PART OF THE PART OF THE VOLUME 19 / NUMBER 4 / AUGUST 2022CANADIAN PM#40063056 plus RENTAL MARKET EMERGENCYSUPPLYHOUSINGUPDATEGAPRESPONSE Apartment A VISION REALIZED CAPITAL PARK OPENS IN VICTORIA, B.C.
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@cdnapartmentmag Apartment CANADIAN Editor Erin Ruddy Art Director Annette Carlucci Graphic Designer Thuy Huynh Production Manager Rachel Selbie Contributing Writers Andy Schwartze National Sales Bryan MelissaChongValentini Digital Media Director Steven Chester Circulation Adrian Holland For sales information call (416) 512-8186 Canadian Apartment Magazine is published six times a year by: 2001 Sheppard Avenue East, Suite 500 | Toronto, Ontario M2J 4Z8 E-mail: info@mediaedge.ca President Kevin Brown Group Publisher Sean CopyrightFoley2022 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation 416-512-8186 ext. circulation@mediaedge.ca234 Subscription Rates: Canada: 1 year, $50*, 2 years, $90*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes Requests for permission to reprint any portion of this magazine should be sent to Erin Ruddy. Authors: Canadian Apartment Magazine accepts unsolicited query letters and article suggestions. Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor. The opinions expressed are those of the authors of articles and do not necessarily reflect the views of Canadian Apartment Magazine. This information is general and is not a substitute for legal advice. Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Apartment Magazine makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada. Roof-topcabanas Wifi rent trends AMENITIES CURRENTLY IN FAVOUR: LivingwallsGyms diningLocal Balconies servicesPet laundryIn-suite Greenspace storageBike groceriesOn-site sharesCar stationsCoffee andWorkstudyspaces
WHAT’S CHANGED SINCE COVID
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Wishing you
EDITOR’S NOTE>>
Erin
Keeping deadly viruses at bay wasn’t the priority for multi-res developers a few years ago; now it factors into most decisions pertaining to residential building design. From large structural and system considerations, to which door handles offer better antiviral properties (copper), even lobby furniture requires careful selection for reasons other than comfort and aesthetics. Fortunately for the team behind Capital Park in Victoria, nothing much about the massive, mixed-use community needed to be altered, despite construction having commenced long before COVID-19. As Craig Watters, Senior Vice President of Development at Concert, put it: “The vision was realized as planned.” In our cover story on page 16, we are excited to take you inside this buzzing new development in the heart of BC’s stunning capital city. In other news, Canada’s rental market is surging as inflation rates soar and interest rates rise during these unprecendented economic times. With so many Canadians unable to afford homes, vacancy rates are back at pre-pandemic lows. You’ll find all the latest market info and key analysis regarding housing affordability sprinkled throughout this issue. Meanwhile, as summer winds down, tornadoes and other extreme storms are likely to amp up. In our “Ask the Expert” feature we consult with the folks at First Onsite Property Restoration to bring you key steps and precautions for limiting your exposure. All that and more, in our August issue of Canadian Apartment! all the best, Ruddy
www.metcap.com Yes, we can ! Kazi Director,ShahnewazBusiness Development O ce: 416.340.1600 x504 C. k.m.shahnewaz@metcap.com647.887.5676 Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more e ectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, nance and accounting, to actual physical, on-site management, we oversee everything. We concentrate on revenue growth, controlling expenses, and strategic capital investment in your property to maximize your pro tability over the long term — when you’re ready to discuss a better option; we’ll be there. You can count on it.
COVER STORY 16 CAPITAL PARK BREATHES NEW LIFE INTO JAMES BAY Step inside Victoria’s newest masterplanned community. by Erin Ruddy COLUMNS 8 Transactions Rental Market Upate 10 CMHC Restoring Housing Affordability 14 Ask The Expert In the Event of a Tornado 24 Newsworthy Industry Hot Topics 28 Insurance Good Times, Bad Times DEPARTMENTS 4 Editor’s Note 30 Smart Ideas FEATURE 20 RENT IN CANADA VS. THE U.S. New suvey looks at 33 rental markets in North America ON THE COVER: Capital Park in Victoria, BC CANADIAN plus SUPPLYHOUSINGGAP Apartment A VISION REALIZED CAPITAL PARK OPENS IN VICTORIA, B.C. VOLUME 19 / NUMBER 4 / AUGUST 2022 TEL: 905-848-2992 FAX: www.conterra.ca905-848-3883 CON CONERRA ERRA RESTORATION LTD. Parking Structure & Building Repair Specialist 3633 ERINDALE STATION ROAD, MISSISSAUGA, ONTARIO L5C 2S9 PARKING WATERPROOFINGTRAFFIC&BALCONY,REHABILITATIONSTRUCTUREMASONRYCAULKINGREPAIRSDECKSYSTEMS EXPANSIONS CONCRETESPECIALIZEDHYDRODEMOLITIONJOINTSREPAIRS
Coast-to-coast, we’re cultivating a community across Canada. Because we know how important it is to have a quality-assurance ESG program you can count on. The Canadian Certied Rental Building™ program is committed to supporting the multi-res industry ESG transformation across Canada, and to continually raising the bar of “industry professionalism” in serving rental-housing consumers in all provinces. Bring the CRB™ and Living GREEN Together™ advantage to your apartment communities and residents today — Contact Ted Whitehead, Director of Certication — twhitehead@frpo.org Find a CRB-approved™ building online at crbprogram.org partner REAL ESTATE
“Landlords have been able to, on average, command higher rents and have experienced strong occupancy rates in most regions,” observed Keith Reading, Director of Research at Morguard. “For the most part, rental market conditions have returned to those reported prior to the pandemic’s emergence in early 2020.”
The Canadian multi-suite residential rental market recovery continued during the second quarter of 2022, extending the current phase of the cycle that emerged in the second half of 2021. Despite weaker housing market trends, many families continue to be unable to afford to purchase a home in several of the country’s major urban centres. Rising interest rates have also forced many families to continue to rent their living accommodations. In addition, the return of post-secondary students in the wake of easing COVID measures and a modest increase in the younger workforce cohorts have further bolstered rental demand.
