CPM Whos Who 2012

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2012

Who’s

Who

The 17th Annual Survey of the Canadian Real Estate Industry’s Major Players & Portfolios

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VOL. 27 NO. 1

editor’snote Numbers figure prominently in this issue, perhaps most obviously in results from the 17th annual Who’s Who in Canadian Real Estate survey, which provide a snapshot of the size and diversity of participants’ portfolios. We’ve also got numbers that track the performance of Canadian real estate and allow for some comparisons among asset classes and various regional markets.

Analysis from the REALpac/IPD Canada Property Index and from three international market overviews point to stable investment outcomes with reliable prospects for future growth.

Meanwhile, recent data from the International Facility Management Association (IFMA) suggests real estate is also a favourable sector in which to build a career, particularly in Canada where reported salaries generally surpass earnings for equivalent positions in most U.S. markets.

Numbers can demonstrate obvious facts, and they can highlight patterns and/or anomalies that provide evidence for other conclusions – the real estate industry’s growing reliance on energy monitoring and benchmarking is a good example.

However, as noted in the well known adage decrying lies, damned lies and statistics, numbers can be manipulated, misinterpreted or miscalculated.

It’s not necessarily nefarious when an interest group uses numbers to reinforce its message. For example, evidence gathered in IFMA’s 2011 salary and demographics survey supports the boast in the accompanying media release that facilities managers with the Certified Facility Manager (CFM) designation typically earn more money than counterparts who have not obtained the credential.

However, downplaying other numbers arguably hurts overall credibility. Notably, evidence not trumpeted in the media release shows that, in general, men continue to earn more money than women in equivalent roles. That’s a finding of interest to a sizable segment of the population that should generate some discussion.

On a more positive note, numbers offer glimpses of all sorts of interesting stories.

Looking back, they chart a changing industry.

Brookfield Real Estate Management Services topped the first Who’s Who list with a portfolio of 56.6-million square feet of office, industrial, retail and condominium properties. Only a handful of companies on that list owned and/or managed more than 30 million square feet, in contrast to 21 such companies today.

The Who’s Who Top 10 feature (see pages 30-31) always draws attention, but smaller companies that often own/manage properties in multiple asset classes are consistent and collectively significant players in the industry. For me, proofreading the list provides a yearly reminder of some longstanding participants like Bona Building & Management Co., Gillin Engineering and Construction Ltd., and Tillyard Management Inc., which have been reporting since 1996. We look forward to receiving their results again in 2013.

Thank you to all survey respondents and to Mary Hazel for efficiently and enthusiastically coordinating this year’s effort.

Barbara Carss barbc@mediaedge.ca

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2012

WHO’S

WHO

The 17th Annual Survey of the Canadian Real Estate Industry’s Major Players & Portfolios

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Supported by:

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/cpmmediaedge 4 March 2012 | Canadian Property Management

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contents

Focus: Real Estate News & Trends 8 REALpac/IPD Canada Property Index: Results for 2011 demonstrate a strong showing for Canadian property markets, particularly compared to the United States and United Kingdom.

14 Key Markets & Assets: Real estate analysts see strengths in western Canada and prospects for all retail formats in major urban centres.

18 Securities Streamlining on Hold: Raising capital will continue to entail multiple regulators until federal and provincial governments can agree on an alternative.

24 Repositioning Distressed Properties: SWOT analysis can point to new opportunities or confirm obsolescence.

30 Who’s Who in Canadian Real Estate: Results from the 17th annual survey of office, industrial, retail and multi-residential portfolios.

Articles: 20 Facilities Management Career Outlook: Results from the International Facility Management Association’s 2011 salary and demographics survey.

23 Metal Theft: New laws in two provinces emphasize record keeping and enlist scrap dealers in the enforcement process.

40 Web-based Drawing Management: Paper drawings reborn as easily retrieved, spacesaving digital files.

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industrynews&trends

+20

EN

2011 Market Office and Retail Cycles Move Closer Together Investors, fund managers and researchers use the REALpac/IPD Canada Property Index to track and compare the performance of funds, monitor risk and identify cost saving opportunities. The following is an overview of the 2011 annual results, with historical context from 12 years of data – Editor.

