REIC Exchange: Summer 2017

Real Estate Institute of Canada

Exchange August 2017

www.reic.ca

Growing Together INSIDE REIC News Pursuit of Excellence Awards REIC Membership Milestones REIC Celebrates Canada 150 ... and more

Inside This Issue

Inside This Issue

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REIC News Nouvelles de L’ICI

President Bruce Bassett, CRF Vice President Winson Chan, FRI CRES Secretary/Treasurer Lindsay Carlson, FRI CRES

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Message From the President MESSAGE Du PRÉSIDENT

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REIC National Board

Message from the RVP Message du Vice-Président Régional

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REIC Pursuit of Excellence Awards Lead. Serve. Inspire. Becoming a CPM® #REIC2017 Annual Conference & AGM

Executive Director & CEO Maura McLaren, CAE Editor Britny Rodé, Marketing and Communications Coordinator About REIC

REIC is a provider of advanced education and designation programs to professionals in the real estate industry. With 9 Chapters across Canada, we have been educating and certifying professionals since 1955.

208-5407 Eglinton Avenue West Toronto, ON M9C 5K6 Tel: 416-695-9000 or 1-800-542-7342 Fax: 416-695-7230 www.reic.ca

Published by MediaEdge Communications:

5255 Yonge St., Suite 1000 Toronto, Ontario M2N 6P4 E-mail: info@mediaedge.ca Tel: 416-512-8186 Fax: 416-512-8344

REIC Launches 2017-2020 Strategic Plan REIC Celebrates Canada 150 Why You Have to Care (and Know!)

About More than Per Square Foot Rate

REIC Membership Milestones Étapes des membres de l'ici

REIC Career Centre

Quality career

positions www.reic.ca

Visit Us Online /reicnational Real Estate Institute of Canada - REIC @reicnational

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REIC Exchange, August 2017

REIC News Nouvelles de l'ICI

REIC NEWs Nouvelles de l'ICI REIC Greater Vancouver and IREM BC Chapters Merge Earlier this year, the REIC Greater Vancouver Chapter and the IREM BC Chapter voted to merge and become the REIC BC Chapter with a newly formed IREM Chapter Council. Maria Jeck, CRP will serve as Chapter President and Lisa Biggin, CPM® will serve as Chair of the IREM Council. The merger will strengthen chapter resources to enhance member services and support in the region. The IREM Chapter Council ensures property management members receive full chapter representation and support from IREM. FIN402 Now Available in French REIC is pleased to announce that the FIN402: Investment Real Estate – Financial Tools course has been translated into French for use in the Quebec marketplace. This initiative was realized through our work with CMHC Assisted Housing Division’s desire to educate many of their residential managers in Ottawa and Quebec. The course was held in May and June with Jean-Francois Bigras, CPM® as the instructor, conducting two classes in English, and two in French.

REIC Quebec Chapter Success Chapter success is great to share! Over the last few months, the Quebec Chapter successfully held 100% of their scheduled REIC courses. The Chapter was also able to welcome 6 new candidate members (4 FRI and 2 CPM®). This success was achieved through collaboration with the REIC National office and the hard work of the Chapter leadership – great job!

Fusion des divisions de l’ICI du Grand Vancouver et de l’IREM de la Colombie-Britannique Plus tôt cette année, la division de l’ICI du Grand Vancouver et la division de l’IREM de la Colombie-Britannique ont voté en faveur d’une fusion en vue de devenir une seule division de la ColombieBritannique avec la formation d'un nouveau Conseil de l'IREM. Maria Jeck, CRP, sera présidente de division, et Lisa Biggin, CPM®, sera présidente du Conseil de l'IREM. La fusion permettra d’améliorer les ressources de la division, ainsi que les services aux membres et le soutien dans la région. Le Conseil de division veille à ce que les membres en gestion immobilière soient bien représentés et obtiennent du soutien de la part de l’IREM. Le cours FIN402 est maintenant disponible en français L’ICI a le plaisir d’annoncer que le cours FIN402 « Investissement immobilier : Outils financiers » a été traduit en français pour le marché québécois. Cette initiative a été réalisée suite au désir de la Société canadienne d'hypothèques et de logement d’informer les nombreux gestionnaires immobiliers d’Ottawa et du Québec. Le cours a eu lieu en mai et en juin, et Jean-Francois Bigras, CPM® était le formateur. Il a animé deux cours en anglais et deux en français.