Source: Morguard
Rental Market Update Recovery continued through the second quarter New & Notable transactions 5.4.3.2.1. Address City Sale(Millions)Price # of Units SaleUnitPrice/ Purchaser 8420 Boyer St Montreal $16.9 108 $156,019 Elmira Capital Raamco Portfolio Vancouver,Toronto,Victoria $630.5 1,806 $349,114 Starlight Investments 633 Northcliffe Blvd York $34.5 86 $401,163 Pulis Investments 215, 225 Markham RD Toronto $165.0 423 $390,071 Q Residential Paramount Portfolio Ottawa $70.3 370 $189,865 Starlight Investments 8 | Canadian Apartment | Part of the REMI Network |
Investment market Multi-suite residential rental properties remain a prime target of various investment groups in the second quarter, and these groups continued to increase their exposure to the multi-suite purpose-built rental sector, given strong fundamentals and a generally healthy outlook.
“Several large-scale assets and portfolios have traded recently, indicating high levels of investor confidence in this sector,” Reading said. “We anticipate strong transaction activity over the balance of the year, given the sector’s track record of relative resilience during periods of economic turmoil.“
“We are truly excited to be expanding our presence in the GTA with this acquisition,” said Jason Roque, Equiton Founder and Chief Executive Officer. “With its large suites, soughtafter amenities, and ideal location close to transit, shopping and dining, this property will appeal to a diverse renter base. Furthermore, the significant capital investments made recently to improve the building and renovate the suites, makes this a strong addition to our Apartment Fund, which will benefit our investors.”TheEquiton Apartment Fund is a private real estate investment trust. The strategy of the Fund is to acquire existing apartment buildings and apply its expertise and comprehensive management approach to create significant value for its investors.
Scan
count of 2,117. The company says adding these additional units at the Brampton property to its growing portfolio will further enhance operational efficiencies and management synergies.
| www.REMInetwork.com | August 2022 | 9 Equiton Residential Income Fund Trust announced it has acquired a multifamily property in Brampton, Ontario, for $63 million. Once known as Braemar Place, the 15-storey building located opposite the Bramalea City Centre shopping centre has 153 renovated units and 198 combined indoor and outdoor parking spots. Building amenities include storage lockers, bicycle storage, a playground, and an outdoor swimming pool. After 74 consecutive months of positive returns since its inception, Equiton now has 29 properties in 15 communities across Southern Ontario for a total unit Equiton acquires Brampton residential property TRANSACTIONS >> ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PORTFOLIO/PROPERTY? Consider the following: • Who will represent your best interest? • Who will give your property maximum exposure? • Who will deliver the highest value for your property? With over 30 years of experience, tens of thousands of units sold, and hundreds of clients represented, we have consistently delivered superior results. Through our local and national coverage, we create maximum exposure, ensuring maximum value for your property. This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Infor mation. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved. CBRE Limited, Real Estate Brokerage National Apartment Group – Toronto DAVID MONTRESSOR Vice Chairman Sales Representative (416) david.montressor@cbre.com815-2332 $267,000,000 Island Park Towers Ottawa, ON 642 Suites - $415,888 Per Suite $9,650,000 1911 Bayview Avenue Toronto, ON 22 Suites - $438,636 Per Suite $80,200,000 30 Edith Drive Toronto, ON 172 Units - $466,279 Per Suite $63,000,000 100, 120 & 170 Old Carriage Drive Kitchener, ON 218 Suites - $288,991 Per Suite $7.9BOver Sales Volume 56,900Over Suites Sold Years30 of Experience
to MarketListingsApartmentreceiveandResearch
10 | Canadian Apartment | Part of the REMI Network |
A recent report from CMHC entitled, “Canada’s Housing Supply Shortages: Estimating what is needed to solve Canada’s housing affordability crisis by 2030,” takes initial steps to determine how much supply is needed to set things right in the coming years. With a primary focus on the four largest provinces of Ontario, Quebec, British Columbia, and Alberta, the report analyzes the housing supply gap relative to the state of housing affordability for the entire housing system. What will it take to meet Canada’s 2030 housing goals?
RestoringAffordabilityHousing
The scale of the challenge identified in this report is more important than the exact number of housing units required,” said Aled ab Iorwerth, Deputy Chief Economist, CMHC. “Canada’s approach to housing supply needs to be rethought and done differently. There must be a drastic transformation of the housing sector, including government policies and processes, and an ‘all-hands-on-deck’ approach to increasing the supply of housing to meet demand.”
CMHC projects that if the current rate of new construction continues as is, housing stock will increase by 2.3 million units, reaching close to 19 million housing units by 2030. But, to achieve affordability for everyone in Canada by 2030, it estimates we will need “
In addition to weathering economic challenges, how we tackle climate change will need to become more ingrained in how we address Canada’s housing supply needs moving forward. According to CMHC, “Housing supply must increase in density and be more energy efficient to lower emissions, and there may also be economic shifts across the country as we adjust to a zero-carbon future. For example, new and relocation of housing may be required due to climate change issues like sea-level rise that will inundate coastal areas, and persistent fire or flooding hazards. Climate change also risks increasing the rate of depreciation on existing housing and increasing maintenance costs, leading to rising housing costs overall.”
Factoring in Climate Change
| www.REMInetwork.com | August 2022 | 11 an additional 3.5 million units beyond that projection, climbing to over 22 million total units for the country.
In terms of dwelling types, analysts believe that increasing housing supply in both the rental and homeownership market is critical to achieving affordability. Furthermore, delivering more housing supply beyond predicted growth in the number of households will enable better matching of households with the right type of housing for their“Moreneeds.housing units created in the housing market will create opportunities for households to move into housing that responds to their demands,” the report states, pointing out that this ‘filtering process’ naturally frees up housing to improve housing affordability over time. Additionally, “More housing units created in the housing market will create opportunities for households to move into housing that responds to their demands.”CMHCREPORT
>>
Changes in disposable income, the housing stock and the number of households to 2021, indexed to 100 in 2000: 250 2000 Households2005 Statistics Canada, Conference Board of Canada, CMHC and CMHC calculations Housing Stock Disposable Income 2010 2015 2020 Canada 200150100500
Source:
• Two-thirds of the 3.5 million housing unit gap is in Ontario and British Columbia where housing markets are least affordable.
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• Additional supply would also be needed in Quebec, a province once considered affordable. It has seen a marked decline in affordability over the last few years.
Economic constraints
• Other provinces remain largely affordable for a household with the average level of disposable income. However, challenges remain for low-income households in accessing housing that is affordable across Canada.
it states that not all the new housing units need to be new, purpose-built construction, citing increased co-living arrangements and the redevelopment of existing residential, commercial, and industrial properties as examples of alternative approaches.
