CPM Whos Who 2019

F O R B U I L D I N G O W N E R S , A S S E T A N D P R O P E RT Y M A N A G E R S

VOL. 34 NO. 1 • MARCH/APRIL 2019

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Who’s

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2019

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VOL. 34 NO. 1

MARCH/APRIL 2019

Editor-in-Chief Barbara Carss barbc@mediaedge.ca Publisher Sean Foley seanf@mediaedge.ca Contributors Zandile Chiwanza Maryna Liashenko Senior Designer Annette Carlucci Wong annettec@mediaedge.ca Web Designer Rick Evangelista rickr@mediaedge.ca Production Manager Rachel Selbie rachels@mediaedge.ca National Sales Dan Christie danc@mediaedge.ca

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editor’snote THE OPPORTUNITY to hear really smart people speak candidly and reflect thoughtfully is one of the great perks of this job. The impossibility of cramming every astute observation, amusing quip and scathing remark into the resulting report is one of the constant regrets.

This issue's feature stories are particularly illustrative of that dilemma. The cascade of commentary from three assemblies of noted influencers — discussing topics central to commercial real estate's profitability, sustainability and business continuity — created a literal overflow of analyses.

Among the interesting outtakes, Michael Turner, President, Oxford Properties, mused on the challenges an asset class that serves four distinct purposes and is physically embedded in a local economy poses for investors. "Picking buildings is important, but picking sectors and cities is about nine times more important than what you pick," he said.

Steven Marino, Senior Vice President, Portfolio Management, with GWL Realty Advisors, underscored a major conundrum for listed real estate. "Public equity pricing is not always priced by the underlying asset value," he said.

For more context, see the overview of the 2018 annual results of the MSCI/ REALPAC Canada Property Index, including response from industry insiders tasked with offering on-the-spot feedback at this year's release of investment return data.

Turning to human capital, another panel of industry executives and diversity advocates tackled the issue of commercial real estate's workforce. Paul Morassutti, Vice Chair, Valuation & Advisory Services, with CBRE Canada, called for more deliberate efforts. "Companies have to go beyond a sort of meaningless motherhood statement about diversity," he urged.

"Are senior leadership teams diverse? In our industry, the consensus has to be: No," agreed Scott Addison, President, Brokerage Services, with Colliers Canada.

Yet, the industry could present a more enticing face to prospective recruits, advised Veronica Maggisano, Senior Director, Development, for Oxford Properties. She called for more emphasis on city-building and a little less on financial jargon.

"The way we talk about real estate, it just doesn't resonate," she said. "Tell them: Development is about changing the world. Speak to their passions."

And few topics are more potentially world-changing than climate change. Leading Canadian health care practitioners recently gathered to discuss and endorse 43 indicators, many of which overlap with current priority issues for real estate. One shared interest is the key role that institutional investors — like many of those represented in the Canada Property Index — can play.

Meanwhile, Dr. Courtney Howard, President of the Canadian Association of Physicians for the Environment, recommended an approach to the challenges that should serve any industry.

"It's amazing what people get done when they don't know what's impossible," she observed. "Action feels better than anxiety."

Barbara Carss barbc@mediaedge.ca @BarbaraCarss

Canadian Property Management | March/April 2019 3

contents

Focus: Real Estate News & Context 6 Real Estate's Ripple Effect: Investment in design, site preparation, construction and on-going maintenance has a broad economic impact.

10 Targeting Diversity ROI: The commercial real estate industry seeks a workforce more reflective of 21st century cities, tenancies and investors.

14 Cyber-vigilance Required: Smart systems that support operations and efficiency can also create points of entry for hackers, malware and other security and safety threats.

21 Who's Who in Canadian Real Estate: The 24th annual survey of office, industrial, retail and multi-residential portfolios and players.

30 Climate Change First Responders: Engineers and physicians address the health and safety threats of extreme weather.

32 Canada Property Index 2018 Returns: Toronto and Vancouver continued to be the strongest markets last year, while industrial and multifamily delivered the best investment performance among the property sectors.

36 Portfolio-scale Resilience: GRESB begins to measure the ability to respond to the shocks and stressors of climate change.

38 Hazardous Features: Clothing donation bins could pose a liability risk on properties that host them.

4 March/April 2019 | Canadian Property Management

Departments 3 Editor’s note

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economicdevelopment

REAL ESTATE IN HAS BROAD RE GDP, Jobs, Induced Spending and Government Revenues The commercial real estate organization, NAIOP, recently partnered with the Conference Board of Canada to quantify the economic impact of investment in the sector. Findings, drawn from 2017 data and excluding publicly funded infrastructure and heavy engineering projects, reveal the significant direct and indirect contribution the commercial real estate industry makes to national prosperity. The following is an excerpt – Editor.

IN 2017, INVESTMENT in commercial and industrial buildings in Canada totalled $38.6 billion. Statistics Canada reports roughly 80% of these expenditures went toward commercial facilities, with the remainder invested in industrial structures. This is equivalent to 15% of the $237 billion in total investment spending across all industries in Canada i n 2 017, i nclud i ng eng i ne er i ng construction in the resource sector.

Growth in commercial real estate spending was exceptionally strong during the mid-2000s. Even though it has slowed somewhat in recent years, the long-term trend is clearly positive, with aggregate commercial real estate spending rising by 36%, or $10 billion a year, since 2007.

6 March/April 2019 | Canadian Property Management

Three key measures of economic activity — gross domestic product (GDP, or value-added), employment and labour income — can be used to estimate the impact of commercial real e s t a t e i nve s t m e n t . G ove r n m e n t revenues collected through the indirect t a xes (sa les t a xes a nd user fees) charged on products and services, corporate taxes and the income taxes of those employed in commercial real estate enterprises also figure in the assessment.

In 2017, the $38.6 billion spent on commercial real estate in Canada supported: • $40.2 billion in gross domestic product (GDP)

• $25.2 billion in labour income • 419,197 jobs • $10.1 billion in government revenues In 2017, more than 40% of all commercial real estate investment occurred in Ontario, followed by Alberta and Quebec, which each accounted for 18% of the national total, then British Columbia with 12%. Cities attract the bul k of com mercia l rea l est ate investment, with Canada’s six largest census metropolitan areas (CMAs) capturing almost 60% of national commercial real estate spending in 2017.

The largest city, Toronto, accounted for one-fifth of total commercial real estate spending. That's $8.7 billion in

economicdevelopment

NVESTMENT EACH GDP and 91,900 jobs thanks to the sector.

Montreal has the second-largest impact, equivalent to $3.8 billion in GDP and 45,112 jobs, followed by Vancouver ($3.1 billion in GDP and 30,800 jobs), Edmonton ($2.8 billion in GDP and 23,555 jobs), Calgary ($2.7 billion in GDP and 23,101 jobs), and Ottawa-Gatineau ($1.5 billion in GDP and 16,132 jobs).

LAYERED IMPACTS This economic activity includes not only the direct impact that commercial real estate investment makes on the economy, but also the indirect impact it has on other sectors through demand for products and services it supports. For example, investment in commercial real estate will naturally stimulate demand for directly impacted industries like engineering, design and construction.

It has secondary (supply-chain) impacts in industries like manufacturing,

Cities attract the bulk of commercial real estate investment, with Canada’s six largest census metropolitan areas capturing almost 60%. business services and utilities, which are prompted to produce at a higher level to provide products and services that are necessary to support the pr ima r y producers. For example, when manufacturers produce concrete or ste el to suppor t const r uct ion activity.

There is also a tertiary round of economic activity that is tied to commercial real estate activity in Canada through the “income” or

"induced” effect. These impacts are caused when the workers who are directly or indirectly employed thanks to commercial real estate investment spend their wages and salaries into the economy. These impacts tend to be relatively smaller than the direct or indirect effects, and they also tend to be concentrated in consumer-oriented industries like food manufacturing, retail trade and transportation and recreation activity.

Canadian Property Management | March/April 2019 7

economicdevelopment

The economic impact of commercial real estate investment always extends beyond the jurisdiction in which it occurs.

HARD AND SOFT COSTS Based on a su r vey of Ca na d ia n member companies, NAIOP separates aggregate commercial real estate investment into four distinct types of c o s t s , b r o a d ly a s s o c i a t e d w it h different phases of a commercial real e s t a t e p r oj e c t : s of t c o s t s; sit e development and infrastructure costs; hard construction costs; and interior build-out and tenant improvement costs.

Hard construction costs make the la rgest impr int on the Ca nadia n economy. Relative to the total, the spending on this phase of development makes up nearly two-thirds of the t ot a l e c onom ic a ct iv it y t ie d t o commercial real estate around the country in terms of GDP, employment, l a b o u r i n c om e a nd gove r n m e nt revenues. Specifically, in 2017, the spending devoted to hard construction costs supported: $25.6 billion in GDP; $16.4 bi l l ion i n lab ou r i ncome; 265,700 jobs; and $6.6 billion in government revenues.

By comparison, the combined other three phases of development delivered: $14.7 billion in GDP; $8.8 billion in labour income; 153,500 jobs; and $3.4 billion in government revenues. Of t h e s e, sof t c ost s a c c ou nt for a n o t ic e a bly h ig h e r sh a r e of t h e economic footprint relative to their share of total investment.

Soft costs represent 13.7% of total spending on commercial real estate, but a re estimated to account for between 15 and 16% of the total impact in ter ms of GDP, labou r income, employment and government revenues. For exa mple, ever y $1 million spent on soft costs translates into $1.2 million in GDP, $750,000 in labour income, 11.8 jobs and $277,000 in government revenues.

8 March/April 2019 | Canadian Property Management

These are noticeably higher ratios than the average across all four phases of development, where $1 million in spending translates into $1.04 million in GDP, $652,000 in labour income, 10.9 jobs and $261,000 in government revenues. In part, that relates to the types of activities that are involved in that phase of commercial real estate development. Prime activities include financing, architectural design and engineering services, which have high levels of output per worker and also pay above-average wages, resulting in a greater amount of induced (i.e. income-related) activity tied to these costs.

RIPPLE EFFECTS The economic impact of commercial real estate investment always extends beyond the jurisdiction in which it occurs. Smaller and less diverse economies, whether at the provincial or municipal level, are more likely to require services, products or resources from external regions. For example, E d monton, Ca lga r y a nd Ot t awaGatineau see as much as half of the GDP generated by commercial real estate investment in their respective cities leak out into other jurisdictions — creating value and jobs elsewhere in their home provinces or elsewhere in the country.