Total returns on standing investment assets in Canada rose to 15.9% in 2011 from 11.2% in 2010 according to the REALpac/IPD Canada Property Index. The results w e r e t a ke n f r o m I P D C a n a d a ’s database of 2,140 properties with a total capital value of $95.2 billion at year-end 2011.

In comparison to other property markets around the world, Canada appears to have performed favourably in 2011, at least when set against the UK and US markets, with returns being strongest for each of the office, retail and industrial sectors. Over the last five years, annualized, Canadian returns have outpaced the US by a factor of two, and the UK still further.

The substantial increase in returns in 2011 occurred despite income returns slipping from 6.9% in 2010 to 6.4% in 2011, predominantly as a result of the denominator effect.

Capital growth, which stood at 4% in 2010, soared to 9% in 2011, providing

the major part of the annual total return.

IPD is a global information business dedicated to the objective measurement of commercial real estate performance. Returns for 2011 were the third highest measured in the 12 years since IPD began covering the Canadian property market. Only in 2005 and 2006 were returns higher. The pattern was identical for capital growth: 2011 was the third highest year on record, following the 2005 and 2006 boom years.

Over the past 12 years, income returns have ranged from a high of 8.9% in 2002 to a low of 6.2% in 2008 when the global financial crisis first struck. Income returns of 6.4% in 2011 were the second lowest on record.

Long run total returns averaged an annualized 8.7% over the past three years, 9% over five years and 11.2%

over the past decade. A year ago in 2010, total returns were in line with the 10-year annualized average. In 2011, performance exceeded all historical averages by a relatively wide margin.

Income returns have provided the stable component in total returns, and ensured that overall performance has never strayed far into negative territory, even in the depths of the recent global financial crisis.

SALES OUTPACE ACQUISITIONS Net investment on the 42 portfolios IPD measures – which measures the difference between total capital expenditures receipts – continued to narrow in 2011, falling for the fourth consecutive year to $775 million. In 2011, net investment reached its lowest level since 2003 when it had dipped to just $361 million, and stood

In 2011, performance exceeded all historical averages by a relatively wide margin.

Canadian Property Management | March 2012 9

industrynews&trends

In general, all office properties and most retail properties have outperformed industrial properties over the past five years on an annualized basis. at about half the $1.5 billion level recorded in 2010.

The decline in net investment can be traced to a robust deal market where sales have been more widespread than acquisitions for the funds covered by IPD. Net sales receipts of $5 billion in 2011 were second only to the previous year’s record of $6.1 billion.

Gross purchase expenditure of $3.4 billion fell substantially below net sales receipts, and also represented a sizable decline from $5.1 billion in 2010. Furthermore there has been a significant decline in development expenditure since the financial crisis started in 2008, standing at $500 million compared to more than $2 billion in 2008.

Net income growth rose for the second year in a row to 3.7% in 2011, but net operating income (NOI) yield compressed to 6%. The yield in 2011 was the tightest on record, narrowly eclipsing 2007’s previous minimum of 6.1%, when values peaked after a period of considerable yield compression. The yield decompression that occurred in 2008 and 2009 has been erased by the recovery of the past two years.

A l t h o u g h c a p i t a l g r ow t h w a s substantial in 2011, relative pricing between real estate and long-term bonds reached its widest gap in the past decade at year-end 2011. This occurred as the spread between the NOI yield and the long-term bond rate widened to nearly 4.1%. In Q2 2007, t h e s p r e a d wa s o n l y 1 . 7 % , t h e narrowest margin of the decade.

Improving fundamentals contributed to the impressive total returns of 2011.

Over the course of the year, the vacancy rate tightened in three of the four most heavily weighted property 10 March 2012 | Canadian Property Management

types in IPD’s Canadian database (super regional retail, high-rise office and warehousing) and stabilized in the fourth (regional retail).

