CAM March/April 2023

STABILITY AND BALANCE AT THE TOP!

As a sister company to ACE Painting, Cranfield General Contracting was formed in 2004 to further meet the remodeling demands of all our clients. Delivering superior quality and cutting edge solutions Cranfield provides major renovation services to include interior, exterior, in suite and common area upgrades.

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A CLEAN, CLEAR HORIZON

Pandemic aside, the world has changed considerably in the last three years and a lot of good has come out of it. Important strides have been taken on the energy management front that will continue to bring benefits to building owners and occupants alike. From improved air quality and smart controls enabling unitholders to manage their own utility consumption, to building and operational improvements reducing waste and lowering GHG emissions, the apartment sector has come a long way. But there’s still a long way to go.

As the Canada Green Building Council put it, “With building codes moving towards zero carbon internationally, from California Zero to the new European Union directive, Canada must stay competitive with its trading partners to attract investment and drive innovation in the building sector. Building codes represent an effective approach to move the entire market toward decarbonization.”

Recognizing the importance of managing carbon is a priority all commercial building operators must embrace if they hope to remain in business. Collectively, there is no turning back and we’ll certainly be seeing code changes to ensure the path forward is clean and clear. In this issue, we look at some of the many ways rental housing providers can continue their low-carbon journey and put best practices in place to remain resilient for the long run. As usual, we also look at the current state of the rental market, highlight some exciting new rental projects, and bring you the latest news impacting your business.

Be sure to visit us at REMInetwork.com for daily news and updates, and to share your thoughts and story ideas.

Erin Ruddy @cdnapartmentmag

rent trends

EQUIPPED FOR SUCCESS TRAITS OF A MODERN, SUSTAINABLE RENTAL BUILDING:

EV CHARGING STATIONS

Editor Erin Ruddy

Art Director Annette Carlucci

Graphic Designer Thuy Huynh

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Contributing Writers Andy Schwartze, Barbara Carss

National Sales Bryan Chong Melissa Valentini

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ON-SITE RENEWABLE ENERGY (I.E. SOLAR PANELS)

SMART CONTROLS

EFFICIENT WASTE MANAGEMENT

BIKE STORAGE

ENERGY EFFICIENT APPLIANCES & LIGHTING

CAR SHARES

GARDENS & GREEN SPACE

RENTAL MARKET UPDATE

As demand grows, purpose-built rental assets continue to dominate

For investors, owners, and developers of rental housing, the future looks bright. Speaking during an online overview of commercial real estate dynamics, Peter Norman, chief economist with Altus Group, underscored the expanding market share that purpose-built supply could capture over the next five years. It’s projected that, Canada-wide, about 85,000 newly formed households will be taking up the search for accommodations every year — coming into a market where the national vacancy rate sat at 2 per cent in the fall of 2022 and is expected to slip lower.

“It’s for good reason that we’re seeing new supply coming on. It continues to be a market that provides some promise,” Norman said. “It continues to be a market that provides a return and it’s also one that shows that there is further demand for more growth.”

New household formation is actually ebbing from an earlier pace of nearly 100,000 new entrants annually while the millennial

age cohort was absorbed into the rental market, but Norman argues there is still a lucrative void for purpose-built rental to fill. Now ascendant Gen Z renters are less numerous than their immediate predecessors, but growth is expected to exceed the levels of the 1990s and early 2000s. It’s also instructive to consider where new renter households are settling, as about one third took

New & Notable Transactions

Source: Morguard

over tenancy of single-family homes over the past five years.

“That is actually the rental asset class which is exploding the fastest right now,” Norman reported. “It is below a lot of people’s radars. A lot of it is repurposing of what were previously owned homes, but it might be investors buying new homes. There are a variety of experiences in that segment.”

Housing Starts

Across Canada, 68,000 new purpose-built rental housing starts in 2022 demonstrated a dramatic uptick in development momentum, accounting for more than half of all multifamily starts. “That’s in stark contrast to even going back five or 10 years ago when the purposebuilt sector was more like 20 or 30 per cent of a much smaller apartment supply pipeline,” Norman said.

However, recent new construction — averaging out to roughly 41,000 unit starts per year over the past five years — hasn’t translated into an equivalent gain in the rental universe because demolitions have occurred along with, or as a precursor to, new development. Norman pegs the net addition of new units at closer to 20,000 per year and characterized this as the sector renewing itself. In the process, it’s already re-tilting the balance with rental condominium supply.

“The investment-grade asset that provides a variety of amenities and modern features is a very dominant product in the market,” he maintained. “If it’s competing against 30-year-old buildings; if it’s competing against 25-year-old condo buildings that are owned by individual investors; if it’s competing against carve-outs in single-family homes, there’s a lot of room for that investment-grade market to continue to take a larger share.”

Based on conventional turnover patterns, millennials should be exiting the rental market. “They’re now all in prime homebuying years. Certainly, in the decade ahead, that will be the predominant influence that millennials will have,” Norman said.

Yet, there are some unprecedented impediments to the traditional generational trajectory. Recent research from CBRE Canada calculates that residents of the Greater Toronto Area need an annual income of nearly $240,000 to affordably purchase a single-detached home at the region’s current average price or earnings of $146,000 for a condominium. The threshold for required annual income is even steeper in Greater Vancouver at $340,000 for a single-detached home or $160,000 for a condo.

Q1-2023 RECAP

Canadian multi-suite residential rental market conditions continued to strengthen during the first few months of 2023, observed Keith Reading, Direct of Research at Morguard.

“Demographic trends and the high cost of home ownership supported rental demand,” he said—adding that new supply was leased relatively quickly. “With a recession looming, renters will generally stay put, which will bolster the bottom lines of owners and investors. Over the balance of the year, rental market fundamentals will remain stable and healthy, as demand continues to outpace rental supply.”

On the investment front, Reading said multi-suite residential will remain a prime target of various investment groups; however, activity levels were low during the first few months of the year.

“Many buyers remain on the sidelines, given higher interest rates while awaiting pricing stabilization. Investors continue to exhibit interest in acquiring stabilized properties, given the sector’s healthy long-term outlook and continued rent growth forecast,” he said. “Activity levels will remain muted until vendors and purchasers can agree on price or interest rates fall back down to levels that are acceptable to buyers.”

“An increasing number of Canadians are being priced out of home ownership and their only option is to rent it,” Paul Morassutti, chair of CBRE Canada, observed in a recent address in conjunction with the release of the firm’s

2023 Market Outlook report. “Because of this, rents have surged.”

For the full story by Barbara Carss, visit www.REMINetwork.com.

