productive and competitive workplace and contribute to the employee experience (EX). They’re also finding that multiple departments, from property/facility management to IT, HR and others, play important roles in the overall EX. This year, facility managers will play a key role and, in some cases, take the lead in EX design, working closely with HR and IT to optimize the employee journey. Organizing workspace resources, such as office space and conference rooms, is essential for making workers more comfortable, collaborative and productive. Technology, including mobile apps, will enable employees to book the spaces, desks, equipment and

services they need to do their best work. Additionally, by collecting real-time, accurate data on space utilization and meeting behaviours, facility managers and others can more effectively make decisions to optimize the workspace environment and improve EX .

Activity-Based Working grows in popularity Activity-Based Working (ABW) is a strategic approach for creating a more agile workplace, enabling organizations to offer a variety of space options for employees based on the activities at hand, such as huddle rooms and bean bag areas for collaboration, pods for quiet concentration and open plan areas to spark spontaneous conversations. Demand for ABW is growing among employers. The IWG Global Workspace survey found that 65 per cent of its respondents believe businesses that tailor the environment to the work requirements of staff are more productive. According to a report by Kinnarps, nearly 70 per cent of employees say that working in an ABW environment gives them more energy, helps them achieve better results and is more stimulating. British utilities company National Grid certainly found this to be the case when it achieved an eight per cent increase in overall productivity and a reduction in operating costs of £8-10 million per year as a result of implementing ABW.

The rise of design thinking in the workplace Design thinking uses a creative process to solve problems and promote effective innovation. Design thinkers question assumptions, collaborate and build prototypes as early as possible to test ideas and get feedback. Facility managers are becoming more strategic and are playing a greater role in this transformation. Just as product and marketing teams have become more customer-centric in recent years, facility management teams are now putting the customer — i.e. the employee — at the heart of what they do. Design thinking relies on a deep understanding of (and curiosity about) customers: their feel-

ings, desires, the day-to-day tasks they’re trying to accomplish and the challenges they face. Organizations that adopt a testand-learn approach, using data to make better, faster decisions, will see the greatest success from agile working. The workplace has been undergoing major changes, with employees splitting their workdays between home and headquarters, working flex-time and sharing office space. To foster a positive work environment and improve the employee experience, organizations must address the different needs and work styles of their valued employees. In 2020 we’ll see a heightened focus on creating agile, flexible work environments to not only attract and engage workers, but also to increase innovation and productivity.

Keeping Workplaces Running Smoothly During A Crisis • E stablishing an agile organization where people can work from anywhere. This also includes taking a 21st-century management approach, such as becoming a “starfish” organization with decentralized leadership. If one part goes down, the remaining parts can regenerate; • Managing social distancing in the office. Approaches and technologies that organizations can use to promote social distancing, such as preventing staff from booking desks that are less than six feet away, so they keep a safe, healthy distance from each other; • Applying design thinking to view new approaches (including working from home) as prototypes providing organizations a chance to learn, adapt and find new solutions; • Keeping an open dialogue to listen to employee challenges. Brainstorm ideas to keep customers happy and lines of communication open, especially when face-to-face meetings are not happening.

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OFF TO WORK WE GO

CO -WOR KING HAS THE C APACIT Y TO SHAPE NOT ONLY OUR OFFICES AND THE WAY WE WORK, BUT OUR CITIES AS WELL .

By Matthew Hague

BUILDING.CA

“co-working space” conjures an image of toque-topped millennials, sitting on bean bag chairs, sipping all-you-can-drink lattes as they twirl their ironic facial hair and plot the next Facebook, you haven’t seen the Exchange Cowork. The office is in RosedaleSummerhill, a tony Toronto neighbourhood more known for bespoke suits than hipster flannels. Fittingly, the professionals buzzing about the communal kitchen, with its richly veined marble bar and Scandinavianinspired armchairs, are more blue-chip corporate than edgy entrepreneurial. “The design isn’t meant to be overly trendy,” says architect Sue-Jean Chung, principal of Studio JCI who oversaw the project. “It’s meant to be something longlasting and sophisticated, fitting into the Rosedale-Summerhill context. The operator, Timbercreek, our client, wanted it to appeal to experienced professionals, some of whom might be retired from their long-standing careers, but continue to consult and don’t want to work from home.” Exchange Cowork might seem like a sign that co-working is growing up, shedding its youthful, Silicon Valley roots to fit a more mature clientele. More accurately, it’s proof that the once seemingly niche offering,