Overall, the vacancy rate improved in seven of the 13 single-use property types tracked by IPD. It was the first year since 2007 when the majority of the 13 single-use property types showed improving vacancy rates.

REGIONAL DIFFERENCE C a n a d a ’s e i g h t m a j o r c e n s u s metropolitan areas (CMAs) turned in double-digit returns in 2011, but Calgary was in a class of its own, with capital growth of 13.7% pushing total returns to 21.6%. This exceptional capital growth even exceeded Ottawa’s 2011 total returns of 12.8%, and was driven by all major asset types, with offices delivering the highest return (25.1%), followed by retail (18.6%) and industrial (17.1%).

The epicentre of Alberta’s boom lies in the oil sands of Fort McMurray, but the impact can be felt a few hundred miles away in Calgary where many national energy companies maintain

head offices. The broker Avison Young reported a vacancy rate in downtown Calgary of just 4.5% at year-end 2011, including a 2.5% vacancy rate for Class A space and a mere 0.3% for Class AA. Calgary’s performance dynamics echo similar patterns seen abroad.

Property markets in key cities of other resource-rich countries have also outperformed in recent years.

Comparable trends have been noted in Australia, South Africa and Norway, among others.

Alberta’s boom and its effect on Calgary’s property markets have dominated national headlines and attracted international media attention, but it is important to note that resourcerelated booms sometimes end quickly.

Property returns in these markets can be volatile, as veterans of the 1980s real estate markets would no doubt testify.

Five of the eight major CMAs provided five-year annualized returns to 2011 exceeding the Canadian allproperty average. All four western CMAs outperformed over the last five years, but Halifax was the only major CMA in the east to do so.

VARIATION BY PROPERTY TYPE Total returns in the retail sector peaked in 2005 ahead of office returns. From 2005 onward, the timing of the office sector’s property cycle lagged the retail sector.

The next cyclical turn came in 2008 when retail returns bottomed out.

Again, office returns lagged the retail cycle and did not hit bottom until 2009.

In 2011, the cycles for the two property sectors moved closer together, with total returns in the office sector

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industrynews&trends 2011 Returns - Major Canadian CMA's

20 15 10 5 Vancouver

Calgary

Edmonton

Montreal

All property

Income Return

5.9

7.0

6.7

6.1

6.6

6.4

6.4

Capital Growth

8.8

13.7

6.7

8.3

5.8

8.1

9.0

15.1

21.6

13.9

14.9

12.8

15.0

15.9

Total Return

Toronto

Ottawa

Source: REALpac / IPD Canada Annual Property Index

All four western CMAs outperformed over the last five years, but Halifax was the only major CMA in the east to do so.

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Untitled-3 1

Canadian Property Management12-03-15 | March 11:25 2012 AM 11

Source: REALpac/IPD Canada Annual Property Index

25

Annual Returns, %)

(16.4%) coming very close to retail (16.8%). This was a spectacular escalation for the office sector, following as it did total returns of 8.5% in 2010. Retail returns also rose in 2011, but from a much higher starting point of 15.6% in 2010.

Total returns varied significantly across property types within the office sector. In the retail sector, returns were more consistent across property types.

The four single-use property types most strongly weighted in the IPD database are high-rise offices, super regional retail, regional retail and warehousing. Total returns rose in 2011 for all of these property types except super regional, which slipped from 17.3% in 2010 to 16.8% in 2011 – but this was still higher than the market total return of 15.9%.

The sharp improvement in returns for high-rise office properties from 8.5% in 2010 to 16.6% in 2011 came as vacancies continued to improve and the demand for space in Canadian urban centres increased.

Capital value in IPD’s database is fairly evenly distributed across the two major sectors, with retail accounting for 42% and offices 38%. Of the individual property

industrynews&trends types, high-rise offices represent the largest category with $32.2 billion out of a total value of $95.2 billion. Industrial properties account for about 10% of the overall database, and the majority of these are warehouses.

The three single-use property types

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with the highest total returns over the last five years (super regional retail, regional retail, and high-rise offices) are the three most heavily weighted property types in the IPD database by value. In general, all office properties and most retail properties have outperformed industrial

PRICE

properties over the past five years on an annualized basis.