• CMHC projects that if current rates of new construction continue, the housing stock will increase to close to 19 million housing units by 2030. To restore affordability, Canada will need an additional 3.5 million units.
Key highlights from the Housing Supply Shortages report:
12 | Canadian Apartment | Part of the REMI Network | CMHC REPORT >>
Meanwhile, inflation in Canada has reached its highest level in nearly four decades prompting significant changes to interest rates. What impacts will this have on the industry’s ability to accelerate housing supply and meet future goals?According to Bob Dugan, Chief Economist at CMHC, rising rates will cause economic growth to slow, leading to higher unemployment, less wage growth, and increased construction costs due to increased financing costs. Compounded with surging material costs and labour shortages, current economic conditions will constrain housing supply, contributing to a likely downturn in Canada’s housing markets by mid-2023. When mortgage rates eventually start to stabilize in 2024, supported by rising household income and higher immigration, house prices are expected to return to positive but moderate growth. Elevated price levels will likely persist over the forecast horizon placing pressure on homeownership affordability. As referenced in the Housing Supply Shortages report, this would then lead to more pressure on the rental segment, with potential homeowners remaining renters for longer, causing rental vacancy rates to drop even lower.
| www.REMInetwork.com | 13 Over 25 Years’ Experience in Renovating Apartments and Condominiums General Renovations Cleaning of Units Bathroom Renovations Custom Cabinetry FlooringPainting Fire and Flood Restoration Fencing Kitchen Renovations Plumbing * Electrical * Drywall and Crown Molding www.multitech2000.com * Use a Licenced Plumber and Licenced Electrician (ESA) Municipal Licence No. T85 4186258
14 | Canadian Apartment | Part of the REMI Network |
TORNADO...
Craig Smith and Jim Mandeville of First Onsite Property Restoration say this is happening with greater frequency and severity each summer. “Last August, Barrie, Ontario, was hit with a tornado that left a five-kilometre swath of destruction resulting in $75 million in damage,” Smith said. “With winds of up to 210 km per hour, many people and families were affected, including 150 homes.”
Tips and precautions from the experts at First Onsite A
In late July, tornado touchdowns in southern and eastern Ontario and Quebec left power outages and massive cleanup for communities, businesses, and residents caught in the stormy path of destruction. Canada is the world’s second most tornado-hit nation after the United States, with 80 to 100 such incidents reported annually from March through October.
IN THE EVENT OF
Severe storms can produce intense winds, which under the right circumstances, can lead to tornadoes. Property managers should not underestimate the power of combined wind and water threats when thunderstorm warnings are issued. Remember the Derecho storm that overwhelmed large parts of Southern Ontario in May? Well, it did so with very little warning, resulting in 10 deaths, extensive damage, and the destruction of several buildings—including apartments.
2. Ensure the health and safety of occupants. Remain in contact with your residents using proper communication and protocols before, during, and after an event.
| www.REMInetwork.com | August 2022 | 15
Although data shows there’s been only a slight increase in global weather, water, and climate disasters between 2011 and 2021 compared the previous decade, Canada is also experiencing more frequent and severe wildfires, windstorms, hailstorms, and rainstorms—all of which can cause damage to buildings. In fact, the insurance Bureau of Canada estimates that Severe Weather in 2021 caused $2.1 billion in insured damage from flooding, wildfires and extreme weather events, resulting in a higher number of claims and a significant spike in insurance rates.
What to know structurally:
1. Secure loose outdoor objects. Any unsecured item, such as garbage bins, potted plants, bikes, and toys, can become a deadly projectile in high winds. Move these indoors, or tie them down to avoid injury to people, or damage to the property.
To help landlords and property owners better prepare for tornadoes and other weather-related emergencies, Smith and Mandeville offer the following tips and advice:
3. Inspect buildings once the storm has subsided. Tornadoes’ strong winds have the potential to hurl debris hundreds of metres, so even if you don’t think your building was affected, it’s best to inspect the exterior thoroughly— otherwise, the next time it rains, you may have some unexpected water damage to contend with.
Craig Smith is Director, Commercial Business Development and Jim Mandeville is Senior Vice President - Large Loss with First Onsite Property Restoration.
If a weather event is anticipated…
1. Stay informed. When a severe thunderstorm, windstorm or tornado hits, updates will come in regularly, as will notifications of follow-up storms.
2. Install surge protectors. Windstorms and tornadoes often down trees, which can cause power outages followed by power surges when electricity is restored. Surge protectors help protect electronic devices from voltage spikes caused by power surges.
After a tornado (or suspected tornado) strikes…
While there’s little that can be done to protect a building from a direct hit of a tornado, certain building types can withstand high winds better than others. For instance, concrete and steel buildings by nature are more resilient to severe wind impacts—but this does not mean they are impervious. Often these structures are clad in glass curtain walls, which can shatter, allowing water to enter the structure, while also creating the hazard of falling glass. Conventional wood frame structures are not generally as strong as concrete ones; therefore, direct impacts from tornadoes or extreme straightline winds can cause substantial structural damage, including the displacement of roofs, and in rare circumstances, total structural collapse. Modern construction practices are helping to minimize this risk. Requirements for things like hurricane straps on trusses and vertical reinforcements installed during the framing stage can substantially increase the survivability of these structures.
ASKresidents.”THEEXPERT>>
How to prepare for an event: Apartment building owners and managers should be proactive and make emergency planning and response a priority.
Thunderstorm containing high winds have the potential to develop into tornadoes— and this can happen very quickly and with little warning. With any disaster, awareness of potential hazards and preparedness is key to mitigating and managing damage and maintaining the safety of residents. Having a comprehensive plan in place can help ensure facility managers get back on their feet as quickly as possible after an event takes place.
5. Test emergency plans. Testing emergency response plans can often reveal areas that need improvement. Annual testing can ensure that everyone knows what to do should the need arise.
6. Establish a partnership with a full-service property restoration company. Having a program in place and knowing who to call can provide facility managers with peace of mind. It’s important to have a team you can count on if damage does occur to your property.
3. Back up electronic devices. This step is critical for building management and residents. Critical data should be stored off-site in case physical computers or devices are damaged or inaccessible due to a tornado.
