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editor’snote
DISRUPTIVE AND DISASTROUS events often arise suddenly, but risk can be identified long in advance. In this issue, we examine efforts to do that across real estate’s diverse areas of concern from safeguarding building occupants to protecting the value of investment assets. Data emerges as an important thread that connects risk to preparedness — providing the means to identify vulnerabilities, steer priority-setting, monitor outcomes and prove compliance.
Real estate owners, managers, investors, lenders and insurers are already confronting the physical, financial, regulatory and reputational consequences of an increasingly severe and volatile climate. Business players in all economic sectors within the nations that are signatories to the Paris Agreement on climate change are becoming familiar with a framework that characterizes risk on two distinct fronts.
Physical risks destabilize assets and business operations through weather-triggered events such as hurricanes, tornadoes, floods, landslides, wildfires and prolonged, intense heat waves. Transitional risks involve the upheaval of moving away from traditional economic stalwarts and business practices in order to meet the ambitious and crucial greenhouse gas (GHG) reduction targets that world governments have adopted.
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Both those types of risk are now flowing through to real estate. Owners/managers are moving to bolster the physical resilience of their buildings and portfolios and to gauge what’s known as “climate value at risk” (although this editor suggests the term should more appropriately be “value at climate risk”). The latter provides a forecast of how changing climatic conditions could affect the serviceability and costs of building equipment, structures and systems, or a building’s ability to attract tenants, generate income and retain its value.
Fierce climatic forces are likely to be the new status quo — regardless of achievements in keeping global temperature rise in check from this point on — making adaptation measures a good investment for the future. “We can slow down the rate of change, but we cannot reverse it, at least not with the technology that we currently have,” stresses Kathryn Bakos of Waterloo University’s Intact Centre on Climate Adaptation.
On the transitional risk side, there is growing uptake of benchmarking, with an associated need for environmental data standards, in response to demands for disclosure and proof of performance from regulators, investors and tenants. We’re also transitioning from the almost automatically accepted risks of fossil fuel vessels (boilers, furnaces, gas tanks) within buildings and vehicles to a new set of health and safety risks related to lithium-ion batteries and other forms of potentially explosive energy storage.
We explore all those topics in this issue. We also look at fire safety communications, property-level conflict management, graffiti deterrence and pending new anti-money laundering requirements.
Turning from risk to future possibilities, artificial intelligence (AI) is projected to drive real estate demand and greatly enhance the industry’s analytical and predictive capabilities. We offer some insights.
Barbara Carss barbc@mediaedge.ca
Focus: Protection, Mitigation & Recovery
6 Returns on Resilience: Physical climate risk affects building and portfolio value.
8 Planning for System Failure: Energy storage prompts a battery of precautions.
46 Contentious Condos: Managing conflict and abusive behaviour.
50 Tracking Transactions: Canada bolsters guard against money laundering.
Articles:
32 Scurry for Skills: Office-using sectors make space for AI expertise.
34 Groundwork Grind: CRE pulling the pieces together to enable AI insights.
42 Buoyant Trends: New water use initiatives afloat.
48 Onerous Oversight: Toronto’s short-term rental registry stuck in manual.
Physical Climate Risk Affects Building and Portfolio Value RETURNS ON RESILIENCE
By Barbara Carss
AS THE MARKET GETS more adept at computing green premiums and brown discounts, attention is turning to how resilience fits into that picture. Climate change adaptation measures are typically viewed as risk management, to avoid costs and safeguard assets, rather than levers for investment returns, but they are inherently linked to building and portfolio value.
“It is clear that managing physical climate risk is now expected of serious, world class real estate investors and managers around the globe,” Darryl Neate, Vice President of Sustainability with the Real Property Association of Canada (REALPAC), asserted earlier this year during a webinar that tackled the topic. “We need to learn how to navigate the complexity and uncertainty. It is new and we’re still all working our way through it, but it comes down to decision-making for asset management and development professionals.”
Floods, wildfires and a barrage of extreme weather events resulted in $3.4 billion worth of insurable losses in Canada in 2023, and that tally is generally presumed to triple or quadruple when uninsured losses are added
in. This is at the high end of a trend that has seen insured losses average $2.1 billion annually since 2009, even while those years demonstrate a dramatic upward spike from losses in the range of $250 million to $450 million per year during the period from 1983 to 2008.
Webinar presenters applauded evidence of the commercial real estate industry’s progress in reducing greenhouse gas (GHG) emissions, while expressing concern about its general vulnerability to various weather-triggered calamities. Kathryn Bakos, Managing Director, Finance and Resilience, at Waterloo University’s Intact Centre on Climate Adaptation, cited the United Nations Environment Programme’s (UNEP) 2023 findings that climate adaptation momentum is slowing globally. Meanwhile, climate volatility is expected to persist even if the global average temperature increase is held within the targeted 1.5 degrees Celsius.
“We can slow down the rate of change, but we cannot reverse it, at least not with the technology that we currently have,” Bakos reiterated. “So much emphasis is being
placed on mitigating greenhouse gas emissions, which is incredibly important, but you can reduce greenhouse gas emissions at site level or across supply chains and still be impacted by the physical risks of climate change. We have to be thinking about it from both sides.”
Webinar presenters sketched out some of the available resources, including: risk assessment matrices to broadly identify prevalent climate-related hazards and effective responses; benchmarking to plot, compare and disclose portfolios’ preparedness and vulnerabilities; software to calculate the building-level potential financial impact — known as climate value at risk — of chronic and acute climate-related hazards; and methodologies to help translate all this data into investment metrics.
PORTFOLIO TO ASSET LEVEL
Last year the Intact Centre released six industry-specific climate risk matrices to guide financial market participants in their decision-making and to encourage asset owners/managers to evaluate their holdings.
Commercial real estate was included in that group because it aligns with the Task Force on Climate-related Financial Disclosures’ (TCFD) definition of sectors that are well placed to serve as models for broader industry — i.e. those with operations and assets that can be significantly disrupted or damaged by severe weather events, but also possessing the expertise to understand potential business impacts and available means to mitigate risk.
The climate risk matrix highlights likely physical threats, recommended safeguard measures and key questions for gauging the preparedness of assets in a user-friendly chart form. Drawing parallels with the wellknown ASHRAE energy audit process, Mike Williams, Vice President, Climate and Performance Engineering, with RWDI Consulting Engineers, characterized the matrix and similar approaches as a Level 1 adaptation exercise to map out physical risks across a portfolio.
“It’s a great activity to undertake,” he said. “There are a lot of different providers out there and the cost has become sufficiently
accessible that most folks with a portfolio of commercial real estate can do that.”
From there, Level 2 takes the scrutiny down to individual buildings and their key systems to help decision-makers determine where and how to act. Software and reliable data are instrumental to that process. When armed with both, Williams explained the possibilities for gauging how chronic and acute climate-related conditions and events can affect building systems and the capital needed for their upkeep and replacement.
To demonstrate chronic risks, he used the example of a chiller to explore the impact of an increasingly hot environment. Computer modelling, via RWDI’s ClimateFirst software, shows how today’s expected 25-year life cycle diminishes to 16 years and then 12 years at points along the projected trajectory of a 250% increase in cooling degree days over the next 35 years.
For acute risks, software modelling considers increased frequency of major storms and changing loss probabilities so that, in Williams’ cited example, the average annualized loss for a backup generator increased from $2,800 to $3,500. A comprehensive analysis of chronic and acute risks across all critical systems delivers what he describes as a “climate-adjusted cumulative capital forecast” for the building.
“We can then look at the climate value at risk at any point in time and really begin to think about: what is at risk to this building?” Williams said. “We can think about where we might begin to make increased investments in the building to shore up against these very known physical climate risks.”
INFORMING DECISION-MAKING
Some Canadian entities participating in the GRESB global benchmark for the ESG performance of commercial real estate portfolios (see story, page 38) appear to be doing that. Breaking down resilience-related findings emerging from the 2023 survey, Erik Landry, GRESB’s Director of Climate
Change, noted that a larger percentage of the 80 Canadian participants reported that their portfolios are exposed to “most acute hazards and chronic stressors” compared to entities from other global regions. However, he hypothesized that could be as much due to the quality of insight as the quantity of risk.
“In Canada we’re seeing a lot more comprehensive risk assessment frameworks where we’re actually seeing things like climate value at risk being calculated and used to inform decision-making, whether that’s for maintenance or retrofit decisions or things like that,” Landry affirmed.
That’s also, of course, how proponents want such frameworks to be used.
“Right now, I think a lot of the industry is at a point of learning climate risk analyses and ingesting whatever data is available just for the sake of it — maybe for regulatory disclosure or saying that they’ve run a climate risk assessment,” Landry mused. “I’d like to see that move away from a checkbox exercise to something more decision-useful.”
The other webinar presenters concurred that capturing a picture of physical climate risk is generally easier than coming up with resources to address it. Williams offered the statistic that about 90% of investment to date has been channelled to mitigation efforts and addressing transitional risk. However, Bakos argued it’s hard to quibble with the formula that shows $1 spent on adaptation saves $3 to $8 over a 10-year period.
“It’s not a return on investment, but it’s money you don’t have to pay out over a longer- term period,” she said. “It’s cost avoidance, and it’s an opportunity cost that’s not being lost. That’s money that’s now available to use for other initiatives.”
For more information about the Intact Centre on Climate Adaptation, see the website at www. intactcentreclimateadaptation.ca. For more information ClimateFirst software, see the website at https://climatefirst.net. For more information about GRESB, see the website at www.GRESB.com.
PLANNING FOR SYSTEM FAILURE
Energy Storage Prompts a Battery of Precautions
By Barbara Carss
IN STEP WITH a projected surge in energy storage installations, fire safety advisors are actively working to help clean tech adopters understand and mitigate the risks. The U.S. based National Fire Protection Association (NFPA), a leading developer of standards that are referenced in many Canadian codes and standards, addresses many of those concerns in a dedicated standard, NFPA 855. Other general guidance
for fire safety planning, emergency response, construction, operations and maintenance also comes into play.
The U.S. Energy Information Administration reports that 7.7 gigawatts (GW) of new energy storage capacity was installed in that country in the first six months of 2023, representing a 32% increase over the same period in 2022. That growth trend is expected to continue with the planned flow of significant
U.S. government spending into clean energy, while similar investment incentives are coming on line in Canada through a range of tax credits and financing options.
“A lot of the installations we see today are battery energy storage systems and particularly lithium-ion” Brian O’Connor, a senior engineer with NFPA, observed during a webinar earlier this year. “We are seeing these installations everywhere. We are seeing
S
SMART is the future of the built environment. Its success is based on understanding the needs of the owners, managers, and tenants. And realizing the value that technology brings in building performance.
What is a SMART BUILDING:
Benefits of a SMART BUILDING:
Why BOMA BEST:
A smart building uses a responsive digital framework to deliver optimal outcomes for building owners, managers and tenants. This is done through understanding current technology and its ability to deliver human-centric built environments focused on user experience, operational efficiency, and energy and cost optimization A well-managed smart building will provide a sustainable, cost-effective building that is future-proofed and highly responsive to user comfort
A certified Smart Building will deliver six key advantages:
1. Increased Energy Efficiency
2. Improved Air Quality
3. Enhanced Comfort
4. Tenant Satisfaction
5. Increased Asset Value
6. Future-proofing
BOMA BEST Smart Buildings will be the industry benchmark – defining how building owners and managers can leverage technology to realize significant value in their assets. The certification program doubles as a management tool, guiding owners and managers on a digital transformation within the built environment to optimize operations, drive sustainability, create unique user experiences, and deliver financial value to their stakeholders and customers
The BOMA BEST Hub will provide users an easy-to-use and accessible tool, allowing buildings to achieve their smart objectives. The Hub includes:
• Dynamic Reporting & Benchmarking
• Interactive Dashboards
• Checklists
• Corporate Document Library
• Recommendation Road-maps
“Make sure that staff and occupants know what to do in the event of a fire, in the event they smell smoke or they smell something off with what’s going on in the battery room.”
more installations and, with that, we’re bound to see more incidents.”
Along with NFPA colleagues, he outlined a recommended approach for reducing that likelihood and more effectively containing events that do occur. That includes fire safety requirements for: building, configuring and equipping energy storage facilities; operational procedures; and emergency response training.
Under NFPA 855, energy storage facilities must be located at least 10 feet away from the lot lines and other structures, storage areas or vegetation on the site or, alternatively, be enclosed behind a wall that extends 5 feet beyond the energy storage system in all directions and is no less than 5 feet distant from other external exposures. Inside the facility, units are to be separated into clusters of no more than 50 kilowatt-hours (kWh), each of which must be placed at least 3 feet from other clusters and any walls.