Social and Affordable Housing in Canada

Insights from CMHC’s latest survey

With Canada’s national vacancy rate hovering at 2.5 percent in 2022, social and affordable rental housing continues to be in high demand as rental rates climb and homeownership wanes. The two groups most in need of housing assistance, according to the latest survey from CMHC, are families with children at 34 per cent followed by seniors at 23 per cent. Single men and women occupied roughly 10 per cent of total units surveyed, while persons with physical and mental disabilities accounted for just 3 per cent.

On the building stock front, new data suggests that social and affordable housing conditions aren’t dismal, but they aren’t stellar either: 38 per cent of the 565,000 units surveyed by CMHC are deemed to be in “fair/poor” condition; 19 per cent are in “average” condition; and 43 per cent are in “good” or “excellent” condition. Over half the units surveyed were constructed prior to 1980, with the oldest among them naturally making up the bulk of those considered less favourable.

The good news is more housing is on its way, whether it’s purpose-built market rentals or supportive housing for those requiring assistance. Funding through programs like the National Housing Strategy’s National Housing Co-Investment Fund (NHCF), the Rapid Housing Initiative, and BC Housing’s Community Housing Fund are making it

New Affordable Housing Projects Underway in Nova Scotia

The federal government and the Province of Nova Scotia announced they are committing $16.6 million toward the creation of 10 new affordable housing projects. When complete, these developments will bring 236 rental units to market—half of which will be offered at rents at or below 80 per cent of the local market rent.

The federal government is providing $7.5 million in funding through the National Housing Co-Investment Fund and the Canada–Nova Scotia Bilateral Agreement, and the Province is providing $9.1 million through the improved Affordable Housing Development Program (AHDP).

“We are in a housing crisis, and we are taking concrete steps to create more supply to help Nova Scotians find safe and safe affordable housing,” said Brian Comer, Mental Health and Addictions Minister and MLA for Cape Breton East Government will continue to work in partnership with the federal government, the private sector and non-profit providers to build more homes like these for Nova Scotians.”

The 10 projects include:

• Stephen Jamael Property Rentals Inc, Sydney – 36 units at $3.8 million

• Future Growth Co-op Ltd., Sydney Mines – 22 units at $3.9 million

• Atlantic Edge Properties Inc., Guysborough –36 units at $1.35 million

• Tata Holdings Inc., Tatamagouche – 21 units at $1.2 million

• Meech Holdings Ltd., Truro – 56 units at $3 million

• Six Point Star Homes Ltd., Amherst – 8 units at $680,000

• Innovare Properties and Developments Ltd., Westville – 28 units at $1.2 million

• S.W.H Construction Ltd.,Shelburne – 5 units at $350,000

• Grand Multip Properties Inc., Barrington – 24 units at $900,000

“Through investments in affordable housing, our government is providing assistance to those who need it most here in Cape Breton and in all corners of the country,” said Jaime Battiste, Parliamentary Secretary to the Minister of Crown-Indigenous Relations and Member of Parliament for Sydney – Victoria. “We are committed to making communities stronger through projects like these. These investments help create new jobs and stimulate the local economy, while providing access to safe, affordable homes for Nova Scotia’s seniors, families and individuals, including Cape Bretoners.”

The National Housing Co-Investment Fund (NHCF) is a $13.2 billion program under the National Housing Strategy (NHS) that gives priority to projects that help people who need it most, including women and children fleeing family violence, seniors, Indigenous peoples, people with disabilities, those with mental health or addiction issues, veterans, and young adults.

NEW SHOWROOM

NEW SHOWROOM NEW SHOWROOM

possible to bring more of what’s needed to market faster. Earlier this month, B.C. announced it was moving forward on a three-storey, low rise apartment building (pictured above) in Tofino, offering “rent-geared-to-income” units at 30 per cent of the tenant’s income as well as units reserved for those with very low incomes (i.e. those with disabilities).

“Through investments in affordable housing, our government is providing assistance to those who need it most here in British Columbia and in all corners of the country,” said Taleeb Noormohamed, Member of Parliament for Vancouver Granville. “We are committed to making communities stronger through projects like these. These investments help create new jobs and stimulate the local economy, while providing access to safe, affordable homes for Canadian seniors, families, and individuals.”

Another example of a supportive housing project underway is the “Chez Doris” in Montreal, a 19-room safe living environment for vulnerable women at risk of homelessness. Estimated to cost $10.5 million, future residents here can expect to benefit from quality, new housing and access to community support programs designed to help them thrive as they forge their way toward independence.

“Our government is committed to helping those in need, which is why we are proud to have invested in this initiative in Montréal,” said Soraya Martinez Ferrada, Parliamentary Secretary to the Minister of Housing and Diversity and Inclusion for Hochelaga. “These 19 new units for vulnerable women are providing more than just a safe, stable roof over their heads. For its residents, the building will become a true home, the key to a better life.”

Getting off

ground

Reportedly, there are some 283,800 households in Canada with at least one family member on a waitlist for social and

affordable housing. To contend with the backlog, the Affordable Housing Innovation Fund was launched in 2016 to support new ideas and generate approaches to evolve the affordable housing sector. Projects like 220 Terminal, Vancouver’s first moveable modular housing development, are examples of what can be achieved using forward-thinking housing solutions. Organizations may be eligible for funding if their proposals meet the innovation criteria set out at: Affordable Housing Innovation Fund (cmhc-schl.gc.ca)

Highlights from the survey:

• At 88%, household income was the most common mechanism used to set rents.

• 65% of those occupying social and affordable housing units were served by government organizations and 21% by non-profit organizations. Individuals exiting homelessness and those with disabilities had a higher likelihood of being served by non-profits than other groups like families, single people or veterans.

• New Brunswick had the highest share of units constructed prior to 1980 while Quebec had the lowest share with the exception of Northwest Territories and Nunavut.

• Nationally, 43% of units across Canada are deemed to be in “excellent” or “good condition” while 38% of units are considered to be in fair or poor condition.

• Building conditions varied widely ranging from only 7% of units rated as excellent or good condition in Manitoba’s social and affordable housing stock, to between 61% and 63% in British Columbia and Quebec, respectively, and up to around 85% of units in both P.E.I and Newfoundland and Labrador.

• In Ontario, Alberta and Manitoba, units in fair or poor condition formed the plurality of units surveyed, ranging from 47% in Ontario, 60% in Alberta, and 91% for Manitoba.