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DIVERSITY & STRENGTH In 2011 the 42 Canadian portfolios that IPD monitors delivered income returns ranging by 1.8 percentage points, once again demonstrating the diversity of the funds in the dataset.

Compared to other domestic asset classes, Canadian private real estate also p e r f o r m e d favo u r a b l y i n 2 0 1 1 , outperforming all other investment classes. Over the past 10 years, both private real estate as measured by IPD and public real estate (REITs) have outperformed traditional equities and bonds asset classes by a wide spread. zz The preceding article was supplied by the Real Property Association of Canada (REALpac) and IPD. For more information, see www.realpac.ca or www.ipd.com/news.

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Investors Eye Stability with Growth Potential Canadian Real Estate Performs Well in Global Context

14 March 2012 | Canadian Property Management

Toronto and Calgary rank as Alpha Cities in Jones Lang LaSalle’s recently released analysis of the world’s top real estate investment markets. Those are the 30 cities where 50% of global direct commercial real estate is concentrated.

Notably, Toronto cracks the top 10, tied with Shanghai, with US $10 billion in investment in 2010-11.

Calgary ranks 23rd – slotted between Berlin and Rio de Janeiro – with US $5 billion in investment. It also ranks 20th among the world’s fastest growing mature cities.

Alpha Cities represent the top 10% of Jones Lang LaSalle’s three-tier division of the so-called Global 300 – cities projected to account for the bulk of global economic and commercial real estate activity over

the next decade. Beta Cities are ranked from 31st to 100th place, followed by 200 Gamma Cities.

“The Global 300 are the world’s most populous, productive and connected cities; their one billion citizens are responsible for over 40% of global e c o n o m i c a c t iv i t y. T h ey h ave a combined modern office stock of over 1.2-billion square metres (13-billion square feet) and account for two thirds of global direct real estate investment,” notes the introduction to the A New World of Cities report.

Other real estate analysts looking at Canada in the worldwide context generally comment favourably on the strengths of major urban real estate markets and investment prospects.

PwC/Urban Land Institute’s Emerging Trends in Real Estate 2012 observes:

industrynews&trends

Similarly, the 2012 Global Market Report from NAI Global summarizes: “As we enter 2012, the supplydemand characteristics of the real estate sector appear balanced in most markets and asset classes. Liquidity has returned, as evidenced by REITs and other publicly traded real estate investors having raised substantial amounts of equity capital in 2011.

There is increased investment and construction activity, which bodes well f o r a s l ow, bu t s t e a d y r e c ove r y continuing through 2012 and more robust growth in 2013.”

“In 2012, Canada’s property sectors, except hotels, should bathe in a comfortable equilibrium of high occupancies, steady rents and level demand. Vacancy rates settle in the mid-to-high single digits across office and industrial markets and even lower in retail and apartments. Development remains controlled without the threat of overbuilding unless buyer demands for condominiums decline dramatically in Toronto, Vancouver and Montreal.

“For investment, survey respondents favour apartments, downtown offices and neighbourhood shopping centres over suburban office space and hotels.

On the development front, one survey respondent noted: ‘everything looks stable; rents are about the same as ten years ago, and all the caution about the world debt crisis will keep construction under control. It’s more of the same’.”

PREFERRED ASSETS Both reports point to the dominant role that pension funds, REITs and a small number of large corporate investors play in the Canadian market, holding most of the trophy assets. The PwC/ Urban Land Institute report colourfully expounds: “Institutional investors and REITs cuddle their Class A downtown towers in the primary 24-hour cities.

They have no intention of letting go of these cash-flowing babies in markets stuck in near perpetual supply/demand balance.”

Observations in Emerging Trends in Real Estate are based on market data, interviews with more than 30 Canadian real estate industry executives, representing investors, realty advisors, property managers and developers, and comments drawn from written survey submissions. PwC’s U.S. based writer/researcher, Jonathan D. Miller, who has authored the annual summary and forecast for the past 20 years, also supports his hypotheses

with direct quotes from the interviewees, although none are individually identified.