The standard also includes directions for sprinklers, fire alarms, ventilation and explosion prevention and protection. Where lithium-ion, sodium nickel chloride or flow batteries are employed, 600 kWh of energy storage is the triggering threshold for various hazard analysis, training and emergency response requirements that will need to be documented in supporting plans.
O’Connor advises facility developers/ owners to begin that process with a series of ‘What if?’ questions related to potential “thermal runaway” in the storage units and the failure of the battery management system (which could cause voltage fluctuations) and any element of the fire protection system. From there, they should consider what precautions and interventions will be needed to achieve the required safety performance.
“You need to make sure that the fire is contained in that energy storage system room for two hours; that any explosion hazards are addressed; and that the products of combustion — being smoke, heat and any toxins associated with those — do not prevent the occupants from evacuating,” O’Connor reiterated.
SAFETY PLAN ELEMENTS
Safety plan drafters will need to map out various operational and emergency response procedures, as well as the process for verifying that inspection, testing and maintenance of key systems is occurring.
Plans should cover: safe shutdown and start-up of the energy storage system; communications, training and drills for on-site personnel, other building occupants and emergency responders; and key contacts, such as service contractors for critical equipment and systems. Attention should also be paid to potential repercussions for the surrounding area and wider community.
“Make sure that staff and occupants know what to do in the event of a fire, in the event they smell smoke or they smell something off with what’s going on in the battery room,” O’Connor said. “Your personnel needs to be able to figure out, not only how to notify the fire department, but when to notify the fire department.”
Likewise, arriving firefighters should know in advance that there are energy storage units on site, and be quickly directed to the mechanisms that will disconnect all electrical charges.
“Don’t be afraid to bring your local authorities in for training, to show them,” suggested Holly Burgess, one of the NFPA’s emergency planning specialists. “Make sure that they understand where to go and what the hazards are.”
Solar photovoltaic arrays can be one of those lurking hazards if that’s the power source for the energy storage. Dean Austin, a senior electrical specialist with the NFPA, explained that installed PV panels are effectively “live” whenever there is sufficient light. Thus, NFPA guidance calls for a single-switch shutoff for all solar PV arrays mounted on a building.
“It has been documented that some of the emergency lights on fire trucks, used for illumination at night, will turn on the
solar panels and begin producing energy,” Austin reported. “The disconnect has to be able to isolate the energy storage system from all other wiring.”
EXPERTISE NEEDED
Qualified technicians are a fire safety imperative at every stage of an energy storage facility’s life cycle from installation to decommissioning. Beyond being a licensed electrician, NFPA guidance defines this as having knowledge of and experience with specific types of equipment and systems. That includes required technical skills along with the ability to assess and mitigate hazards, which may involve getting training from the manufacturers of those products.
“I have been a master electrician for 30 years. I’ve done a lot of work myself and I can tell you that I am not qualified to go into a medium voltage application and start doing electrical work in there,” advised Corey Hannahs, another of NFPA’s senior electrical specialists. “So this qualified person requirement is a big part of knowing what the problems could be.”
A poll of webinar participants found most are still at earlier stages of the learning curve, with 51% of respondents indicating that they need a lot more training before implementing an energy storage system in their facilities and just 3% stating they believe they are sufficiently knowledgeable. O’Connor promotes the NFPA standard as a tool for quantifying the risks, identifying gaps and moving forward.
“Decommissioning without failure [at the end of the facility’s life cycle], that’s what we’re all hoping for, but, if there is some kind of failure, we don’t want to have to figure it out on the spot,” he submitted. “We want to make sure that we’ve thought about this earlier and we have a plan in place, so that the failure and whatever damage might be done is limited.”
More information about the National Fire Protection Association can be found at www.nfpa.org.
A lot has changed since 1922, but not our dedication to excellence
•HVAC Services
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Raymond Carmichael established this company in 1922. Spanning four generations, Carmichael has nurtured passionate engineers, technicians, systems designers, and technical advisors whose collective goal is to support our valued clients.
GETTING THE MOST FROM YOUR FACILITY
The importance of working with a trusted multi-trade service provider
In today’s modern, conscientious world, it’s more important than ever to ensure all facets of building operations are functioning at their maximum efficiency. With aggressive ESG mandates, rising utility costs, and the impacts of climate change bringing considerable new challenges to the table, building owners have their hands full—and the costs and implications of a system failure can be devastating. These are just some of the reasons so many commercial property owners are enlisting the support of a trusted facility services provider.
“Today’s building systems are complex and often operate in conjunction with each other,” says Joe Laine, Operations Manager at Black & McDonald G.T.A Service. “When we receive a call day or night, we work with our clients to triage their needs and provide an integrated response. Similar to the way building systems work together as a whole, our licensed technicians
are skilled in their specific disciplines, yet they work as an integrated unit. From the beginning of a call to the follow-up reporting and invoicing, our process is smooth and reliable.”
Whether it’s a healthcare facility, office, warehouse or data centre, the peace of mind that comes from working with a multi-trade service provider can’t be underscored enough.
As Laine puts it, “It allows for one contractor to deliver a holistic and coordinated response, freeing up the facility manager or owner to focus on the core business. Our ‘boots on the ground’ services are complemented by a strong support staff and project managers. We work closely with our Energy & Sustainability Team to ensure we maintain and optimize building operations and guide our clients through decarbonization pathways to meet their ESG goals.”
In fact, the adage “An ounce of prevention is worth a pound
of cure” aptly sums up Black &McDonald’s approach to doing business. When meeting with a prospective client, the first step involves reviewing each building system for an overview before developing a custom maintenance plan balanced against the client’s budget requirements.
“Our tailored maintenance programs are automatically scheduled, and our service technicians are professional and knowledgeable,” says Laine. “When we are on site, we are not only a client’s eyes and ears, but also a trusted advisor who can summarize equipment status, review items requiring attention, and provide meaningful recommendations.”
RISKS & REWARDS
Despite being a major cost centre, mechanical and electrical systems tend to go unnoticed—that is, until they fail. When systems suddenly stop working, the costs of reacting to a failure can add up to a lot more than the cost of conducting scheduled repairs or replacements.
“Combining regular preventative maintenance and capital planning for new equipment reduces the risk of catastrophic failure,” says Laine. “It means repairs are completed in a scheduled and controlled environment, reducing after-hours costs and producing better results with minimal downtime.”
On the other hand, failing to maintain or properly address issues as they arise can have serious cost implications. Property managers without a trusted partner can expect costs associated with everything from downtime, to overpaying for repairs, to liabilities if unqualified trades people were unwittingly hired to fulfill the work. Many building owners have found themselves paying for repeat repairs due to unsatisfactory results. As Laine points out, having a multi-trade service provider like Black & McDonald eliminates these risks.
“Through regular maintenance, OEM efficiency ratings can be sustained—which will also help to avoid unnecessary gas and electricity consumption, as equipment ages,” he adds. “We
take pride in being available to answer the phone and direct any type of mechanical or electrical requests to an appropriate team member. Whether it’s a tripped breaker or a broken water main, one phone number makes it simple for you to get the assistance you need.”
NEW WORLD, NEW STANDARDS
If the pandemic has taught us anything, it’s the value of indoor air quality and the need for mechanical and electrical systems that operate at their best. Prior to COVID, these systems were only addressed when there was problem—but those days are behind us.
Today, building owners want to ensure they can provide safe and healthy spaces for their staff, residents, and guests. They’re connecting the dots on how building system performance impacts IAQ, and how proper proactive maintenance is a pathway to guarantee this while providing assurances to the occupants.
As the cost of utilities increases and technology changes, it can be difficult to manage the road forward given the number of options and confusion around incentives and loan products.
“Black & McDonald offers a full range of consultation and technical support to guide and assist you on your journey,” he says. “We’ll develop a tailored solution to meet the specific requirements of your building or portfolio.”
For more info, visit www.blackandmcdonald.com.
THERMAL RUNAWAY THREATS
Compromised Lithium-ion Batteries Pose
Danger
SINCE MARKET launch in the early 1990s, lithium-ion batteries have left a lasting mark on the energy storage market and gradually displaced old technologies. They can be tiny and, at the same time, very efficient, and are found in a wide range of applications from smartphones and tablets to electro-mobility.
Yet, they also come with some risk. Explosions and fires involving lithium-ion batteries can have devastating consequences, causing expensive consequential damage or, in the worst case, costing human lives.
By today's manufacturing standards, lithium batteries are considered comparatively safe. All certified batteries
By Steve Eyer
must comply with various safety tests that are carried out by the manufacturer before products are put on the market. Many manufacturers also equip them with various safety devices at the cell level.
For example, if a flammable electrolyte is used within the cell, flame retardant additives can be added to provide better protection. Storage of the battery in an impact-resistant, corrosion-proof housing with fire-retardant foam can also be an effective measure.
There are three main sources of fire hazards: thermal runaway; deep discharge; and mechanical deformation. Those can arise from electrical overload, mechanical damage or thermal overload.
Thermal loads, mechanical damage or factory defects can all trigger thermal runaway. That is an exothermic reaction, which can ignite the stored lithium and cause an extreme fire that produces its own oxygen.
This occurs when high levels of heat energy vaporize the electrolyte fluid, creating additional heat and combustible gases. Once the temperature rises above the ignition point for one of those gases, it will ignite and set fire to the battery.
This thermal propagation can create a devastating chain reaction as thermal runaway in one cell then quickly heats neighbouring cells. Once set in motion, it
EMPLOYERS OBLIGED TO INFORM AND PROTECT WORKERS
Although modern electric vehicles, or EVs, have been on Canadian roads since the early 2000s, the rechargeable lithium-ion batteries that power most electric motors are a relatively new workplace hazard for many industries. Whereas the voltage of a hand-held power tool battery is about 18 to 20 volts, EV batteries weigh more than 450 kilograms and range from 200 to 800 volts, making them a significant handling and electrical risk to workers.
When damaged, high-voltage electrical systems have the potential to release energy, posing the risk of electric shock, electrical burns or electrocution. A crack, or a short circuit in a battery also has the potential to leak flammable electrolytes and chemical compounds. That includes hydrofluoric acid, which is highly corrosive and toxic, can cause severe burns and is often lethal if inhaled.
Perhaps most notably, overheating can trigger an irreversible chemical chain reaction known as a thermal runaway. This occurs when the heat generated by cells in one area of the battery spreads to other cells, spawning extremely high temperatures very quickly. Resulting battery fires and explosions release toxic smoke, fumes and chemicals that can result in severe eye damage and respiratory issues.
Blazing lithium-ion battery fires are much more intense than fires fueled by combustible materials such as wood. They are difficult to extinguish and can reignite.
It is important for employers to identify all possible scenarios in which workers could be exposed to risk. Emergency first responders, tow truck operators, vehicle repair technicians, auto recyclers and manufacturers all increasingly encounter high-voltage EV batteries in the course of their work, as do parking operators, building maintenance personnel and anyone who has cause to be an area where EVs may be charging, parked or stored.
The most effective way to manage risk is to eliminate the source of exposure. Electric vehicles that are known to be damaged should be removed from the site and kept away from combustible materials.
Areas that store EVs and high voltage barriers should be well ventilated and, of course, comply with required fire codes and health and safety regulations. As well, consider installing fire suppression barriers and gas detection sensors. To address possible issues with smaller batteries, ensure that on-hand fire extinguishers are approved for application on lithium and lithium-ion fires.
Looking to preventative and preparedness measures, it’s essential that workers are trained how to safely shut down energized vehicles, and how to store and dispose of lithium-ion batteries. They should understand the emergency response and first aid requirements if a battery leak, fire or explosion occurs. They should also have access to personal protective equipment such as electrical rubber insulating gloves and boots, face shields and fit-tested respirators.
The good news is that battery safety research and testing is advancing in step with the industry. Employers and property/facilities managers can find various specialized resources and training programs. In Canada, organizations like Workplace Safety & Prevention Services, WorkSafeBC and the Automotive Retailers Association have developed guidance.
While standard electrical safety measures can help, it’s important for workers to follow specialized protocols when working with electrical vehicles and their batteries, including manufacturer’s instructions and recommendations.
The preceding article was developed by the Canadian Centre for Occupational Health and Safety. For more information, see the website at www.ccohs.ca.
only takes a few minutes until the battery will burn and explode into a fire that is notoriously hard to control.