• When age of the stock is accounted for, 75% of units built in Canada after 2003 are rated in excellent or good condition, while

only 38% of units built before 2003 are rated similarly.

• Nationally, nearly 19% of buildings in Canada do not expect to make any repairs in the next five years. The most common building features that were expected to be repaired within the next five years were exterior building enclosures (32%) along with heating, ventilation and air conditioning (24%).

• Nationally, 73% of structures have accessibility features.

• Paved walkways for wheelchairs, street level entrance without steps and accessible parking were the most common accessibility features offered.

TENANT SCREENING DOESN’T HAVE TO BE COMPLICATED

As a residential real estate owner and operator, your business can live and die by the experience it provides for your tenants, and vice versa.

Cultivating a good working relationship with your tenants is vital to residential property management, but it’s also something that can pose a tough challenge amid the hectic nature of day-to-day modern life.

Part of that challenge begins right at the start with tenant screening.

Tenant screening is vital for property owners and managers to know the financial health of their prospective tenants and get the assurances they need in uncertain economic times. Unfortunately, it is a friction-filled process hindered by numerous, manual touchpoints. Identity fraud is a constant risk, and the regulatory landscape is complex.

A September 2022 TransUnion study found that 38 per cent of independent property owners surveyed in Canada were not satisfied with the existing processes they used to screen tenants. Online access to prospective tenant information (42 per cent) and built-in identity verification tools (31 per cent) were cited as the most appealing benefits they don’t have in their current process.

How can these issues be fixed for apartment owners and managers?

That’s where global information and insights company TransUnion and its ShareAble for Rentals screening solution can help.

STREAMLINE SCREENING WITH SHAREABLE FOR RENTALS

ShareAble for Rentals makes tenant screening an easy and efficient process and is the first tool in the market to combine consumer credit report sharing with integrated fraud controls in a streamlined digital experience. Designed specifically for the tenant screening market as a comprehensive solution, it enables online access to tenant credit report information via a single API with access to credit reports and tenant authentication capabilities, usage across multiple devices, and built-in identity verification tools.

For property owners, screening for and addressing tenant identity fraud can be time-consuming and expensive. By leveraging TransUnion’s patented innovation in application screening, ShareAble for Rentals works with property technology businesses to help property owners and their tenants build trust by simplifying the screening process in a more secure environment.

A SMOOTH DIGITAL EXPERIENCE

ShareAble for Rentals offers an easy three-step process to deliver a smooth, consumer-focused, digital experience for better tenant screening.

ƒ STEP 1 - The property owner initiates request for screening of prospective tenant via a Property Technology business’ website.

ƒ STEP 2 - A prospective tenant approves request for credit report, and proves they are who they say they are using identity verification tools included in the solution.

ƒ STEP 3 - A credit report is provided to the property owner and prospective tenant through the website portal through a “soft pull” which does not affect a tenant’s credit score.

EXPECT MORE FROM YOUR TENANT SCREENING PARTNER

The benefits of TransUnion’s ShareAble for Rentals are manifold.

Identity management tools offer property owners and tenants more secure experiences in a complex regulatory environment. Uncertainty in Canada’s current economic climate enhances the importance of property owners’ access to consumer credit data in order to assess payment behaviour of prospective tenants. Reducing the risk of fraud in a rental transaction is critical for both property owners and tenants.

ShareAble for Rentals offers a friction-right solution to these problems through tools that allow property owners and tenants to protect more securely and effectively against identity fraud.

Property owners can be provided with a robust, stepby-step guide to help read and understand credit reports. Understanding a potential tenant’s overall credit picture helps property owners make better informed decisions and reduce the risk of sudden economic shocks affecting their own cash flows.

The visibility and transparency offered by ShareAble for Rentals empowers property owners with important knowledge about prospective tenants and integrates with rental listing platforms, rental solution providers, and property management companies to simplify the screening process on both sides.

Ultimately, it all boils down to more security, more simplicity, and more support for property owners and managers and their tenants. And who doesn’t want that in today’s real estate world?

To make the jump to more with ShareAble for Rentals, visit www.transunion.ca/ShareAble

The Evolution of Esquimalt

Breathing new life into an old Victoria neighbourhood

by Erin Ruddy

In late February, PC Urban Properties, in partnership with the Fiera Real Estate CORE Fund, announced they had broken ground on a new mixed-used rental project located at 858 Esquimalt Road in Victoria, BC, formerly the site of the Cask & Keg liquor store. When complete, the new rental development will bring 8,400 square feet of retail and 198 apartment units to a neighbourhood lacking in housing.

This is a key area of Esquimalt and an opportunity for us to work with Fiera to provide a new community hub and enhance the supply of purposebuilt rental homes in the region,” said Brent Sawchyn, CEO, PC Urban Properties. “The development will provide much needed homes for families and individuals who want to be close to the city centre, and brand-new retail for the whole community to enjoy.”

As part of the West Bay Local Area Plan, the Township of Esquimalt envisioned this property for an active, mixed-use residential and retail redevelopment—and that’s exactly what the developers intend to deliver. The Cask & Keg liquor store, a much-loved fixture of the neighbourhood for decades, will move into 7,200 square feet of new space fronting Esquimalt Road, with the remaining 1,200 square feet of additional retail space up for lease in the coming months.

“Climate conscious”

Victoria’s residential vacancy rate currently hovers around one per cent, declining from 2.1 per cent in 2021. When complete in late 2025, this project will help alleviate some of that housing need with its high-quality, petfriendly, and sustainably designed rental homes. Envisioned by WA Architecture, the wood-framed project is described as “climate conscious” and meets the BC Building Code’s Step Code 3 requirements.

“This development represents a positive move forward for Esquimalt,” said Mayor Barbara Desjardins at the ground-breaking event in February. “We’ll see the property flourish to not only retail space, but retail alongside much-needed rental housing–housing that offers amenities that reinforce active, green and connected communities.”

Building features

Located near the E&N Rail Trail system, the building encourages bicycle-use by

including bicycle parking stalls for every unit. The outdoor public realm surrounding the development will undergo street beautification along Esquimalt Road, including a widened boulevard, landscaping, trees, sidewalk improvements, and the addition of public art courtesy of PC Urban Properties. Plans at the building include a dog run, gym and yoga room, outdoor play area, rooftop indoor/outdoor amenity with a kitchen, gathering spaces, putting greens and lounge areas.