April/May 2020

geared mainly to 20-something start-up founders, is expanding rapidly, diversifying to include spaces for a wide variety of demographics, young and old, across all professions. Between 2019 and 2020, the amount of Canadian co-working spaces grew by a whopping 21 per cent, from 6.1-million square feet to 7.4-million square feet, according to a report from CBRE. Included in the mix are spaces for all industries, including interior designers, architects, tech leaders and finance. “Even big banks and large consulting firms are employing co-working spaces for some of their staff,” says Gordon Wadley, CEO of Dream Office REIT, a development firm currently completing Spaces Zibi, a massive, 55,000-sq.-ft. co-working project composed of two buildings straddling the OntarioQuébec border, between Ottawa and Gatineau. “The benefit is the amount of flexibility co-working spaces provide. They are, by nature, highly adaptable. That’s why I see co-working as something that will only continue to grow, as the needs of offices continue to change in unpredictable ways.” The question is, in its ascendency, how will co-working not only shape our offices and the way we work, but our cities at large?

The WeWork Shadow These days, many people know about co-working because of WeWork, the massive, New York-based startup whose youthful, brightly coloured offices can be found in almost every major city around the world (there are 10 locations in Toronto alone). WeWork first gained notoriety after the Great Recession, when it was founded as a low-cost place for millennials to get a desk (sometimes for as low as $45 a month), network and try to start the next big thing (key for a generation told they would likely never find steady corporate work). Perks included limitless micro-brewed coffee, group yoga classes and after-hours mixers (beer and wine included). In-office technology was a defining feature, including 24-access via smart phone app and high-speed Wi-Fi everywhere. Surging popularity helped WeWork become one the biggest landlords in major urban centres, including New York City and London, England, and is currently Canada’s second largest co-working operator. WeWork’s notoriety turned to infamy in 2019, though. The company was working with Goldman Sachs on an initial public offering with an expected valuation of $80 billion. Then news leaked about its chronic losses — all those perks were draining the

Photography: exterior by Michael Muraz / interior by Scott Norsworthy

If the phrase

OPPOSITE PAGE Toronto-based Studio JCI recently completed a major revitalization of 1133 Yonge St., preserving many of the building’s original features including its concrete structure and rounded corners. Studio JCI also designed the Exchange Cowork, located on the third floor, characterized by clean lines and a neutral palette.

Photography courtesy of WeWork

THIS PAGE A “unique management agreement” led to WeWork partially occupying Hudson’s Bay’s 6th and 7th floors, in a space partly visible to passing shoppers and consisting of features such as bleacher seating.

company around US$2-billion a year. Investors were spooked, afraid to buy into another over-hyped company that makes no money (Uber and Lyft to name a few). By the time the IPO was cancelled, WeWork had lost 90 per cent its value, laid off thousands of employees, and was only narrowly saved by its largest financial backer, Japan’s SoftBank, with a $10-billion bailout on the condition senior management was replaced.

All of which might suggest that Canada’s zeal for co-working is faulty, based on bad, dated assumptions that spaces like WeWork spaces make sense. But smart money knows they do. That’s in part because co-working long predates WeWork and has proven to be a highly profitable model. Take IWG, an international real estate company operating Canada’s largest number of flexible offices under the brand Regus

BUILDING.CA

TOP FLEXIBLE OFFICE OPERATORS

29 %

1% 2% 3%

34 %

Operator F 2 Market # of share locations Regus/Spaces 2,566,000 34% 112 WeWork 1,857,000 25% 28 iQ Office Suites 203,000 3% 9 Workhaus 146,000 2% 12 WorkplaceOne 120,000 2% 6 Stratus 84,000 1% 7 Communitech Hub Co-Working 80,000 1% 1 WC Business Centres 72,000 1% 2 Intelligent Office 68,000 1% 9 CSI (Centre for Social Innovation) 64,000 1% 3 All other

2,189,000

29%

319

25 % For sum of markets: Vancouver, Calgary, Edmonton, Waterloo Region, Toronto, Ottawa, Montreal. Souce: CBRE Research, Q2 2019