On the other end of the spectrum, Toronto, Montreal and Vancouver are larger established engines of their provincial economies. Their larger scale and diversity mean that these cities have a greater capacity to produce the bulk of the products and services required for the completion of commercial real estate projects — from engineering and architecture services, all the way to the finishing touch of paint.

The share of economic activity that leaks out into other jurisdictions increases as the size and breadth of the economy in question shrinks. Thus, it is more significant at the municipal level than for provinces in aggregate.

Toronto, Montreal and Vancouver, which are the three largest and most complex municipal economies in Canada, would still only secure 68 to 69% of the total value that is created across the entire country due to commercial real estate investment that occurs in the city. Ottawa-Gatineau, which is the smallest municipal economy in this study, secures just 47 per cent of all value-added created in the country due to its commercial real estate investment.

There are many reasons why a portion of economic activity that is directly caused in one jurisdiction wil l result i n econom ic act ivit y elsewhere in the country. For example, a commercial real estate investment in Calgary may require financing from one of the major chartered banks in Canada, which are all headquartered in Toronto.

Si m i l a r ly, t h e t r a n s p o r t a t io n activity associated with shipping construction materials to a job site in Vancouver will require the trucking companies to use more diesel (and thus more crude oil), and this crude oil will act ua lly come f rom t he neighbouring province of Alberta. Or, the structural steel required for a commercial asset in Montreal may be manufactured in Quebec, but not inside the city’s economic zone.

Economic activity that is directly created in one jurisdiction and spills into other parts of the province (or c o u n t r y) s i m p l y r e f l e c t s t h e interconnectedness of the Canadian economy because some products and services required to develop commercial real estate cannot be produced within the borders of a particular city or province. It also highlights the truly national impact that commercial real estate makes on the Canadian economy, regardless of where the investment actually occurs. zz The complete text of Economic Impacts of Commercial Real Estate in Canada can be found at www.naiop.org/en/Research/OurResearch/Reports/Economic-Impacts-ofCommercial-Real-Estate-in-Canada-2018.

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REAL ESTATE TARGETS

DIVERSITY ROI Unconscious Biases Threaten Progress

By Barbara Carss

COMMERCIAL REAL ESTATE is a notable multidisciplinary industry that increasingly risks a notorious reputation for the largely uniform composition of its leadership ranks. A recent industry panel discussion in the lead-up to International Women’s Day provided a timely peg for contemplating how to recruit and open the paths of advancement to a workforce that is more broadly reflective of the 21st century cities, tenancies and investors that drive growth and prosperity.

Almost invariably, that begins with an acknowledgment of the less than breathtaking pace of change to date.

Commercial real estate is consistently on 10 March/April 2019 | Canadian Property Management

the low side of already unimpressive economy-wide averages for women in senior executive and board of director roles.

“Over the last 20 years there’s been a circular conversation around gender equity with very little progressive action.

The conversation is stagnant and counterproductive,” asserts Chandran Fernando, Managing Partner with the human resources consulting firm, Matrix360, which hosted the event. “We have observed that the stagnation is caused by a lack of understanding, dialogue that is not solutions-driven and where men a re lef t out of t he conversations.”

Aiming for an antidote to that stalemate, the evening’s discussion drew on a range of perspectives and experiences gleaned from brokerage and investment services, the real estate arms of two of Canada’s largest pension funds and organizations specifically advocating for gender equity. All panellists agreed that deliberate, active strategies are needed to rebalance commercial real estate’s workforce, but that momentum can build from a few painless adjustments and flow seamlessly into the next stage of progress.

“The issue can be that the pipeline (of entrants to the industry) comes from places that are not diverse,” observed Paul

corporateculture

Morassutti, Vice Chair, Valuation and Advisory Services, at CBRE Canada. “Just a slight change in how you identify talent can have an immediate impact.”

CAREER PATHS, PRESSURES AND GOALS Both Morassutti and Scott Addison, President of Brokerage Services at Colliers Canada, conceded that their business domains, which are heavily focused on deal-making and commission-based earnings, tend to be overwhelmingly male. After 30+ years of market cycles, technological innovation and shifting social values, the demographic profile of staff and contemporaries could be one of the few constants of Addison’s career.

“There has been very little change on the brokerage side,” he told the predominantly female gathering in Toronto. “I look around the table at our sales meetings — there are a lot of people who look like me.”

The panel’s contingent of female executives came to commercial real estate through the professions of engineering and law. Veronica Maggisano, Senior Director, Development, at Oxford Properties, and Sunita Mahant, Senior Director, Legal Affairs, with Ivanhoé Cambridge, underscored their ambitions as mentors and role models in addition to their weighty corporate responsibilities.

“I want women to have a say at the table.

I want them to have a say in how cities are built,” Maggisano said.

Mahant pointed to her parents’ experience as immigrants to Canada as another important influence. “My parents came here for a better opportunity. I feel like I have a responsibility,” she reiterated. “I have a voice at the table and I want to keep the door open for all women and minorities who come through.”

Efforts to prop that door open might include: steps to help decision-makers recognize and neutralize unconscious biases that can influence who gets hired and/or promoted; flexibility and support for Canadian Property Management | March/April 2019 11

corporateculture parents of young children; and harnessing data to measure diversity performance.

Panellists endorsed all three measures — offering some personal context and a mea culpa or two.

STRATEGIES AND TOOLS Addison recounted how he formerly looked to job candidates’ participation in team sports as an indicator of competitive drive and collaborative capacity without necessarily considering health, social and/ or economic factors that might keep many keen, ambitious individuals off the playing fields. Whether it’s hiring staff, choosing service providers or forming friendships, decision-makers draw from their own experiences and comfort zones.

“People aren’t aware of how they are making decisions. I don’t think people who look like me are consciously trying to hold people back,” he submitted.

“Most people, truthfully, want to work with a team where they don’t have to constantly explain themselves,” added Stephanie Dei, Coordinator of the United Nations’ Women program in Canada.

However, the paybacks of a broadened perspective have been enumerated, with

gender and ethnically diverse organizations generally achieving higher profitability.

Mahant equated unconscious biases to drivers’ blind spots, which are detectable only with tools (a mirror) and purposeful action.

Overlooking a blind spot can be catastrophic for drivers and pedestrians and, similarly, a lost opportunity in business and life.

“You really have to look at yourself or get a coach to help you,” Addison advised.

“Change your process and get more applicants.”

Sharing an anecdote from the bad old days of not so long ago, Morassutti also stressed that men must speak up when they see transgressions and work to change environments that can be unwelcoming or outright hostile to women. “I’d say the men in this room are part of the problem. Implicit and explicit biases can get crossed and a little bit blurred,” he maintained.

Maggisano recommended harnessing commercial real estate’s zeal for competition and data. The benchmarking and key performance indicators that now guide so much of management, operational and investment strategy could be expanded to include diversity metrics, even drilling all the way down to team-level dashboards.

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“Reflect on what the data tells you and how you would feel if that data was released to your customers. What would they say?” she asked.

For his part, Addison would welcome such specifications from clients, noting that that institutional players, such as Oxford, are well placed to make the demand and brokerage services are predisposed to deliver. “If we know that’s part of our scorecard, we are addicted to competition,” he said.

PARENTAL EXPERIENCES Panellists’ dual role as parents added another layer of insight to the discussion.

Moderator Robyn Gooding, Senior Manager of Strategy and Engagement with Matrix360, cited statistics that gender pay and equity gaps are most prominent in the cities with highest daycare costs.

Dei noted that men’s careers tend to take priority in family decision-making, while high daycare costs can effectively push mothers out of their careers to stay at home with children. “In Canada, where women earn 80 cents for every dollar a man makes, you are already disadvantaged in that conversation,” she said.

As the mother of two young children, ages three and five, Maggisano has relatively recent experience with maternity leave, along with the current intensity of juggling work and childcare. Interestingly, from the development perspective, the process of birthing a new building is considerably lengthier than what’s allowed for a child, so work on a project could be bookended around mothers’ time at home with newborns.

Morassutti reported CBRE’s efforts to provide more home office support, both for women to maintain contact with key clients during maternity leave and for more flexibility for parents with young families. All panellists commended the Ca nad ia n gover n ment’s ple dge d introduction of a “use it or lose it” parental leave option for men, similar to the option already available in Quebec.

“In Quebec, 80% of eligible fathers take it,” advised Jake Stika, Co-founder and Executive Director of Next Gen Men. “Consequently, you can’t take for granted anymore that it’s only women taking leave.”

“That starts to make it easier for the macho male to say: I have to take it; I’d be foolish not to take the government’s money,” Addison agreed. Meanwhile, his parental focus is on two adult daughters, including one who is considering a career in commercial real estate. zz

See you there...

September 9-11

St. John’s Convention Centre Newfoundland & Labrador www.bomex.ca

riskmanagement

SMART

PREPARATIONS BOMA Canada Urges Cyber-vigilance

BOMA Canada's 28-member industry steering committee contributed to the 2019 Cyber Wellness Guide. The following excerpt explores some of the potential vulnerabilities in buildings and makes the case for a defence strategy – Editor.

INTERNET-CONNECTED or smart systems are supporting operations and increasing eff iciency with in commercial real estate. From making elevator systems more efficient to monitoring and optimizing HVAC performance, they have demonstrated their value in buildings.

14 March/April 2019 | Canadian Property Management

Yet, they haven’t come without risks. Hacking, malware and other cyb er-s e cu r it y t h r e at s ca n compromise information systems, as attackers look to glea n the data collected at the back end of the Industrial Internet of Things (IIoT).

Buildings could be the target of a

local or international malefactors d e p l oy i n g p h i s h i n g a t t a c k s o r ransomware to cause damage and/or extract a monetary payout.

Risks and potential liabilities include: • Occupant safety, if external forces gain control of building systems

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Canadian Property Management | 2019-03-20 March/April 12:01 2019 PM 15

riskmanagement

IoT CREATING MORE POINTS OF VULNERABILITY

By Zandile Chiwanza The Building Owners and Managers Association (BOMA) of Canada is addressing a potential vulnerability for commercial real estate operators — cyber-security.