“The Fiera Real Estate CORE Fund is pleased to undertake its second residential development in Victoria,” said William Secnik, Senior Vice President and Fund Manager, Fiera Real Estate. “This project not only adds to the housing stock in British Columbia, but enables Fiera Real Estate to apply its environmental, social and governance (ESG) strategy directly into its investment management activities. This approach mitigates risk and helps drive stable longterm value creation. The foundation of

our ESG strategy is based on the primary belief that the way in which we manage our funds should be responsible, resilient and engaged.”

Sustainability measures at Esquimalt

include:

• Energy efficient appliances and high-end insulation for a lower carbon footprint during the life span of the building

• EV charging for 22 electric vehicles, with 100 per cent of parking stalls equipped for future EV upgrading

• Provision of two MODO cars with memberships for up to 63 users

• Energy metering in each unit to enable renters to reduce their energy use

• 243 bicycles parking stalls for 198 units with electric charging infrastructure for electric bicycles in each storage room

• A bicycle repair and wash station located in the parkade

• Beehives on the roof to support local bee activity

DOING MORE FOR THE GREATER

Building investments that give back

By Erin Ruddy

Building decarbonization is the process of reducing or eliminating the carbon dioxide emissions that contribute to climate change from a building’s energy sources. As the commercial real estate sector seeks to eliminate harmful emissions that contribute to the climate crisis, the known benefits are piling up. These include improved indoor air quality, lowered utility bills, improved occupant comfort, building resilience, and helping Canada achieve its 2030 goals. But getting there won’t be easy…

FOR GOOD

According to a new report by Ontario’s Independent Electricity System Operator’s (IESO), emissions from Ontario’s electricity grid are steadily growing despite clean energy currently powering up to 90 per cent of the grid. Implementing new technologies to transform the way electricity is produced and used, and incorporating more renewable energy supplemented by other non-polluting solutions, are integral to ensuring Canada maintains its course to becoming net zero by 2050.

“Bridging the work of today with the needs of a decarbonized world will be challenging and complex,” the IESO report contends. “A collaborative approach across all sectors of the economy will be necessary to decarbonize Ontario’s electricity system while maintaining reliability and affordability.”

For apartment owners, the path to decarbonization is becoming clearer day by day. This is thanks, in part, to the many reputable building owners and property managers that have been committed to lowering their carbon footprints for years, if not decades. Take Skyline Group of Companies, for example. In late March, the Guelph-based company released its 2023 Sustainability Report reflecting on the year’s achievements in environmental stewardship, social responsibility, and ethical governance (ESG).

“Sustainability is an integral part of our operations across Skyline Group of Companies,” commented R Jason Ashdown, Co-Founder and Chief Sustainability Officer. “We recognize our responsibility to take real, effective action to make positive change happen and help fight some of the major crises affecting Canadian communities, such as homelessness, food insecurity, and climate change.”

In 2021, Skyline launched a Sustainability Taskforce to focus on strategic development and monitor sustainability goals across all levels of the organization. Some of the company’s recent accomplishments with this taskforce at the helm include generating 38,299 MWh of clean energy through company-owned solar panels; investing more than $11 million in energy and water efficiency measures; raising nearly $380,000

for non-profit organizations through various fundraisers; installing 160 EV charging stations; and planting more than 16,500 trees and shrubs in partnership with Ten Tree and Tree Canada.

In 2018, Skyline launched Skyline Clean Energy Fund (“SCEF”), a privately owned and managed portfolio of medium- to largescale clean energy assets such as solar arrays and biogas facilities. In 2022, SCEF made a substantial investment in biogas, a type of clean, renewable energy generated from organic waste, when it purchased its second facility in Lethbridge, AB. Together with the fund’s biogas plant in Elmira, ON, the facilities have the capacity to divert 184,000 tonnes of organic waste per year and are expected to produce 240,000 GJ (gigajoules) in Renewable Natural Gas annually.

2022 also saw Skyline partner with Better Battery Co., a manufacturer of carbonneutral batteries that “give back” and can be easily recycled through an innovative and integrated recycling program. These are just some of the steps Skyline has taken to help build the cleantech sector in Canada and further the commitment to decarbonization.

“Although we have seen additional cleantech investment from Canada this past

year, a collective effort will need to continue among all the provinces and the private sector in 2023 in order to achieve Canada’s targets for 2030,” said Rob Stein, President, Skyline Energy. “Canada has an abundance of resources that can be used to produce clean energy, and there is a widespread consensus that we need to move away from polluting energy as the fight against climate change becomes direr.”

What smaller rental housing operators can do

While not all operations have the means to invest in clean energy technology, putting money and effort into improving their own aging assets (and reaping the accompanying rewards) is a step in the right direction. As decarbonization efforts amp up across the commercial building sector, smaller landlords can consider implementing some of the following changes, if they haven’t done so already:

1. Energy Efficiency

According to most building experts, the first step on the road to decarbonization is to make the building as energy efficient as possible so that less energy is required for it to operate. This could involve simple

measures like adding wall insulation, using LED lightbulbs, and equipping the units with ENERGY STAR certified appliances and smart thermostats to reduce wastage.

Electrification is the process of replacing any equipment in the building that uses fossil fuels with the latest electric technology. When the time is right, building owners should consider replacing the furnace (which burns natural gas), with a heat pump that only uses electricity to heat and cool the building.

3. Renewable Energy

Once all the gas equipment has been replaced with electric equipment, it’s time to take a closer look at where the energy comes from. Electricity can still come from fossil fuels, so switching to a renewable energy that doesn’t create greenhouse gas emissions is important. A great example of this is solar energy, one of Skyline’s renewable energy sources of choice. Last year the fund acquired a groundmounted solar development project located near Bassano, Alberta, marking its first investment in a non-operational development project, as well as its first investment in the Alberta solar market. It also acquired an additional 7,852 KW/DC (7.852 MW/DC) in ground-mounted and rooftop solar assets throughout 2022.

4. Load Management

As more people use electricity instead of gas to power their homes and buildings, the demand for electricity will only keep rising. Residential building owners should look at ways to manage their load by shifting energy use to different times of the day. While load controllers can help keep consumption in check, they can also be restrictive, especially as more tenants are working from home since the onset of COVID-19. Smart energy management systems are a great way to manage energy use in real time, and they help balance need with goals.

To learn more about Skyline’s clean energy and sustainability pursuits, visit www.skylinenergy.ca

Geothermal energy systems now in on tax credit

The Canadian government has added geothermal energy systems to the list of clean technologies that qualify for a 30 per cent tax rebate. The newly released 2023-24 federal budget also pledges to retain the maximum tax credit at 30 per cent straight through to 2034 rather than paring it back in 2032, as was contemplated when the measure was announced in the fall economic statement last November.