(Regus runs 2.6 million square feet or 34 per cent of the national market, over 10 per cent more than WeWork). The company started offering shared desks and flexible office setups in 1989. Back then the users were often solo-preneurs and the self-employed, such as independent real estate agents and HR consultants. For a small monthly fee (also under $100 a month), they avoided locking into long-term leases while gaining access to shared services such as a receptionist, printers and communal kitchens. Bonus: they also had a more professional place to meet clients than their living rooms. As the number of self-employed workers has grown in Canada, from 12 per cent of the labour force in the late 1970s to 15 per cent today, so has IWG and Regus. Their offices might not be sexy like WeWork (they don’t have free beers or bright colours), but the company is highly profitable. In 2019, globally, IWG posited net gains of $171 million dollars. Numbers like that, coupled with increasing need, entice office operators and landlords to set up co-working shops. “You can get good returns,” says Wadley of Dream Office REIT. The trick is setting up the office right to attract the intended demographic. No Common Palette For architects and interior designers, one of the complications of designing a co-working space is that the set-up must be maximally flexible — accounting for the needs of tenants yet to sign up — while also predicting certain immutable requirements. Even as some features

April/May 2020

seem highly common between many co-working spaces — open areas with banks of desks where people can come and go as they please — the most successful setups also factor in the unique requirements of a certain industry, honing in to capture one particular market. Montréal’s Fintech Station, which opened in 2019, is a co-working space devoted specifically to nascent finance companies. Developers Ivanhoe Cambridge selected local interior architects VAD Designers d’spaces to envision the project through a competition of ideas. “90 per cent of our work is offices

BELOW & OPPOSITE PAGE At the Montréal FinTech Station, nearly 20 start-up companies have settled into 25,000-sq.ft. spread out across two storeys. A shared reception service greets visitors, and the design was developed with the principles of WELL certification in mind, such as vast open spaces flooded with daylight and greenery.

Photography by Phil Bernard

that we design by getting to know the client,” says Tanya Jacques, VAD’s communications advisor. “At Fintech Station, we had much less information about future users, since most hadn’t been confirmed. So we focused on the needs of the overall fintech community to set our designs apart.” Walking into the results, visitors are greeted by warm woods offsetting calming grey tones. Green plants are everywhere. The subtle yet earthy palette belies loads of discrete, integrated tech: docking ports and teleconferencing screens are easy to find. The dichotomy is intentional. “We could have fallen into the trap of creating a hyper, digitized environment,” says Jacques. “But we chose to go the complete opposite way. We realized how important wellness is to the community and know that an overwhelming presence of stimuli becomes an obstacle to wellness.” To build in flexibility, Fintech Station members have options for where to work beyond their own rented desks. “Users can choose to go to work in more than 10 different areas,” says Jacques. “There are privacy booths, collaboration zones with bar-height work benches, multiple types of lounges, meeting rooms, a large cafeteria, the smaller cafe.” The Collective, Canada’s largest co-working space for interior designers and architects, also opened in 2019 and offers a wide selection of rooms for working. There’s a meditation zone for quiet time, four boardrooms and a meeting area with soundproof walls that doubles as a studio to record podcasts. It’s doubtful, though, that Fintech Station users would settle well into the Collective, because the details of the setup are highly attuned to the target clientele. What would an online investment banker make of the 2,000-sq.-ft. materials library, for example, lined as it is with samples of tiles, wallpapers and fabrics? “The Collective is both for and by the design community,” says Carly Nemtean, co-founder of the Collective who is herself an interior designer. “We’ve done everything with designers in mind, including having a large area for package drop offs, in case people are having furniture delivered.” One of the benefits of pooling like-minds into a shared space is that it encourages cross-pollination. “The vibe is collaborative, not competitive,” says Nemtean. “It helps us all to be able to talk about what’s going on,

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What’s Old is New In January 2020, WeWork opened its latest and largest location in Toronto, WeWork Hudson’s Bay. As the name suggest, the office takes over two floors in the downtown Hudson’s Bay store opposite the Eaton’s Centre, with some of the spaces — including a signature cafe dispensing cold brew coffees — visible to shoppers as they browse for new bedding or furniture. That might sound strange, but there’s a mutual benefit to both companies, and it’s entirely in keeping with WeWork’s strategy. Traditional bricks-and-mortar retailers such as Hudson’s Bay are struggling in the age of Amazon, looking for unique partnerships to help them maintain their physical infrastructure. Leasing space to WeWork helps offset the store’s carrying costs. WeWork, on the other hand, has historically looked for spaces like Hudson’s Bay that are traditionally considered Class B, the real estate