“The complexity of building operations is only growing as the number of vendors is only increasing, the Internet of Things (IoT) is connecting various moving and non-moving parts in the building. So it’s becoming a bigger challenge for property managers, building operators and others to simply track and understand it all,” says Benjamin Shinewald, BOMA Canada's President and Chief Executive Officer.

Cheryl Gray, Executive Vice President of Enterprise Innovation with QuadReal Property Group, voiced similar concerns when she approached Shinewald in the fall of 2017 to suggest that the industry needed to be better prepared to deal with cyber attacks. The 2019 Cyber Wellness Guide is the result, developed in collaboration with industry leaders across Canada.

In tandem with the primer, which is available as a free download in English or French, cyber insurance is gaining profile. It's expected to play a key role in cyber risk management strategies as cyber threats become more frequent and billions of additional IoT devices come online, creating multiple new vulnerabilities for building operations.

The global market research firm, Mintel, identifies cyber insurance as one of the four trends set to reshape the Canadian insurance industry in 2019. As the industry looks to defend companies from cyber attacks rather than react to breaches, competition in the cyber insurance market is expected to grow.

Shinewald predicts more key stakeholders, including the boards of public companies, will start asking questions about cyber wellness. The key thing, he says, is for building owners and managers to start thinking about cyber-security if they have not already started looking into it by reading BOMA’s guide and other resources it references “Cyber-security is not a static issue; the environment is always changing. The way to think about it is the way to think about sustainability, ordinary building operations or tenant relations,” Shinewald adds. “It is woven into what we do.”

From Boiler Room to Boardroom

• Reputation loss, if data is breached or service is not delivered due to system failures • Loss of tenants' or consumers' trust with a resultant impact on revenue • Liability for misuse of personal or organizational data • Legal action and associated costs • Breach resolution costs • Vendor costs to get systems back up • Damage to property and related costs The Ponemon Institute's annual study pegs the average cost of a data breach at USD $3.86 million in 2018, a 6.4% increase from the 2017 average. Three actual scenarios are representative of the potential threats.

Extortion Via a malicious file disguised as a third-party supplier's invoice, attackers gained access to a company's network, harvested users' credentials, deleted backup systems and disabled the system. A subsequent ransomware and file encryption campaign infected every connected workstation and server.

Ultimately, the organization paid a six-figure ransom to get key systems back online so that their services would not grind to a halt. The cost and loss in business was severe, and now the company is developing better safeguards, creating an incident response plan and conducting user training on cyber-security.

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Breach via third-party contractor In another widely publicized incident, hackers infiltrated an HVAC contractor's system and, through that, gained access to a major retailer's system when the contractor plugged in to do routine maintenance work at one store site. Multiple levels of failures exposed

riskmanagement customers' stored credit card information, exacerbated by the retailer's inability to detect and respond to the initial breach.

After facing lawsuits, the retailer paid out settlements. Total costs, including recovery from the breach, loss of reputation and trust are estimated to be in the range of USD $100 million.

Because the organization under attack had been prepared, it limited its exposure.

Targeting building systems Exploiting a vulnerability in a publicfa c i ng web ser ver, a n at t a cker discovered building operating systems, including the ventilation controls for exhaust from the parking garage. The hackers shut the system down and demanded a ransom in bitcoin.

Personnel at the affected company couldn't directly log into the system because the hacker had changed the passwords.

However, its cyber-security and exhaust system contractors had offline backups and could restore service. After neutralizing the immediate threat, the cyber-security firm performed an investigation and security scans to find additional weaknesses within the organization and remediated where necessary.

Because the organization under attack had been prepared, it limited its exposure.

Such real-life examples could occur within any com mercial building.

B e c a u s e t h e p r o b l e m i s n’t a malfunctioning of the system itself, but breached controls, operations staff and even system vendors can find it hard to diagnose the issue and get systems back under control.

Regulatory and privacy compliance is another important consideration.

New rules coming into force under C a n a d a's Pe rs o n a l In fo r m a t i o n Protection and Electronic Documents Act (PIPEDA) will introduce protocol for record-keeping and repor ting breaches pertaining to personally identif iable in for mation ( PI I) of cl ient s, t en a nt s a n d s t a f f. T h e Eu rop ea n Un ion’s G ener a l Dat a Protection Regulation (GDPR) already

has implications for organizations around the world, and it is likely that other countries will soon catch up w it h t h e i r ow n ve r sio n of t h e requirements.

While the process of creating a c y b e r s e c u r it y pl a n m ay s e e m daunting, it is necessary to deal with today’s reality and mitigate risks that can undermine a p r o p e r t y ’s competitiveness in the marketplace. A comprehensive response includes a robust pla n, qu a l i f ie d t e ch n ica l support, training and insurance.

BOMA Canada's Cyber Wellness Guide outlines the steps involved and provides a checklist for each property.

For more information, see http:// b o m a c a n a d a .c a / r e s o u r c e s /c yb e rwellness-guide/ zz

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EDMONTON

VANCOUVER

Canadian Property Management | 2018-03-26 March/April 2019 17 4:10 PM 2017-11-14 12:34 PM

SPONSORED CONTENT

2018

Livingston Place

SETTING THE STANDARD AT LIVINGSTON PLACE

Calgary towers win big at BOMA Canada Awards Calgary, Alberta’s Livingston Place received due recognition during the 28th Building Owners and Managers Association (BOMA) of Canada National Awards Gala.

The renowned office complex took home the Outstanding Building of the Year (TOBY) award in the 500,000 - 1M sq. ft. category – an achievement its property management team at QuadReal Property Group was on-hand to celebrate during the fall 2018 ceremony.

“Winning awards such as these is the result of a team effort, and everyone involved made a significant and impactful contribution to our success,” says Sharlene Quian, Property Manager with QuadReal Property Group. “It’s great to see the team recognized, and drives our team locally and nationally to continually excel, innovate, and is a source of inspiration.”

Honouring Calgary’s Heritage Named after Fort Calgary founder Sam Livingston (aka “Calgary’s first citizen”), Livingston Place is comprised of twin towers which collectively supply 844,232 sq. ft. of “AAA” office space in the heart of Calgary’s Financial core. It is located just steps from the iconic Eau Claire district, CORE Shopping Centre and a wealth of downtown amenities. Additionally, it boasts one of the largest outdoor plazas in Calgary’s commercial area, giving it a unique natural look in the city’s busy downtown core.

SPONSORED CONTENT

Inside, Livingston Place offers a host of appealing features all its own. The South and West Towers provide 22 floors of cutting edge business space, as well as a fullyequipped multi-media conference centre, a fitness centre, a daycare, a three-level underground parking garage, bicycle parking and maintenance facilities, an electric vehicle charging station and over 2,500 sq. ft. of retail space.

Livingston Place’s success is owed to more than good looks and location. Since assuming management in 2017, QuadReal’s commitment to building strong tenant relationships has set it apart in the city’s business community.

This is demonstrated in part through its formation of a Tenant Advisory Council, the operations of its QuadReal CONNECT and OKAPI maintenance request systems, yearly tenant events (e.g., Farmers’ Markets, Holiday Parties, Stampede Lunch) and a host of initiatives to keep the towers’ occupants updated and involved.

Notes Quian: “Our primary objective is to provide occupants with a healthy and comfortable work environment, and with our recent occupant comfort survey boasting a 99% tenant satisfaction rate, we’re proud to say we’re making gains.”

This affinity for relationshipbuilding extends beyond Livingston Place’s doors. QuadReal and its tenants play an active role in building their community through charitable events like The Inside Ride in support of the Coast to Coast Against Cancer Foundation; the Children’s Cottage Food and Clothing Drive, Food Bank Drives, tree plantings and a wide range of fundraisers and volunteering initiatives.

“By donating time, resources, rentfree space and hosting fundraising events, we hope to improve our community and enable our tenants to do the same,” adds Quian.

Sustainability by example Livingston Place’s TOBY award is owed in part to the towers’

strengths in sustainability. In addition to being a LEED EB:OM Gold office complex, it was one of the first buildings in Canada to receive ENERGY STAR® Certification and currently boasts an ENERGY STAR® score of 87. This is owed to the towers’ comprehensive recycling and waste management programs, advanced environmental controls, green programs and initiatives and cutting-edge energy tracking and monitoring systems.

“We are continually monitoring our emissions and consumption through our customized software, allowing programming adjustments to be made in real time to create efficiencies. This has resulted in a reduction of our normalized energy use intensity by 25% from 2011 to 2018,” Quian explains.

This focus on sustainability is driven by a combination of staff and tenant training and awareness programs, such as its annual Earth Hour and Earth Day activities, tree plantings, participation in Waste Reduction Week and a host of other initiatives.

Says Quian: “We enthusiastically promote energy conservation

throughout the year with active and passive modes of communication which help to educate tenants about energy conservation.”

More recently, Livingston Place completed an LED retrofit of the base building lights on the main floor, second (+15 level) floor and exterior soffit lights. This project complemented the previous LED retrofits completed in the base building washrooms, mechanical rooms, electrical rooms, freight elevator lobbies, stairwells and the Conference Centre, and precedes future plans to replace its domestic water booster pumps, among other upgrades.

Leading the way There are any number of factors that make Livingston Place a worthy TOBY recipient. More importantly, however, it’s the QuadReal team’s ability to pull those elements together and keep staff and tenants united towards the same goals that keep the towers at the top of their class.

Learn more about Livingston Place at livingstonplace.com and read the full list of 2018 BOMA Canada National Award winners at bomacanada.ca/awards.

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WHO’S WHO 2019

PRESENTED BY:

TOP

TEN

OWNED & MANAGED IN CANADIAN REAL ESTATE

OFFICE OWN & MANAGE

MILLIONS OF SQ. FT.

RETAIL OWN & MANAGE

MILLIONS OF SQ. FT.

APARTMENT OWN & MANAGE MILLIONS OF SQ. FT.

Oxford Properties Group

22.759

Brookfield Properties

19.200

Choice Properties Real Estate Investment Trust

47.018

RioCan REIT

34.651

Smart REIT

32.985

CAPREIT

38.600

Boardwalk Rental Communities

29.000

Realstar Management

28.620

Northview Apartment REIT

24.032

Homestead Land Holdings Limited

23.855

Cadillac Fairview Corporation Limited

15.900

QuadReal Property Group

15.842

First Capital Realty

23.854

Manulife Real Estate

15.304

Allied Properties REIT

11.733

Cadillac Fairview Corporation Limited

19.100

Cominar REIT

11.707

Ivanhoé Cambridge

15.478

Timbercreek Asset Management

21.814

H&R REIT

9.926

Cominar REIT

10.700

Skyline Apartment REIT

15.197

Morguard

6.903

Oxford Properties Group

10.619

Starlight Investments

14.452

Dream Office REIT

6.619

H&R REIT

10.609

Killam Apartment REIT

14.295

Plaza Retail REIT

8.200

Mainstreet Equity Corp.