Succès de la division du Québec de l’ICI Le succès d’une division fait toujours plaisir à partager! Au cours des derniers mois, la division du Québec a tenu 100 % des cours de l’ICI prévus. La division a également accueilli six nouveaux candidats (4 FRI et 2 CPM®). Cette réussite a été possible grâce à la collaboration avec le bureau national de l'ICI et le travail acharné de la direction de la division – beau travail!

www.reic.ca

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Message From the President

MESSAGE FROM THE PRESIDENT Message du PRÉSIDENT It is an honour to take a leadership role in an organization whose hallmark is that of professionalism and high ethical standards. There are many dynamic forces shaping the real estate industry and REIC Members are uniquely qualified to adapt to these changes and create value for their clients. It’s an exciting time to be in the industry and to be a Member of the Institute.

C’est un honneur de jouer un rôle de leader dans une organisation caractérisée par le professionnalisme et des normes d’éthique élevées. De nombreuses forces dynamiques s’exercent sur l’industrie immobilière, et les membres de l’ICI sont spécialement qualifiés pour s’adapter à ces changements et créer de la valeur pour leurs clients. C’est une période stimulante pour travailler dans l’industrie et être un membre de l’Institut.

I am pleased to report that our Annual Conference and AGM in June was a great success. Members and partners from across North America gathered in my home town of Halifax for three days of informative sessions and fun social events. We learned how to engage young professionals, inspire volunteers, and get our #REICHUSTLE on with an inside look at social media marketing. Our delegates were also given a chance to explore some of what Halifax has to offer, enjoying some beautiful weather and partaking in the age-old Maritime tradition of the ‘sociable’! We had the privilege of touring a national historic site, the Canadian Museum of Immigration at Pier 21, which served as a gateway for one million immigrants between 1928 and 1971.

It was truly inspiring to hear the stories of those who left their homeland in pursuit of a better life in Canada. If you did not have the opportunity to attend this year’s event, please consider joining us next year in Montréal, May 29-31, 2018! I certainly look forward to seeing you there.

I would be remiss if I did not extend my sincere gratitude to our Past-President, Don Kottick, FRI CRES, for all he has done for our Institute in this past year. I am eager to continue his work as we move forward with the 2017-2020 Strategic Plan: e3 - enrich, elevate, exceed. I would also like to congratulate our newly elected National Board! I am very excited to work with you, alongside our Members and staff, as we position the Institute for an even brighter and more successful future.

Here’s to another wonderful year of growing and learning together!

Je suis heureux de souligner que notre conférence et assemblée générale annuelle de juin a remporté un vif succès. Pendant trois jours, des membres et des partenaires de partout en Amérique du Nord se sont rassemblés dans ma ville natale de Halifax pour assister à des séances d’information et des activités sociales divertissantes. Nous avons appris comment intéresser les jeunes professionnels et inspirer les bénévoles, et nous avons amorcé notre campagne #REICHUSTLE en jetant un regard sur le marketing dans les médias sociaux. Nos représentants ont également eu la chance d’explorer Halifax sous une température magnifique et de vivre la tradition ancestrale du « social » des Maritimes!

Nous avons eu le privilège de visiter un site historique national, le Musée canadien de l'immigration au Quai 21, qui a servi de porte d’entrée à un million d’immigrants de 1928 à 1971. C’était vraiment inspirant d’entendre l’histoire de ceux qui ont quitté leur pays natal en quête d’une meilleure vie au Canada. Si vous n’avez pas eu l’occasion d’assister à l'événement de cette année, pourquoi ne pas vous joindre à nous l’an prochain à Montréal, du 29 au 31 mai 2018? J'ai assurément hâte de vous y voir.

Je manquerais à mes devoirs si j'omettais de mentionner ma profonde gratitude envers notre ancien président, Don Kottick, FRI CRES, pour tout ce qu’il a fait pour notre Institut au cours de la dernière année. Je suis impatient de poursuivre son travail avec le plan stratégique 20172020 : e3 - enrichir, élever et exceller. J’aimerais également féliciter notre conseil d’administration national nouvellement élu! Je suis très heureux de travailler avec vous, ainsi qu’avec nos membres et le personnel, afin d’orienter l’Institut vers un avenir encore meilleur.

Je me réjouis déjà à l'idée d'une autre année au cours de laquelle nous pourrons progresser et apprendre ensemble!

Bruce Bassett, CRF REIC National President 4

REIC Exchange, August 2017

Bruce Bassett, CRF Président national de L’ICI

Message from the RVP

Message from the RVP Message du vice-président regional Greetings everyone! I hope you are all enjoying the summer. We just had an amazing Annual Conference and AGM in Halifax. Thank you to REIC staff for putting on a great event and to the Nova Scotia Chapter for being such wonderful hosts! The theme of this conference was Growing Together, where we focused on engagement and excellence.