They see strengths in the retail and multi-residential sectors, give mixed reviews for industrial prospects depending on the region, and are less enthusiastic about hotels. For retail, especially, they foresee positive trends in all almost all formats and locations.

The report states: “Unlike the United States, Canada has not overbuilt stores, and many burgeoning residential districts in downtowns are underserved. Expected declines in consumer spending should not precipitate major problems: landlords anticipate leveling cash flows and minor vacancy increases from lowto mid-single digit levels. Some U.S. retailer bankruptcies actually open u p s p a c e f o r n ew U . S . c h a i n s previously shut out of markets.

REITs and pension funds owners work ‘cozily’ with tenants in ‘an oligopoly’ to avoid overbuilding and maximize sales in existing malls.

“Neighbourhood shopping centres in prime areas do well, too: planning controls on sprawl limit competition from too much commodity development. Most of the new construction activity will concentrate in the cities as part of high-rise residential projects. Retail and condo developments join forces to meet growing urban demand for stores and provide better amenities for projects in a win-win collaboration.”

REGIONAL STRENGTHS AND WEAKNESSES The decline of manufacturing in Ontario’s

Toronto cracks the top 10, tied with Shanghai, with US $10 billion in investment in 2010-11.

Canadian Property Management | March 2012 15

industrynews&trends

“Calgary’s outlook is extremely positive and poised for strong growth in the coming years, provided the Alberta oil sands remain a globally accepted source of oil.”

CARMA_CondoBusiness_01-19-2009_CS2--F.pdf

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heartland coupled with a buoyant Canadian dollar underlies higher vacancies and increasing obsolescence of older, low-ceiling industrial space. Meanwhile, NAI Global’s 2012 Global Market Report points to positive fundamentals in resource based economies in western Canada and also to the east in Halifax, which will be the beneficiary of a recently awarded $25-billion ship building contract.

Saskatchewan, in particular, has shrugged off its former have-not status. The report notes: “Saskatchewan is the provincial leader in economic growth as its GDP is forecast to grow 4.3% in 2012. The two largest cities are Regina and Saskatoon, with a combined population over 500,000. The unemployment rate is below 5% and, as a result, industrial market vacancies remain at an all-time low, while rental rates continue to hold up due to limited new construction. Industrial land prices remain steady at $225,000 per acre.

“The Regina office market is experiencing positive absorption, and vacancy rates remain extremely low at 2%, a 100-bp decrease from the same time last year. New office product totaling 200,000 square feet is expected to come online in 2012.”

Analysts almost reflexively tie Alberta’s fortunes to the oil and gas industry. “Alberta’s recovery will continue to be impaired by low natural gas prices which are projected to persist,” the NAI Global report forecasts.

Even so, it points to positive prospects for Calgary, again, contingent on the energy sector, suggesting: “Calgary’s outlook is extremely positive and poised for strong growth in the coming years, provided the Alberta oil sands remain a globally accepted source of oil. The outlooks for office, industrial and retail are all well balanced with land supplies available, construction prices back in balance and steady demand by all tenants across the board.”

Residential market dynamics and urban planning priorities create competing land uses and pressures in the cores of many of Canada’s major cities. Residential development has 16 March 2012 | Canadian Property Management 11002_Carma_2011.indd 1

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industrynews&trends been driving the construction economy in Toronto and Vancouver, in particular.

In Toronto, the PwC/Urban Land Institute report observes: “Despite more than a decade of seemingly nonstop high-rise construction concentrated in the city’s core, relentless renter demand from immigration and in-migration from other provinces and the countryside absorbs about 40,000 units annually and keeps inventories low.”

Vancouver’s downtown residential density and housing prices are unsurpassed. With downtown mostly built out, outlying nodes with connections to public transit are increasingly popular.