4. Ensure there is adequate insurance coverage. Facility managers should check their policies to make sure they’re covered for damage caused by wind or rain. This generally includes damage caused by flying debris or falling branches or trees, or damage when water enters through openings caused by high winds.
Unfortunately for legacy buildings, these modifications are not always possible or practical due to the extensive redesign that would be required. Still, owners and managers should look to upgrade their building envelope (roofing, cladding, windows, and doors) to make them more resilient to wind damage. During new construction, especially in areas that are prone to these wind events, additional structural reinforcement of these type of buildings, even in excess of local codes, is highly recommended.
“With any disaster, awareness of potential hazards and preparedness is key to mitigating and managing damage and maintaining the safety of
CAPITAL PARK NEW LIFE INTO
By Erin Ruddy Step inside Victoria’s newest master-planned community
Capital Park is a $250-million, master-planned community located in the surging rental market of Victoria, BC. Breathing new life into the large city block that links James Bay with the downtown core, the land was acquired by Concert Properties and Jawl Properties in 2014, and has been a busy projectsite ever since. Once home to cement parking lots and aging provincial office buildings, Capital Park has transformed the neighbourhood into a thriving, vibrant, destination offering commercial space, retail, condominium and rental residences.
community PARKINTOBREATHESJAMESBAY COVER STORY >>
Leasing efforts for our rental residences have been minimal given the enormous demand for modern, well-appointed rental housing in the area,” said Kerri Jackson, Senior Vice President, Property Management. “This is likely also due to the low vacancy rates, which have remained around 1% in Victoria over the last few years.”Unlike the vacancy spikes seen in Vancouver and Toronto during the pandemic, few doors opened these past two years for would-be renters in Victoria. In fact, according to a recent report from Colliers, the Greater Victoria purpose-built rental market had a recordbreaking year in 2021—the result of high demand, stable returns, and low interest rates that have since gone by the wayside. For its part, Capital Park has brought 66 new rental homes to the undersupplied region, which were snapped up quickly. Described as “modern homes in a historic community,” the spacious suites at Capital Park are equipped with wood grain laminate cabinetry, quartz countertops, wood-patterned plank flooring and porcelain tile bathrooms, and come in a range of layouts.
The James Bay Neighbourhood
James Bay in Victoria is a quiet yet dynamic urban neighbourhood that offers the charm of a small village with all the convenience of downtown amenities nearby. Extensive waterfront is a real draw, and thus tourism plays a significant role in its economy with so many of Victoria’s key attractions located in the vicinity. The heart of the neighbourhood is the village, filled with local shops and many community services. James Bay is extremely walkable and bike-able, and acts as a hub for many running and walking events along scenic Dallas Road.
COVER STORY >> “
18 | Canadian Apartment | Part of the REMI Network |
Gardens galore Known as “Garden City” for a reason, Victoria is located on the southern tip of Vancouver Island where mild winter temperatures, colonial British heritage, and expansive green spaces all add to the city’s allure and projected growth. Popular among tourists, retirees, students, and young tech professionals, Victoria is the 15th largest city in Canada with a total population of 383,360, and roughly 86,000 in the urban core. Small but dense, Victoria had 3,535 apartment units
“The vision for Capital Park was realized as planned, with the community seamlessly blending into, and enhancing the neighbourhood,” Jackson said. “Since COVID, we’ve been seeing that residents are more willing to communicate remotely, with fewer in-person meetings. However, there has not been any diminishment of Concert’s customer service. We’re also seeing more residents working from home full time. At Capital Park Residences, there’s a working lounge on the main floor, and upstairs there’s a beautiful lounge with an expansive roof deck where residents can work and socialize. Some of our newer developments planned since COVID have generous working spaces within community lounges, as well as dedicatedMeanwhile,workspaces.”Environmental & Social Governance has emerged as a top priority for the building sector—something Concert Properties has been proudly committed to since before it became a buzz term. According to the company’s sustainability mission, “We design, construct, and manage buildings that foster resilient and inclusive communities where residents can live healthy lives full of meaning. We work to lower greenhouse gas emissions, reduce waste, and lower our environmental impact while increasing the value of our portfolio now, and in the future.”
Building a “people-first” future
Find out more about Capital Park Residences at: www.concertproperties.com
“Designed in partnership with local developer Jawl Properties, Jackson calls Capital Park a great example of a successful master-planned community, and one that wouldn’t have been possible without the support of the City of Victoria.” three heritage homes were fully restored and renovated as 13 residential suites, and the landscaping features are beautiful with a large amount of green space to soften the impact of the commercial aspects of the property.”
Designed in partnership with local developer Jawl Properties, Jackson calls Capital Park a great example of a successful masterplanned community, and one that wouldn’t have been possible without the support of the City of Victoria. Currently Concert has ten master-planned communities in various phases of development across Canada and sees collaboration as central to success.
Putting people first has been at the heart of the Concert story since the company was founded in 1989. During that time, it has grown and diversified, becoming a real estate corporation wholly owned by union and management pension plans representing over 200,000 Canadians. Today, Concert develops and manages rental apartments and seniors’ active aging communities; develops condominium homes; acquires and manages commercial properties; and invests in and manages public infrastructure projects across Canada. With ten mixed-use, master-planned communities currently underway, the team says it is deeply invested in improving the lives of the people who live and work in its communities.
“With offices serving government and easy access to several amenities, there is a real connectedness and integration with the local community,” Jackson said. “Careful consideration was given to maintaining the neighbourhood’s original character—for instance,
At Capital Park, the community was designed to compliment its surroundings. Located just steps from the inner harbour and close to the Legislative buildings, a key feature is an integrated network of plazas, courtyards and landscaped pathways designed to maximize and encourage foot traffic. Extensive amenities and varied retail options such as the Victoria Public Library branch, Red Barn Market, and Good Earth Coffeehouse have increased the area’s appeal, making it a vibrant destination for locals and tourists alike.
| www.REMInetwork.com | August 2022 | 19 under construction in Q1 2022, with projects in the urban core and the West Shore dominating the pipeline.
COVER STORY >>
New survey looks at 33 rental markets
How top rents in Canada compare to those in the U.S.
20 | Canadian Apartment | Part of the REMI Network |
Vancouver and Toronto recorded the lowest vacancy and cap rates among 33 surveyed markets, of which 31 are located in the U.S.. In fact, the Canada-wide vacancy rate, cited at 1.9 per cent, is 10 basis points (bps) lower than the tightest U.S. market, Santa Barbara, California, while the Canadian average multifamily cap rate of 3.6 per cent is just a notch higher the U.S. low of 3.5 per cent in San Francisco. Yet, market dynamics appear similar on both sides of the border.