Bonjour à tous! J’espère que vous passez un bel été.

Nous venons tout juste de vivre une excellente conférence et assemblée générale annuelle à Halifax.

Merci au personnel de l’ICI d’avoir organisé cet événement et à la division de la Nouvelle-Écosse de nous avoir si bien accueillis! Le thème de la conférence, Progresser ensemble, était axé sur l’engagement et l’excellence.

All expectations were met, as we had a fantastic time learning, sharing and networking with Members from across the country, as well as our IREM partners who were in attendance. Many thanks to the incoming IREM President Ben McGrew, CPM®, who led the IREM leadership session and provided us with some great information, as well as the IREM staff in attendance for their contributions: Nancy Kirk, Leah Misbin and newest staff member Bethany Bijonowski. Thanks, as well, to current IREM President Mike Lanning, CPM® for taking time out of his very busy schedule to join us for part of the conference. On the final evening we enjoyed a night of great food and fellowship at the 2017 Pursuit of Excellence Awards gala, where we celebrated outstanding achievements in the industry - congratulations to all award recipients!

Congratulations, as well, to the new 2017-2018 Board of Directors! Welcome to the Board Theresa Salsman, CPM® ARM® and thank you to outgoing board member Candace LeRoux, CPM® ARM® for all your hard work. Thank you Don Kottick, FRI CRES for your dedication as President this past year and welcome Bruce Bassett as our 2017-2018 President.

I’m looking forward to more Chapter visits out east in the summer and fall, and connecting with our Members. Please don’t hesitate to contact me if there’s anything you need from your RVP.

Toutes les attentes ont été comblées, et nous avons passé ensemble de bons moments à apprendre, partager et réseauter avec des membres de partout au Canada, ainsi que nos partenaires de l’IREM qui étaient présents. Un grand merci au nouveau président de l’IREM Ben McGrew, CPM®, qui a dirigé la séance de l’IREM et nous a fourni de précieux renseignements, et au personnel de l’IREM présent sur place, pour sa contribution : Nancy Kirk, Leah Misbin et Bethany Bijonowski.

Merci également au président actuel de l’IREM, Mike Lanning, CPM® d’avoir pris le temps, malgré son horaire chargé, de se joindre à nous pour une partie de la conférence. Le dernier soir, nous avons partagé un excellent repas dans une ambiance de camaraderie lors du gala des prix En quête de l'excellence 2017, où nous avons célébré des réalisations exceptionnelles dans l’industrie. Félicitations à tous les récipiendaires!

Félicitations également au nouveau conseil d’administration 20172018! Bienvenue à Theresa Salsman, CPM® ARM®, et merci à Candace LeRoux, CPM® ARM®, qui quitte le conseil, de son excellent travail.

Merci à Don Kottick, FRI CRES pour son dévouement à titre de président au cours de la dernière année, et bienvenue à Bruce Bassett, notre président pour l’année 2017-2018.

J’ai hâte de visiter d’autres divisions dans l’Est à l'été et à l’automne et de discuter avec nos membres. N’hésitez pas à communiquer avec moi en tout temps si vous avez besoin de l’aide de votre vice-président régional.

Ron Penner, CPM® CRP IREM Regional Vice President – Region 14

Ron Penner, CPM® CRP Vice-président régional de l’IREM – Région 14

www.reic.ca

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Meet your new board

REIC National

2017-2018 Board of Directors

l-r: Ken Loeppky, Walter Lui, Lindsay Carlson, Theresa Salsman, Bruce Bassett (President), Maura McLaren, Don Kottick, Winson Chan, Diane Glover, Johnmark Roberts, Steve Kincade

President Bruce Bassett, CRF Regional Manager, Eastern Canada RBC Global Asset Management Halifax, NS

Directors Diane Glover, CPM® Senior Property Manager Globe Property Management Winnipeg, AB

Vice President Winson Chan, FRI CRES Vice President, Sales Development Tridel Corporation Toronto, ON

Steve Kincade, CPM® CEO, Kincade Management Inc. Saint John, NB

Secretary/Treasurer Lindsay Carlson, FRI CRES REALTOR®, NOW Real Estate Group Sherwood Park, AB Past President Don Kottick, FRI CRES Executive Vice President, Corporate Development Peerage Realty Partners Toronto, ON