Other risks can arise if lithium-ion batteries are not used for a long time. During prolonged idleness, they can completely discharge, compromising the electrolyte liquid and causing the formation of easily combustible gases. This also results in insufficient electrolyte fluid to correctly convert supplied energy, which can cause a short circuit or a fire if there is an attempt to recharge the battery.
As well, deformed cells, perhaps due to a collision or falling onto a hard surface, can cause internal short-circuiting and fire.
There is also a possibility that cells can be contaminated during manufacture. In rare cases, particles can enter cells and cause damage over time, eventually triggering an internal short circuit.
Electrical overload can occur if an incorrect charger is used. Storage in incorrect temperatures (outside the manufacturer’s recommended range) can contribute to deep discharge, while external heat such as open fire, hot machine parts or storage in direct sunlight can cause thermal overload.
Lithium-ion batteries generate oxygen when they burn. Special suppression powders and granules are necessary to combat these types of fires, which involve burning metals.
When applied to the fire load, these substances melt, cool the fire and form an impermeable envelope that separates oxygen from the fuel. It’s recommended that suppression powders be kept in stock in facilities that host high-power or greater quantities of lithium-ion batteries.
Potential risks increase with the size of lithium-ion batteries and/or the quantity of batteries in an area. Lithium batteries in small devices such as computers, cell phones and small tools or appliances are classified as low risk since they represent less than 100 watt-hours (Wh) of energy storage. Nevertheless, the manufacturers’ advice should be respected.
riskawareness
REMINDERS FOR RESIDENTIAL DWELLERS
An uptick in fires involving lithium-ion batteries underpins the City of Toronto’s recently launched safety campaign. Last year there was a 90% surge from 2022, while the first six months of 2024 brought 15 such blazes, including seven related to electric bikes and scooters.
“Lithium-ion batteries are commonplace for us all as they are in use in a wide variety of devices that are part of our daily lives, but this modern convenience is coupled with the risk of devastating fires,” says Toronto Fire Service Chief Matthew Pegg. “We’ve launched a new fire safety campaign to empower residents in Toronto and across the province with the knowledge to safeguard themselves, their property and others.”
Fire prevention officials are particularly stressing the dangers of tampering with and/or using uncertified batteries. Chargers should also carry one of the recognized Canadian certification marks: CSA; cUL; or cETL.
As well, batteries should be used with devices for which they are specified and charged with the charger and cable or cord that came with the device. Replacement chargers for electric bikes, remote-control cars and power tools should come from the original manufacturers.
Stop using batteries if any of the following are detected: odour; change in colour; excess heat; change in shape; leaking; or strange noises. Damaged batteries should be immediately taken to a safe disposal site.
Device owners are reminded to keep them in sight while they are recharging and to unplug chargers when charging is complete. Lithium batteries should be stored at room temperature, out of direct sunlight and away from anything combustible. Batteries should not be recharged while the device is sitting on a soft surface such as a couch, bed, pillow or magazine.
Lithium-ion batteries are hazardous waste and should be disposed of accordingly. Once removed from use, batteries should be sealed in a clear plastic bag or the battery terminals should be sealed with duct or electrical tape, and stored in a cool, dry place until they can be taken to an appropriate disposal depot.
More information about Toronto’s safety campaign can be found at www.toronto.ca/LithiumBattery.
Users should guard against mechanical damage and protect the battery terminals from short circuits. Nor should devices be exposed to high temperatures or heat sources, including direct sunlight, for long periods.
Medium-power lithium-ion batteries — typically employed in electric bikes, electric scooters and larger garden tools — generally have 1 to 5 kilowatt-hours of energy storage. It’s recommended that they be stored at least
2.5 metres away from other combustible materials unless they are in a storage facility with automatic extinguishing capabilities. Faulty or damaged batteries should be removed immediately and kept in a firerated space until they can be safely transferred to a disposal depot.
areas, with required spatial distances depending on the quantities stored, and in a facility with automatic extinguishing capabilities.
24_006366_Canadian_Property_Mgmt_SMR_CN Mod: June 14, 2024 11:46 AM Print: 06/24/24 page 1 v2.5
High-power lithium-ion batteries have at least 50 kWh of energy storage. They must be stored in fire-rated, separated
Steve Eyer is Manager, Engineered Solutions, at DENIOS, a company specializing in work safety and hazardous material storage, including storage rooms and cabinets for lithium batteries. For more information, see the website at www.denios.ca.
Having the technical expertise and insight to conduct retrofit projects in established buildings without affecting the day-to-day business of occupants is our specialty. It’s what sets us apart.
The truth is, existing buildings are far more complex and challenging than new construction, and require a unique game plan every time. It’s why the process for delivering mechanical and electrical engineering solutions requires more than a cookie cutter approach – it demands that you have a deep insight into the building and how new systems can be integrated into existing systems seamlessly. All of our projects are reviewed by senior engineers, each with over 30 years of experience in their respective fields, ensuring that our clients always receive engineering services of the highest quality.
Neil Spence, Director of Electrical Engineering, Building Services
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Mark Dahmer, P.Eng., PMP Mechanical Engineering Principal
Peter LaForme, Executive Vice President
Andre Lebedev, P.Eng., Director of Electrical Engineering
Robert Borovina, P.Eng., Director of Mechanical Engineering
CRITICAL MESSAGING
Reaching High-Rise Residents
By Rebecca Melnyk
RESULTS FROM 2023 — which saw a 10% year-over-year increase in fires in Ontario, resulting in 109 fatalities — are generally disconcerting. Along with that, fire safety specialists express concern that many high-rise residents aren’t prepared and don’t respond appropriately when there is a need to evacuate.
The Ontario Fire Code mandates training for residential managers, superintendents and security staff, but there is no mechanism to compel those who, statistics show, are most vulnerable to injuries and death. Jason Reid, Senior Advisor, Fire, Safety and Emergency Management, with the consulting firm, National Life Safety Group, frequently confronts potentially lifethreatening misperceptions, such as residents thinking that building staff will be focused on assisting them when the fire alarm sounds.
“Nowhere in the official emergency procedures does it say that security guards should help people out of the building and provide guidance to those who are phoning
in,” he reiterates. “Residents are the only ones in a high-rise building who are not required to be familiar with their own unique roles and responsibilities.”
In the case of a fire, the first priorities for on-site building personnel are to call 911, make an announcement over the emergency voice communication system (if there is one in the building) and retrieve the materials that they will need to hand over to the arriving fire services. Those include the building’s fire safety plan, floorplans, keys and a list of residents with disabilities and their suite locations.
Meanwhile, residents will need to promptly decide whether to evacuate or remain in their units — an option known as sheltering in place. In the best case scenario, firefighters should be on-site within about 12 minutes of being contacted, and that is time that prospective evacuees should not waste.
“Once that building is filled with smoke, you can’t leave,” warns Brent Brooks, an acting Captain with Toronto Fire Services and a specialist in high-rise firefighting. “On
average, it takes us six minutes to get to your place, and our vertical response time can take another six minutes on average. So we really can’t help you until after 12 minutes of that first alarm going off.”
The fire department will also likely need to confer with someone who knows the layout of the building and can answer questions, such as which stairwell leads to the roof. That can be problematic in cases where there is no property management staff present and/or a superintendent does not live in the building.
“Sometimes we get there, the alarm is going off, and they are not on site. That has its own layers of issues,” Brooks recounts. “In Canada, commercial properties have fire wardens, but there aren’t really any for residential, other than what the superintendent does, if they are on site.”
Among the safety threats that firefighters have long encountered — such as missing or damaged automatic door closers, which are critical to mitigate the spread of smoke — there are some disturbing new trends.
MESSAGING
COMBATTING DEAD ZONES
By Dawn Wotapka
EXPEDITING EMERGENCY RESPONSE
By Quintin Johnstone
Experts participating in inquests and post-incident inquiries have stressed that emergency responders typically need faster access and a better understanding of how to navigate high-rise buildings. Ideally, arriving firefighters, police or paramedics should be able to quickly communicate with key building personnel to gain guidance about structural features and the location of occupants who need assistance.
The Peel Regional Police, serving residents in the cities of Mississauga and Brampton, Ontario, are currently piloting a secure online portal to give emergency responders advance access to digital floorplans, contact information for property managers and building security and, perhaps most importantly, the ability to remotely open a building’s main doors. The initiative is known as Safe Buildings, and landlords and condominium corporations in those municipalities can voluntarily register to participate.
For now, Ontario’s Fire Code simply requires that this information be stored in labelled lock-boxes (also containing access keys and a list of occupants with disabilities who will need assistance) on-site in high-rise buildings. This leaves emergency responders to flip through hard copies of cumbersome documents in what are often less than ideal conditions for reading fine print.
In addition to saving vital time, the online portal and application can also bolster the security and safety of emergency responders. For example, it is particularly important that they be aware of where chemicals are stored. Opening the wrong door could have serious repercussions, perhaps triggering an explosion, causing injury and further fueling a fire.
The Ontario government now offers funding to help municipalities implement initiatives to enhance community safety. Looking outside Canada, New York City mandates a system similar to the Peel Region pilot project for high-rise buildings.
“By adopting responsive technologies, governments can fulfill their commitments to serve their residents effectively while also safeguarding both citizens and emergency responders,” says Aamer Merchant, one of the private sector partners working with the Peel Police on the Safe Buildings initiative. “It’s not just about keeping pace with the times, but also staying ahead to meet the evolving needs of communities.”
For more information about the Safe Buildings pilot program, see the website at www. safebuildings.ca. Quintin Johnstone is Chief Executive Officer of the risk management consulting firm, Riskboss Inc. For more information, see the website at www.riskboss.com.
Radio communication dead zones can occur within buildings if structural configurations or materials such as concrete, metal or low-emissivity glass block or weaken the transmission of signals. This can pose challenges and risks for emergency responders relying on two-way radio systems, which can also put building occupants and property at greater risk.
Emergency responder communications enhancement systems (ERCES) can address those issues in both new and existing buildings. They boost signals through a custom-tuned UHF or VHF channel employing a rooftop directional antenna that conveys an over-the-air link to the public safety communications network.
The antenna is connected via coaxial cable to a bi-directional amplifier (BDA), which increases the signal level to provide sufficient coverage within the building. The BDA is connected to a distributed antenna system (DAS) — a network of relatively small antennas installed throughout the building that serve as repeaters to improve the signal coverage in isolated areas.
Multiple amplifiers may be required in larger buildings, 350,000 square feet or more, to drive an adequate signal level across the system. Besides the building’s square footage, other criteria can also affect the number of amplifiers required, such as the building design, type of construction materials used and the density of construction.
A radio frequency (RF) survey, which measures the downlink/ uplink signal strengths in decibels-milliwatts (dBm), can determine
whether an ERCES is needed in either an existing or new building. However, this can sometimes be problematic with empty warehouse/ logistics space since signal strength can change in areas of the facility after racking and other equipment is installed and merchandise is added.
Nevertheless, it is generally easier to install ERCES before a building is occupied, given that it will entail fixing cable and placing antennas.
ERCES are mandated in building codes in the United States, with specifications for design, installation and performance set out in NFPA (National Fire Protection Association) standards. Regulatory requirements are at an earlier and much more piecemeal stage in Canada, but several of British Columbia’s urban municipalities, including Vancouver and Victoria, have bylaws to mandate them in larger buildings (greater than 5,000 square metres or about 54,000 square feet) that incorporate specified materials such reinforced concrete, structural steel, metal cladding and reflective or low-emissivity glass.
Dawn Wotapka is the Director of External Communications at Honeywell, a provider of emergency responder communication enhancement systems (ERCES). For more information, see the website at www.honeywell.com.
“In Canada, commercial properties have fire wardens, but there aren’t really any for residential, other than what the superintendent does.” emergencycommunications
Electric bikes and scooters can be both a fire source (see story, page 14) and an obstruction to evacuation if they are charging within units. Brooks gives the recent example of a condo dweller who had to flee to the balcony because a blazing E-scooter blocked escape to the hallway.
Cooking and throwing smoking materials off balconies remain among the leading causes of fires in high-rises. In 2022, a year that saw Ontario’s highest death rate attributable to fires in 20 years, 50% of fatalities were linked to non-functioning smoke alarms.
Some proactive property managers and condominium boards are turning to in-person events to reinforce fire safety procedures. Reid is one of many fire safety consultants who offers education sessions to explain roles and responsibilities for staff and residents along with some details about the life safety systems in their buildings.