“The steadily rising cost of home buying has been keeping people in the rental market longer. Mortgage rates are up, and existing home prices reached a record median $407,600 (CAD $526,000) in May. Due to supply-chain disruptions and lengthening construction timelines, deliveries of new apartments have been flat,” the Lee & Associates report states. “With rent growth surging, investment capital has been pouring into the multifamily sector. Multifamily sales activity topped the four major real estate categories, and investors see rent growth remaining above the long-term average and the shortage of available housing not changing in the short term.”
Lee & Associates analysts report 9.2 per cent rent growth across the U.S. during the first half of this year — a pace that has nevertheless slackened from the 11.2 per
Canada’s two priciest rental housing markets rank moderately when mixed in with the largest urban centres in the United States. Newly released data for the second quarter of 2022 from Lee & Associates Commercial Real Estate Services pegs average market rent in Vancouver at USD $1,145 (CAD $1,468) and in Toronto at USD $1,113 (CAD $1,427), well below the U.S. index average of USD $1,640 (CAD $2,115).
According to Urbanation’s latest rental market data, GTA rents in Q2 rose at their fastest pace on record, with smaller units experiencing the strongest growth rates since the onset of the pandemic. This was due to a reacceleration in population growth, near record-low unemployment, and a sharp reduction in home purchasing power as interest rates increased.
| www.REMInetwork.com | August 2022 | 21 cent growth of 2021. San Francisco, with a vacancy rate of 7.4 per cent, commands the highest average market rent at USD $3,092 (CAD $3,989). New York City, Boston, Orange County, California and East Bay, California round out the top five with average market rents ranging from USD $2,980 (CAD $3,844) in New York to USD $2,426 (CAD $3,130) in EastRentsBay.are roughly comparable to or lower than in Toronto and Vancouver in six of the surveyed U.S. cities: Spartanburg, South Carolina; Indianapolis, Indiana; Saint Louis, Missouri; Cincinnati, Ohio; Omaha, Nebraska; and Cleveland, Ohio, which bottoms out the rankings with average market rent of USD $1,066 (CAD $1,375). Per-unit sales values soar in California San Francisco also boasts the highest average sales price per unit for Q2 at USD $669,238 (CAD $863,317). That compares to Vancouver’s average price per unit of USD $322,027 (CAD $412,856) at a cap rate of a 2.4 per cent, and Toronto’s USD $207,575 (CAD $266,122) unit average at a cap rate of 3.5 per cent. FEATURE >>
As the GTA rental market fully recovered from the effects of COVID-19 and rents reached new highs, the smallest and least expensive unit types experienced the strongest growth rates.
For the fifth consecutive quarter, rental demand outstripped growth in supply, causing market conditions to tighten significantly. Condo lease transaction activity in the second quarter remained close to the record high reached last year at 12,048 units, down by 6 per cent, while the total volume of condo rental listings in Q2 declined 21 per cent. Condo rental inventory dropped to a record low 0.3 months of supply and the quarterly ratio of leases-to-listings rose to a record-high 90 per cent. This led average per-square-foot condo rents to rise 5.9 per cent quarter-overquarter to a new high of $3.57 ($2,533), with annual rent growth reaching a record pace of 16.7 per cent.
“The GTA rental market was as strong as ever heading into the peak summer months, which is sure to place further downward pressure vacancies and upward pressure on rents,” said Shaun Hildebrand, President of Urbanation. “Although the drop in construction during Q2 may be partly attributed to data volatility, it was also likely impacted by quickly rising construction and development costs, long delays in obtaining approvals, rising borrowing costs and tighter lending conditions.
With housing affordability at generational lows and continuing to deteriorate, it’s concerning to see rental demand and supply deviate so strongly.”
Vacancy rates fell to 1.4 per cent as rental demand flowed back into the core. Meanwhile, as rental demand heated up, new construction almost completely stopped in the second quarter with a low of only 87 rental starts, down from an average of 1,916 starts during the preceding four-quarter period. This occurred while 1,263 new rental units began occupancy, resulting in the largest quarterly decline in total rental inventory under construction since Urbanation began tracking the data in 2015. However, at 18,976 units, the number of rentals under construction remained near a multi-decade high. Furthermore, long-term interest in purposebuilt rental development continued to grow as the inventory of proposed rentals that have not yet started construction grew to over 103,192 units in Q2, up from 88,258 units a year ago.
Rent in the GTA
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However, Toronto ranks seventh among the 33 surveyed markets with 25,185 units of purposebuilt rental units under construction. New York tops the list with nearly 57,000 units under construction, followed by Dallas-Fort Worth, Washington, D.C., Phoenix, Atlanta and Los Angeles. Together, Toronto and Vancouver account for 75 per cent of current Canadian construction. New construction in Vancouver is largely on par with activity in Chicago, at 10,606 and 10,815 units respectively. However, Vancouver’s inprogress complement is equivalent to 7.7 per cent of its existing inventory of purpose-built rental housing, while Chicago’s represents a more modest 2 per cent of existing stock. When viewed in relation to the status quo, Vancouver is also expanding at a greater pace than Toronto, where new construction amounts to 6.6 per cent of existing Nashville,inventory.Miami and Orlando stand out as rapidly expanding U.S. markets with the equivalent of 12 to 14 per cent of their current purpose-built rental inventories now under construction. In sheer numbers that ranges from 20,348 units in Nashville (14 per cent of existing inventory) to 23,803 units in Orlando (12.4 per cent of existing inventory).
At the bargain end of the scale, the lowest average per unit sales values were found in Cleveland, Vineland, New Jersey, Detroit, Omaha and Cincinnati. Cleveland offered up the best bargain with an average per unit sales value of USD $82,695 (CAD $106,676) at a 7.5 per cent cap Atlantarate.saw the most sales volume in a 12-month period with nearly USD $20.9 billion (CAD $26.9 billion) in deals. The next four markets are Phoenix, New York, Los Angeles and Washington, D.C.. Collectively, the top five markets account for USD $78.5 billion (CAD $101 billion) in multifamily sales since the second quarter of 2021, representing slightly more than 26 per cent of the cited U.S. index sales — USD $298.5 billion (CAD $385 billion) — for the 12 month period.