Ken Loeppky, CPM® Vice President & COO, Innovation Place Regina, SK

Johnmark Roberts, FRI Broker of Record, B&B Associates Realty Ltd., Brokerage Toronto, ON Theresa Salsman, CPM® ARM® General Manager, Commercial Division CitiGroup Properties Limited Dartmouth, NS ED & CEO Maura McLaren, CAE

Walter Lui, FRI CPM® CRES Broker/Manager, Century 21 Leading Edge Realty Inc., Brokerage Toronto, ON

Quackenbush Thomson Law Real Estate · Wills & Estates · Civil Litigation Personal Injury · Corporate & Commercial Law (902) 492-1655

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REIC Exchange, August 2017

REIC Pursuit of Excellence Awards

2017 Pursuit of Excellence Awards Congratulations to our 2017 Pursuit of Excellence Award recipients. Award recipients were formally recognized at the Awards Gala held during REIC’s 2017 Annual Conference in Halifax.

REIC Emeritus Award Cheryl Gray, CPM® - QuadReal Property Group.

Jim Murphy, FRI - Royal LePage Atlantic Don Myhre, CRP J. A. Weber Award Carmela Corrado, FRI CLO – Metrolinx Patrick J. Harvey Memorial Award: Nick Iannazzo, FRI CLO – Iannazzo Law Firm

QuadReal Literary Award Natalka Falcomer, CLO - Managing Partner, Groundworks QuadReal Excellence Award Vanessa Van Dette, CPM® CRP ACoM - Larlyn Property Management Ltd. Chapter Administrator of the Year Sharon Radford, REIC Edmonton Chapter Chapter Initiative of the Year Award REIC Calgary Chapter

Longley Condominium Real Estate MANAGEMENT MEMBER of the Year Award Barry Williams, CPM® ARM® - Bentall Kennedy LP

Don Hill Award - Large Chapter REIC Toronto Chapter

REIC Community Service Award Tahir Qureshi, FRI CRES – City-Pro Realty Inc.

Don Hill Award - Small Chapter Real Estate Institute of Manitoba (REIM)

W.P.J. McCarthy Corporate Citizen of the Year Award Domus Realty Globe Property Management REIC Association of the Year Award Calgary Residential Rental Association

Chapter of the Year Award - Large Chapter REIC Toronto Chapter Chapter of the Year Award - Small Chapter Real Estate Institute of Manitoba (REIM) IREM Outstanding Chapter Award Real Estate Institute of Manitoba (REIM)

Visit the REIC website (www.reic.ca/awards) to view the 2017 Awards Gala photos!

“I am honoured to have received the REIC Emeritus Award. Being a member of REIC and IREM has truly been a cornerstone of my real estate career. I am fortunate to have had the opportunity to serve on the REIC National Board of Directors and lead the IREM Canada Council, a role that is now called the Regional Vice President – Region 14. I also have the privilege of representing IREM membership at the international level, currently serving as the Secretary Treasurer nominee (the first International member moving to an officer role) and as IREM President in October 2019. I am truly thankful for the opportunity to serve and support our members and be the recipient of this highest honour given to a member of REIC.” – Cheryl Gray, CPM®

www.reic.ca

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Getting Designated

Lead. Serve. Inspire.

Becoming a CPM®

By Christine Williams, CPM® Candidate

For the past 10 years I have worked in property management, in the not-for-profit sector, and with it has brought many challenges and successes. I have always strived to be the best I can be for my clients and even though I had taken both my strata and my residential property management through the University of British Columbia, I felt I was falling short. There was just so much more for me to learn. When a colleague mentioned the CERTIFIED PROPERTY MANAGER® (CPM®) designation I felt inspired again. With this program I would be able to study at my own pace, bounce ideas off fellow colleagues, meet amazing people, and learn more about property management - all at the same time! It was an opportunity I just couldn’t pass up.

One of the most challenging experiences in the designation program was the Management Plan Skills Assessment (MPSAXM) exam; it was one of the most challenging things I have ever done.

Luckily, I met another amazing student taking her exam alongside me. Together, we stayed up all night in preparation for the exam; studying and bouncing ideas off each other. This collaboration is what made the seemingly impossible, possible. We were all very fortunate to have an amazing instructor, Steve Leistner, FRI(A) CPM® CMOC CRU CRP ACoM, who walked us 8

REIC Exchange, August 2017

through every lesson, making sure we all understood the content. Steve brought a high level of knowledge, and at the same time made our classes fun. Although, at times, the process seemed a bit overwhelming - it was worth every minute! The CPM® program has been one of the most powerful learning experiences of my career.