April/May 2020

designation connoting older properties with lower rents than newer, nicer Class A flagships properties. More than half of WeWork’s spaces are in Class B properties. The cost-cutting aims of finding and refurbishing older spaces is common among co-working operators. Dream Office REIT’s Spaces Zibi project is a part of a massive new development where modern new condos are rising along the Ottawa River. But the Spaces Zibi buildings themselves are two existing brick structures — disused industrial spaces — not new architecture. Likewise, the Collective, Fintech Station and Exchange Cowork are all in older buildings refurbished for a new purpose. From the perspective of pedestrians walking along the streetscape, there might be no noticeable change, beyond the proliferation of new WeWork, Regus and other signage (the Collective also has a bright mural on its face). But in an era where so many old structures are being torn down to make way for new high-rises, and everything is becoming a condo tower, that is a shift — preserving old structures for the purpose of our future, to-be-determined working needs.

THIS PAGE Newly open in Toronto, the Collective Workspace is a co-working environment dedicated to architecture, interior design and custom build professionals. The space is divided among different uses, such as casual seating, hot desking or dedicated studio office spaces.

Photography by Stephani Buchman

not be stuck alone in an office or at home.” But as co-working spaces are helping to shape different professions, are they also helping to re-shape the urban fabric?

Capital Gains STAYING AHEAD IN OTTAWA’S COMMERCIAL REAL ESTATE MARKET REQUIRES UNDERSTANDING THE REGION’S ATTRACTIVENESS FOR INVESTORS, BUSINESS OWNERS AND CITIZENS. BY MICHAEL SWAN

OPPOSITE PAGE Morguard received two new recognitions by WiredScore that certify the digital connectivity of two of its downtown properties in Ottawa, including 350 Sparks Street, a 12-storey office building located near the Parliament buildings.

Michael Swan is assistant vice president of Property Management Office/Industrial Leasing in Morguard’s Ottawa office. Morguard is the second-largest property owner in Ottawa, after the Government of Canada.

April/May 2020

IN THE LAST FIVE YEARS, Ottawa has experienced a technology industry boom that has reinforced the city as a business hub, with more tech companies coming to Canada’s capital every year. Having modern IT and a strong digital infrastructure in place allows leading commercial real estate providers to easily tailor workspaces to meet tenant needs for connectivity and provides the flexibility to adapt office spaces to each tenant’s working space preferences. As the city’s attractiveness as a technology hub continues to grow, what can landlords do to increase the profile of their properties among potential tenants and stay ahead of the curve?

Creating move-in ready spaces No company wants to move offices and then must wait for their landlord to adjust their space to suit their needs. Technology com-

panies require specific digital infrastructures to be in place before moving into a new location to allow efficient data coverage and flexibility with carriers without interrupting critical operations. At the same time, they require special office layouts and design elements that allow for down time and a comfortable and modern work environment for their employees. Getting an office building certified by WiredScore is one of the most important steps property management teams can take to guarantee new tenants will have no issues with connectivity and communications when moving in. A Wired Certified building gives tenants the peace of mind that they will not struggle with internet and telecom providers, as well as guarantees a top tier digital infrastructure and connectivity reliability to support seamless business operations.

Customizing a building to serve their community rather than a business alone ultimately boils down to putting the needs of tenants and their workforces first. Employees of these downtown buildings can spend over eight hours a day at work and are increasingly spending more time co-existing with their neighbours. It is important to keep these emerging working and living dynamics in mind when considering adding services to a downtown community. For example, opening a grab ‘n go soup and sandwich shop, a grocery store or a gym in a building that houses technology businesses or public service tenants, versus a four-star restaurant in a building that houses private sector tenants with whom this would be in demand.