Currently, there are nearly 853,000 units of purpose-built rental housing under construction across the U.S.. With approximately 47,700 purpose-built units underway, Canada is adding the equivalent of 5.6 per cent of that new inventory in a country with a population roughly 11.6 per cent of the size of the U.S.
Expanding purpose-built rental housing inventories
FEATURE >>
Four of the five markets recording the highest average per unit sales values are located in California — including Orange County, San Diego and East Bay along with San Francisco. Boston is the exception, with an average per unit sales value of $492,525 (CAD $635,357) at a 4.2 per cent cap rate. Ventura, California, New York and Seattle also surpass the USD $400,000 (CAD $516,000) mark for average per unit sales value. Vancouver is ranked 14th, sandwiched between Miami, with average an per unit sales value of USD $345,245 (CAD $445,366), and Naples, Florida, which posted an average per unit sales value of USD $313,245 (CAD $404,086). Vancouver surpasses and Toronto lags the U.S. index average of USD $257,272 (CAD $331,880).
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24 | Canadian Apartment | Part of the REMI Network | NEWSWORTHY Industry>> Hot Topics
Alberta expands Temporary Rent Assistance
he Certified Rental Building Program (CRBP) announced it is now a national brand, known as the Canadian Certified Rental Building Program . Launched in 2008 by the Federation of Rental-housing Providers of Ontario (FRPO), the first-of-its-kind program was designed to promote and acknowledge quality for Ontario rental housing consumers, and professionalism for multiresidential property managers and owners. In 2015, the program expanded into BC with help from local association, LandordBC.
“I’m pleased that the Temporary Rent Assistance Benefit will be added to the list of actions we are taking to make life better for rural Albertans. This rent support will provide relief for families and communities struggling with rising inflation costs and promote sustainable growth in rural Alberta.”
“Making the best use of rent supports is a key component to Stronger Foundations: Alberta’s 10 Year Affordable Housing Strategy,” said Josephine Pon, Minister of Seniors and Housing. “By expanding the Temporary Rent Assistance Benefit to over 80 communities, more support is available to Albertans in need helping make life more affordable during inflation.”
Alberta’s redesigned Rent Supplement Program, which includes the temporary assistance benefit, now serves about 11,600 households – 3,800 more than were served under the original program.
Certified Rental Building Program goes national T
At the heart of the Canadian Certified Rental Building Program are 54 standards of practice, and hundreds of requirements to which all organizations and buildings must adhere. Together these translate the concepts of environmental, social and governance into concrete ESG measures that will lead to enhanced corporate accountability.
“With many of the REITs, institutional, and investor-driven members leading the multi-res industry’s transformation to an ESG discipline, it became imperative to undertake expansion of CRBP across the Canadian landscape to support their needs,” added Tony Irwin, FRPO President & CEO. “As all levels of government gain greater awareness of the ESG mantra across all industries, there is little doubt that they will soon be asking – or perhaps, demanding – what our industry is doing collectively on this front. Ours is the foremost ESG-focused accreditation program supporting the multi-residential industry.”
In the competitive real estate marketplace, internationally recognized ESG benchmark programs like GRESB are taking on increased relevance and importance. According to Whitehead, not only can CRB certification help enhance an organization’s GRESB benchmarking score, but now, in line with its national expansion, the CRBP has moved from a recognized and approved green building certification program to officially becoming a GRSB Real Estate partner.
“The benefits of this expansion are two-fold,” said Ted Whitehead, CCRBP Director of Certification. “This new program will cultivate a national community of CRB-approved apartment buildings to provide Canadian renters with peace of mind and a clear ‘quality assurance’ alternative when selecting their rental apartment home. The national program also provides apartment owners and managers with a unique grassroots ESG perspective that multi-res organizations can easily communicate with their staff and residents.”
Currently, the multi-res industry provides apartment homes to one in three Canadians, or approximately 4.4 million people. Nearly 13 per cent of multi-res companies in Canada have adopted a formal ESG program to date, a number that’s expected to grow significantly in the coming years.
Alber ta’s Temporary Rent Assistance Benefit has expanded to include rural communities outside the province’s seven major cities. Initially launched in March 2021 as part of the province’s redesigned Rent Supplement Program, the Temporary Rent Assistance Benefit provides a subsidy of $100 per month (or more) to qualifying low-income working households or those in between jobs.
The total amount per recipient is determined by household size and location. Alberta residential tenants may be eligible for rent assistance if they are below the local income thresholds, are currently employed or have been employed in the last 24 months, and are not receiving social assistance.
“While today’s new legislation is a good step towards giving mayors a greater role in accelerating housing supply and cutting red tape and runaround, Ontario’s REALTORS would like to see these powers expanded to other urban areas,” he said. “More can still be done to address the existing housing affordability crisis, including ending exclusionary zoning in Ontario’s highest-demand urban neighborhoods, which would allow for the building of duplexes, triplexes and fourplexes on lots traditionally zoned for single-family housing.”
“Our agriculture, food and forestry sectors are largely based in rural communities, and we are looking to these regions of the province to help lead Alberta’s economic recovery,” added Nate Horner, Minister of Agriculture, Forestry and Rural Economic Development.
The Clean Building Tax Credit supports the CleanBC commitment to reduce provincewide emissions by 40 per cent from 2007 levels and aligns with B.C.’s target to reduce emissions in buildings and communities by more than half by 2030.
“Building owners want to reduce the energy use of their home, office or retail space but the upfront costs of these retrofits can be a challenge for people,” said Selina Robinson, minister of finance.
Anew tax credit will make energy retrofits for multi-unit residential and commercial buildings more affordable, saving owners 5 per cent on retrofits to help reduce their energy use.
The credit supports work involving building systems, such as heating, ventilation, air conditioning and building envelopes. A successful retrofit in the public sector is Vancouver’s Kitsilano Community Centre, which underwent heat-recovery improvements that nearly eliminated the need for natural gas to heat the facility. It also reduced greenhouse gas emissions by more than 80 per cent. The Clean Buildings Tax Credit will support commercial and multi-unit residential buildings looking to complete similar retrofits.