He notes that residents are sometimes not aware that they should sound the alarm to the building, through a manual pull-station, if they see smoke or fire. However, it’s a lesson that goes two ways since building staff have sometimes learned that there are residents who can’t locate or pull the stations.
“Through the training, they have an opportunity to physically do that to see if they are comfortable with it,” Reid recounts.
“The residents walk away feeling more empowered about what to do during an emergency,” concurs Jennifer Lawther, a property manager with Whitehill Residential.
She manages a 300-unit condominium in Mississauga, which is home to 50 people who are identified as needing assistance to evacuate, and says the annual education sessions have proved a good way to impart information that may otherwise go overlooked in written documents.
“They meet people they haven’t met before and it also creates a greater sense of community,” Lawther suggests.
“Rather than just sending out the policies and procedures once a year, we thought a resident information session would be beneficial for the residents to clarify some of the questions that keep coming up,” agrees Jackie Walker, a property manager with Crossbridge Condominium Services. “There is always turnover; emergency situations change; sometimes you need to be added to the list of persons requiring assistance and sometimes you don’t. It’s a good learning opportunity for residents to clarify what they should and shouldn’t be doing and the roles and responsibilities of everyone involved.”
Rebecca Melnyk is Editor of CondoBusiness.
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DEADLY LAPSES
UK Fatal Fire Inquiry Slams Oversight and Certification Bodies
MULTIPLE FAILINGS and systemic negligence have been identified as contributing factors to the deadly fire that killed 72 residents of a 24-storey apartment building in the United Kingdom in 2017. The recently released report and recommendations from a UK government sponsored inquiry into the Grenfell Tower fire casts a wide net of blame, beginning with the manufacturers and marketers of the exterior cladding systems that served as a welcoming and rapid path for travelling flames.
Beyond those actions — which the threemember inquiry panel calls “dishonesty” — the report is highly critical of various oversight and certification bodies that are central to the safety and performance of the built environment. Although building codes in other countries, including Canada, have not allowed designers, developers and building owners to make the choices that directly led to the Grenfell Tower catastrophe, there are arguably lessons for onlookers everywhere about slipshod diligence, inappropriately trained and/or overworked safety administrators and the possible risks of commercial pressures in regulatory and certification processes.
“It is not possible to identify any single cause of the tragedy; many different acts and omissions combined to bring about the Grenfell Tower fire, although some were more significant than others,” the introduction to the report states. “We have identified many errors, due in the most part to incompetence, carelessness and a failure to take responsibility for important aspects of the work that affected fire safety.”
Notably, the report finds fault with:
• the UK’s Building Research Establishment (BRE), a 103-year-old organization that develops standards, conducts testing and research, oversees industry and professional certifications such as BREEAM, and is widely recognized for its expertise, including related to fire, safety and security;
• the British Board of Agrément (BBA), an independent certification body for the construction and civil engineering industries, including certification of construction products;
• the National House Building Council (NHBC), an independent warranty and insurance provider for new home construction, including standards, training and quality assurance for builders;
“In some cases we saw evidence of a desire to accommodate existing customers and to retain its status within the industry at the expense of maintaining the rigour of its processes and considerations of public safety.”
• the United Kingdom Accreditation Service (UKAS), the national body tasked with assessing and accrediting organizations that provide certification, testing, inspection, calibration, validation and verification services;
• the Local Authority Building Control (LABC), a joint agency of the UK’s municipal governments, intended to provide centralized technical support, training, marketing and business development services for its members’ building control departments;
• the Tenant Management Organisation (TMO), an organization established under the UK’s housing regulations to provide services to housing communities on behalf of their public landlords; and
• local building officials with the Royal Borough of Kensington & Chelsea.
COMMERCIAL PRESSURE
The inquiry panel concludes BRE was complicit in enabling the manufacturer of the combustible polyisocyanurate foam insulation used on the Grenfell Tower to pass fire safety testing. When the product was tested in BRE labs in May 2014, “two sets of fire-resistant magnesium oxide boards” were used to augment its resistance, but that fact was omitted from BRE’s subsequent fire safety report.
The inquiry panel also underscores that BRE had been aware of fire safety issues with the cladding in question as early as 1991, but had failed to effectively communicate such concerns to government authorities or to properly identify its contributory factors in at least three
noteworthy fires investigated prior to the Grenfell Tower catastrophe.
BRE’s testing of the fire safety of external walls is negatively cited for “unprofessional conduct, inadequate practices, a lack of effective oversight, poor reporting and a lack of scientific rigour”.
This is partly attributed to organizational failure to properly train staff or instill a culture of responsibility. Egregiously, senior staff at BRE were found to have coached manufacturers on how to get better safety testing results.
“In some cases we saw evidence of a desire to accommodate existing customers and to retain its status within the industry at the expense of maintaining the rigour of its processes and considerations of public safety,” the inquiry report states.
Similarly, the BBA is chastised for “an ingrained willingness to accommodate customers” exhibited in its deference to the manufacturers of the combustible cladding. The inquiry panel maintains the BBA lacked both the required expertise to assess the manufacturers’ disingenuous conduct and the robust processes to catch it. It did not assess any aspect of the product’s manufacture, testing or fire performance, and allowed the manufacturer to supply wording for the certificate.
“The underlying problem was that the BBA failed to manage the conflict between the need to act as a commercial organisation in order to attract and retain customers and the need to exercise a high degree of rigour and independence in its investigations in order to satisfy those who might consider relying on its certificates,” the report states.
lessonslearned
As the cascading consequences of Grenfell Tower catastrophe demonstrate, subsequent product specifiers/purchasers and oversight agencies rarely reassess, question or dispute certifications. Overreliance on the honour system opened the way for other safety players to overlook misconduct.
The Local Authority Building Control is criticized for failing to ensure competent assessment of products or scrutiny of manufacturers’ claims. United Kingdom Accreditation Services is called out for an approach that relies too much on “the candour and co-operation of the organisations being assessed” and lacks repercussions for accredited organizations’ missteps or encouragements and supports for their improvement.
Like BRE and BBA, the National House Building Council is accused of succumbing to commercial pressure. The inquiry panel suggests the NHBC was well placed to sound the alarm about combustible cladding, particularly through its large contingent of accredited inspectors providing services to the building industry, but it failed to adequately do so.
“It was unwilling to upset its own customers and the wider construction industry by
revealing the scale of the use of combustible insulation in the external walls of high-rise buildings, contrary to the statutory guidance,” the inquiry report asserts.
CARELESSNESS AND INCOMPETENCE
Drilling down to on-site at the Grenfell Tower, numerous failings are highlighted in the management, delivery and oversight of the recladding project that precipitated the disaster, and in fire safety monitoring and coordination within the building. The tenant management organisation, the local government authority (which was both the landlord and the building department of record) and the contractor are all held culpable.
“The choice of combustible materials for the cladding of Grenfell Tower resulted from a series of errors caused by the incompetence of the organisations and individuals involved in the refurbishment. Everyone involved in the choice of the materials to be used in the external wall thought that responsibility for their suitability and safety lay with someone else,” the inquiry report states. “None of those involved in the design of the external wall or the choice of materials acted in accordance with the standards of a
reasonably competent person in their position.”
Of these, the building department is flagged for “considerable responsibility” in failing to ensure the project complied with building regulations. The surveyor assigned to the project is described as overworked, inadequately trained and lacking understanding of the risks of the materials involved.
Nor do senior government officials escape scrutiny. The UK government is lambasted for: its complacency related to fire safety; failing to act on well documented evidence of the cladding system’s combustibility; failing to amend the Fire Safety Order (equivalent to the Fire Code) to clarify that it applied to exterior walls of multifamily dwellings; and for resisting calls to regulate fire risk assessors.
The report arises from the second phase of the public inquiry, which former UK Prime Minister Theresa May announced immediately after the fatal fire occurred. Findings are drawn from documentary resources and oral evidence presented in 312 days of proceedings.
More information about the Grenfell Tower inquiry can be found at www.grenfelltowerinquiry.org.uk.
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SURFACE STRATEGY
Graffiti Deterrence and Removal
GRAFFITI VANDALISM pervades urban areas, sometimes creating jarring tableaus of slapdash or offensive images. Unwanted script and drawings that show up on walls, roofs and pavement without owners’ consent can be an eyesore that detracts from curb appeal, diminishes property value and alters the perception of safety in a neighbourhood.
Graffiti is typically applied with ink markers, latex or spray paint, or it can be scratched or etched (dubbed ‘scratchiti’ and ‘etchiti) into glass. It can take various forms:
• tags, which often convey vandals’ names and/or other affiliations;
• stencils, derived from a stencil outline that has been filled in with spray paint;
• bombs, which are larger pieces created with spray paint or latex paint; or
• stickers and posters adhered to buildings.
The first step in countering graffiti is to deter it from happening. Lighting can make potential vandals feel exposed and less likely to target a property. Consider installing motion-activated lights in dark corners, alleyways and around the building. Defensive landscaping, such as strategically placed thorny or prickly plants, can act as a natural deterrent against graffiti. Consider planting bushes like roses or holly
By Katie Lee
near walls and fences to create a barrier that makes it difficult for vandals to gain access to property surfaces.
Surveillance cameras can be a powerful tool for deterring graffiti and identifying vandals if an incident does occur. Make sure the cameras are visible and are accompanied with signage warning the property is under surveillance.
Graffiti-resistant coatings create a protective barrier, making it easier to remove graffiti and may discourage vandals from tagging. As well, the presence of a mural can also serve to dissuade taggers from marring a property. It’s an investment that can have the additional benefits of beautification and building relationships with local artists, but be sure that it, too, is protected with a coating.
When graffiti does occur, photograph it, document the time and place of its arrival and report the incident to local authorities.
Taking the wrong approach to cleaning a tagged surface can actually set the ink and make the image more difficult to remove. Chemicals in some graffiti removal products can also be toxic and harmful to humans and/or the environment, so consider consulting a contractor with specialized knowledge of the procedures.
It can be a complex exercise, depending on factors like the media used and the substrate
underneath. There is no one-kind-fits-all approach because different inks require different chemicals to pull ink to the surface. Similarly, different substrates require specific products for successful treatment.
For example, removing an ink marker tag from glass would simply require a graffiti removal solution and rag, while the same medium on a brick wall would require a different graffiti removal solution and a hot water pressure washer to remove. The ‘scratchiti’ and ‘etchiti’ types of graffiti require a three-step buff and polish process to remove them from each surface.
The longer graffiti remains visible, the more likely it is to attract additional tags. Quick removal sends a message that the property is well-maintained and not an easy target for future vandals.
For repeatedly targeted properties, it may make sense to have a tailored maintenance program with a graffiti removal vendor. Programs can include weekly patrols by certified technicians and unlimited graffiti removal for a set monthly price.
Katie Lee is an owning-partner with Goodbye Graffiti, a provider of anti-graffiti coatings and graffiti removal services. For more information, see the website at https://goodbyegraffiti.com.
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ELEVATED SAFEGUARDS
Protecting Rooftop Workers
PROVINCIAL RULES vary, but Canada has a strict regulatory framework to protect workers on rooftops, including in-house property maintenance teams and technicians and employees of third-party contractors. Employers, whether they be landlords, property/facility managers or contractors, are mandated to ensure safe access and compliance with the standards that the governing authority has set.
The statistics are profound reminders of the human cost of preventable accidents. Ontario’s Workplace Safety and Insurance Board (WSIB) reports an average of 20 workplace fatalities per year in the province due to falling from heights. British Columbia’s government agency, Worksafe BC, accepts more than 1,000 claims per year related to falls from
ladders. A fall of less than three metres (10 feet) can be fatal and Occupational Health and Safety (OHS) Canada estimates that 95% of injuries involving ladders are attributable to unsafe use.
Employers should be aware that Canadian legislation, known as the Westray law, holds corporations, their representatives and organizations accountable for negligence related to workplace safety. It establishes criminal liability for safety failures that result in worker injuries or deaths. Rigorous safety protocols will be key to proving, if necessary, that appropriate steps have been taken to safeguard workers.
The Hierarchy of Controls is a systematic approach to risk mitigation, emphasizing
SECURITY EQUIPMENT REBATE ROLLING OUT
Small landlords and all residential tenants in Manitoba can now apply for a provincial rebate on security equipment purchased since September 2, 2023. Funds for the onetime rebate will be dispersed on a first-come, first-served basis to applicants who submit proof of purchase, installation and Manitoba residency.