Photo courtesy of Morguard

Consulting data and economic trends To truly stay ahead of today’s changing business needs and trends, always consult the economic trends and market fundamentals of the real estate market of interest. An example of this kind of report is the Economic Outlook and Market Fundamentals that Morguard releases quarterly and annually. It provides a deep analysis of the national and international trends impacting a region’s economy. Some highlights related to the Greater Ottawa Area include:

One example of a collaboration between a landlord and incoming tenants to guarantee a seamless moving process is the flexible office design that was developed for Shopify in 2014. In addition to being ready connectivity-wise before moving, the company expressed the need for a space that was completely unique to their work culture. Morguard worked with their team ahead of the move-in date to customize Shopify’s space, including unique design elements such as soundproofed rooms. The building in downtown Ottawa is also one of the most recently Wired Certified buildings in the city. Working with tenants in advance of them moving into a space helps in providing a connected, efficient and dynamic workspace, demonstrating the importance of landlord-tenant collaboration to understand and meet their unique business needs.

Customizing buildings to serve a connected community, not just a business In an accelerating business hub like Ottawa’s downtown core, co-existing with the surrounding communities and understanding their working and living dynamics has become essential for the growing number of businesses opening in the area. Adding to Ottawa’s attractiveness as a destination to start and grow a business, the city continues to attract young professionals and families looking for affordable housing. For businesspeople, desirable rent prices for in-demand commercial space (currently sitting at around $20,000 to $25,000 per month), the downtown light rail transit (LRT) line, and a vibrant lifestyle have become the perfect combination to attract and retain workforces. Many of the new employees move to the city looking for better work-life balance.

•T he multi-suite residential rental asset class experienced strong growth and investor confidence throughout 2019, driven in part by an increased number of young workers leaving their family homes combined with an uptick in the number of international students and immigrants coming to the region that added upward pressure to rental prices. •T he industrial property segment was driven by the warehouse and distribution, and niche manufacturing and technology sectors in 2019. For this year, the report forecasted national and local investors to continue to compete aggressively for properties in this segment, potentially pushing values slightly higher than those registered last year. • I n the office leasing asset class, healthy demand patterns resulted in the absorption of a significant volume of vacant space in

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LEFT Located in east Ottawa, 1601 Telesat Court has achieved BOMA BEST Silver certification and a Wired Silver certification. The property has a large atrium which hosts three sections of the building.

April/May 2020

12.0

10.0 8.0

6.0

4.0

2.0

0 Net effective rent (LS)

Vacancy rate (RS)

.5 0

-.5

-1.0

2023F

2022F

2021F

2020F

2019F

2018

2017

Occupancy rate (LS) 2016

2015

2014

2013

2012

2011

2010

2008

New construction (RS) 2007

2006

2005

2004

2003

Net absorption (LS)

2009

2002

1.0

-1.5

Million F 2

1.5

Photo courtesy of Morguard

2.0

100

Source: CBRE Limited, CBRE Econometric Advisors

OFFICE DEMAND AND SUPPLY

2001

Creating move-in ready spaces, including getting properties certified by WiredScore, customizing buildings to serve a connected community and consulting data and economic trends are examples of actions that can be taken to increase property profile among potential tenants. In Ottawa, where technology businesses continue to move in, staying on top of the trends in connectivity and communications and being flexible to meet a potential tenant’s needs are part of the differentiators that will make a building stand out.

OFFICE RENT AND VACANCY

2000

•T he region’s retail asset class showed signs of stabilization in 2019. National and local investors continued to look for properties with stable tenant rosters and solid performance, supporting the retail property sector to continue to display resiliency.

Ottawa historical and forcast aggregates

$p.s.f.

the Greater Ottawa Area. The investment market was forecasted to remain competitive, as a limited number of prime downtown and suburban properties were expected to be available for acquisition.

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Not Your Parentsâ&#x20AC;&#x2122; City THE NEXT FOUR DECADES WILL BE CRUCIAL AS CITY BUILDERS MUST ADAPT TO A RADICALLY CHANGING URBAN WORLD. BY PATRICK M. CONDON

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The climate emergency is bearing down, hard, on the world’s cities. But cities are also facing three other dramatic waves of change, all three positioned to crest sometime around 2060. First, during these four decades the people of the world will complete a massive rural-to-urban migration. By 2060 more than 80 per cent of humanity will be crowded into a tiny fraction of the earth’s surface, in cities. Adding complexity, these new inhabitants will arrive from all corners of the globe, as the ruralto-urban migration wave does not respect national borders. Urban designers must learn how cities can best accommodate this culturally complex human tsunami. Second, given declining fertility rates (and assuming they are not interrupted by dramatic reversals), within four decades most cities, possibly excepting those in Sub-Saharan Africa, will stop growing, potentially forever. This factor reminds us that the city we build during these challenging decades must also be suitable for the decades, indeed the centuries, which follow. Thus, city builders who have the honour of working on this problem during these four decades will participate in an unprecedented historical transformation and will leave a very long-lasting legacy. But there is a third thing to consider. Unless we see a major political upheaval (and that is of course possible, if not probable) we must, during this same four-decade span, somehow build cities to accommodate a middle class that shrinks and possibly even becomes unrecognizable in the form we have come to know. If wealth distribution trends continue on their current trajectory, very soon we will have to reacquaint ourselves with an economic condition that used to be the norm but that we had thought long gone, a world