11.006

INDUSTRIAL OWN & MANAGE MILLIONS OF SQ. FT.

OTHER OWN & MANAGE

MILLIONS OF SQ. FT.

Oxford Properties Group

32.351

Kevric Real Estate Corporation

1.913

PIRET/Blackstone

27.000

Oxford Properties Group

0.936

Dream Industrial REIT

20.194

Melchior Management

0.442

Northview Apartment REIT

0.310

Choice Properties Real Estate Investment Trust

16.457

QuadReal Property Group

16.161

Lawrence Construction/Grant Management

0.222

Cominar REIT

15.706

Martello Properties Services Inc.

0.200

Manulife Real Estate

11.557

PROREIT

0.103

Prologis

9.200

H&R REIT

8.619

Shelter Canadian Properties Limited

0.091

Skyline Commercial REIT

6.000

I.M.P. Group International

0.086

Shindico Realty

0.001

* MAY ISSUE

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22 March/April 2019 | Canadian Property Management

2019-04-04 4:09 P

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TOP

TEN OFFICE OWN ONLY

MILLIONS OF SQ. FT.

Healthcare of Ontario Pension Plan Inc. (HOOPP)

12.753

I.G. Investment Management, Ltd. Crombie REIT

OWNED IN CANADIAN REAL ESTATE

RETAIL OWN ONLY

MILLIONS OF SQ. FT.

APARTMENT OWN ONLY

MILLIONS OF SQ. FT.

Crombie REIT

15.724

3.215

8.575

Healthcare of Ontario Pension Plan Inc. (HOOPP)

4.937

Healthcare of Ontario Pension Plan Inc. (HOOPP)

Ivanhoé Cambridge

1.519

3.176

I.G. Investment Management, Ltd. 4.846

CBRE Limited

1.334

Fiera Properties

2.320

Société de Gestion Cogir

3.000

Westcliff

1.215

Manulife Real Estate

2.149

Fiera Properties

2.270

Melcor REIT

1.642

Smart REIT

2.234

Lanesborough Real Estate Investment Trust

1.145

Ivanhoé Cambridge

1.435

Ivanhoé Cambridge

2.009

SABJOY INC

1.000

QuadReal Property Group

1.398

Melcor REIT

1.088

QuadReal Property Group

0.762

Cadillac Fairview Corporation Limited

0.400

Cadillac Fairview Corporation Limited

1.000

Fiera Properties

0.654

Manulife Real Estate

0.636

Tower Building Manageme

0.280

Westcliff

0.726

Centurion Asset Management

0.624

INDUSTRIAL OWN ONLY

MILLIONS OF SQ. FT.

OTHER OWN ONLY

MILLIONS OF SQ. FT.

Healthcare of Ontario Pension Plan Inc. (HOOPP)

13.403

Healthcare of Ontario Pension Plan Inc. (HOOPP)

8.027

Ivanhoé Cambridge

7.909

Société de Gestion Cogir

7.200

Fiera Properties

7.155

Ivanhoé Cambridge

2.747

I.G. Investment Management, Ltd.

6.966

Timbercreek Asset Management

0.908

Davpart Inc.

5.318

Dayhu Group of Companies

0.675

Cadillac Fairview Corporation Limited

0.500

PROREIT

0.490

PROREIT

0.341

Manulife Real Estate

0.386

Melcor REIT

0.308

Armadale Property Management Inc.

0.307

Lanesborough Real Estate Investment Trust

0.081

Melcor REIT

0.209

Shelter Canadian Properties Limited

5TH ANNUAL WHO’S WHO A ranking of the Canadian condo industry’s major players and portfolios PA R T O F T H E

* May Issue P A R T

O F

T H E

P

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Canadian Property Management | March/April 2019 23

TOP

TEN OFFICE MANAGE ONLY

MILLIONS OF SQ. FT.

Brookfield Global Integrated Solutions (BGIS)

129.450

CBRE Limited

34.245

ICC Property Management Ltd.

28.021

Colliers International

27.922

Bentall Kennedy (Canada) LP

22.366

GWL Realty Advisors

18.516

Triovest Realty Advisors

15.700

Oxford Properties Group

MANAGED IN CANADIAN REAL ESTATE

RETAIL MANAGE ONLY CBRE Limited

MILLIONS OF SQ. FT.

APARTMENT MANAGE ONLY

MILLIONS OF SQ. FT.

61.250

MetCap Living Management Inc.

20.000

The DMS Group

18.777

Briarlane Rental Property Management Inc.

12.150

Greenwin Inc

11.524

Sterling Karamar Property Management

9.131

Gateway Property Management Corporation

9.090

Park Property Management Inc.

7.593

GWL Realty Advisors

7.210

Shelter Canadian Properties Limited

5.557

Berkley Property Management Inc.

5.100

Bentall Kennedy (Canada) LP

11.648

Colliers International

11.298

Morguard

7.377

EPIC Realty Partners

6.875

Oxford Properties Group

6.580

12.639

Avison Young Real Estate Management Services

5.500

EPIC Realty Partners

10.108

Triovest Realty Advisors

4.600

Avison Young Real Estate Management Services

7.750

GWL Realty Advisors

3.898

Shape Property Management Corp.

3.632

INDUSTRIAL MANAGE ONLY

MILLIONS OF SQ. FT.

OTHER MANAGE ONLY

MILLIONS OF SQ. FT.

CONDO MANAGE ONLY

MILLIONS OF SQ. FT.

Brookfield Global Integrated Solutions (BGIS)

38.931

CAPREIT

28.278

CBRE Limited

17.949

Crossbridge Condominium Services Ltd.

78.095

CBRE Limited

27.296

Bentall Kennedy (Canada) LP

24.798

Icon Property Management

3.250

Del Property Management Inc.

62.810

Société de Gestion Cogir

2.700

Brookfield Global Integrated Solutions (BGIS)

Triovest Realty Advisors

17.700

43.505

15.716

Avison Young Real Estate Management Services

GWL Realty Advisors

2.000

Rancho Management Services

36.036

Colliers International

14.496

The DMS Group

1.581

ICC Property Management Ltd.

28.021

Morguard

8.826

Canderel/Humford

1.111

Pacific Quorum Properties Inc.

27.884

Blackwood Partners Corporation

8.226

Downing Street Property Management Inc.

0.708

AWM-Alliance Real Estate Group

21.375

Realspace Management Group Inc.

6.848

Colliers International

0.655

Gateway Property Management Corporation

16.172

EPIC Realty Partners

5.055

Shelter Canadian Properties Limited

0.425

Icon Property Management

15.750

KDM Management Inc.

14.793

24 March/April 2019 | Canadian Property Management

CANADIAN PROPERTY PROPERTY MANAGEMENT MANAGEMENTWHO’S WHO’SWHO WHO2019 2017 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)

OWN

INDUSTRIAL BOTH

MANAGE

OWN

RETAIL BOTH

MANAGE

OWN

APARTMENT BOTH

MANAGE

Brookfield Global Integrated Solutions (BGIS)

211.886 129.450

38.931

CBRE Limited

142.074 34.245

27.296

Oxford Properties Group

85.884

Crossbridge Condominium Services Ltd.

78.095

Choice Properties Real Estate Investment Trust

69.224

CAPREIT

68.341

Del Property Management Inc.

62.810

Bentall Kennedy (Canada) LP

61.968

22.366

24.798

11.648

3.156

Colliers International

57.225

27.922

14.496

11.298

1.358

ICC Property Management Ltd.

56.150

28.021

QuadReal Property Group

48.785

12.639

OWN

CONDO BOTH

32.351

1.334

6.580

0.936

3.153

0.316

16.457

2.069

47.018

0.001

0.844

0.150

0.015

38.600

28.278 62.810

0.015 1.398

45.973 18.516

0.094

15.842

16.161

12.753

4.531

13.403

8.027

7.210

Morguard

45.146

6.037

1.316

7.041

42.678

1.003

0.172

2.226

3.174

0.067

Triovest Realty Advisors

38.351

15.700

17.700

4.600

0.351

Smart REIT

36.627

1.434

10.092

3.215

3.898

8.826

11.707 0.400

6.214

15.706 2.234

32.985

0.177

2.009

15.478

0.500

36.531 36.481

Manulife Real Estate

34.394

Pacific Quorum Properties Inc.

29.167

H&R REIT

29.154

Boardwalk Rental Communities

29.000

29.000

Realstar Management

28.620

28.620

PIRET/Blackstone

27.000

Gateway Property Management Corporation

26.526

Northview Apartment REIT

25.556

AWM-Alliance Real Estate Group

25.182 23.910 23.855

7.909

19.100

1.255

RioCan REIT

Homestead Land Holdings Limited

5.257 1.830

2.149 0.225

0.386

11.557

3.616

0.233

9.926

8.619

0.049

0.196

0.127

0.625

0.580

1.185

0.307

0.270

EPIC Realty Partners

22.038

10.108

5.055

6.875

Starlight Investments

20.694

Dream Industrial REIT

20.194

19.560

Icon Property Management

19.000

Crombie REIT

18.900

16.172 0.310 21.375

0.291

21.814

0.908

23.855 0.651

19.200

0.201

1.417

0.320

1.162

Avison Young Real Estate Management Services

9.090

24.032

0.292

Brookfield Properties

27.884

1.215

23.854

20.136

0.745

27.000 0.691

22.463

20.000

0.636

10.609

First Capital Realty

Canderel/Humford

2.747

0.784

The DMS Group

MetCap Living Management Inc.

1.519

34.651

15.304 0.041

36.036

10.700 1.000

Ivanhoé Cambridge

Timbercreek Asset Management

1.435

7.377

15.900 0.153

0.655

28.021 0.762

8.575

15.716 6.903

1.497

Rancho Management Services

38.113

BOTH

17.949

10.619

0.619

45.340

36.900

OWN

43.505 61.250

22.759

0.045

Healthcare of Ontario Pension Plan Inc. (HOOPP)

Cadillac Fairview Corporation Limited

MANAGE

78.095

GWL Realty Advisors

Cominar REIT

MANAGE

OTHER

23.854 18.777

1.581

6.242

14.452 20.194

6.653

4.431

4.105

0.045

3.504

0.286

1.111 20.000

7.750

3.600

5.500

0.289

0.421

2.000

15.750

3.250

19.200 3.176 4.937

15.724

I.G. Investment Management, Ltd.