“The federal government is expanding the eligibility for the clean technology investment tax credit to further support the growth of Canada’s burgeoning clean technology sector,” the budget document states. “Expanding eligibility of the investment tax credit to include technologies for geothermal energy projects would generally be expected to help reduce emissions of greenhouse gases and air pollutants by displacing the use of fossil fuels.”

The tax credit applies on qualifying capital costs of a range of low-carbon heating, renewable energy generation and energy storage systems, as well as zero-emission construction machinery and associated charging equipment. Geothermal piping, pumps, heat exchangers, steam separators and electrical generating components are now included in the mix with the condition that the equipment cannot be used in energy projects that co-produce oil, gas or any fossil fuel.

The tax credit for geothermal systems kicks in for purchases made as of budget day, March 28, 2023. The addition of the new category is forecast to cost $185 million over the next five years, increasing to the overall expenditure for the tax credit to $6.9 billion for the period from 2023-24 to 2027-28.

The budget also clarifies that the purchase and installation of low-carbon heating systems are exempt from the tax credit’s labour conditions, meaning that all investors can expect a full 30 per cent rebate. For other categories of investment, such as renewable energy generation or energy storage systems, businesses must ensure that workers are paid “a total compensation package that equates to the prevailing wage” or they will forfeit a portion of the available credit, reducing it to a 20 per cent rebate on qualifying costs.

2. Electrification

“The federal government is expanding the eligibility for the clean technology investment tax credit to further support the growth of Canada’s burgeoning clean technology sector.”

PREPARING FOR THE EV ONSLAUGHT

Is your apartment building ready?

The days of sitting back and waiting to see how Canadians embrace the electric vehicle (EV) movement are over. In 2022, the federal government announced it is mandating electric car sales as of 2026. This means rental housing owners and operators must act decisively if they want to choose a strategy to ensure their parking facilities are properly equipped at a cost that isn’t prohibitive.

But getting that ball rolling isn’t easy. It can be daunting and confusing, especially given the way EVs have been slow to catch on, with costly upfront considerations creating buyer hesitancy. While developers of new singlefamily homes and multi-residential buildings can include zero-emissions vehicle (ZEV) infrastructure in their building plans, existing properties aren’t so lucky. Most high-rise

apartments today are underequipped to meet the current level of EV need, let alone what is projected. All around the world, governments are targeting for a complete switch to EVs by 2030 or shortly thereafter.

Here in Canada, car manufacturers will be subject to penalties for not producing and selling the right quota of electric cars as it progresses towards its target of reaching 100% ZEV sales by 2035. Annually, that translates to approximately 395,000 new ZEV sales in 2026, 1.2 million new ZEV sales in 2030, and 2.0 million new ZEV sales in 2035.

“As we are seeing in European markets and in some U.S. states, the mandating of electric cars will require a huge investment in charging infrastructure to meet the influx of need,” said John Nassar, Founder at Hwisel EV, a company that specializes in supplying, installing, and managing EV charging Infrastructure. “Right now in Canada, many apartment owners

are struggling to figure out the best way to implement this technology in a manner that will benefit current and future residents without breaking the bank.”

DID YOU KNOW…

Installing a single EV charger in a high-rise condo could cost up to $20,732 vs. just $3,000 in a single-family home. To find the most cost-effective solution for your building, contact the folks at Hwisel EV today!

With so few EV drivers to accommodate in the past, charging stations in apartment buildings were few and far between. But that’s no longer the case. With EVs on the rise at a rate expected to escalate, potential tenants will be looking for buildings that offer on-site charging, making the investment in infrastructure a necessity rather than an advantage. by choosing a solution that removes them from the process. According to Nassar, the approach is similar to how Bell, Rogers, and Telus provide their Internet, cable, and phone services directly to the unitholder, and not the owner of the building.

LEVEL 2 OR LEVEL 3?

The good news is landlords today can avoid the costs and operational headaches associated with EV technology

“Going this route, apartment owners do not own or pay for the infrastructure or the electricity; rather it is provided directly to the tenant as a service, transferring all operational costs and obligations onto the supplier, and providing key savings,” he said. “Additionally, since all buildings need a service provider to bill and collect electricity charges from EV users (even if they purchase the infrastructure), extending the service to also include the infrastructure makes sense. For a small additional monthly fee, they get a complete solution that is equitable, does not require an investment, and is turnkey.”

In addition to strategy and service considerations, another important distinction is the level of charging equipment to install for the majority of users. While Level 2 chargers are considered to be fast, effective and affordable by current standards, Level 3 is the fastest charging system available, but requires significantly more power. As such, there are limitations to where this charger can be installed.

“At Hwisel, we provide worry-free Level 2 and Level 3 stations for direct purchase, or through affordable monthly plans,” said Nassar. “Additionally, our unique monitoring service allows us to fix EV charging issues remotely and deliver software upgrades, helping our customers save time, energy, and money.”

Find out more about which EV plan is right for you at www.hwisel.com

Industry Hot Topics

Ontario 2023 Budget takes action on housing issues

The Ontario 2023 Budget, tabled to legislature on March 23rd, is intended to navigate ongoing global economic uncertainty using what it describes as “a responsible, targeted approach.”

“Ontario’s economy remains resilient, but the road ahead continues to be uncertain,” said Minister of finance Minister of Finance Peter Bethlenfalvy. “Our government has the right plan to navigate these challenges. We are building Ontario so we can have a strong economy for the future and the infrastructure needed to support growth across the province.”

Among the measures described in the 2023 Budget, those impacting the Ontario rental housing sector include:

• $24 million over the next three years to the Ontario Land Tribunal and Landlord and Tenant Board in an effort to help clear backlogs and streamline processes via more adjudicators and administrative support;

• $184.4 billion in infrastructure over the next 10 years;

• $25 million over three years to attract more skilled workers through the Ontario Immigrant Nominee Program;

• Changes to the GAINS eligibility criteria, which may see an increase of up to 100,000 seniors eligible for cost-of-living support, indexed to inflation moving forward;

• A call on the federal government to work with the Province to provide HST deferral on new rental housing construction;

• $2 billion to the Ontario Community Infrastructure Fund over five years to help small and rural municipalities pay for roads, bridges, water, and wastewater projects;

• Exploring the establishment of a protected provincial area in the Town of Uxbridge

• Saving ~$800M in interest on the debt over the next three years;

• Exploring the establishment of a protected provincial area in the Town of Uxbridge.