“Our government committed to this rebate during the election and we’re excited to roll it out to help lower the cost of cameras, lights and other security measures for homes and small businesses,” says Matt Wiebe, Manitoba’s Justice Minister.
Recipients are eligible for a maximum of $300 for security improvements at a single address they own or occupy. However, it can be put toward more than one measure up to the allowable threshold. Eligible security equipment includes: security cameras; alarm systems; motion detectors; reinforced doors or windows; anti-graffiti film and paint; security gates; pull-down protection shutters; and permanent security fencing.
– REMI Network
prevention as the cornerstone of safety. It categorizes control measures into five distinct levels, each compounding upon the other to create a comprehensive safety net. Ranked from most to least effective, these include:
• Elimination of the hazard so that there is no source of potential harm;
• Substitution, or implementing a safer alternative when the hazard cannot be removed;
• Engineering controls, or making physical changes to the environment to reduce risk;
• Administrative controls to ensure proper training and risk mitigation procedures are in place; and
• Personal protective equipment (PPE) for workers, which employers should view as the last line of defence after they’ve implemented all other measurers rather than as the leading or sole source of protection.
Rooftops present an array of safety issues for building owners/managers and employers to consider, including its physical features, workers’ suitability for their tasks, regulatory requirements, weather conditions and vulnerability to non-authorized access.
The area surrounding roof hatches should have guards and visual clues so that workers can clearly see where these openings are
TOWER CRANES ON B.C. WORKPLACE SAFETY AGENDA
Tower cranes are essential to enable a broad range of construction projects, and are now operating on increasingly complex, multi-employer worksites. They typically operate safely, but have the potential to inflict catastrophic harm on workers and the public if they fail.
There were 22 tower crane incidents in British Columbia during the 2019-2023 period, including a 2021 collapse that killed five workers on a Kelowna job site, prompting the provincial workplace safety agency, WorkSafeBC, to conduct a comprehensive review. It’s now rolling out a new risk reduction strategy and urging employers to actively identify and eliminate unsafe work practices and equipment hazards that have the potential to cause death, serious injury and/or catastrophic equipment failure.
“We need to ensure that employers provide the training, supervision and safe-work practices needed to keep workers safe in an evolving work environment,” says Todd McDonald, Head of Prevention Services with WorkSafeBC.
Beginning in October 2024, employers must give WorkSafeBC written notice at least two weeks before tower cranes become active on one of their worksites. This will give the agency a record of the qualified crane operator performing the work and other details of the project.
There are currently 650 credentialled operators and 400 tower cranes operating around the province.
located and avoid potentially dangerous collisions when an arriving colleague suddenly opens it from below. Workers climbing up or down through hatches can also be more prone to tripping as they move from a ladder to a flat surface or vice versa.
Moisture, snow/ice or debris on ladder rungs or steps can cause slips, and these surfaces can also degrade from long-term environmental exposure. Sloped or irregular surfaces pose other risks, which may be greater if portable ladders are used.
Misalignment, setting it at an improper angle or placing it on an uneven surface can compromise ladder stability, increasing the risk of tipping or sliding. Secure anchorage is a must when ladders extend significantly above the landing surface to prevent swaying or collapsing under weight.
Frequent use by workers climbing up and down with heavy loads also contributes to wear and tear. Regular inspections and maintenance are crucial to ensure that all access equipment remains safe and reliable.
Worker fatigue is another factor. Climbing to a rooftop can be physically demanding, particularly at tall buildings, when multiple ascents and descents are required throughout the day or when workers are carrying heavy equipment and tools. Depending on the worksite and task, all three scenarios may occur together, potentially affecting workers’ stamina and increasing the likelihood of mistakes and accidents.
Rooftop work may be necessary in all types of challenging weather conditions, whether that’s winter’s harsh cold and slippery substances, summer’s heat or the rainy slickness of spring and fall. Safety measures should address risks of slippery surfaces, snowfall coverage that obscures what’s underneath and heat exhaustion.
Occupiers liability legislation also makes building owners/managers responsible for accidents that result from unauthorized access. It is important to
CLEANING CHEMICAL CAUTIONARY
Toxic ingredients in commercial cleaning products are a cause for concern. It’s important to read labels and pay attention to the possible presence of volatile organic compounds (VOCs) and other hazardous substances.
VOCs can contribute to chronic respiratory issues, allergic reactions and headaches, and may be found in air fresheners, chlorine bleach, dry cleaning chemicals, detergents and dishwashing liquid, rug and upholstery cleaners, furniture polish and oven cleaners. Resources like the U.S. Environmental Protection Agency or Green Seal can provide guidance on products to avoid and/or environmentally safe alternatives.
Recent research has highlighted potential dangers of quaternary ammonium compounds that could be linked to brain cell damage, developmental and reproductive toxicity, metabolic function disruption and other adverse health effects. Further research is underway, but, in the interim, cleaning supervisors and product procurers could consider avoiding products containing these ingredients to reduce exposure risks.
Best practices for usage should apply for all commercial cleaning products. That starts with reading the product label, and includes proper dilution and storage practices. As well, ventilation, airflow and personal protective equipment are central to safe working conditions.
“Any cleaning product can be used safely if workers are trained and have knowledge about cleaning ingredients and are provided with and wear personal protective equipment that decreases the risk of exposure to chemicals,” says Dr. Gavin Macgregor-Skinner, Senior Director of the Global Biorisk Advisory Council (GBAC), a division of ISSA.
– REMI Network
monitor and address safety breaches where ladders to the rooftop may be accessible to the public.
The following measures can enhance safety and support regulatory compliance:
• Fixed access ladders for securely anchored direct vertical access to rooftops;
• Cage ladders with an added protective barrier to prevent falls;
• Guardrails to create perimeters along the edges of rooftops and around openings or other dangerous zones;
• Ships ladders with a stair-like design to support ascent and descent;
• Lifeline ladders equipped with cable that can be attached to safety harnesses in order to catch climbers who fall or lose their footing;
• Bumplines and warning lines to alert workers of the presence of a hazard and increase situational awareness;
• Walkways to facilitate safe passage across rooftops;
• Crossover bridges for passages over rooftop obstacles, such as ducts, piping or equipment;
• Anchor points to provide secure tie-off points for personal fall arrest systems;
• Safety hoists for lifting equipment from the ground to the rooftop;
• Platforms to provide stable areas for specific tasks requiring access to particular rooftop equipment or zones; and
• Safety netting placed around the roof perimeter to catch falling objects or debris and prevent injuries below.
The preceding article was provided by the safety experts at Skyline Group, a Canadian-based specialist in rooftop safety systems and consulting services. For more information, see the website at www.skylinegroupintl.com.
REMI Network
Office-using Sectors Make Space for AI Expertise SCURRY FOR SKILLS
ARTIFICIAL INTELLIGENCE (AI) underpins job growth and real estate demand in North America’s most active markets for tech employment, including Toronto, Vancouver and Montreal. Canadian cities again place highly in CBRE’s newly released annual rating of thriving hubs and emerging centres for both core tech companies and techrelated hiring across broader regional economies. This year’s findings highlight that employers in many office-using sectors are seeking AI expertise.
“The postings for AI-related talent was about 9% of total tech talent jobs in late 2019, and that number has shot up to about 14% currently and continues to grow,” Colin Yasukochi, Executive Director of CBRE’s tech insights centre, observed during a webinar in conjunction with the release of the 2024 tech talent scoring report.
That’s happening in the context of more muted job growth across all fields of tech-
related talent. The United States gained about 213,000 new positions in 2023, representing a 3.6% increase in the total tech workforce from 2022, but the quotient of AI specialist jobs jumped by nearly double that rate. Canada added 18,400 new jobs last year, equating to a 1.7% increase in the tech workforce.
Roughly 60% of North American techrelated employees work outside the core tech industry, and those non-tech sectors collectively accounted for about 86% of new hires in the U.S. last year. Job growth was most notable in the transportation/warehouse/ wholesale, professional/business services and finance/insurance/real estate (FIRE) sectors.
Drilling down to this year’s rankings, Toronto is the highest placed Canadian city — climbing up to fourth from fifth in 2023. That’s based on a combination of factors considered important for employers and employees, including: labour and operation costs; availability of post-secondary graduates
with tech-related training; strength of the local tech economy along with opportunities for business growth and career advancement; cost of living; and lifestyle attributes.
“Operating in Toronto is more affordable than in other U.S. tech hubs,” Liz Nucci, Senior Vice President, office leasing, for CBRE in Toronto, advised during the webinar. “We have skilled talent here with world renowned institutions like the University of Toronto and the University of Waterloo producing highly educated graduates in fields like computer science and AI, and Canada’s favourable immigration and visa programs, relative to the U.S., attract international talent, creating a more diverse and innovative workforce.”
The top three markets — San Francisco Bay Area, Seattle and Metro New York — remain unchanged from last year, but Austin has moved into the top five, switching places
OSCRE SETS PRINCIPLES FOR AI IN DATA MANAGEMENT
The Open Standards Consortium for Real Estate (OSCRE) has enunciated seven principles to be applied when artificial intelligence (AI) is employed in collecting, processing and/or interpreting real estate data. The global organization’s newly released policy statement underscores AI’s potential to advance data management capabilities and better inform valuation processes, investment decision-making and property management and operations, provided those exercises and outcomes are grounded in a standardized, industry-approved approach.
“We remain committed to the development and continual improvement of the OSCRE Industry Data Model (IDM) to provide a firm foundation for employing AI technology and associated ethical implications,” it states.
The policy statement calls for AI applications in real estate data management to be:
• secure and trusted;
with Washington, D.C., which now sits in sixth. Boston, Denver, Dallas/Fort Worth and Ottawa round out the top 10.
Vancouver (11th), Montreal (15th), Waterloo Region (18th), Calgary (20th) Quebec City (40th) and Edmonton (49th) also crack the top 50, while Halifax and Winnipeg are ranked fifth and 13th respectively in an associated list of 25 emerging markets. In a repeat of last year, the eight Canadian markets were found to have the lowest operating costs in the group of 50, based on average annual wages for a 500-person workforce and rent for 60,000 square feet of office space.
“They generally will have advantages there from a labour cost perspective, and have been the recipients of a lot of growth because of those lower wages and the relative value that you get for the quality of the tech talent in those markets,” Yasukochi acknowledged.
MULTI-SECTOR HIRING
CBRE’s research points to notable clusters of AI specialists in a few key markets, with approximately 44% of such positions in the U.S. located in San Francisco, Seattle or Metro New York. AI-related jobs are even more concentrated in Canada where approximately 60% are in Toronto, Vancouver or Montreal.
“When we look at who the AI tech talent actually works for, we found that half of them worked for the tech industry, but also found that tech talent in AI specialty roles work across all industries,” Yasukochi reported. “Finance and professional services also employs a significant amount of this tech talent.”
Real estate insiders in the four top-ranked tech employment markets relayed what they’re seeing, which also illustrates something of a split in the economic profiles of San Francisco Bay and Seattle versus New York and Toronto. About 55% of tech workers in the San Francisco
• reliant on a standardized data model;
• beneficial to society;
• respectful and protective of human values and privacy;
• fair and unbiased;
• understood and transparent; and
• accountable to people.
“This policy statement underscores OSCRE’s commitment to advancing data standards and AI integration in the real estate industry while prioritizing collaboration, education, continuous improvement and accessibility. By adhering to these principles, we commit to support a more transparent, efficient and sustainable real estate ecosystem for all stakeholders,” the policy statement affirms.
For more information about OSCRE, see the website at www.oscre.org
Bay Area and Seattle are software designers and programmers and two-thirds of total tech employment is in core tech companies. In contrast, the majority is employed by non-tech companies in the other two cities and a much larger percentage — 19.2% in Toronto and 20% in New York — work in the FIRE sectors.
Luke Ogelsby, a CBRE Executive Vice President based in San Francisco, noted that half of the U.S. venture capital invested in AI has flowed into the San Francisco Bay Area, while universities in the region are producing about 5,000 graduates with AI specializations every year. AI firms accounted for about 1 million square feet of office absorption in 2023.
“The Bay Area really feels like we’re at the beginning of the next innovation cycle,” Ogelsby asserted. “When we look at AI, we think it’s going to be pervasive in everything we do. It’s not just going to be the large companies that are hiring tech talent. The impacts to hiring are going to be across all industries.”
Bill Cooper, a CBRE Senior Vice President in Seattle, suggests that’s already evident in retail, transportation and aerospace. Legal services have also been early adopters, in part, he speculates, to keep up with their clients’ evolving business needs and the many issues arising with the burgeoning technology.