17.518

Société de Gestion Cogir

15.900

0.738

0.209

Greenwin Inc

15.804

0.160

0.180

Skyline Apartment REIT

15.197

Davpart Inc.

15.126

0.052

1.573

Shelter Canadian Properties Limited

14.992

0.074

0.889

Apollo Property Management Ltd

14.972

0.600

6.966

4.846

0.280

1.982

0.101

0.112

0.561

3.000 0.347

11.524

2.700

7.200

5.093

0.425

0.035

11.478

0.316

3.380 15.197

5.318 0.127 0.140

5.370 1.690

1.751 0.415 0.470

0.011

0.203

1.062 5.557

0.381

1.968

KDM Management Inc.

14.793

Killam Apartment REIT

14.295

14.793

Briarlane Rental Property Management Inc.

14.007

0.143

0.932

0.782

12.150

Sterling Karamar Property Management

13.822

0.685

1.505

2.220

9.131

14.295

26 March/April 2019 | Canadian Property Management

0.281

0.091

CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2019 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)

Fiera Properties

12.400

Allied Properties REIT

12.044

GPM Property Management Inc.

12.005

Mainstreet Equity Corp.

11.140

OWN

INDUSTRIAL BOTH

MANAGE

2.320 0.064

0.247

OWN

RETAIL BOTH

MANAGE

7.155

OWN

APARTMENT BOTH

MANAGE

2.270

OWN

CONDO BOTH

MANAGE

0.941

11.011

0.044

Minto Capital

10.420

2.500

Vertica Resident Services

9.414

Warrington PCI Management

9.245

0.371

0.262

0.236

0.726

0.033

11.006

7.333

1.215

0.036

10.897 7.920 9.414

3.824

1.775

2.542

0.274

InterRent REIT

9.222

Prologis

9.200

Park Property Management Inc.

9.191

0.050

1.500

0.048

7.593

Berkley Property Management Inc.

9.161

0.750

0.400

0.250

5.100

Royal Property Management

9.000

Blackwood Partners Corporation

8.849

0.624

Realspace Management Group Inc.

8.744

0.985

ONNI Group

8.568

Plaza Retail REIT

8.200

0.831 9.222

9.200 0.161

4.500

2.500 4.500

8.226 6.848

0.911

0.845

4.042

2.177

1.505

8.200

Downing Street Property Management Inc.

8.119

1.048

2.990

0.876

0.151

Colonnade Investments

8.066

4.120

2.660

1.200

0.086

Strathallen Capital Corp

8.062

1.947

6.115

Harvard Property Management Inc.

7.449

1.710

0.930

2.197

Northam Realty Advisors Limited

7.220

A.A Property Management

7.200

7.200

Nadlan-Harris Property Management Inc.

7.200

7.200

Whitehill Residential

6.796

Globe Capital Management

6.702

Dream Office REIT

6.619

1.783

2.475 2.400

Devon Properties Ltd.

5.607 5.357

2.975

1.075

0.077

1.247

6.663

6.402

0.183

4.329 6.033

0.264

0.008

0.178

2.339 0.128

4.973

1.482 0.179

0.138

0.185

1.535

5.324

0.157 1.145

0.601

Prospero International Realty Inc.

5.162

0.369

0.284

BayShore Property Management

5.161

Osgoode Properties

5.137

Kevric Real Estate Corporation

5.057

Centurion Asset Management

4.924

Martello Properties Services Inc.

4.715

0.561

Canreal Management Corp.

4.514

0.144

3.335

1.035

Wilson Blanchard Management Inc.

4.279

1.308

0.645

0.249

Minto Apartment REIT

4.093

Provincial Property Management Limited

4.000

Dayhu Group of Companies

3.994

0.574

0.521

3.074

0.085

0.217

0.721

1.515

2.995

0.673

4.487

0.467

0.028

0.001 2.619

0.034

5.104 2.852

0.200

0.064

1.913 0.624

0.770

0.695

4.300

0.634

1.854

0.110

1.961

0.200 0.006

4.093 4.000 0.068

0.675

0.083

2.996

0.200

Hollyburn Properties Ltd.

3.958

Canadian Urban Limited

3.902

0.671

2.017

0.463

Richmond Property Group Ltd.

3.800

0.500

0.200

0.850

Skyline Retail REIT

3.800 3.702

0.058

6.000

5.303

3.632

0.017

0.083 0.356

Real Estate 360

PROREIT

0.003

4.000

Shindico Realty

Shape Property Management Corp.

0.708

0.567

0.300

6.608

BTB Real Estate Investment Trust

0.464

2.346

6.619

6.400

6.000

0.766

0.058

Crown Property Management Inc.

Skyline Commercial REIT

0.060

6.188

SDM Realty Advisors Ltd.

6.192

BOTH

12.000 0.134

11.084

6.033

OWN

0.654

0.005

Westcliff

MF Property Management

MANAGE

11.733

Drewlo Holdings Inc.

M&R Holdings

OTHER

0.004

0.054

0.102

3.769 0.751 2.250

3.800 0.024

0.413

0.490

1.254

0.039

1.038

0.341

0.103

3.632

Canadian Property Management | March/April 2019 27

CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2019 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)

Immomarketing Inc.

3.613

The Meritus Group

3.476

Kelson Group

3.470

NorthWest Healthcare Properties

3.419

Melcor REIT

3.248

Greenrock Property Management Ltd.

3.176

KRP Properties

3.109

Lawrence Construction/Grant Management

2.934

Williams and McDaniel Property Management

2.824

OWN

0.003

INDUSTRIAL BOTH

MANAGE

OWN

0.006

RETAIL BOTH

MANAGE

0.002

0.062

OWN

APARTMENT BOTH

MANAGE

3.439

OWN

BOTH

3.276

3.419 1.642 1.011

0.209

1.088

0.330 3.100

0.055

0.173

0.308 0.035

1.800

0.009 0.091

0.506

0.075

0.052

0.201

0.708

0.925

0.175 0.007

1.279 2.650

0.409

Gulf Pacific Property Management Ltd.

2.640

0.739

0.445

1.203

0.253

Kings College Management Limited

2.605

0.450

0.220

1.890

0.045

Old Oak Properties Inc.

2.561

0.154

0.064

Brown Group of Companies Inc.

2.546

0.011

0.067

0.502

Melchior Management

2.535

0.185

0.228

Atlantis Realty Services Inc.

2.421

0.179

HighPoint Property Management

2.326

State Building Group

2.100

1.469

0.222

2.574

2.683

2.058

MANAGE

3.400

2.650

2.049

MANAGE

OTHER

0.100

0.070

Arnon Corp.

Skywater Property Management

BOTH

0.200

Aspen Properties

Canlight Management Inc

OWN

CONDO

0.052

0.266

0.397

0.008

2.335

0.020

0.009

0.645

1.292

0.161

0.105

0.983

0.431

0.276

0.273

0.442

0.497 2.326

0.100 0.253

1.000 0.220

0.220

1.000 0.250

0.050

0.270

0.045

0.550

0.200

2.049

Ronmor Holdings Inc.

2.037

O’Shanter Development Company Ltd.

2.025

0.392

0.091

1.546

WJ Properties

1.946

Southwest Properties Ltd.

1.790

Metcalfe Realty Company Limited

1.741

1.501

0.147

0.092

Madison Properties Inc.

1.705

0.800

0.450

0.455

Around The Lakes Property Management Limited

1.690

BlueStone Properties Inc.

1.673

0.215

0.615

Equitable Real Estate Investment Corporation Ltd.

1.650

0.303

Lameer Management

1.575

0.138

0.013

Axwood

1.574

0.450

0.352

Huntington Properties Ltd.

1.504

0.105

Steeves and Rozema

1.375

0.008 0.405

1.620

0.148

1.797 1.530

0.260

1.690 0.843

0.816

0.530

0.138

0.138

0.870

0.103

0.022

0.070

0.427

0.901

0.398

0.110

0.419 1.375

BUSAC Real Estate

1.359

Taft Management Inc.

1.354

0.189

1.163

ANTREV & ASSOCIATES INC

1.258

0.772

Gillin Engineering & Construction Ltd.

1.240

Lanesborough Real Estate Investment Trust

1.225

Lionheart Property Management Inc.

1.161

0.196 0.471 0.311

0.054

0.641

0.175

0.647

0.017

0.576 1.145

0.081

0.337

I.M.P. Group International

1.133

York Heritage Properties

1.106

0.068

Niot Investments Holdings Ltd.

1.050

0.050

0.250

0.100

0.824

0.979

0.086

0.756 0.100

CJM Property Management Ltd.

1.042

0.027

0.080

Concorde Group Corp.

1.010

0.100

0.540

0.370

Rathcliffe Properties

1.000

0.300

0.600

SABJOY INC

1.000

Preston Group

1.000

Marcarko Ltd.

0.986

Twin City Management Ltd.

0.965

Dove Square Property Management Inc.

0.965

0.010

Armadale Property Management Inc.

0.933

0.167

Tandem Group

0.907

Tower Building Management

0.890

0.100

0.900

0.060

0.875

1.000 1.000 0.986 0.076

0.889

0.006 0.190

0.160

0.020 0.307

0.045 0.907

0.135

28 March/April 2019 | Canadian Property Management

0.280

0.120

0.355

0.929 0.064

CANADIAN PROPERTY MANAGEMENT WHO’S WHO 2019 OFFICE TOTAL SQ. FT. MANAGE (MILLIONS)

OWN

INDUSTRIAL BOTH

MANAGE

OWN

RETAIL BOTH

MANAGE

OWN

APARTMENT BOTH

Times Property Management Inc.

0.860

Fana Group of Companies

0.750

Aldgate Group

0.660

0.195

0.430

0.035

Melcor Developments

0.619

0.152

0.067

0.334

Bedford Properties & Estates Ltd.

0.612

Merkburn Holdings Ltd.

0.585

0.327

0.245

0.013

0.041

0.566

0.231

0.543

0.113

Condominium Living Management Inc.