Additionally, the government is providing an update on Ontario’s economic and fiscal outlook, with a plan that will balance the budget in 2024-25, three years earlier than forecast in the last Budget.

CON ERRA CON ERRA

CAPREIT expands in Ottawa

In early March, CAPREIT announced it had purchased Eagle Pointe apartments, a 143-unit property located at 800 Eagleson Rd., Ottawa. Acquired for $61 million, the property is 95 per cent occupied and situated close to another CAPREIT rental property purchased in 2022.

“This beautiful new asset is well-built and well-located in a thriving neighbourhood that has strong fundamentals, perfectly in line with our asset re-positioning strategy,” said Mark Kenney, CAPREIT’s president and CEO. “In addition to improving the quality of our portfolio, we are assuming a below-market, long-duration mortgage that adds incremental value and liquidity available to continue securing strategic returns.”

At the end of 2022, CAPREIT owned or had interests in approximately 67,000 apartments, townhomes and manufactured homes in Canada and the Netherlands, with approximately $17 billion of investment properties in Canada and Europe.

Federal $4 billion fund aims to fast-track housing

The federal government has launched the Housing Accelerator Fund, a $4 billion initiative that provides funding for local governments to fast-track the creation of 100,000 new homes across Canada.

The fund will help cities, towns, and Indigenous governments unlock new housing supply by speeding up development and approvals, like fixing out-of-date permitting systems, introducing zoning reforms to build more density, or incentivizing development close to public transit.

Each year, Canada constructs about 200,000 new housing units—standalone houses, individual condos, and other types of homes. While annual construction has increased in recent years, it is not enough to address affordability challenges and keep up with the housing demands of a growing population. The government of Canada aims to double the rate of housing construction over the next decade to address growing demand.

“Canada has the fastest growing population in the G7, but our housing supply hasn’t kept up with demand,” said Prime Minister Justin Trudeau. “The fund will help local governments cut red tape and backlogs.”

The federal government is encouraging local governments to think big and be innovative in their approaches. They could be accelerating project timelines, allowing increased housing density, encouraging affordable housing units, and more. The fund will provide upfront funding to support implementation, as well as additional funds upon delivering results.

“We recognize that the key to increasing housing affordability is to boost the supply of homes available to Canadians,” said Ahmed Hussen, minister of Housing and Diversity and Inclusion. “By partnering with local governments, this fund will enable us to create long-term systemic changes in our housing system and make a tangible impact in increasing housing supply.”

The program will launch this June and run until 2026-27.

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.

For more info, please contact:

David Montressor

Vice Chairman

Sales Representative (416) 815-2332

david.montressor@cbre.com

Tom Schuster

Associate Director

Sales Representative (416) 847-3257

tom.schuster@cbre.com

Calgary selling land sites for affordable housing

Eligible non-profit organizations are eligible to purchase three city-owned land sites under Calgary’s Non-Market Housing Land Sale program. New to this round, Calgary is also offering a funding program to purchasers of the sites to expedite construction. The land sites are located in the communities of Bowness, Parkdale and Erlton, and were selected for their close proximity to amenities such as transit, grocery stores and employment. Applications to purchase the sites will be accepted from March 13 to April 28, 2023.

This is the third round of Calgary’s program to offer land to non-profit organizations at below market value. The previous two rounds were launched in 2018 and 2020 and have delivered more than 280 homes either completed or in construction. City lands are sold below market value to give organizations whose priority is to develop affordable housing, a discounted rate. This reduces the land cost for non-profit organizations who can turn the savings into more support for affordable housing programs or services.

Leveraging city-owned land is a key objective of Foundations for Home, Calgary’s corporate affordable housing strategy. To further this work, administration will be taking a report to the community development committee on March 16, proposing policy changes to support Indigenous-led housing and a number of initiatives to increase the supply of land available for affordable housing.

Applicants must be a non-profit provider with experience in the supply and management of non-market housing. Once the selection process is complete, successful applicants will be required to go through the development permit and/or land use amendment approval process, including community engagement, prior to starting construction.

Industry reps join Ontario housing advisory team

Representatives of the development, commercial real estate and non-profit housing sectors have been tasked with advising the Ontario government on its strategies to stimulate construction of 1.5 million new homes by 2031. The seven new appointees join Drew Dilkens, Mayor of Windsor, and Cheryl Fort, Mayor of Hornepayne, who were earlier named chair and co-chair of the Housing Supply Action Plan Implementation Team.

New team members with insight on the private sector’s contribution include: Tony Irwin, president and chief executive officer of the Federation of Rental-housing Providers of Ontario (FRPO); Richard Lyall, president of the Residential Construction Council of Ontario (RESCON); and Paul Tenuta, senior vice president, policy and advocacy, with the Building Industry and Land Development Association (BILD). As well, Marlene Coffey, chief executive officer of the Ontario NonProfit Housing Association (ONPHA); Simone Swail, senior manager, government relations, with the Co-operative Housing Federation of Canada (CHF Canada); planning and development lawyer Adam Brown; and urban planning consultant, Jim Harnum, bring their expertise and experiences to the discussion.

Low-cost flood insurance program in the works

The Canadian government is sponsoring the development of a low-cost flood insurance program to cover current gaps in coverage. The newly released 2023-24 federal budget allocates $32 million over three years to lay the groundwork.

“This would include offering reinsurance through a federal Crown corporation and a separate insurance subsidy program,” the budget document states. “The government will engage provinces and territories on the development and implementation of the program, as well as the requirements for its long-term fiscal sustainability, including cost-sharing and risk mitigation.”

The budget also pledges $15 million over three years to underwrite a new online portal that will give users easy access to information about their exposure to flood risk.

“Legislation enacted by the government challenges stakeholders and municipalities to think outside the box to reduce costs that are ultimately passed on to homebuyers. The Implementation Team will continue this approach by embracing change and questioning the status quo,” Dilkens promises.

“This diverse and talented team has the skills, expertise and know-how to get the job done for Ontario,” Fort concurs. “We have a tremendous challenge set before us and through a consistent, measured and resultsdriven approach we will provide invaluable advice to the Ministry.”

5 WAYS TO LOWER GHG EMISSIONS

Insights from Hassan Bokhary, building perfornance engineer-in-training at RJC Engineers

Building resilience is a holistic term that applies to all aspects of building design. The definition, according to the U.S. Department of Energy, is: “The ability to resist being affected by an event or the ability to return to an acceptable level of performance in an acceptable period of time after being affected by an event closing.”