Meanwhile, Seattle-based tech companies and academic institutions have been pioneers of AI development, giving the region a ecosystem of talent and support for innovation that has been built over 20+ years. Cooper characterizes the region as a magnet for American and international talent and also credits the tech industry’s robust intern programs that attract highcalibre students, who then decide to stay.
“With AI, we’re also seeing a lot more collaboration. It’s in-office work due to the need for collaboration and sharing knowledge so that’s creating more of an office need,” he added.
In Metro New York, Sacha Zarba, a CBRE Vice Chair, reports active requirements from dedicated AI firms or larger tech companies with growing AI divisions for about 500,000 square feet of space. That follows the roughly 500,000 square feet that AI-related ventures have leased since early 2023.
“A lot of the AI-related growth is not necessarily with huge companies,” Zarba said. “A lot of these companies are smaller, scaling companies that are just getting their legs and really represent the beginning of a new cycle.”
That could bode well for Toronto, where previous examinations of tech-related talent have shown a greater number of smaller firms than in the other top-five markets. Nucci likewise identifies “homegrown AI startups” as an engine of job growth and real estate leasing. She notes that some are now expanding their footprints in downtown Toronto to more than double their original spaces, with big and small firms collectively looking for 50,000 to 100,000 square feet.
Zarba foresees demand for AI expertise, and space to accommodate it, will continue to filter through to the many industries that have an interest in pursuing the predictive capabilities that AI is expected to enable.
“We’re seeing that in finance, which is a large, if the not the largest contributor of leasing volume in the city,” he affirmed.
CBRE’s Scoring Tech Talent 2024 report can be found at www.cbre.com/insights/books/ scoring-tech-talent-2024.
CRE Pulling the Pieces Together to Enable AI Insights GROUNDWORK GRIND
By Barbara Carss
ARTIFICIAL INTELLIGENCE (AI) is expected to enable a dramatic leap in the commercial real estate industry’s analytical and predictive capabilities, but a significant amount of fastidious work to wrangle data and train generative models is foreseen before those new efficiencies and insights can be achieved.
Early adopters and leading enthusiasts tally a long list of possibilities for portfolio management, risk management, valuation and assessing investment performance. For now, though, they’re mostly slogging through the monumental task of gathering and integrating the underlying intelligence.
“We’re spending our time cleaning client data so we can feed it into our models to provide the analytics back to them,” Charles Fisher, JLL’s Director of Global Real Estate Risk Analytics, reported earlier this year during a webinar sponsored by the Open Standards Consortium for Real Estate (OSCRE). “To get to scale, it gets more complicated. Definitely, there are lots of levels of maturity on this curve.”
Eventually, he anticipates AI will be enlisted in that task, once models can identify and remove rogue data. In the interim, the industry is accumulating and refining resources, and employing a range of application programming interfaces (APIs) to integrate data from across its multidisciplinary landscape to spot trends, forge connections and inform decisionmaking. Firms are also implementing AI where it’s workable.
“We’re already using generative AI to update some of our repetitive tasks like summarizing documents, data collection, aggregation, report generation or even some of our more administrative tasks like taking notes during meetings, summarizing the outcomes, takeaways and action items,” Amanda Carrillo, Director of Analytics Insights and Intelligence for CBRE Investment Management in the Americas, told the webinar audience.
Kevin Shtofman, Global Head of Innovation with the real estate data and analytics consulting firm, Cherre, highlighted some of the machine learning functions — which he characterized as “the step before you get to AI” — that have become fairly commonplace.
For example, it can serve as a swift and meticulous proofreader, cross-referencing the many contributing details in companies’ reports with the source documents.
“It’s automatically running some validation rules around lease length, correct lease dates, correct square footage, correct number of units, matching and netting trial balances,” Shtofman explained. “It’s just applying a lot of basic rules to prevent a flawed dataset from being presented.”
He also described some early inroads in using AI to predict the risk of tenants defaulting. Risk profiles are derived from history of rent payment timeliness and occurrences or patterns of falling behind and requesting restructuring of payment terms, which are analyzed across all leases a tenant holds within a landlord’s portfolio.
“Understanding AR [accounts receivable] risk has been the first use-case where we’ve found a lot of success in AI,” Shtofman said.
Looking to the future, webinar participants noted both generative AI’s interface, which would allow information-seekers to pose a question and get the program to retrieve the answer from a vast trove of data, and the many new insights that such dexterity could quickly and straightforwardly reveal. Carrillo cited a raft of performance analytics that will presumably become much easier to obtain, while Fisher envisioned how AI could
support investors’ pursuit of value growth.
“We’re really focused on drivers of performance: sector allocations; market allocations; property selection; our valuation metrics and how they’re moving against the benchmark; impacts of leverage; and, at the end of the day, how our portfolio performed versus the underwriting and why,” Carrillo affirmed.
“I am definitely interested in arbitrage opportunities, looking at what a property is selling for versus what the model says the value should be, and taking advantage of AI’s scale to start layering in other data,” Fisher mused. “I think there’s a lot of interesting scale use-cases, which we’ll see embedded into other platforms to make investment decisions faster.”
Data is tapped to be increasingly vital once generative AI capabilities are in place, with bigger players better placed to reap the benefits.
“The more information that you’ve got, proprietary from your own investments or proprietary data from your own occupied portfolio, combined with purchased data, the more you’ll likely be able to make more intelligent decisions that are predictive and prescriptive,” Shtofman submitted. “I think the biggest firms with the biggest budgets for purchasing data will end up with an outsized advantage.”
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FROM BATTLEFIELD TO SECURITY WITH PURPOSE:
Commissionaires
As Canada’s only national not-for-pro t security company, Commissionaires has a proven history of duty, integrity, and service. The Canadian Corps of Commissionaires was founded in 1925 to provide employment to those who had served during the First World War. This commitment is entrenched in its social mandate to provide meaningful employment to veterans of the Canadian Armed Forces and RCMP, members of their families and others who wish to contribute to the safety and security of the
country. Today, Commissionaires remains Canada’s largest private employer of veterans who apply their specialized skills as part of a national workforce of 22,000.
“It’s the connection to military and security culture that makes Commissionaires such a natural t for veterans transitioning to civilian life,” says Terry Hunter, a veteran of the Canadian Armed Forces and Vice President, Client Services with Commissionaires Great Lakes. “Veterans are well represented at all levels of the
organization including governance and leadership, working alongside civilians to ful ll our social mandate. It’s a deliberate choice that helps veterans feel at home.”
STRUCTURE AND BELONGING
The importance of a sense of service and belonging cannot be overstated. This seamless transition is crucial as many veterans struggle to nd their footing in the civilian world, often feeling adrift and disconnected from the structure and camaraderie they once knew. The structured, disciplined environment of Commissionaires provides familiarity and purpose that can be dif cult to nd elsewhere.
This was the case for Hunter, who recalled the challenges of transitioning from military life to a more traditional corporate role.
“It was a shock to me when I left the military and went to work in a civilian job. In the military, you’re trained so well and to such a high standard as team members that if your surroundings are not to your expectations, it can be a letdown.”
Long known for its security of federal government and military properties, Commissionaires provides services to many residential and commercial clients including residential and of ce buildings, warehouses and distribution centres, commercial enterprises and more.
Veterans who work for Commissionaires take pride in having permission to display their service ribbons as part of their uniform.
“When people enter a building and they see someone in uniform
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with their service ribbons displayed, you know that person served the country,” Hunter says. “That goes a long way.”
VETERANS: A PERFECT FIT FOR SECURITY
Offering a wide variety of security services including access control, concierge and reception services, parking monitoring, visitor registration and mobile patrol, Commissionaires has ample ability to deliver with law enforcement and military veterans being particularly well-suited to these positions. Commissionaires also provides employee background checks, ngerprinting and ID services, and alarm response services.
“The work involves multitasking, customer service, and attention to detail—at which all our veterans excel. If you take a condominium for example with a staff member in uniform sitting at the front desk, their job is not only to protect the building but, as the rst point of contact with all who enter, our guards need to respond well to every resident in that building and their guests. Our veterans are customer service oriented and have the security background and training to ensure that unauthorized persons are not provided access.”
For Hunter, being part of the Commissionaires is a way to continue serving his country, even if it is not in the traditional military sense. “It’s an organization that’s committed to Canada, and organizations within Canada,” he summarizes. “We offer security with purpose. I get the feeling of giving something back every day, and it feels good.”
ASSET-LEVEL OPENNESS
ESG Benchmarking Supports Risk Management
ENERGY EFFICIENCY will gain standing in the 2025 GRESB assessment when the global benchmark for ESG performance of commercial real estate portfolios introduces revised scoring for its energy performance metric. The move to assign energy efficiency scores to individual assets within benchmark participants’ portfolios reflects the GRESB mandates to
By Barbara Carss
push continuous ESG improvement and accelerate decarbonization, and is made possible through its increasingly sophisticated database.
“The idea of rating energy efficiency is not necessarily all that novel. However, given the geographic scope, the diversity of property types, the types of people we’re talking to, we have never overtly done it
before,” Chris Pyke, GRESB’s Chief Innovation Officer, advised during a recent webinar sponsored by the Open Standards Consortium for Real Estate (OSCRE). “We have made some strategic decisions to do that using our own data as a benchmark because of the lack of globally comparable things that we could use. We will demonstrate some methods
this fall and we will incorporate them into next year’s standards.”
For now, GRESB number-crunchers are working to produce the 2024 results slated to be released in October. Participation grew again in this 15th year of the benchmark with more than 2,200 real estate entities — encompassing roughly 210,000 individual assets worldwide — submitting information to meet the July 1 deadline.
This is the fifth year that the assessment exercise has required asset-level information for operational performance metrics related to energy, greenhouse gas (GHG) emissions, water and waste, which underpins the capability for the pending energy-efficiency rating. Also speaking in the webinar, GRESB’s Director of Strategic Initiatives, Dan Winters, suggested the focus on asset-
continuousimprovement
GRESB TO REVISE MULTIFAMILY INDICATORS
Multifamily real estate entities reporting to GRESB, the global assessment and benchmark for the ESG performance of portfolios, can expect new criteria next year. The GRESB Foundation has issued a notice of changes to be implemented in 2025 with a promise of more details later this fall.
The slate of ESG indicators, which collectively underpin GRESB scores, will be revamped to better reflect residential operations and management considerations. Some existing indicators will be culled; others will be revised or given new weights within the total score; and new ones will be added.
GRESB calls the move part of a “wider effort to bring greater sector specificity to the standard” and it is also in sync with growing participation from the multifamily sector. Speaking during a recent webinar, Dan Winters, GRESB’s Senior Director, Strategic Initiatives, reported that multifamily accounted for the largest share of new respondents to the recently completed 2024 assessment from a property sector perspective.
In its 15th year, more than 2,200 real estate entities, encompassing roughly 210,000 individual assets worldwide, participated in the GRESB assessment. That’s up from 2,084 portfolios, collectively comprised of 170,000+ assets, in 2023.
Winters theorized that the ever-expanding slate of reporting entities is tied to investor demand and, particularly, institutional investors’ need to meet targets for the reduction of greenhouse gas (GHG) emissions and to verify other types of environmental and social compliance. At the same time, many of those investors are shifting their real estate allocations away from office properties and into other asset classes.
“We’ve got a lot of 2050, 2045, 2040 commitments, particularly from the big pension plans, and they’re looking for partners in progress to drive down their carbon footprints and to report up to their chief investment officers as well,” he said. “We traffic in nonfinancial data, and we’ve put a framework and process around non-financial measures that are first and second order material to LP (limited partners) and pension plans.”
“Operational energy performance, operational energy data and its interpretation are really coming to the forefront next year.”
level reporting galvanized industry action, and has done so with expedient timing given the rise of market-driven and mandated disclosure requirements thus far this decade.
“In 2018, we announced that asset-level data would be required in 2020, and that really moved the market forward on rolling up the sleeves and being able to access this data, and to look at it and say: Is it timely? Is it quality? Where does it come from?” he maintained.
As it relates to energy performance, GRESB participants have been uploading information related to each building’s consumption, metering, year-over-year changes and quotient of renewable supply. At the macro level, energy performance is worth up to 14 points of a 100-point total
score. (GHG and water are each worth up to seven points, while waste maxes out at four points.)
“We have rated improvement; we have rated data coverage; we have collected intensity metrics and those types of things, but we have never explicitly rated energy efficiency at the asset level,” Pyke said. “That is going to drive an ever-greater priority on operational energy efficiency within the benchmark. Operational energy performance, operational energy data and its interpretation are really coming to the forefront next year.”