0.518

Vancor Group Inc.

0.500

Northland Properties Inc.

0.496 0.475 0.376

0.023

0.038

0.009 0.035

0.240

0.052 0.021

Edie & Associates

0.344

0.201

0.143

CLV Group

0.320

Glenview Management Limited

0.280

0.024

R.W. Commercial Property Management Inc.

0.250

0.250

Sluis Properties

0.149

Oak Bridge Properties Inc.

0.144

Albert Properties

0.124

Regency Group

0.101 0.038

0.348

0.140

0.208 0.046

0.251

0.325

0.180 0.014 0.067

0.014

0.019

0.132 0.223 0.014

0.188 0.149

0.080

MetCap_CPM_WhosWho_Supplement_2017.pdf Shepherd Village Inc. 0.104

Percel Inc.

0.105

0.100

0.300

0.202

0.065

0.189

0.036 0.004

Canahahns Company Limited

0.190

BOTH

0.496

0.352

0.245

0.670

OWN

0.518

0.350

0.223

MANAGE

0.270

Goodwood Property Investment Ltd.

Leimerk Developments Ltd

MANAGE

0.430

Gold Castle Holdings Ltd.

17A Properties Inc.

BOTH

0.612

Westcorp Property Management

Summa Property Management

OWN

OTHER

0.750

Plaza Cote des Neiges Canada Inc.

Gitalis Group Inc.

MANAGE

CONDO

0.014

0.050

0.124 1

2017-03-20

12:28 PM

0.104 0.030

0.035

0.071 0.003

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professionaladvocacy

CLIMATE CHANGE FIRST RESPONDERS SPEAK OUT Engineers and Physicians Stress Safety and Public Health Concerns

By Barbara Carss ENGINEERS AND PHYSICIANS have become climate change first responders as they deal with the fallout from extreme weather events and strategize how to prepare for the next one. In separate but complementary presentations late last year, they underscored some of the most worrisome vulnerabilities they see — framed through the lens of their professional concerns and responsibilities for public health and safety.

“My whole interest in this process is to make buildings more durable,” Gerald Genge, an engineer and building science expert who is leading the task of converting CSA S478 Guideline on Durability in Buildings into a standard to be referenced in Canada’s 2020 National Building Code, told attendees of The Buildings Show at the Metro Toronto Convention Centre. “The loads aren’t constant anymore. With that 30 March/April 2019 | Canadian Property Management

sort of scenario, it becomes obvious we have to start thinking about designing, not for yesterday, but maybe for tomorrow.”

A coalition of health care practitioners gathering at Toronto’s York University for the release of a 2018 international report and Canada-specific recommendations made a similar case.

The Lancet Countdown on health and climate change tracks 43 different indicators — many with crossover insight into the built environment’s performance and use of resources and the productivity of the labour force it houses — drawing myriad links between environmental stress and acute, chronic and indirect health repercussions.

“As physicians, we’re mostly dealing with the downstream problems. That’s what turns a lot of us on to advocacy,” observed Dr. Sandy Buchman, President-

ele ct of t he Ca na d ia n Me d ica l Association. “We’ve got to get the message out that climate change isn’t just something that happens elsewhere. It’s the public health issue of our time.”

Data is central to climate change adaptation and mitigation strategies to support predictive analytics, monitor progress on reducing greenhouse gas (GHG) emissions, and identify where more attention is needed. So, too, are professional alliances, across disciplines and beyond partisanship.

“This is a big umbrella and it invites a visionary and also a very practical approach to problem solving,” submitted Dr. James Orbinski, Director of the Dahdaleh Institute for Global Health Research at York University and a Nobel Prize winner as the former president of Médicins sans Frontières/Doctors without Borders.

professionaladvocacy BUILDING DURABILITY The past is no longer a reliable gauge of what buildings will have to withstand in the future so work is in progress to replace building code assumptions based on historical data of typical conditions for rain, snow, wind, freeze-thaw cycles etc.

However, looking away from what Genge calls a “50-year rear view mirror” is a complex undertaking, necessitating global coordination of scientists and government agencies.

“We don’t know the answers yet as to what future loads are going to be,” he said, in explaining why predictive data won’t be fully incorporated into the National Building Code until 2025.

As an interim step for 2020, the updated S478 durability standard will focus on the building envelope, calling for consideration of eight climate change parameters: temperature; precipitation; snow; wind; wind-driven rain; freeze-thaw cycles; severe ice storms; and UV radiation.

A new urgency to address climate change may have some positive spinoffs in prompting more attention to other aspects of du rabil it y related to deterioration of building systems and materials. The existing guideline was incorporated into the Ontario Building Code more than 20 years ago and Genge, cu r r ent ly P r e sid ent of P r et iu m Engineering Inc., has been a leading researcher on the structural sufficiency of buildings as they age.

“We know the degree of resistance is going to change. We see it happening all the time in every type of building we are looking at,” he said.

That’s a topic of particular interest for building owners and managers, as evidenced by attendance at a subsequent Buildings Show panel discussion and Q&A with three engineers discussing common capital maintenance and repair issues. Yet, it hasn’t necessarily been a ranking priority at the design stage. There are currently no mandated standards in the building code.

“There’s only the CSA guideline and, sadly, it was largely ignored,” Genge said. “It was done and it was put on the shelf and it was probably one of the best kept secrets out there. Hopefully, we are going to change that.”

Notably, the revised standard will include an obligation for designers to develop durability plans and consider the building in the long term. New tables with values for the service life of building materials and components will guide them.

Thus far, researchers and regulators have the best insight into likely temperature and precipitation trends. They are seeing evidence, but continuing to fill in information gaps in all the climate change parameters.

VARYING IMPACTS Canada’s vast land mass and varying climatic zones complicate the task.

Generally: there has been a more pronounced increase in winter than summer temperatures; there are more frequent severe rainfalls; and snowfall has lessened in western Canada and increased in the Atlantic provinces where it’s accumulating through severe storm events rather than steady increments.

While more data is needed to underpin modelling of wind and wind-driven rain, some of the readily apparent conclusions have clear repercussions for existing buildings and streetscapes. Genge predicts there will be lucrative new markets for abating pedestrian level wind tunnel effect and window upgrades.

“If we keep designing windows and window wall systems as we do today, they are just going to leak,” he asserted.

Engineers dealing with the existing building stock concur. Those working in south and southwest Ontario frequently see heightened deterioration in windows, facades and balconies on the east-facing side of buildings.

“That’s tied to our climate — sideways rain in the spring and the fall, rain out of the east — and tied to the fact that a lot of our buildings have face-sealed windows,” Daniel Martis, a Principal and Project Manager with Morrison Hershfield, told Buildings Show attendees.

Researchers will also assess how higher temperatures influence air buoyancy and stack effect and the resulting consequences for ventilation design and fire safety. In addition, ice storms are expected to create heavier physical loads on flat surfaces and hazards from falling ice, while more UV radiation could damage and speed the deterioration of building components.

“We can’t guess. We need better models,” Genge said.

HEALTH'S BIG UMBRELLA Contributors to and endorsers of the Lancet Countdown similarly acknowledge that there are still many information gaps to fill in its ambitious slate of indicators. These are divided into five key categories, examining: environmental and health impacts; adaptation measures; mitigation actions;

financial and investment trends; and public/ political engagement.

The 2018 iteration of the Countdown is part of the international medical news and research journal’s planetary health initiative, which has already forged a broad coalition of health practitioners, researchers and policy specialists affiliated with medical and academic institutions, government agencies a nd non-gover n ment a l organizations worldwide. Supporting Canadian groups, including the Canadian Medical Association, the Canadian Public Health Association and the Canadian Association of Physicians for the Environment, also released affiliated Canada-specific recommendations in tandem with showcasing the findings and recommendations of the global report, “The Countdown is really about tracking progress,” explained Ian Hamilton, a lecturer and Senior Researcher at University College London’s Energy Institute and co-investigator with Research Councils UK’s Centre for Energy Epidemiology, who participated in the York University event.

The expansive range of indicators cover many interests that the commercial real estate and facilities management sectors share, such as: carbon intensity of the energy supply; infrastr ucture resilience; environmentally exposed or detrimental investments; carbon pricing; and corporate engagement in health and climate change. Notably, the report’s eight finance indicators are framed as “four broad themes: the economic costs of climate change; investing in a lowcarbon economy; economic benefits of tackling climate change; and pricing greenhouse-gas emissions from fossil fuels” — a statement that could have been pulled from innumerable recent commercial real estate analyses.

Adaptation and mitigation proponents suggest the “big umbrella” of health could be an antidote to rising partisanship. “Health is one of the big motivators that countries can actually get behind,” Hamilton maintained.

“It’s not about pointing the finger. It’s about: How do we change?” agreed Ian Culbert, Executive Director of the Canadian Public Health Association. “Everyone is going to have the same health impacts.”

Genge points to the Montreal Protocol for the elimination of ozone-depleting substances — an effort launched in 1989 — as a hopeful example of what global commitment and coordination can achieve. “The ozone layer is actually healing,” he noted. zz Canadian Property Management | March/April 2019 31

investment

RECORD HIGH PRICES, RECORD LOW YIELDS Institutional Investors Ponder Trajectory of Real Estate Cycle

By Barbara Carss A SURGING INDUSTRIAL sector helped to counterbalance slipping retail values and push up 2018 investment returns on Canadian commercial real estate. Annual results of the MSCI/REALPAC Canada Property Index, released February 1, reveal a national total return of 7.4% across 2,424 directly held standing assets. That’s an improvement over 2017 when the national total return was 6.7%, and also exceeds the five-year average of 7%.

Contributing components of the broad allproperty average — which breaks down to 4.7% income return and 2.6% capital growth — include the highest capital growth rate since 2015, continued cap rate compression, particularly strong markets in Toronto and Vancouver and greater divergence between leading and trailing property sectors.

Meanwhile, Calgary and Edmonton showed some upward momentum, largely credited to multifamily and industrial performance.

32 March/April 2019 | Canadian Property Management

“National returns may be up because Alberta is less bad than it used to be,” Simon Fairchild, Executive Director with the Index producer, MSCI, told a Toronto gathering.

Conversely, retail’s 38.5% share of the Index’s capital value gives it the weight to pull returns down. “We may be seeing in Canada things that we’ve seen playing out in the U.S. (retail sector) for a couple of years now,” he speculated.