Hassan Bokhary, performance engineer in training at RJC Engineers, prefers to describe it another way: “Resilience in the built environment is the process of introducing green house gas mitigation strategies while also adapting to future climate loads,” he said. “Both of these measures have

synergistic benefits and by implementing one, the other is often accounted for.” With climate change threatening to bring increased weather events, loss of biodiversity, and food insecurity among other consequences, building owners today are expected to take all means necessary to limit their greenhouse gas emissions.

“Across the world we have seen the dire consequences ranging from droughts in Europe and China to flooding in Pakistan and East Australia,” Bokhary said. “All these events have led to the loss of billions of dollars in infrastructure, substantial loss of life, and in some cases, they have created a humanitarian crisis. In Canada, we have seen the increasing frequency of mas-

sive wildfires, rising summer temperatures, and flooding of low lying areas. With all our past predictive modelling now proving accurate, it is time to act lest things become even worse.”

If owners and operators do not address resiliency in their buildings, Bokhary warns they run the risk of being exposed to several costly and potentially dangerous outcomes— overheating being one of them.

“Overheating is a scenario that can arise due to high solar heat gains and a lack of cooling,” he said. “When space temperatures inside become dangerously high, tenants (especially the vulnerable ones) are susceptible to heat exhaustion and stroke. This problem has led to a 2022 EGBC practice advisory addressing considerations pertaining to overheating in multifamily buildings. The advisory is now calling on professionals to analyze, design and recommend mitigation strategies when working on these projects.”

Owners and operators can also reduce their exposure to blackouts and grid outages by using energy offsetting systems. As Bokhary put it, “Not only will this resiliency measure reduce the risk of your systems shutting down, but it will increase your building’s performance, which coincides with utility cost savings and potentially lower maintenance.”

TOP 5 WAYS TO INCREASE RESILIENCY

While there are many tools and measures that will help lower energy consumption and limit GHG emissions in the built environment, Bokhary recommends the following:

Consult with an Energy Professional:

“By bringing an energy and sustainability consultant onboard, your project will benefit from an overview of the potential risks and ensure an optimized strategy for low carbon resiliency is developed.”

Reduce Passive Demand: “Improvements to the building envelope, optimizing shade and lowering solar heat gain coefficients are some of the ways to lower your building’s reliance on the grid at peak times.”

Reduce Active Demand: “Increasing the efficiency of mechanical systems, recover exhaust heat for DHW and ventilation, improving lighting design and

optimizing control strategies are some of the recommended ways to reduce active demand.”

When to Invest

4. 5.

Use Energy Offsets: “The use of supplementary and substitutionary systems that complement your building design, such as photovoltaics, battery storage, and thermal storage systems, are a good way to lower emissions.”

Look to the Future: “Conduct a future, weather-based analysis to develop an action plan or have the capacity to adjust your systems as needed down the road. The solutions that were acceptable five years ago will not be acceptable 20 or 30 years from now. Building owners and operators should look beyond the current codes, all of which are largely dependent on historical knowledge.”

Addressing deficiencies in aging buildings is a necessity that shouldn’t be put off. That said, to lessen the cost and disruption to occupants, Bokhary recommends investing in resiliency measures when a particular component of the building, such as the envelope, mechanical or electrical, is due for replacement. “Often times, the Net Present Value for a more resilient and efficient alternative is better than replacing with like-for-like components,” he said, adding that building owners should also take advantage of government grants and incentives. “The Canadian Mortgage Housing Cooperation has multiple funding programs for new and existing buildings, which require the project to meet certain energy targets. Similarly, Fortis BC and Clean BC have programs for commercial, MURBs or singlefamily homes, which incentivize costs towards design and equipment.”

Hassan Bokhary, building performance engineer-in-training at RJC Engineers. For more information, visit www.rjc.ca.

ADAPTING ON THE FLY: PEST

MANAGEMENT

insights from the pandemic

The pandemic has been a proving ground for every trade. That includes the pest management sector, where unique circumstances and heightened infestation risks have kept even the pros on their toes.

Paolo Bossio is all too familiar with containing pests during - and after - the pandemic. As president of Advantage Pest Control, he and his team have been hard at work helping apartments fight back against an upswell of rats, mice, roaches, and bedbugs who have been attracted to excess food sources in multi-residential buildings.

“It’s like watching a great migration,” Bossio says. “When all these restaurants, delis, and bakeries shut down during the pandemic, they started delivering food to apartment and condo residents instead. That diverted rats, mice, and roaches away from the shops where they used to hang out and into buildings where there were these huge sources of food. And now, they’re sticking around.”

The influx of food orders also generated more food waste, both within apartment garbage chutes and the bins waiting below.

“The chutes became a new food source for roaches, which meant we had to start addressing them with not just insecticides, but cleaning agents as well,” Bossie explains. “We’re not cleaners, but we had to start adding cleaning agents into our sprays because we knew eliminating those additional food sources would push pests to feed off our products instead.”

The chutes were only half the problem. Down below, apartments often found themselves with large volumes of food waste in their garbage bins that attracted even more vermin and pests. And while some buildings upped their garbage pick-up cycles to accommodate, getting someone to pick up the infested deposits could not be taken for granted.

“What would happen is garbage companies would go to do their collections, see a bunch of rats there, and decline to pick them up. That would pose another issue for us, because if the rats were left with that tremendous and untouched food source, they wouldn’t go for our bait or traps,” says Bossio.

It was an interesting challenge, and one that called on Advantage Pest Control to put its dynamic approach to the test. With tantalizing garbage chutes and overstuffed bins stealing pests’ appetites away from the company’s bait, the team turned to sneakier tactics.

“We had to kind of come up with strategies to intrigue the rats to feed off of our product and not the bins,” recalls Bossio. “One way we did that is by literally moving the bins from one side of the parking lot to the other side and then replacing them with boxes with our rodenticides to mimic what they were feeding off of.”

Another strategy, he continues, was to rotate the type of bait they were placing in order to ensure pests weren’t becoming resistant to the same deadly meal.

“Over time, they catch on,” Bossio warns. “German roaches are highly adaptable, so we respond by literally taking all the product off the shelf once we’ve used it for a month or two and cycle it out with a new product. It keeps them on their toes.”

THINKING OUTSIDE THE LEFTOVER BOX

Problem-solving has been a critical asset for pest management professionals. This is true when it comes to finding new ways for pests to take the bait and - more importantly - when keeping apartment residents safe.