Looking to the future, he expects there will be reporting requirements related to electricity grid-integration and refrigerants once they can be tied to measurable data points. It’s part of the larger decarbonization
continuousimprovement
agenda, which has spurred the formation of a net-zero working group (including four Canadian representatives in the 23-member group) within the GRESB Foundation.
PLATFORM-AGNOSTIC DATA EXCHANGE
It’s also in sync with what’s characterized as a “perennial effort” to adhere to, promote and improve credible, consistent approaches to collecting, managing, integrating and interpreting data.
“Data will continue to be central to GRESB’s ability to fulfil and enhance its mission,” the GRESB Foundation’s 2024 roadmap report affirms.
OSCRE is very much an ally in that endeavour. The organization’s energy management data standard, released last year, is the first of three environmental data standards intended to forge unity, interoperability and quality control in an increasingly dense tangle of metrics, data system providers and reporting demands. The water data standard is now being finalized (see story, page 42) and development of a waste data standard is set to follow.
“Recently, we were talking with a CDO (Chief Data Officer) who said: We collect
information across 40 different platforms. I think that’s more the norm than the exception,” recounted Lisa Stanley, Chief Executive Officer of OSCRE. “As we look at what has been an onslaught of legislative and regulatory mandates occurring in the U.S. and elsewhere, the responsibility and accountability for reporting is growing to the point that many, many organizations are trying to figure out: How do we find the resources to do all this?”
The new OSCRE environmental data standards align with the reporting parameters of GRESB, the Carbon Risk Real Estate Monitor (CRREM) and three other ESGrelated platforms. Stanley describes her organization as a “convenor” of the standards development process that brings together a wide range of stakeholders, including investment managers, corporate owners and occupiers, data management providers, consulting firms and software developers.
“They come together with a common focus to create more value in a way that is platform-agnostic,” she reported. “There’s a lot more interest in collaboration because it is both strengthening the data that’s reported, as well as the value that is provided to the customers.”
Winters stressed that GRESB’s investor partners are seeking the same rigour that they expect from financial data, as ESG-related non-financial information becomes increasingly material to charting investment performance. Meanwhile, Pyke underscored that GRESB is embedded in econometric analysis, which may be removed from what some onlookers perceive as the “feel-good” aspects of ESG.
“When we don’t have adequate material non-financial information, that failure is reflected in a misallocation of risk and resources. Our effort at GRESB is to provide that necessary non-financial material information to allow people to make risk-adjusted investments and to fix those allocation problems,” he submitted. “That really pushes down to an emphasis on data quality and assetlevel information.”
For more information about GRESB, see the website at www.gresb.com. For more information about the Open Standards Consortium for Real Estate, see the website at www.oscre.org.
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BUOYANT TRENDS
New Water Use Initiatives Afloat
bathrooms; 4.7 L/min for faucets in private bathrooms; and 7 L/min for kitchen faucets and shower heads. Automatic faucets (also known as metering faucets) would have a maximum flow rate of 0.95 litres per cycle. This would apply for faucets, shower heads and replacement aerators manufactured in or imported into Canada after July 1, 2026.
SAVINGS PROJECTIONS
NEW WATER use initiatives are afloat on two fronts. The Canadian government is preparing to include faucets and shower heads in the national energy efficiency regulations for the first time, while the Open Standards Consortium for Real Estate (OSCRE) is finalizing a data standard to support industry consistency in collecting, interpreting and reporting water consumption, discharge and related environmental impacts.
Faucets and shower heads are set to be newly added to the energy efficiency regulations, along with air compressors, pool pumps and line-voltage thermostats. They’ll join five categories of already regulated commercial and residential appliances/ equipment — air conditioners, heat pumps, furnaces, water heaters and general service lamps — slated for revised, more stringent standards beginning in 2026.
Proposed amendments to the energy efficiency regulations will generally align performance and testing requirements with energy standards that have been nationally adopted in the United States.
Faucets and shower heads have long been regulated energy-using products in the U.S.
so their pending inclusion in Canada’s energy efficiency regulations will harmonize that status on both sides of the border. However, the U.S. department of energy (DOE) has not updated performance requirements for the fixtures in several years so the Canadian regulations correspond with California’s more rigorous state standards for waterflow rates.
“At this time, there are unnecessary regulatory differences across jurisdictions, which can hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses and economies. In this context, regulatory actions are necessary for some energy-using products to keep pace with changes that have taken place in the United States,” the accompanying regulatory analysis states. “Some products require going further than the United States on energy efficiency standards to drive more significant energy savings and assist with the Government’s goal to reduce GHG emissions and achieve net-zero by 2050.”
The proposed regulations set a maximum flow rate of 2 litres per minute (L/min) for manually operated faucets in public
It’s estimated that, by 2050, the new faucet standards will save 41 petajoules of energy and avoid two megatonnes (Mt) of greenhouse gas emissions in the commercial sector, equating to $372 million in energy benefits and $694 million in emissions avoidance benefits. Shower head standards are projected to have a much more modest impact, amounting to about 1.9 petajoules of energy savings and 100 kilotonnes of GHG avoidance.
In both cases, residential outcomes are expected to be dramatically more significant with estimated energy savings of 401 petajoules from faucets and 242 petajoules from shower heads. That comes with a projected 35 Mt reduction in GHG emissions to 2050.
Across all building types, the new measures are projected to result in about 3.3 billion cubic metres of water savings to 2050.
The regulatory analysis accompanying the proposed amendments also addresses concerns about potential inadvertent results that were identified in an earlier stakeholder consultation. That includes:
• possible health risks of water’s slower exit from faucets and shower heads and, thus, longer duration within piping systems;
• propensity of consumers to use more water to make up for a diminished flow rate; and
• an altering of the assumptions that water and wastewater utilities have used in their planning processes.
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The analysis, informed with input from Natural Resources Canada (NRCan), counters that there has been little evidence of those detrimental outcomes in other jurisdictions that have adopted similar flow-rates.
It acknowledges that “the risk is not zero” when water sits in piping for longer periods, but concludes it is not sufficient to override the intent of the regulation. As well, it cites California’s track record of energy and water savings and notes that water and wastewater system operators have readily adapted to lower average water use.
Appliance/equipment specifications are characterized as an easier intervention ahead of other more complicated and capital-intensive approaches through building design. They can quickly penetrate both the retrofit and newbuild markets and would be consistent across Canada.
“NRCan determined that using the regulations to reduce fixture flow-rates is the most cost-effective approach to deliver significant and immediate energy and water savings,” the regulatory analysis states. “The regulations apply to products shipped from one province to another or imported into Canada for the purpose of sale or lease.”
BOLSTERING DATA QUALITY
OSCRE’s new water data standard likewise targets consistency. It aligns with several voluntary and mandatory reporting frameworks, including ENERGYSTAR, International Financial Reporting Standards (IFRS), Europe’s Corporate Sustainability Reporting Directive, the Global Reporting Initiative and the Taskforce on Naturerelated Financial Disclosures.
It is the second of three standards under OSCRE’s environmental data standards umbrella, and follows the energy data standard introduced last year. Work is still pending to develop a waste data standard.
The water data standard is intended to assist real estate asset, property and operations managers, investors, lenders and insurers through credible, consensusdriven methods to ensure the quality, comparability and transferability of data. The non-profit industry organization’s broad reach encompasses the generators, consumers and conveyors of data — corporate owners and occupiers, investment managers, consultants and software service providers — and provides a forum for collaboration and peer networking.
“OSCRE’s position has been to find common ground,” Lisa Stanley, OSCRE’s Chief Executive Officer, affirmed during a recent webinar. “I think there’s a recognition in the industry at large that the data that’s being collected across their organizations may have some challenges, and that data consistency and integrity may be tied to bigger consequences than was the case in the past.”
The water data standard is promoted as a tool that can help:
• simplify the baseline for water use monitoring;
• measure the return on investment on water-related capital projects;
• mitigate risk and collect information needed for insurance and underwriting; and
• improve the attractiveness of assets to investors with ESG obligations.
More information about Canada’s energy efficiency regulations can be found at https:// natural-resources.canada.ca/energy/regulationscodes-standards/7043. More information about OSCRE’s environmental data standards can be found at www.oscre.org/Industry-Data-Model/ Environmental-Data-Project.
THE BUILDINGS SHOW
Dec 4 - 6, 2024
Metro Toronto Convention Centre
Managing Conflict and Abusive Behaviour CONTENTIOUS CONDOS
A RECENT COURT case reveals how one Toronto condo dweller upended other residents’ peaceful enjoyment of their homes and created security challenges for the condominium corporation’s board of directors and property management team. The case centred on the disruptive and threatening behaviour of one condo owner’s son over the course of a couple of years.
Instigating actions included: yelling and screaming at residents and staff; subjecting female residents to inappropriate language and gestures; refusing to comply with security requests; and obstructing fire safety inspections. This culminated in the discovery of a disturbing note in the condominium’s parking garage, which contained threats of sexual violence toward management and residents, derogatory language and the “Z” symbol that Russia has subverted to represent its military invasion of Ukraine.
The case highlights several legal and safety implications for condominiums and property managers:
By Luis A. Hernandez and Ingrid Kulik
Compliance with the law: condominiums must ensure that all residents comply with the Condominium Act, 1998, declarations, bylaws, and rules. This includes taking reasonable steps to address any behaviour that may cause damage, injury or interfere with other residents’ enjoyment of their property;
Workplace harassment and violence: the Occupational Health and Safety Act defines harassment as any vexatious conduct or comments that are unwelcome. In this case, the son’s behaviour towards the management staff can only be characterized as workplace harassment and violence; and Financial accountability: this ruling reinforces the principle that residents who violate condominiums’ governing documents can and should be held financially accountable for the consequences of their actions.
Disputes between an owner and a condominium’s agents, individual board members or between owners themselves can come with a hefty price for the corporation, including legal, administrative and soft costs related to tracking, recording and
expending time and efforts to curb a dispute. Notably, the condo corporation in this situation was compelled to take extensive security measures.
These included: hiring additional security guards at a cost of more than $31,000; installing more closed-circuit television (CCTV) cameras, costing approximately $17,000; and conducting a $5,400 security assessment. The condo corp. also had to repair the door of the unit where the disruptive resident lived after the police forcibly entered, bringing total securityrelated costs to $54,624.30.
The court ultimately awarded the condominium the complete amount it incurred in security costs plus legal costs in the amount of $39,805.38. Thus, the respondent owner and son were jointly ordered to pay the condominium $94,429.68.
As this case illustrates, condominium boards and managers must be vigilant and proactive in identifying and mitigating risks to ensure the safety and well-being of all residents and workers. Key takeaways include:
CRIMINAL CODE ACKNOWLEDGEMENT SOUGHT
Ontario’s leading condo associations are pushing the federal government to amend the Criminal Code of Canada to give courts more leeway to impose stricter sentencing measures on individuals who commit or attempt to engage in violent assaults against condo directors, officers, managers, and related support staff.
The Association of Condominium Managers of Ontario (ACMO), the Toronto and Area and Eastern Ontario Chapters of the Canadian Condominium Institute (CCI), and the Canadian Chapter of the Community Associations Institute (CAI) launched a joint initiative early last year to propose legislative reforms and develop resources following the mass shooting at Bellaria Residences in Vaughan, Ontario, on December 18, 2022. They argue that there are currently insufficient safeguards to protect management staff from violence.
“It is alarming to see a rise in incidents where condominium directors, condominium managers and related support staff are subjected to physical assault while carrying out their responsibilities,” the associations’ recent letter to the federal government states. “Actual, attempted or threatened violence not only jeopardizes their well-being but also undermines their ability to effectively fulfill their duties.”
That’s creating new difficulties in encouraging condo owners to stand for election or re-election to boards. “Many condominium managers feel equally unsafe and are leaving the profession,” the letter maintains.
The groups have suggested that the Criminal Code should extend the conditions that now apply to the assault of a public transit operator to condominium directors, condominium managers and/or agents of the condominium or strata corporation.
“The purpose of this provision is to provide an additional deterrent to protect transit operators while performing their duties,” the associations state. “This same rationale applies to those who are fulfilling their duties under various forms of condominium legislation across the country.”
More than two million Canadian households live in condos. ACMO, CCI-T and CAI-C call for a “clear message that such behaviour will not be tolerated” to be passed through to Canada’s criminal justice system, and stress that condo officers and managers are, themselves, tasked with upholding legislation.