April/May 2020

in which there are the rich and then everyone else. Much like the trend lines for urban migration, climate change, and global birth rates, the evidence of this trend is stunningly clear. Consider that all of us in advanced, developed societies have, to one extent or another, participated in the creation of an unprecedented city form: the city of the middle class. Urban sprawl is the most obvious manifestation of the flow of financial resources toward the wage-earning class, a shortlived phenomenon confined largely to the period between 1950 and 1980. The result? The suburbanization of North America and a world moved by car. The neighbourhoods many of us grew up in, neighbourhoods of the Baby Boom period, are already neighbourhoods where the elderly are sequestered, while their children and grandchildren struggle to find affordable homes in distant and expensive global city centers. Challenges Ahead These dramatic transformations are well underway. How then should city builders prepare? First, the city is a subtle system and its behaviour is more organic than mechanical. Builders should adjust to the subtle interactions between human intentions, economic constraints, and material possibilities by adopting a deeply systems-based approach to their work. Second, built interventions occur within pre-established city patterns and adjusting to the three transformative waves requires first an understanding of these urban pattern (such as street, block and parcel configurations) and then an ability to capitalize on the inherent possibilities intrinsic to this pattern. Third, we must change how we think about urban infrastructure in order to bring it into

conformance with our dual obligation to heal the planet and adapt to our increasingly constrained capital financing regimens. We must choose an infrastructure response that is lighter, greener, smarter and cheaper than conventions adopted during previous times that were more financially generous and less ecologically aware. Fourth, industrial jobs and the job security they once provided are largely a thing of the past. Almost all new jobs are in the service sector and an alarming number are insecure “gig-economy” jobs. Our radically separated land uses, appropriate for the industrial era, are no longer necessary nor advisable. Spaces need to be available that can be adapted to inconceivable future uses, all in close association with other urban functions. Fifth, given the new constraints on our wage-earning classes the disposition of our urban landscapes must be fundamentally reconsidered. How? By adapting overgenerous urban and suburban landscapes in conformance with new more constrained family finances and by using all policy levers available to equitably distribute urban lands to those who most need it. What to do? Let me elaborate on just one solution to give you a sense of both the challenges and the possibilities. Building codes can either enhance or inhibit urban resilience. Most formal cities in the developed world have building departments dedicated to ensuring that all buildings live up to certain construction codes, usually authored to protect either occupant safety or building durability. These codes can be, and most often are, reasonable for new construction.

The problem occurs when building codes designed for new construction are used to regulate building renovations. In most jurisdictions, building owners are required to bring the entire building up to code whenever a stipulated level of reinvestment (usually low) is reached or if an owner wants to change the use of a building from single-family to multifamily, for example. The burden of these costs, which can be substantial, often makes renovation, addition, or reconstruction financially impractical. Various “smart codes” have been promulgated by scattered jurisdictions over the past 20 years to mitigate this problem. The New Jersey Rehabilitation Subcode is a good example. Because New Jersey has more old buildings than any other U.S. state, and because the cost of bringing them up to code was causing widespread building neglect, the Garden State had to act. The result was a more reasonable code specifically designed for rehabilitation and guided by the philosophy that some rehabilitation is better than no rehabilitation. The Subcode has now replaced the normal building code for building rehabilitation. This represents an advance, one that other jurisdictions should take up and that urban designers concerned about resiliency should actively lobby for. A second crucial housing issue concerns the global inflation in the price of urban land, rendering it impossible for developers to provide affordable housing. Real estate, and by real estate we really mean land, is no longer priced for its utility value but increasingly for its value as an investment asset. Globalization has dramatically increased the speed and amount of capital flow around the world. Consequently, all assets now go up and down in lockstep, from Shanghai to Moscow to London to New York. This is most noticeable