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Email: CONTACTmgnat@midnorthern.comVISIT US AT
Buildings eligible for the Clean Buildings Tax Credit include residential buildings, commercial spaces and warehouses in the private sector. Examples include office spaces, food retail and purpose-built rentals.“Our members want to be part of the climate change solution, but retrofits can be costly and do not always make financial sense,” said Damian Stathonikos, president of the Building Owners and Managers Association of B.C. “The tax credit helps reduce the retrofit cost for building owners and lowers energy expenses for tenants, while modernizing buildings to reduce greenhouse gas emissions. It benefits everyone involved, and the environment.”
New clean building tax credit for B.C. owners
To be eligible for the credit, building owners must work with a certified professional to determine that the energy use-intensity of their building has been reduced and is meeting made-in-B.C. targets through a qualifying retrofit before applying for certification with the Ministry of Finance. Qualified professionals include architects, a qualified energy adviser certified by Natural Resource Canada, and engineers.TheClean Buildings Tax Credit is open and ends March 31, 2025. Phone: 416-635-4835
MOBILE FRIENDLY Michael Gnat
“This Clean Building Tax Credit will help owners of larger, often older and energy-inefficient buildings invest in cleaner energy retrofits by putting dollars back into their pockets.”
The Ahmed Group’s proposed de velopment comes after the City of Mis sissauga, the Region of Peel, and the Province announced steps to guide fu ture urban growth and intensification of the region. In June 2018, Mississauga City Council endorsed the Dundas Con nects Master Plan to establish a vision for the Dundas Street Corridor, supporting major improvements to transportation, sustainable transit-supportive devel opment, intensification, and the public realm along the 19.5-kilometre corridor of Dundas Street—a move that has since sparked considerable improvements.
“We are encouraged by the steps that the City, the Region of Peel, and the Province have taken to address the need for more residential housing, mixed-use transit-oriented developments, walkable communities and greenspace,” Ahmed said. “Ahmed Group is committed to cre ating projects that support the City and Region’s vision and serve as a catalyst for transformative change in Mississauga’s Dundas East community.”
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Huduk added that the ‘Strong Mayors’ system would allow for the adjustment of development plans to create gentle density as needed, ensuring municipalities are not introducing policy or bylaw changes that directly contravene or work against provincial priorities—including the commitment to build 1.5 million homes over the next decade. Further changes that could help speed new housing supply include mayoral responsibility for budgets, the ability to appoint a CAO, and the ability to hire and replace department heads, including the Chief Planner.
he Ontario government has announced new legislative changes that, if passed, will give the mayors of Toronto and Ottawa more power to advance provincial priorities that would bring more homes to market faster. According to Tim Hudak, CEO of the Ontario Real Estate Association, the proposed act represents a good step forward in addressing the housing crisis in Ontario, as it would help cut red tape and speed up the local planning process by giving municipal leaders the ability to reduce timelines for development, standardize processes, and address local barriers to increasing housing supply.
T
he Ahmed Group has released plans for a new rental housing develop ment located at 1000 and 1024 Dundas Street East in Mississauga. If approved, the two-tower project will bring 462 rental units to the area, which is lacking in much-needed supply.
“While today’s new legislation is a good step towards giving mayors a greater role in accelerating housing supply and cutting red tape and runaround, Ontario’s REALTORS would like to see these powers expanded to other urban areas,” he said. “More can still be done to address the existing housing affordability crisis, including ending exclusionary zoning in Ontario’s highestdemand urban neighborhoods, which would allow for the building of duplexes, triplexes and fourplexes on lots traditionally zoned for single-family housing.”
NEWSWORTHY >>
T
Ahmed Group shares plans for Mississauga rental development
Ontario introduces Strong Mayors, Building Homes Act
Designed by WZMH Architects, the walkable, transit-oriented community will offer a mix of unit sizes, ample green space, improvements to the public realm, community space, an urban farm, and ground-level commercial space for re tail and office-use. The Ahmed Group is currently involved in the development of over 1,500,000 square feet of new purpose-built rental construction across Ontario.“Ourcity is richly diverse, inclusive, vi brant and growing. It is clear people want to live, work and play in Mississauga,” said Moe Ahmed, President and CEO of Ahmed Group. “My father came to this country as an immigrant to chase his dreams and raise his family here. I was born in Toronto, raised in Mississauga and have never left. My wife and I are proud to live in Mississauga with our families. We want more families, seniors, stu dents and young professionals to have the opportunity to reside here.”
| www.REMInetwork.com | August 2022 | 27 Where you source your mattersinformationevenmore. In today’s age, it is critical that high-level decision makers and influencers have the best information at their disposal. Thousands of Canadian Real Estate Industry Management professionals look to our industry publications as a trusted source. Subscribe today and leverage our award-winning insight. plus Aparptment ar CANAD AN N U NG OUR PROPERT Y NC US ONA Y ZO N N G INNOVATIVE WAYS O F LL SUITESNOVATIVE SU THE DIGITAL EDGTHE WHO S 2WHO019 Occup e ab y A boa d g gon w g A y h h be b d t g p d SCENT OF SUCCESSMALLGERMS REM DYING FOU ROBLEMS ITES AL T H CTOR NO VO VING AIL APPET OP IONAL SU PO TAL NTICEMENT ACTIC PROPE EFINING DEMAN COMPETITIVE STANCE Repositioning Challenges and Opportunities SEPTE M BE R 201 8 HUMAN CENTRIC LIGHTING CO-GENERATION AT CARLETON U FOCU ON OUTSOURCING COMPACT PORTFOLIOS BANK OF CANADA’S HQ MODERN ZATION MEETS PRESERVATION ON THE LEVEL NUISANCE ANIMALS KEEPING RACCOONS AT BAY GET IN LINE WITH ONLINE TRAINING GREEN ROOFS: SUSTAINABLE SHELTERS FOR PESTS? Stephanie Toomey’s honest approach to business key to building long-lasting employee, client relationships September 2019 Vol. 34 #4Canada’s Most Widely Read Condominium Magazine + What to consider when refreshing public AREACOMMONspacesRENOS Ask the Expert: Budget-friendly renovations Upgrading the resident experience $15.00CANADA RETROFIT INVESTMENT POLICY UNCERTAINTY PASSIVE HOUSE APPLICATIONS ESG GUIDANCE ELECTRICITY COST ALLOCATION INCENTIVE STRATEGIES PRODUCTIVE ENERGY Sustainable Conductors for Cost Savings plus Apartment CANADIAN Q3 SALES TRENDSCREDITCO-LIVINGACTIVITY HOUSING SOLUTIONS FOR A BETTER TOMORROW FORWARD THINKING THINKING REAL ESTATE MANAGEMENT INDUSTRY remisubscribe.com
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Why
Good Times, Bad Times
The financial results for Canada’s property/casualty insurance industry came out recently, and there is no point in pretending it wasn’t a banner year for nearly all. With COVID-19 having greatly reduced our mobility and activity levels, claims were down significantly in 2021. That said, every industry has its good times and bad times, and no industry can escape the impacts of cyclical fluctuations. 2021 was a banner year for insurers by Andy Schwartze
INSURANCE >>
Strangely, we are typically focused on the top line, which, if it keeps growing, seems to indicate success. Doing half the sales with twice the bottom-line result, for some strange reason, seems to be a more difficult business model for many to digest. We need to remember that insurance costs are a product of our societal development. Over time, economies tend to grow, and as a result, the proportionate contribution to insurance will also go up. Anything that we are able to insure will become more expensive over time, and thus the cost of claims will also expand. This is why an experienced insurance broker/risk management advisor concentrates less on the cost of a client’s insurance and more on the percentage of expenses that a business pays for insurance coverage. As long as that percentage stays within a narrow range, the cost of protection remains reasonable. Businesses that grow will see their insurance costs expand, yet the portion of their expense budget devoted to insurance should remain fairly stable. What we cannot predict, however, is something that is international in nature and very difficult for us to control at any local level. The obvious first hurdle worth considering is inflation.