A panel of industry insiders enlisted to provide on-the-spot feedback concurred with Fairchild that the 2018 numbers follow logically from 2017 trends and reinforce what they’re seeing in their own portfolios. That’s also true for Canada’s comparatively better results than the 7.2% total return in the United States or 6% total return in the United Kingdom in 2018.

“I’m not surprised by any of the numbers.

Canada is our best business, globally, this

year,” r e p or t e d M ich a el Tu r ne r, President of Oxford Properties and OMERS’ Executive Vice President and Global Head of Real Estate. He’s in a good position to judge given that 58% of Oxford’s approximately $58 billion worth of assets under management are outside Canada.

With the exception of retail’s decline, most of the changes in direction were positive in 2018. Looking back to the Index genesis in 1985, Fairchild called the 2.6% capital growth rate “pretty good in historic terms” and noted that it represents an unprecedented ninth consecutive year of rising values. Last year also saw a 1.3% increase in net income.

“We are actually in the longest run of uninterrupted capital growth we’ve seen in the history of the Index,” he said. “We are seeing actual real improvement in rents.”

investment

“I am glad to see income growth is the lion’s share of the growth given the underlying fundamentals of the property market,” reflected Emily Hanna, a Partner, investments, with Crown Realty Partners.

As of year-end 2018, the Index comprises 45 portfolios collectively valued at more than CAD $160 billion.

Retail and office properties account for nearly three-quarters of the capital value, with industrial and residential carrying lesser weights of 12 and 11% respectively. Hotel and other properties make up the remaining 3%.

Toronto is home base for 41% of the capital value, while Calgary and Vancouver each host roughly a 12.5% share. Among the five other markets highlighted in the 2018 results, Montreal represents about 9%, Ottawa and Edmonton have portions in the 5% range, and Winnipeg and Halifax are ind istinctly lumped into t he approximately 14% stake of capital value in the “rest of Canada”.

WIDENING INDUSTRIAL-RETAIL GAP “Industrial and residential tend to be strong wherever you look,” Fairchild observed.

Office also surpassed the national average, as the three property sectors delivered stronger returns than in 2017.

Industrial tops the chart with a total return of 13.8%, followed by multifamily at 11.5% and office at 7.8%.

Similarly, three markets — Toronto at 11.1%, Vancouver at 10.6% and Ottawa at 7.7% — outperformed the national average and their own 2017 returns.

“You have to go back to 2013 to see Toronto under-perform the national rate of return,” Fairchild added. (Calgary and Edmonton were the top markets that year, recording 12.9 and 12.8% total returns, while regional malls delivered a total return of 14.2%.)

Varied regional results underpin retail’s average total return of 4.4% — a slide from 5.3% in 2017. After recording a national capital growth rate of 0.8% in 2017, retail properties enjoyed gains ranging from 5.3% to 0.8% in Vancouver, Toronto, Ottawa and Montreal, while losing value in Calgary, Edmonton, Winnipeg and Halifax. Sectorwide, a 4.3% income return exceeded multifamily’s 3.9% yield.

“It’s maybe a bit of a surprise that the gap between industrial and retail is opening up as wide as it is,” Fairchild said. “The mid-size regional malls have tended to under-perform of late. The main challenge for 2018 is the continued weakening in the super-regional malls.”

The divide between industrial and retail performance is most obvious in the strongest market, Toronto, where industrial boasted a 14.6% capital growth rate versus retail’s 2.7% gain, and in the weakest, Halifax, where industrial squeaked out 0.7% capital growth, while retail lost 9.9% in value. Wide splits were also recorded in Montreal (8.4%) and Vancouver (7.2%).

CALGARY OFFICE STILL LOSING VALUE In contrast, office remains Calgary’s most troubled sector. Office properties in the city dropped 6.7% in value — a much steeper decline than retail’s 1.9% negative capital growth. On the flipside, the industrial and residential sectors saw gains of 2.4% and 1.9% respectively.

“Values are still falling, but investors aren’t losing all of their money,” Fairchild said.

“We are still seeing an impairment of values in Calgary,” agreed Steven Marino, Senior Vice President, Portfolio Management, with GWL Realty Advisors. “We have been taking write-downs in Calgary for the last four years. There are some aggressive leasing deals being done in Calgary, which is affecting value every day.”

Elsewhere, Toronto and Vancouver, again, post healthy gains in office value — 7.3 and 7%, respectively — while Ottawa was the only other market boasting capital growth in the office sector. Multifamily was the only sector to enjoy capital growth in every major

market where Index participants hold assets.

It also posted the lowest yield in a year when income return nudged down across all property sectors.

From a regional perspective, Fairchild noted that Montreal has joined Toronto and Vancouver in the lowest-yield zone. Together, Montreal and Toronto also captured more than two-thirds of net investment last year equating to nearly $2 billion in Montreal and $2.8 billion in Toronto. “Toronto is the main destination for net new money from the institutions,” he said.

LOOKING TO 2019 While citing “record low yields and record high prices” as defining features of the market, Fairchild makes no dire prognoses.

“I can make an argument, I think, that the market is actually pretty healthy right now,” he submitted.

Nevertheless, that double whammy is causing some wariness. “We are long into the cycle,” Turner advised. “I think the biggest risk is cap rates. They have to normalize or expand at some point.”

Economically damaging fallout from political manoeuvring — via either “Trump”, as Marino hypothesized, or “populism across the board”, as Hanna conjectured — is seen as another plausible risk for 2019. Yet, REITs’ relative standout status in tanking capital markets last year offers some reassurance “It’s almost a vote of confidence in real estate,” suggested Michael Brooks, REALPAC’s Chief Executive Officer.

Panellists also expect to see continued new development in a market where there is not much left to buy. “In the property market, fiduciaries like us have such a pent up demand for product,” Hanna noted.

“Real estate is fully priced,” Turner said.

“The best return we see for unit of risk is development.”

“We are seeing a lot more of our peers move into the development space,” Marino concurred.

Looking ahead, Marino predicted a total return of 7.3% for 2019, while Hanna went just one notch lower in her projection of 7.2%. Turner was the outlier on the low end as he pegged the 2019 total return at 5.7%, albeit with a qualifier. “By the way, Oxford will beat that number,” he quipped.

Honours for most accurately projecting the 2018 total return go to Paul Au of Blackwood Partners. He emerged the winner from 140 submissions to the annual contest made at the release of 2017 investment results last winter. zz Canadian Property Management | March/April 2019 33

SPONSORED CONTENT

2018

AeroCentre AEROCENTRE LANDS BOMA CANADA AWARD National awards put Mississauga’s premier business complex in the spotlight Mississauga’s AeroCentre has long been regarded as a staple of the City’s business community – not to mention one of the most prominent corporate addresses in Canada. In fall 2018, its status was further solidified when it received The Outstanding Building Award (TOBY) in the Suburban Office Park category at The Building Owners and Managers Association (BOMA) of Canada’s 2018 National Awards Gala.

“Awards likes these are very meaningful to us,” says Cindy Woyslaw, General Manager with Menkes Property Management Services Ltd., the team behind AeroCentre’s ongoing success. “We apply a focused approach in helping shape the community we serve, and to be recognized for our efforts is always an honour.”

Keeping a high profile It’s hard to miss AeroCentre. Owned

by Healthcare of Ontario Pension Plan (HOOPP) Realty Inc., the sixbuilding complex stretches 623,250 square feet within Mississauga, Ontario’s premier Airport Corporate Centre district and sits near Highway 401, one of the busiest highways on the globe. In addition to being minutes from major transportation hubs (including

SPONSORED CONTENT

Toronto Pearson International Airport, Canada’s largest airport) it shares its surroundings with ample green spaces, restaurants, and accommodations.

Ideal location aside, AeroCentre also caught BOMA Canada’s attention for its wealth of onsite amenities. They include a Conference Centre, 7,000 sq. ft.

Fitness Centre, on-site restaurant, hybrid shuttle services, bicycle storage facilities, electric vehicle charging stations, outdoor seating, and health and wellness services, among others.

Notes Woyslaw, “We are committed to offering an abundant number of on-site amenities to create a firstclass experience.”

Central to that experience is a holistic tenant relations program.

From move-in support to consistent online and in-person communications, and the Tenant Community Council to Menkes’ Healthy Spaces Program, the property management team endeavours to involve tenant input into all aspects of its operations.

“Tenant engagement is crucial to everything we do, so we really put an emphasis on creating a sense of community, whether it be through initiatives like our lunch-and-learn tenant sessions, health and wellness events, barbecues, and prize giveaways,” says Woyslaw.

Indeed, she adds, Menkes’ success is driven by its daily efforts to making lasting connections with its tenants, vendors, and staff members alike: “This principle is embedded in our approach from senior management all the way to our junior operators. Whether it is following up on a service request to make sure that individual occupant knows we are investigating it, to Menkes leveraging our expertise to help a tenant achieve their corporate goals, it is all about taking that extra step to achieve great customer service.”

From left to right: Natnael Berhane, Butch Navia, Talia Mandowsky, Paul Albernaz, Cindy Woyslaw, Eulalio Hermosa, Manisha Mistry, Ralph Aguirre

Building communities Over and above organizing yearround activities, Menkes leverages its strong tenant ties to make a difference within its community.

Every year, AeroCentre occupants are encouraged to take part in charitable fundraisers and activities for a wide range of causes.

These include seasonal food and clothing drives, fundraisers for the SickKids Foundation and Ernestine’s Women’s Shelter (among others), and communitybuilding initiatives with partners like the City of Mississauga, Metrolinx, and the Greater Toronto Authority’s Partners in Project Green (PiPG).

“We understand that to achieve impactful change, we need to work hand in hand with all of our stakeholders,” insists Woyslaw.

That philosophy also applies to the team’s approach to sustainability.

Sporting BOMA BEST certification, and a collection of environmental stewardship accreditations and awards, AeroCentre works with tenants to maintain its place as a role model for eco-forward operations. Its strategy includes the use of cutting-edge climate controls, energy and water-saving

equipment, holistic energy-saving programs, comprehensive waste management programs, and ongoing training and awareness programs. Moreover, it includes ongoing retrofits and upgrades, as well as active participation in regional initiatives such as Earth Hour, Earth Day, among many others.

A winning approach It’s not any one thing that earned AeroCentre a spotlight at 2018’s BOMA Canada National Award Gala. Rather, it’s the mix of modern amenities, tenant support, team relationships, and green approach that keeps the centre held in high regard among both its tenants and industry partners.