DEVELOPED SOCIETIES HAVE PARTICIPATED IN CREATING AN UNPRECEDENTED CITY FORM: THE CITY OF THE MIDDLE CLASS. in the stock market, where a drop in Hong Kong is mirrored hours later in New York. Less noticeable is how global real estate prices also move in unison. Housing prices, which until recently rose and fell with an urban region’s average family income, now go up and down in response to the health of the global economy and the appetites of investors for real estate assets. And the appetite of investors for real estate is growing fast. In such a context, wage earners are hard hit, particularly wage earners in a metropolitan area where job numbers are increasing but wages are not. The method that has been used to address this problem in some cities, notably Vancouver, is to allow substantially more dwelling units on a single parcel. Vancouver now allows four dwelling units on most of its lands formerly zoned single family. The negative side effect of this new allowance is to accelerate land price inflation, which is sold not by the square foot of dirt but by the “buildable” square foot on the parcel allowed by the city. This is a Gordian

knot blocking the best efforts to enhance affordability. The best strategy to counteract this tendency is to tax development land at a rate that reduces “residual land value” and puts money towards the creation if non-market housing in the hands of the city, preventing city actions from enriching only land speculators and granting the public benefit of city land use actions to the citizens who need it. These are transformative waves approaching the building industries, and it is through accepting a progressive way of thinking that city builders can adapt to these dramatic changes for the benefit of our citizens and the planet they depend on.

Patrick M. Condon is a professor at the University of British Columbia and the James Taylor Chair in Landscape and Liveable Environments. The preceding is an adapted excerpt from his book Five Rules for Tomorrow’s Cities: Design in an Age of Urban Migration, Demographic Change, and a Disappearing Middle Class © 2019. Reproduced by permission of Island Press, Washington, D.C.

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site VISIT Raise the Roof

An iconic Montréal business and social district get a unique facelift. By Shannon Moore

THIS PAGE The revitalization of the PVM Esplanade is part of Ivanhoé Cambridge’s $1-billion investment in its downtown Montréal properties. The project focused on connecting city foot traffic and the Place Ville Marie Esplanade to the indoor Le Cathcart, luring visitors to two sunken courtyards, an indoor garden, and an expansive open space beneath a glass pavilion. Photography by Sid Lee Architecture

IT’S BEEN NEARLY 60 years since I.M. Pei and Henry N. Cobb designed the ever-popular business hub known as Place Ville Marie in Montréal. Best-known for its cruciform skyscraper and outdoor Esplanade, the site is also a key access point to the city’s underground network of businesses and transportation tunnels extending throughout the downtown core. In 2017, current owners Ivanhoé Cambridge announced a $200-million revitalization of Place Ville Marie. Led by Sid Lee Architecture and Menkès Shooner Dagenais LeTourneux Architectes, the goal of the project was to transform the complex into a major

urban gathering point for the well-being and cultural vibrancy of Montréal as a whole. “Realizing a project in downtown Montréal for an iconic site like Place Ville Marie comes with immense responsibility: to create a living environment that thousands of people will visit daily,” says Yves Dagenais, architect and senior partner at Menkès Shooner. “By establishing a direct connection with urban activity, the implemented architectural response makes it possible to meet that challenge.” Among the many updates is a series of bars, bistros and cafés known as Le Cathcart Restaurants et Biergarten, and a grand staircase connecting the public

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THIS SPREAD Supported by 18 glass beams, a high-quality glass slat ceiling provides remarkable transparency, offering a seamless connection to the surrounding cityscape, as well as an unobstructed view of Mount Royal to the north. Le Cathcartâ&#x20AC;&#x2122;s interior is divided into three distinct environments, comprised of a food alley, an elevated wooden deck and garden, and a series of 15 resto-bars, bistros, and cafĂŠs with seating for more than 1,000 people. Photography by Sid Lee Architecture