For questions regarding multi-residential housing insurance, please visit: www.takecover.ca inflation can only be tamed when interest rates are pushed to a higher level. Wait and see.
The other important pressure point comes to us courtesy of the reinsurance community. To use a simple example, let’s assume that your apartment building is insured for $20,000,000. The insurer who issues the policy is fully responsible for that entire amount, should the ultimate disaster occur. To avoid such a drastic financial hit, it sells off a significant part of that $20,000,000 to the reinsurance carriers. Premiums have to be shared in a number of possible ways, commissions are exchanged, and the result is that much of the $20 million has been carved up by numerous reinsurers, each of whom participates in the premium and the losses, as agreed. In the past nine years, we have seen an increasing demand for more premium at the reinsurance level. Those costs have to be built into your insurance contract, and in an unusual twist of fate, the rates charged for a very large building have risen at a faster rate than those charged for a smaller building. It is speculated that so far in 2022, reinsurance demands have grown by as much as 35 per cent, and there is little on the horizon to indicate that this will abate.
INSURANCE >>
| www.REMInetwork.com | August 2022 | 29
In 2021 severe weather drained $225 billion from insurers active in BC, Alberta and Ontario. The “derecho” storm in Ontario came close to costing $900 million. The BC floods of last November clocked in at almost $700 million. “So what?” you might ask, figuring that the industry in Canada has more than enough capital to handle some big events. However, reinsurers operate worldwide and when the U.S. Weather Service counts up to 1,000 tornado events by mid-summer and earthquakes hit places like Italy and central Asia, one realizes that we are contributing to those claims from here in Canada.
For insurance companies—as for all of us—inflation is a nasty expense that can easily wreak havoc with claims costs. An insured repair is generally one that requires immediate attention and occurs at an inconvenient time. Labour and material costs may be unusually high, or as seems to be the case these days, difficult to access. In the meantime, the clock is running and rental income losses (which are insured) continue to mount. Perhaps mold problems worsen—or tenants may become irritable, and safety might remain compromised. Any number of consequences can arise if a claim is not dealt with quickly and efficiently.
So why are insurance rates not dropping sharply? It’s a perfectly good question and it deserves an answer—but it might be a tough one for some readers to accept. Just remember that not many business leaders like to see their revenues go down, and insurance managers are no different. Declining sales, driven by the lowering of premiums is something nobody wants to see.
Our last true battle with inflation happened in the late 1970s and early 80s. At that time, a typical insurance policy’s annual renewal would come with a 10 per cent higher premium and brokers became very used to calling this an “inflation increase”. This lasted for a few years until interest rates were able to be lowered again. To what extent inflation will stay with us is difficult to predict. Traditional economists all voice their opinions that
A recent gathering of leading insurance executives confidently predicted that the “hard market” in the property/casualty space will remain, at least for another year. These predications are always loaded with assumptions which can be sideswiped by any number of unexpected events. Overall, however, we do know that the nasty rate increases of a few years ago have settled down somewhat. To what extent we may see active competition again is almost impossible to predict.
Vancouver-based Intelligent City announced it has raised $22 million to advance building automation and robotics in the production of prefabricated mass timber buildings. Departing from the traditional, fragmented construction processes, developers that use the Intelligent City technology and design platform can expect to build 150 per cent more residential units on the same site, at a savings of up to 50 per cent on life cycle costs per home.
New proptech companies bring momentum to the housing crisis
In combination with mass timber construction, Intelligent City uses the energy-efficiency standards of Passive House design to achieve a 90 per cent carbon emissions reduction in its buildings. Continuous insulation and air-tight seals, high-performing windows and doors, balanced heat- and moisture-recovery ventilation, and minimal space conditioning throughout the building lead to improved indoor comfort for occupants.Intelligent City now has a pipeline of more than 2,300 homes, and is supported by leading developers in Vancouver, Toronto, Ottawa, and the United States, including two high-rise projects underway in Vancouver. The company was previously granted funding by the CleanBC Building Innovation Fund, the National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP), and Natural Resources Canada’s Breakthrough Energy Solutions Canada program (BESC).
ADVANCINGINNOVATIONBUILDING
As pressure mounts in cities globally to address sustainable, affordable housing needs, proptech companies are making huge strides through innovation to bring more homes to market faster.
“We are focused on revolutionizing an industry that is notoriously slow to innovate while making a significant impact on our climate with lower carbon emissions from the construction and operations of buildings,” said Oliver Lang, CEO, and Co-Founder of Intelligent City. “By using green building strategies and patented technology to deliver affordable, masscustomizable urban housing, we can help cities to adapt more quickly as the needs of people and the planet evolve.”
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Companies like Daylun, an innovator in developing passive, net-zero, modular homes, has begun construction on its flagship build at 241 Waterloo in Toronto. The project will feature advanced, green building materials and showcase fixtures, appliances, systems, and building components provided by premier manufacturers in the green building community internationally.Meanwhile,
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