“Menkes has set the bar extremely high when it comes to operational standards,” says Woyslaw, adding, “We always aim to exceed not only those standards but also industry standards and the expectations of our tenants. The TOBY award is further confirmation that we are on the right track.”

For more information, visit www.aerocentreoffices.com.

metrics&benchmarking

CLIMATE WATCH FOR INVESTORS

Plotting the Resilience and Vulnerability of Illiquid Physical Assets GRESB, an assessment and benchmarking program tracking the ESG (environmental, social, governance) performance of commercial real estate and infrastructure portfolios worldwide, introduced a pilot module in 2018 aimed at measuring resilience and ability to respond to the shocks and stressors of climate change. The following is an overview of first-year findings – Editor.

GLOBAL WEATHER-RELATED disasters cost a record USD $344 billion in 2017, including USD $212 billion in uninsured losses. At the same time, the global economy emitted a record total of 9.8 gigatonnes of greenhouse gas emissions, and the atmospheric concentration of carbon dioxide reached 405 parts per million, higher than at any time over the last 800,000 years.

These new high-water marks put people and properties at risk. Real asset investors are particularly exposed to these issues, as the value of their long-term, often illiquid physical assets is intrinsically linked to energ y syst em s, t r a n sp or t at ion infrastructure, and social and environmental circumstances.

High-profile environmental and social shocks have helped raise awareness among institutional investors, and new tools have 36 March/April 2019 | Canadian Property Management

given companies guidance on how to assess and communicate the associated risks. Most notably, in 2017, the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) provided recommendations for reporting on climate risk and resilience. This included an emphasis on disclosure of information about climate governance, risk management, business strategy, and performance metrics.

These events, combined with increased investor awareness about the materiality of climate risk and resilience, motivated GRESB, the leading environmental, social, and governance (ESG) benchmark for real assets, to add a Resilience Module to its long-standing Real Estate and Infrastructure Assessments. The new Resilience Module was broadly aligned with TCFD recommendations and included eight new resilience-related indicators.

In its first year, more than 125 real estate and infrastructure organizations elected to report on these indicators, providing a snapshot of practices in North America, Europe, Asia, and Oceania. These participants include 113 real estate companies and funds and 37 infrastructure assets and represent approximately 13% of all 2018 GRESB Real Estate and Infrastructure respondents.

The participating entities are self-selected, thus may have more interest and expertise in resilience than other organizations. Their size, location, and composition are roughly comparable to the overall GRESB universe.

Information reported by participating companies provides the first global snapshot of resilience-related governance, risk management, business strategy and performance measurement by the real asset sector.

metrics&benchmarking LEADERSHIP, RISK ASSESSMENT AND ACTION The governance of resilience starts with leadership, and 90% of respondents reported having a specific senior employee with responsibility for the issue. This individual is often tasked with organizing and leading a cross-departmental team or working group.

Most participating organizations report conducting climate-related risk assessments, most often focusing on physical risks to asset value and business continuity. More than 80% of respondents report assessing physical risks, while only 50% report systematic evaluation of social risks.

Transition risk is an important aspect of TCFD reporting. However, transition risks are dependent on a range of factors and circumstances. While it is difficult to analyze these risks at the level of companies and funds, it is possible to evaluate the overall market activity.

Collectively, GRESB participants continue to expand data coverage, improve efficiency and reduce emissions on a yearover-year basis. This is one indication of action to reduce transition risk through the adoption of efficient, low-carbon technologies. In 2018, the GRESB universe reduced its average energy intensity by more than 4%, and it has sustained a comparable level of year-over-year performance for more than five years.

These targets and rates of improvement are broadly consistent with UN Sustainable Development Goal 7.3.

A large fraction of participants report addressing climate-related risks in their business strategies and operations.

Examples of tangible actions include installation of flood barriers, elevation of building systems, and steps to enhance and harden sites against environmental or social disruption.

Action on TCFD recommendations for scenario analysis remains limited in the property and infrastructure sectors.

However, anecdotal evidence indicates that this type of analysis is underway and is likely to be more prominent in 2019 GRESB reporting.

Responses to individual indicators in the new Resilience Module are important, and they provide a useful snapshot of common market practices. However, effective management requires coordination of all of these elements simultaneously. Analysis of responses across indicators shows significant differences between respondents.

For real estate companies and funds, the top quartile of respondents — organizations

GRESB participants continue to expand data coverage, improve efficiency and reduce emissions on a year-over-year basis. with the most comprehensive responses — reported on an average of 81% of resilience elements. The bottom quartile of respondents — organizations with the least comprehensive responses — reported on an average of 22% of elements with high variance among responses.

The distribution of responses is more even for the smaller set of infrastructure organizations. The top quartile of respondents reported on an average of 75% of resilience elements. The bottom quartile of respondents reported on an average of 15% of resilience elements.

This suggests that resilience-related practices are widespread across this sample of real asset investments. However, it also illustrates that there is significant variation between organizations even in this selfselected group of GRESB participants.

PRESSURES AND COMPETITIVE OPPORTUNITIES Results show that real estate and infrastructure companies and funds around the world are beginning to pay attention to resilience. Most Resilience Module respondents have: • Established clear internal leadership; • Conducted social and environmental risk assessments; • Begun implementing strategies during development, operations, and acquisition; and • Started collecting data about shocks, stressors, impacts, and near-miss events.

The quality and impact of these actions is difficult to evaluate. Organizations report that these practices exist, and many provided GRESB with clear supporting evidence.

However, it is not yet possible to evaluate if these practices work as intended. This situation will change as disclosure about resilience-related management and practice is combined with outcome measures, such as insurance claims, changes in asset value and variance in operating income.

Efforts to reduce or mitigate climate risk and enhance resilience are not surprising given rising interest from institutional investors around the world. Moving forward,

market participants can expect even greater focus on climate risk and resilience from investors, governments, customers and other stakeholders.

Some real asset organizations are already turning this interest into a competitive advantage by offering risk management and resilience as essential features during competitive bidding processes or as differentiating amenities. For example, companies may promote features such as backup power or flood-resistant designs.

Many other companies are conducting comprehensive risk assessments and applying this information to inform plans for capital investment and operations.

The results also show that resiliencerelated practices vary significantly among real estate and infrastructure companies and funds. Today, this means that investors will need to ask more questions about how their investments are identifying potential risks and integrating these considerations into business strategies. Over time, the focus of this engagement is likely to shift from qualitative statements toward more objective and quantitative measurements, including scenario analysis. zz Chris Pyke, Ph.D., is a Research Officer with U.S. Green Building Council overseeing the GRESB resilience module. The complete text of GRESB Resilience & Real Assets can be found at https://gresb.com/report-resiliencereal-assets/

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Canadian Property Management | March/April 2019 37 CABS_CPM_March_Boxad_2019.indd 1

2019-03-25 1:54 PM

legal

DONATION BINS POSE LIABILITY RISK

Property Owners should be Diligent about Known Hazards

By Barbara Carss

AT LEAST FIVE municipalities in British Columbia have taken steps to have bins for collecting donated clothing sealed or removed from publicly accessible locations following a recent spate of fatal mishaps in cities across Canada. That includes Toronto, where Mayor John Tory asked that a review already planned for 2019 be moved forward on city staff’s work schedule.

His plea came soon after a woman died from injuries caused when she was caught in a clothing bin. “The City of Toronto does license clothing drop boxes — all clothing drop boxes placed on private or public property must display a permit — so I believe we must take action now,” Tory submitted in a letter to the city’s licensing committee early in the new year.

Commercial property owners who host such bins could run afoul of their province’s Occupiers Liability Act or Occupational Health and Safety Act should an incident occur. Diligence is advised regardless of whether local ordinances are imposed.

“If you’ve got these bins on your property and now everybody is aware they pose a hazard, you have an obligation to take reasonable steps to protect your workers or others who come onto your property,” says David Reiter, a partner and litigation lawyer with Aird & Berlis LLP. “Make sure that known hazards are addressed in some way.”

With an unanimously endorsed motion in January, Vancouver Council instigated 38 March/April 2019 | Canadian Property Management

the removal of clothing donation bins from all city-owned property, while urging private property owners to follow suit.

The motion opens possibilities for further restrictions, such as a bylaw to prohibit the bins on private property, a lo ng w it h le eway t o r ei n st a t e receptacles that can be “made safe, wit h considerat ion g iven to bi n designs that also avoid strewing refuse”. Multi-residential buildings are identified as potential future test sites for those theoretical bins.

Burnaby, Delta, Richmond and West Vancouver have also recently introduced measures to control bins and address safety issues. Some sponsoring charitable organizations have likewise been proactive.

“Working with our Canadian-based clothing bin manufacturer using their technical guidance and /or par ts, approximately 4,000 Diabetes Canada clothing donation bins across Canada, including those in the city of Toronto, have already been or are in the process of being retrofitted or modified in an effort to prevent injury or death to those misusing or trying to gain entry to our clothing bins,” Simon Langer, the organization’s national manager, government and strategic partnerships, wrote in a letter to Toronto’s licensing committee. “All modifications are expected to be complete

by January 18, 2019.”

Toronto staff has been instructed to address: how the bins might be made safer;

the rules guiding where they are located; enforcement to ensure they have required permits; and alternative options for collecting clothing.

“Recognizing that many of these boxes help charities and help reuse clothing rather than these items being tossed in landfills, is this the best way to collect clothing in 2019?” Tory asks.

Langer notes that accidents and deaths remain rare, while Diabetes Canada’s program collects about 100 million pounds of clothing and household items that might otherwise go into landfill every year. Still, the harsh realities of insufficient housing and Canada’s winter climate may make donation bins unduly tempting as a supply of warmer garments and/or shelter from the open air. The chain of potential responsibility for mishaps could stretch far.

“The building/property owner may have some sort of an indemnification arrangement in place with the bin owner and the bin owner may have s o m e fo r m o f i n d e m n i f i c a t io n arrangement in place with the bin manufacturer, but everyone is likely to be named in a civil suit,” speculates Joe Hoffer, a partner with Cohen H i g h l e y L L P, s p e c i a l i z i n g i n residential tenancy, real estate and land use planning law. “The plaintiff’s lawyer would li kely na me ever y potential insured defendant with any connection to the bin.” zz

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