“These persons have a duty to enforce provincial condominium legislation and the governing documents of the condominium corporation that they serve,” the letter reiterates. “A person who, through violence, interferes or attempts to interfere with someone who is discharging their duties in this regard should face an increased criminal penalty.”
Early intervention: prompt action can prevent situations from escalating. Regular monitoring and addressing minor infractions early can deter more serious violations and will generally set an expectation in the community that issues will be dealt with; Documentation and proof: document any interactions with the wrongdoer and establish clear boundaries to avoid any misunderstandings. If at all possible, avoid interacting with these individuals by phone; Comprehensive security plans: it is essential to invest in comprehensive security systems, including CCTV, security personnel, and regular assessments. These measures enhance safety and also provide valuable evidence in case of disputes. Connect with security and concierge service providers to carry out a comprehensive security audit or highlight the “hotspots” or problem areas; Resident education: making residents aware of the consequences of non-compliance with condo rules can foster a cooperative community environment. Clear communication and reminders regarding the existing rules and, their legal obligations with respect to the condominium’s governing documents can help set expectations and reduce conflicts;
Policy implementation: condominiums can implement complaint response and harassment policies in consultation with their property management service providers, legal counsel and other professional advisers. They can also consider policies and concepts that have worked in other condo communities; Conflict resolution skills: all community stakeholders ought to work on improving
their conflict resolution skills and learning how to deescalate situations. This is advisable for managers and directors.
Luis A. Hernandez is a condominium lawyer with Levitt Di Lella Duggan & Chaplick LLP in Toronto.
For more information, see the website at https:// lddclawyers.com. Ingrid Kulik, RCM, CMCP is a condominium manager with Icon Property Management Ltd, based in the Greater Toronto Area. For more information, see the website at https:// iconpm.ca.
ONEROUS OVERSIGHT
Toronto’s Short-term Rental Registry Stuck in Manual
THE CITY OF TORONTO’S licensing department has been directed to improve data management for the short-term rental registry after a municipal audit found that about 10% of approved housing hosts may have overstepped the rules. Toronto Auditor General Tara Anderson also flagged challenges in determining whether municipal accommodations tax (MAT) has been accurately collected because details are missing from the information licensed short-term rental companies submit to Toronto’s revenue services department.
She concludes that administrators’ heavy reliance on manual review processes hinders oversight of the approximately 8,400 registrants currently approved to offer short-term rental accommodations in their principal residences. Her report and recommendations were adopted by Toronto Council in July. This follows after Council updated the municipal bylaw governing short-term rentals earlier this year in an effort to make it easier to enforce.
“Challenges persist due to ongoing non-compliance and difficulties in
enforcement, alongside limited resources, outdated techniques in data analysis and highly manual, labour-intensive internal processes,” the audit report observes. “It is essential to implement efficient and effective monitoring of the short-term rental operators’ adherence to the regulations to ensure the goals of the bylaw are being achieved as intended.”
Under Toronto’s rules, homeowners and tenants can rent out up to three bedrooms within their principal residence for a maximum of 28 consecutive days and no more than 180 days total in a calendar year. To do so, they must be registered with the City and the registration number must be cited in cross-listings with any of the three companies — Airbnb, Booking.com and PodsLiving.com — that are licensed to facilitate short-term rentals in the city.
In applying to join the registry, owners/ tenants must supply identification and information for an emergency contact or contacts who will be reachable 24/7. Auditors found that successful applicants generally received approval and a registration number within three weeks, but, on average,
administrators took four months to render decisions on the roughly 16% of rejected applications during the 2021-2023 period due to the “additional investigation efforts” required.
Approved registrants are required to pay an annual registration fee, remit municipal accommodations tax (MAT) equivalent to 6% of revenue earned from room rentals and make quarterly declarations to Toronto’s revenue services department even if they have no earnings for the period. Although Airbnb has committed to collect and convey MAT on behalf of registrants listed on its platform, which accounts for about 92% of tax collected from the registry thus far, housing hosts are still obliged to submit individual quarterly reports to the City.
Audit data shows Toronto garnered roughly $20 million in MAT in the 42 months from the launch of the registry in September 2020 to the end of February this year. An additional $3.7 million was collected up to the end of 2023 from registrations and a surcharge applied on nightly bookings through
licensed short-term rental companies’ platforms.
However, the recent update to the authorizing bylaw will increase the revenue from the latter fees. The annual registration fee for housing hosts will jump from $53.22 to $375 beginning in 2025, while short-term rental facilitators are now levied $1.50 per nightly stay booked through their platforms — up from the previous charge of $1.06 prior to June 30 this year.
AUTOMATION AND API RECOMMENDED
The audit report acknowledges the many challenges that licensing staff faces in reviewing applications for the registry and underscores the impossibility of keeping track of every transaction for every night of stay, which numbered approximately 2.4 million across all registered properties during the period scrutinized.
As part of the bylaw update, City Council has already called for the development and implementation of an application programming interface (API) to enable better information exchange with the licensed short-term rental platforms. The audit report further recommends advanced analytics and automation to focus on six indicators of rules violation.
The following are considered plausibleto-strong hints that short-term rental accommodations are not located in registrants’ principal residence:
• exceeding the limit of 180 nights per year for rentals;
• renting out more than three bedrooms per night;
• owners with multiple short-term rental properties:
• properties with legally approved secondary suites;
• using the same registration number for multiple properties; and
• relying on professional property management.
These are all risks that human administrators are currently monitoring through intuitive, labour-intensive processes.
“To pinpoint non-compliance, the MLS (municipal licensing and standards) compliance team primarily analyzes the transaction data for short-term rentals, focusing on past violations and active non-compliant listings. They target suspected operators, looking particularly for violations of the three-bedroom rule,
by manually analyzing the transaction data,” the audit report advises.
During the period covered in the review, the auditor found that:1,438 housing hosts may have exceeded the 180night limit; 545 may have exceeded the three-bedroom limit; and 170 may own more than one short-term rental property.
Notably, 1,100 of the registered homeowners had a different mailing address for their property tax bill than that for the short-term rental accommodations. As well, there are concerns about pirated and non-compliant registration numbers showing up in listings on the short-term rental companies’ platforms, which are evident in a mismatch of information for advertised and registered properties bearing the same number.
Airbnb’s voluntary agreement to collect and remit MAT on behalf of registered housing hosts who are listed with the platform is described as “beneficial” for the City of Toronto.
“It improves compliance, simplifies tax deduction at the source, streamlines collection, reduces reliance on remittance by operators and reduces the administrative burden on City staff,” the audit report maintains.
Nevertheless, the auditor calls for more transaction details from both Airbnb and the smaller number of housing hosts who collect and submit MAT themselves. The latter group is simply required to remit a lump sum and declare the number of nights of rentals it represents.
Airbnb does submit transaction data separately to the licensing department, but this typically chronicles patrons’ check-in and check-out dates rather than when payment was received.
“Without additional transaction details accompanying remittances, reconciling or verifying the accuracy and completeness of Airbnb’s MAT remittances is challenging,” the audit report states. “Operators who remit the tax themselves are not required to provide transaction details. This results in the City relying on an honour system, expecting operators to collect and remit the correct amount of MAT.”
It’s recommended that Toronto’s revenue services department establish a quarterly reconciliation process to compare MAT remittances from more detailed transaction data that Airbnb and other short-term rental facilitators would be required to provide. Random “sampling and comparing” procedures are also proposed for housing hosts.
VERIFYING CONSENT
Among key concerns for landlords and condominium corporations, the audit report calls for more vigilance to ensure renters have the unit owner’s consent, and that offered condo units are not located in buildings where short-term rentals are prohibited. The City currently does not require proof that tenants have permission to rent out short-term accommodations in their units, but there is an expectation that they do and that they will also abide by Ontario’s Residential Tenancies Act when they effectively become landlords.
The audit report cites examples of other cities, including Ottawa, Vancouver and New York, that directly inform property owners when tenants apply to register units for short-term rentals or require tenants to submit written consent from their landlords with their applications — and suggests a similar policy could better protect Toronto against liability. As of January 2024, three lawsuits had been registered against the City for neglecting to confirm a tenant had the landlord’s permission.
“The City needs to clarify the roles and responsibilities regarding landlord-tenant matters of all involved parties and consider adopting risk-based sampling procedures in the future for verifying landlord consent for short-term rental registrations,” the audit report states.
Meanwhile, the auditing team sampled the 20 downtown condo buildings that sport the highest concentration of registered short-term rental units (collectively amounting to 1,459 units). That exercise uncovered 42 registered units in a building that prohibits short-term rentals along with 41 scenarios where renter occupants had registered a unit even though condo rules restricted shortterm rental hosting to owners only.
Toronto’s licensing department does keep a list of condominiums that have rules restricting or prohibiting shortterm rentals, which numbered 145 buildings when the audit was conducted in January 2024. However, the report suggests more proactive monitoring could be employed at the application stage, rather than drawing on the information to revoke registrations at a later time.
The Toronto Auditor General’s report and recommendations can be found at www. toronto.ca/legdocs/mmis/2024/au/bgrd/ backgroundfile-247092.pdf
TRACKING TRANSACTIONS
Canada Bolsters Guard Against Money Laundering
TITLE
INSURERS, real estate brokers and sales representatives will have new obligations to guard against money laundering and terrorist financing under proposed federal regulations. The intended measures were first announced in the Canadian government’s 2023 fall economic statement and were posted for public review earlier this summer.
As proposed, title insurers would be added to the roster of entities mandated to report to Canada’s financial transactions and reports analysis centre (FINTRAC), which entails vigilance and record-keeping around potentially irregular transactions and the parties to them. As well, the current directive that real estate representatives take “reasonable measures” to ascertain the identity of unrepresented and third parties to a transaction would be formalized into required documentation.
The accompanying regulatory analysis notes that both stakeholder title insurers and the Canadian Real Estate Association (CREA) opposed the proposed measures when they were floated in a consultation paper the government released in 2023. However, it advises that those concerns have been taken into consideration in the draft regulations, particularly in provisions for accredited third parties to conduct identity verifications and “flexibility” for recordkeeping.
In joining the ranks of entities reporting to FINTRAC under the auspices of Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), title insurers would be expected to obtain, verify and keep information about property
purchasers and other details related to the deal.
The latter includes the source of funds for the purchase, and names and addresses of lenders, real estate representatives and/or individuals holding liens on the property. If the purchaser is a corporation, there is an obligation to verify the identity of all directors and beneficial owners, who are defined as individuals who directly or indirectly own or control at least 25% of the corporation’s shares.
Many potential parties to real estate transactions, including brokers, sales representatives, lenders and mortgage administrators are already required to report to FINTRAC. The regulatory analysis frames the inclusion of title insurers as another layer of vigilance “which would be used by FINTRAC and disclosed to law enforcement to help detect and disrupt illicit activities in the real estate sector”.
Currently, real estate brokers and sales representatives are required to keep information records about the individuals and entities for whom/which they act as an agent in transactions. The proposed regulation expands that requirement to include “any party to the purchase or sale that is not represented by a real estate broker or sales representative”.
That’s part of the package of existing obligations under the PCMLTFA, which also requires them to keep a receipt of funds received when acting on behalf of a vendor, and to keep information related to transactions that involve more than $10,000 in cash or virtual currency payments.
“This change would help identify suspicious behaviour when agents cannot identify unrepresented parties in transactions, which could lead to more suspicious transaction reports to FINTRAC,” the regulatory analysis states. “Based on this information, FINTRAC would be better equipped to identify potential money laundering and terrorist financing activities in the real estate sector and disclose that information and analysis to law enforcement officers.”
In addition to the real estate measures, the proposed regulations also address: properties subject to national/international sanctions; money services businesses such as those dealing in foreign exchange, money orders or virtual currency; privately owned and operated cash machines, known as whitelabel ATMs; and reporting on casino payouts. Collectively, they are all intended to reinforce Canada’s commitment to the international financial action task force (FATF).
It’s proposed that the new requirement for real estate brokers and sales representatives would go into effect as soon as the regulation is finalized and officially filed. Title insurers would have until October 1, 2025 to begin reporting to FINTRAC, in recognition of the need to get new procedures in place.
“It will also provide FINTRAC with sufficient time to update and issue guidance and best practices regarding how reporting entities should meet their obligations, undertake outreach activities, and work with industry to establish typologies that can help new reporting entities gain a better understanding of relevant money laundering and terrorist financing risks,” the regulatory analysis states.