“Remember, people couldn’t really leave their apartments during the pandemic. Many were kind of stuck there. That meant we couldn’t just go in and spray; we had to take each unit on a case-by-case basis and figure out the best solution, whether that was to use aerosols, apply gels, vacuum, steam, or whatever was best and safest for the situation,” says Bossio.

Combatting bed bugs requires its own degree of problem-solving. For example, Bossio recalls a job where his team was asked to help a client overcome its chronic bed bug problem. What seemed like a straightforward task at first took on new dimensions when they found the source of the bed bugs was from a unit occupied by an elderly woman sleeping in blankets on the floor with no bed.

“We realized immediately that there was no way we were getting rid of this bedbug problem if she was sleeping on the floor. That just creates bigger problems because there is no barrier between her body and the bed bugs,” he says.

Typical strategies were off the table. Moreover, the team learned it would be at least a month before the resident would receive a bed through local public health support. Eager to solve the problem sooner, Bossio made the call to buy a new bed on behalf of the company and have it delivered and built so the resident could rest easier and the team could get to work. “In situations where people can’t leave, you can’t just walk away from the problem or it will get much worse. That’s why I always tell my technicians not to just go in there with a gel gun and get the job done as quickly as possible but to take their time, find the source of the issue, and do whatever they need to to get the job done right,” he adds.

GETTING THE FULL PICTURE

The saying “you can’t fix what you can’t see” is particularly true for pest control. And coming out of an era of lockdowns, restricted access, and work-from-home arrangements, Bossio says one thing that can help apartment owners and managers get ahead of post-pandemic issues is to take a fresh look at their building.

“Building inspections are a very costeffective way to get a real-time snapshot of the health of the building. I can’t tell you how many times we’ve been called to a unit with a chronic issue only to find out it was caused by a neighbour who wasn’t saying anything,” says Bossio, adding, “With a building inspection, you find out about those ground zero units early on and find

out where your blind spots are before they cause an issue.”

Certainly, a lot of lessons have come out of the pandemic. Many more are still to come. If the past two years have made one message clear for the pest control community, it’s that adaptation and ingenuity are key to keeping the pests at bay.

“As pest controllers were there to solve a problem,” Bossio continues. “And if we’re there just to speed through units or kick the can down the road, it won’t be good for anyone.”

Paolo Bossio is the President and CEO of Advantage Pest Control Inc., a family-owned and operated business specializing in Dynamic Integrated Pest Management programs.

by Andy Schwartze

In the many years that I have been an insurance broker dedicated to serving corporate clients and the property management industry, it has become abundantly clear that those who write the cheques tend to be laser-focused on the cost. Who can blame them? When it’s difficult to understand what you are getting for your money, it is only natural to question it. We all find ourselves regularly having to pay for goods and services at high costs that are hard to comprehend. Insurance certainly fits that description.

It is almost the end of March, when all Canadian-based property/ casualty insurers must, by law, complete the filing of their results.

Most industry analysts are already well-aware that 2022 was a very successful year in terms of underwriting results—meaning that the outgoing expenses relating to claims paid, claims incurred (reported but not yet paid), and operating costs, were nicely below the premiums taken in from policyholders. In short, an underwriting profit is expected, which could turn out to be one of the highest since 1975. This prediction is based on what was known at the end of Q3 of last year. Though we are now seeing a softening of rate increase trends, weather-related disasters such as those currently unfolding in midwestern U.S will likely affect North American reinsurance costs to an extent we still aren’t aware.

There is, however, another factor at play for the first time in decades that’s also worth considering…

The regulatory requirement that p&c insurers maintain a high level of solvency keeps their investment options pretty limited. They all maintain rolling bond portfolios to one extent or another. Anyone familiar with bonds knows that to get back the principal amount of a bond, one must hold it to maturity. In 2022, interest rates came off a long period of levels that were extremely low (a major reason for a return to strict underwriting discipline). During the year, not entirely unexpectedly, these began to rise significantly, negatively affecting the value of bonds. Bond values adjust to market value based on the difference between the old interest rates and the newly established higher rates. So, we have a situation where excellent underwriting results may have been affected by poor investment results.

It is possible that 2022 could be the first year in decades where this has happened. Having said that, if bonds are kept and not sold, then any losses would be unrealized. The extent to which low interest bonds have to be marked to market is something I cannot comment on, as this would be a regulatory matter outside of my wheelhouse. There is the possibility that investment returns in 2022 could have been negative; not by much, but this would be an entirely new development in the industry’s history in over 40 years.

In the end, however, the overall results that are important to any corporate management team and its shareholders, is the annual return on equity. By how much did the company’s capital actually grow? Once that annual growth finds its way in to double digit figures, it is not unreasonable to expect competitive forces to creep

back in to the system in order to bring excessive profiteering back in line. Clearly, as many experts have suggested, interest rates will stay higher for some time, allowing insurers to increase their bond portfolio results. These adjustments take time and do not happen quickly. The basic reality to remember is that if our societal costs rise, then one way or another, insurance costs will rise too, as insurance is nothing more than a reflection of what is going on in our lives.

For questions regarding multi-residential housing insurance, please visit: www.takecover.ca

SMART & SUSTAINABLE

HVAC trends that are heating up in 2023 and beyond

Smart controls and software automation

We’ve known for awhile now that the ability to manage a building’s heating and cooling remotely can bring many benefits—including lowering costs, as it allows for better optimization of temperatures based on who’s in the building at what time. Smart thermostats give building operators the ability to manage heating and cooling from their tablets or phones, making these systems incredibly convenient. Meanwhile, software automation using sensors that “talk” to each other allows the system to track the conditions outdoors, like temperature, humidity, and brightness to determine optimal interior settings. If there are smart blinds installed in the building, the system can open and close the blinds based on the position of the sun.

Geothermal heating and cooling methods

Green initiatives are growing as everyone continues to look for ways to lower their carbon footprint. Naturally, there’s been an uptick in demand for environmentally-friendly HVAC units, which includes the use of solar panels and wind turbines to reduce energy costs. The use of geothermal heating and cooling methods is also on the rise. This technology eliminates the need for petroleum-based electricity, instead using the ground and water sources, such as ponds, to generate energy to heat and cool buildings. Some buildings incorporate a mix of gas and solar, allowing owners to switch between the two seamlessly to control power costs.

Tightening standards

Studies show that HVAC systems use about 35 per cent of a building’s energy, on average. With climate change continuing to be a concern, experts predict that this year will bring a tightening of standards for the HVAC industry that will lead to even greater energy efficiency. That, combined with additional measures like increased insulation and alternate sources of energy could significantly reduce the impact that HVAC has on the environment.