April/May 2020

Esplanade to nearby McGill College Avenue. For its pièce de résistance, the project team enlisted the help of façade construction specialist Seele to design a new glass roof and entrance pavilion, providing a seamless transition from the Esplanade to the food and shopping mall below. “Montréal’s underground walkway system is a tribute to its extreme northern weather conditions,” said Michael Steinhuelb, vice president of Seele. “Our skylight enables connectedness for the people passing through the nearby train station and working in the Place Ville Marie buildings.” One of the largest glass structures of its kind in North America, the 42-metre-long roof consists of 18 insulating glass units, supported by 8-ply laminated glass beams and weighing up to 5.6 tonnes. “The corbels supporting the beams were hidden in the

walls so that the roof appears to hover, ensuring maximum transparency,” says Steinhuelb. In addition, the entrance canopies are cantilevered up to 4.2 metres, resulting in unobstructed, far-reaching views of both the open space below and nearby Mont Royal above ground. Steinhuelb says high-performance coated insulated glass was a must to safeguard against weather conditions, and during installation, the team constructed a heated enclosure to protect themselves from the elements. Finally, a vacuum lifter containing 60 suction cups was specially designed and manufactured to raise the roof into its designated place. When completed, the entire project will offer a space for year-round activities, ensuring Place Ville Marie upholds its long-standing reputation as a unique urban amenity in Montréal’s downtown core.

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powers that be Pipeline Politics Despite dominating headlines, the Coastal GasLink pipeline dispute is a common story in real estate development. By Kevin Powers

Kevin Powers is managing principal of Project Advocacy Inc., a subsidiary of Campbell Strategies, and is focused on helping project developers facing public and government opposition. Find him at www.projectadvocacy.ca or email him at kevin.powers@ projectadvocacy.ca

April/May 2020

IMAGINE THIS SCENARIO: a big new project promises jobs and economic development. Most of the community supports the project, while a small band of vocal and influential community leaders oppose it. Come decision time, the politician is torn between the need for jobs and development and appeasing a small but influential interest group. For mayors, this situation is routine. It plays itself out at some point in almost every development application, at every council meeting across the country. But when that politician is the Prime Minister and the development is a pipeline, an otherwise ho-hum local drama suddenly takes the national stage with an outsized significance and a timeless lesson for audiences young and old. Such was the situation in February as a splinter group of Hereditary First Nations Chiefs from the West Coast took on a project and the federal government by opposing the $6.6-billion, 670-kilometre Coastal GasLink pipeline that would carry natural gas across northern B.C. Up until that point, the project appeared set to go after years spent in the approvals process. The B.C. Environmental Assessment Office approved the pipeline project in 2014, and it was subsequently granted all other necessary permits between 2015 and 2018. The landowners along the route had agreed to as-of-right easements with the company. Even First Nations were seemingly on board. The company said it had signed agreements with the elected council of all 20 First Nations along the route, including the Wet’suwet’en. Enter the Wet’suwet’en hereditary chiefs, a group of five men — five! — who oversee the management of the bands’ traditional lands. Their objection to the project came from well outside the scope of the dozens of studies that showed the project would not have an adverse environmental effect. Instead, their objection

stemmed from a decades-old Supreme Court of British Columbia decision that stated the government had to negotiate with the Hereditary Chiefs, not the elected councils, on title issues. And that’s not what had happened. Suddenly the issue of the pipeline was re-framed. The question was no longer whether the pipeline was safe; it was whether the government had trampled on the rights of Hereditary Chiefs in decisions stretching all the way back to the 1800s. And just as quickly, this became a federal issue, and the Prime Minister was faced with an issue familiar to most mayors: does he side in favour of economic development and the apparent wishes of most local landowners and elected Indigenous councils? Or does he side with a small, aggrieved vocal minority who were central to his re-election platform. The Prime Minister has far more resources to draw upon than any mayor would: about 150 staffers in the PM’s office; a Cabinet of 35; more than 600 political staff; plus, dozens of political consultants, pollsters and advisors in and around Parliament Hill. Yet following weeks of deliberation, the Prime Minister did what almost every mayor would do and caved to the demands of the vocal minority. While the exact details of his agreement are still unknown, Theresa Tait Day, a former Wet’suwet’en hereditary leader, told MPs a pipeline project had been “hijacked” by five male chiefs and criticized Liberal cabinet ministers for making a secret deal with them. Speaking at a House of Commons committee meeting, Tait Day said the decision to meet with hereditary chiefs was a mistake. “The government has legitimized the meeting with the five hereditary chiefs and left out their entire community,” she said. “We cannot be dictated to by a group of five guys.” Sadly, in the world of real estate development, that is the rule rather than the exception.

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