Since taking these courses over the past two years, I feel I have grown so much. I am about to write my final exam, and I believe I have not only become a better professional - but also a better person. I have had the opportunity to meet so many

other like-minded professionals who strive to be their very best, and to do their best for our clients. How can we be anything other than inspired? As I go through my journey I now know I have an amazing network of people I can turn to, and they can also come to me. With the knowledge I have gained in the CPM® program I am more confident in my decisions and in my day to day life. I know I have the ability to find the answers my clients need, and helping them become successful is just so rewarding.

Being a woman in my 50s - who would have thought that going back to school and

• I pledge myself to the advancement of professional real estate management through the mutual efforts of Members of the Institute of Real Estate Management and by any other proper means available to me.

• I pledge myself to maintain the highest moral and ethical standards consistent with the objectives and higher purposes of the Institute.

• I pledge myself to seek and maintain an equitable, honorable, and cooperative association with fellow Members of the Institute and with all others who may become a part of my business and professional life. I recognize and support the need to preserve and encourage fair and equitable practices and competition among all who are engaged in the profession of real estate management.

• I pledge myself to place honesty, integrity, and industriousness above all else and to pursue my gainful efforts with diligent study and ongoing education so that my services shall be beneficial to the general public and my obligations to my clients shall always be maintained at the highest possible level.

• I pledge myself to comply with the principles and declarations of the Institute of Real Estate Management as set forth in its Bylaws, Statement of Policies, and this Code of Professional Ethics.

I would like to take this opportunity to thank everyone who has helped guide me through my journey to becoming a CPM®, with special thanks to the board at the REIC BC Chapter for making my journey such a memorable one!

Building stronger communities At BMO Bank of Montreal*, we take pride in our local communities. That’s why, each year, through various sponsorships and community involvement we are committed to providing our support.

BMO Bank of Montreal is proud to support the Real Estate Institute of Canada

We’re here to help.

TM

www.reic.ca

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Getting Designated

bettering my education would even be a thought, let alone a reality? I would definitely recommend continued education to anyone who is thinking about it. Just do it! You have nothing to lose and everything to gain.

Now, I feel that I have plenty of tools in my toolbox and I am able to use them in the best interests of my employers, clients, and tenants. One of the great things of being a part of an organization is feeling like you are part of their success - and with the education you will gain through REIC and IREM you will absolutely feel your confidence level rise and your knowledge increase with each course you take. I highly recommend spreading the news to as many fellow property managers as possible!

I am counting the days until my final exam, and when I can become a member of the REIC BC Chapter. Together, we will bring the public, our clients and our tenants the best possible service available! I am eager to take my pledge:

2017 REIC Annual Conference 10

REIC Exchange, August 2017

ConfĂŠrence annuelle 2017

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www.reic.ca

Growing Together

REIC Annual Conference & AGM The #REIC2017 Annual Conference & AGM made a splash in sunny Halifax, Nova Scotia this year. We learned about best practices with volunteers from Sarah Sheila Birnbach, how to #REICHustle with Clinton Wilkins, the ins and outs of content marketing with Ross Simmonds, and how to figure out your "shtick" with Adam Growe of Cash Cab. Delegates experienced Canada's immigration history at Pier 21, and saw all that Halifax has to offer on the city bus tour. We were very sociable at the Halifax Distilling Company, and again at the Pursuit of Excellence Awards, hosted by Liz Rigney. Thank you to everyone who attended and help create such a successful event.

We look forward to see you all again in Montreal, May 29-31, 2018!

Many thanks to our sponsors who helped us launch another successful conference!

Platinum Sponsor

Official Media Sponsor

Delegate Gift Sponsors Silver Level Sponsors

Bronze Level Sponsors Harbourside Realty Keller Williams Select Realty REIC Ottawa Chapter REIC Nova Scotia Chapter REIC Calgary Chapter REIC Vancouver Chapter Award Category Sponsors

Royal LePage Atlantic

Chapter Sponsors REIC Edmonton Chapter REIC Toronto Chapter Real Estate Institute of Saskatchewan (REIS)

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REIC Exchange, August 2017

REIC Unveils New Strategic Plan with a Video

In late spring, REIC presented its Members with the newly adopted 2017-2020 Strategic Plan: e3 - enrich, elevate, exceed. This plan commits the Institute and its Members to the continued pursuit of excellence in advancing professionalism in the real estate industry.

At the Annual General Meeting in Halifax, REIC unveiled a new promotional video: an animated short that outlines the mission, vision and values of the Institute as well as the goals contained in the new plan.

Visit the REIC Youtube channel (www.youtube.com/ user/REICNational) to watch the video!

www.reic.ca

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Canada Day Celebrations

REIC Celebrates

Canada 150!

REIC Members from across the country celebrated Canada’s 150th birthday in style!

Congratulations to Yolanta Murphy, CPM® ARM® for winning our #Canada150 contest with her photos from the Calgary Ranchmen's Club and Canada Day parade in Banff, Alberta.

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REIC Exchange, August 2017

www.reic.ca

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Ethics and Real Estate

Why You Have to Care

(and Know!)

About More than Per Square Foot Rate

By Natalka Falcomer, CLO

Lawyers are great assets for any real estate agent or realty team. They’ll help you craft a legally acceptable arrangement, but they have their limits. They won’t help you create a good business deal because that’s your job. And if you don’t do your job your client will be stuck with a bad deal and the courts will not strike down an agreement just because the deal, well, “sucks”. But, the courts will uphold a lawsuit against you if you failed to meet your professional duty to provide competent advice!

How can you avoid a lawsuit? You’ll have to flip through the 100-page lease and have a strong understanding of every clause. The problem, however, is that you don’t have the time and getting a lawyer involved is very expensive. Yet, you also can’t afford to not know the legal dangers lurking to destroy your deal, client and reputation.

The solution? Educate yourself and read on to learn about one of the most common mistakes arising out of lease deals.

The Scenario Your client is an experienced restaurateur and needs a space that’s at least 3,000 sq feet in a trendy Vancouver neighbourhood.

The square footage is critical because anything smaller won’t fit the number of seats required for the restaurant to turn a profit. Losing even one table would destroy his business.

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REIC Exchange, August 2017

After months of searching and several deals falling through, you finally find the perfect location at a below market rate. The suite is in a busy strip mall with a gorgeous green space attached and large parking area.

As you review the Offer to Lease you know that your client will be pleased because the Offer clearly states that the Rentable Area is approximately 3,020 sq feet.

A month later, your client calls. He tells you that his contractor measured the suite and the space is actually 2,500 square feet – he won’t be able to make his business work. He says you and the landlord intentionally misrepresented the size of the unit and he wants out of the deal! If not, he’ll sue.

Is the square footage discrepancy between what your client measured versus what is written in the lease and what he’s paying rent on legal? You bet.

May your client try and sue you? You bet.

What Happened?

Your client assumed that the Rentable Area was the actual size of the unit and you didn’t explain the difference between Rentable and Useable Area.

What is the Difference and Why Does the Landlord Do This?

Before signing an Offer it is imperative to always warn clients that there can be a big difference between the Useable Area and the Rentable Area. Understanding and telling your client about these differences is imperative because rental rates are almost always based on the basis of Rentable Area.

I’ve seen many disgruntled tenants start lawsuits over failing to appreciate this difference and businesses fail because of the unexpected cost of rent.

spaces that no one can physically occupy, such as columns and rooms filled with laundry machines, boilers and HVAC systems.

Why does the Landlord make this distinction between Rentable and Useable Area? Because it costs money to run the entire facility, which is open for the tenant’s use and benefit. As such, the Landlord will want to recoup these costs and, sometimes, even make a profit for running the building.

What Should You Do? The first method to protect your client and yourself from professional negligence claims is to advise your client to hire an architect to measure the space. The hired professional should not only measure the space, but also help your client determine if his space needs are met. Be sure that the architect or professional has the proper accreditation to provide a Letter of Area Certification and uses a generally accepted measurement standard such as the standard adopted

by Building Owners and Managers Association (BOMA). Although the BOMA standard isn’t a standard required by law, it is very well recognized and will enhance

the legitimacy of your position during negotiations or if your client has a dispute with the landlord.

The second protective measure you should take is to figure out if the Landlord has added a “loss factor” to the Rentable Area calculation. Although not contained in our clause example, above, Landlords may also add an arbitrary “loss factor” which is used to “gross up” the Rentable Area’s size. A “loss factor” is perfectly legal as there is no measurement standard required by law.

The final protective measure is to walk through the entire premises. As outlined above, the Rentable Area also includes columns. By doing a walk-through, you may find that there are numerous columns within the premises that are not available for use by your client. If that’s the case ask the Landlord to reduce the Rentable Area calculation by excluding a few of the columns.

The best defence against lawsuits, damaged reputations and failed deals is planning and information. With your own facts you’ll have a more informed basis for negotiation and you’ll protect your client from any business-destroying surprises.

Natalka Falcomer, CLO is a lawyer, real estate sales agent and Certified Leasing Officer with a passion to make the law accessible and affordable.

She founded, hosts and coproduces a popular legal call-in show on Rogers TV, Toronto Speaks Legal Advice. She founded Groundworks, the only firm specializing in commercial real estate law that offers flat fee rates, online delivery of legal work and a guaranteed turnaround time. Natalka can be reached at natalka@groundworksfirm.com. For more information about the author or leases visit www.groundworksfirm.com DISCLAIMER: This article offers general comments on legal issues and developments of concern to business organizations and individuals and is not intended to provide legal opinions. Readers should seek professional legal advice on the particular issues that concern them.

www.reic.ca

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Ethics and Real Estate

Generally, Usable Area is the space that a tenant can actually occupy and use, while Rentable Area includes a tenant’s share of space in the building deemed beneficial to the tenant. The tenant doesn’t necessarily have exclusive possession of such space: Rentable Area of the Premises means the area expressed in square feet […] as certified by the Architect or Lad Surveyor of all floors of the Premises (including, without limitation, any Mezzanine Area, Basement Areas and Storage Areas), measured from: (a) the exterior face of all exterior wall, doors and windows […]. The Rentable Area of the Premises includes all interior space, whether or not occupied by any projections, structures, stairs elevators, escalators, shafts or other floor openings or columns, structural or non-structural and […] the area of such recess or entrance for all purpose lies within and forms part of the Rentable Area of the Premises.

This clause essentially means that the Rentable Area, unlike the Useable Area, includes the tenant’s share of the building’s common spaces such as lobbies and other non-rentable space such as elevators, mechanical rooms and shared or public bathrooms. The measurements include

Membership Milestones

2017 Membership Milestones

Étapes des membres de l'ICI 2017

Congratulations to the following members who are celebrating membership milestones! Thanks for being part of the REIC family!

Félicitations aux membres suivants qui célèbrant des étapes! Merci de faire partie de la famille de l’ICI!

10 YEARS / ANS

Harminder Athwal, CPM® ARM®

Andrus Kung, CPM®

J. Kelly Hourigan, CPM®

Desmond Au, FRI CRES

Eddie Lok, CPM®

Margaret Liu, CRES

Parbati Prashad, CRF

George Miller, FRI CPM® CRF

Renate Weidner-Lorber, CPM®

Nasir Nathoo, CPM® CRF

Laynie Hicks, CPM® CLO Sarah Meade, CRF Rob O'Connor, CRF CRU Lori Sealock, CPM® ARM® Jennifer Smith, CRF CRU David Yauch, CPM® ARM® Willvorn Grainger, CRU Jasmine Irish, CRU Cynthia Joseph, CRU Lindsay Carlson, FRI CRES Babita Khurana, CPM® Barry Meckelberg, CPM® ARM® Zdravko Anthony Prsa, CPM® Harold Schmidt, CRES Wendy Taylor, CRF David Albrice, ARP Guy Cormier, CRU Branko Cvoric, CPM® Allen Hoffer, ARM® Cristiana Vlasceanu, CPM® Mark Uddin, CPM® Alicia Brodie, ARM® David Chambers, ARM® Octavio Mendonca, FRI CRES Theresa Salsman, CPM® ARM® David Nevins, CPM® Geoffrey Younghusband, CPM® Sylvie Beaudoin, FRI Angelo Guaragna, FRI Pierre LeSieur, FRI Rene LeSieur, FRI Athanase (Tom) Poulis, FRI Jimmy Vittoria, FRI Kim Aasen, CPM® CRP ARM® Lisa Brewster, CPM® Laurie Wionzek, CPM® 18

REIC Exchange, August 2017

Darlene Cole, CLO Mark Coward, CRU Peter Dou, FRI CLO Karen Doucette, CRF Ken Finch, FRI CPM® Scott Fischer, CRP G. Steven Hughes, CPM Richard Johnson, FRI(E) CLO Lenard Lind, FRI CRES Nick Savino, CPM®

15 YEARS / ANS Robin Elford, FRI Lauretta Enders, CPM® CMOC Vanda Brown, CRU Molina Shillingford-Samuel, CRU Glen Cowan, CRP

Suny Rho, FRI CRES

20 YEARS / ANS Alan Tennant, FRI(E)

25 YEARS / ANS

Vlado Brcic, CPM® CLO

Dale Anda, CPM® CRF

Edgar Jackson, FRI CRP

Susan Eyre, CPM® CRP

Lorraine Miller, CPM®

Robert Serr, CPM®

Jonathan Lo, CRES

Donna Monkhouse, CPM®

Mercedes Wong, FRI

Patrick Rudiger, FRI

Leslie Bessey, FRI CPM®

Kasturi Chandok, CPM®

Cathy Mihailides, CPM®

Michael Colpitts, CPM®

Mark Coutts, FRI(E)

Jit Varaitch, FRI

Douglas McDonald, CPM®

Frank Carroll, CPM®

Grant Stevenson, CPM® CMOC CRP

Susan Vered, CPM®

Ian Lindsay, FRI CRES

Francois Paquin, FRI

J. Scott Wilson, FRI CRES

Roseanne Evans, CPM® ARM®

Lawrence Woytowich, FRI CRES

Ghislaine Hebert, CRF

Bruce Bassett, CRF

Joel Helm, CPM®

Brian Edmison, CPM® ARP

Mary Aubrey, CPM®

Janice Edmison, CPM® CRP

Kristofer Hansen, CPM®

Stephen MacKechnie, CPM® CMOC

Elton Ash, CRES Darlene Mae Rendell, CPM® Louis Serafini Jr., CPM® Franco Falbo, CPM® Serge Rivet, FRI Jackie Presnell, CLO Kelly Skiffington, ARM® Giselle Gagnon, CPM® Phillip Galin, CPM® CMOC D. Chris Innes, CPM® Karu Kandiah, FRI CRES

Vincent Biello, FRI Marc-André Bourdon, FRI Marco Casella, CRES Bertrand Pelletier, CRF Sherril Carlson, CPM® CRP ARM®

Pierre Moffet, FRI(E) CRF Christian Pare, CPM® Carole Pepin, CPM® Casey Chan, FRI Joseph Giacomo Donato, FRI CRES Ronald Fraser, CPM® Mario Furgiuele, FRI Eddie Lee, FRI Aileen Mak, FRI

30 YEARS / ANS Sam Kolias, FRI CPM® Diane Vine, CPM® CMOC

Donna Jamieson, ARM®

T.J. Crowley, CPM®

Henry Moulin, CRES

Danny Boyd, FRI

Joyce Tourney, CRES

Neal Fisher, FRI CMR

Leonid Brandt, CPM®

Craig Harrold, FRI(E) CLP

Stephen Evans, FRI CRES

Dougal Shewan, FRI

Guy Huneault, FRI

45 YEARS / ANS

50+ YEARS / ANS ET PLUS

Scott Reid, CPM®

Robert Kiledjian, CPM®

Ronald Smith, FRI CMR

Philip White, FRI

Perry Staniscia, FRI CPM® CRF

Christian Messier, FRI

Ronald Reynolds, FRI

Lawrence D'Orsay, FRI

R. Scott Ullrich, FRI CPM®

William Kirkpatrick, FRI CPM®

Graeme Rowswell, CPM® CMR

Graham Downey, FRI CMR

John Iannuzzi, FRI

Alan Moses, FRI CRES

Peter Davy, FRI CMR

Ian Macnaughton, FRI

Jeffrey Gould, CPM®

Barry Wyner, FRI

Carl Fox, FRI CMR CLP

Ian Caunce, FRI CMR

Denise Duprat, FRI

George Metz, FRI CMR

Kent Lyle, FRI CMR

Frank Imbrogno, FRI

40 YEARS / ANS

Michael Novac, CPM® CLP

Georges Couillard, FRI CPM®

Paul Mehlsen, FRI CPM®

John Ayre, CPM®

N.S. Smith, FRI CRF

Roy Wilson, FRI

Luigi Conforti, FRI CMR

Klaus Bernhard, FRI CPM®

Terry Barber, FRI CMR

A.R.G. Khan, FRI

Michael Chomyshyn, FRI CPM® CRES

Leonard Potechin, FRI CPM®

Edward K.C Li, FRI CMR Mark McKay, FRI CPM® Gino Romanese, FRI CMR

Jacob Ellens, FRI Ronald Farrington, FRI

Ronald Klombies, FRI CMR Stanford Korsch, FRI

William Greenwood, FRI CMR

35 YEARS / ANS

Veronica Lord, FRI

Lloyd Cohen, CPM®

Ernest Smith, FRI

David Blanchard, FRI CPM® CMR

P. Michael Strus, FRI CRF

Donald MacDonald, FRI G.L. Smith, FRI CMR LET U S WALK YO U HOM E. W. Brian Patterson, CPM® Vyetta Sunderland, CPM® John Rogan, FRI Richard Linklater, CPM® Bruce Spragg, FRI

Fred Waymouth, FRI CRF

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19

Étapes des membres

David Hillhouse, CPM® CRES

KEYNOTE SPEAKER:

Donald Trump Jr. on International Real Estate Opportunities

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