That’s a development pattern that Emerging Trends in Real Estate links to other spinoff environmental benefits: “Developers concentrate residential and commercial projects around stations near the city’s popular and expanding Skytrain mass transit network. The availability of reliable train service coupled with Vancouver’s carbon tax has changed commuting patterns and reduced driving into downtown.”

“Reliable train service coupled with Vancouver’s carbon tax has changed commuting patterns and reduced driving into downtown.”

WORKFORCE CONSTRAINTS Yet, the demographic divide between suburb and core seems to be widening. The PwC/ Urban Land Institute report cautions: “Local planners may need to pay greater attention to providing parks and other recreational space in and around new condominium corridors located near city centres. Especially in Toronto, the proliferation of new apartment towers leaves residents without immediate access to playing fields or nearby green environs. The accommodations may work for young professionals more interested in the local bar and restaurant scene, but do not accommodate the needs of families with children.

“Limitations on single-family housing projects, meanwhile, increase values on highly coveted suburban homes located in inner rings. Some interviewees wonder whether prices will become unaffordable for many families, killing the dream of marrying and raising children in a house and yard.” zz The preceding article is drawn from Emerging Trends in Real Estate, a joint publication of PwC and the Urban Land Institute, http://www.pwc.com/ ca/en/real-estate/emerging-trends-real-estatecanadian-summary.jhtml; the 2012 Global Market Report from NAI Global, http://www. naiglobal.com/docs/12_GMR_LowRes_Global. pdf; and A New World of Cities: Redefining the Real Estate Investment Map from Jones Lang LaSalle, http://www.joneslanglasalle.com/ ResearchLevel1/JLL-A-New-World-of-Cities.pdf

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www.airdberlis.com Canadian Property Management | March 2012 17

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industrynews&trends

Status Quo for Securities Regulation

Streamlining Secondary to Constitutional Considerations

By Barbara Carss

A recent Supreme Court of Canada ruling means that publicly traded real estate companies will continue to deal with multiple securities commissions – at least until the federal and provincial/territorial governments can agree on how a single national regulator would operate. The Justices unanimously decreed the proposed Canadian Securities Act unconstitutional, thus derailing the federal government’s unilateral effort to assume the role now carried out by 13 provincial and territorial securities commissions.

The decision, which was released in late December 2011, does recognize a federal interest and suggests that a harmonized system could be developed cooperatively with provincial/ territorial input. Converts will have to be won, however, since Ontario was the only province to support the federal legislation.

“It certainly would have been simpler to have only one regulator to deal with, but it’s not a major concern. Many changes have already been made to the system to streamline it,” observes Allan Goodman, a Partner specializing in securities and corporate law with Goodmans LLP. “We haven’t heard any concerns from our members,” concurs Ryan Eickmeier, Manager of Government Relations and Policy with the Real Property Association of Canada (REALpac).

Regulated entities typically choose to file a prospectus for new offerings to the market with all 13 regulators since it is a requirement of raising capital in any province or territory.

A cooperative agreement, known as the passport system, among 12 of the 13 securities commissions has simplified the process by designating the province where the issuer is located as the principal regulator. Issuers file one prospectus with their principal regulator, but pay fees in each of the provinces/territories where they wish to offer securities.

The Ontario Securities Commission (OSC) is also deemed a principal regulator for this purpose even though it does not participate in the passport system. Companies based in Ontario file just one prospectus with the OSC, while issuers located in other provinces file what’s known as a dual prospectus with their principal regulator and the OSC. PROVINCES JOSTLE “To the issuer, it is fairly seamless. To the regulator, it is very important,” Goodman says.

“Everybody, including Ontario, would like to be the regulator.”

Indeed, Ontario’s support for a single Canadian regulator is at least partly premised on the assumption that the bulk of its work will be carried out in Ontario. The OSC’s Statement of Priorities for the 2011-12 fiscal year notes: “To reflect the reality of Canadian capital markets, the Canadian Securities Regulator should be based in Canada’s financial capital, Toronto.”

Likewise, the Toronto Financial Services Alliance – a public-private coalition of interests that derive business, tax revenue and/or other spinoff economic benefits from the financial industry – was both an early supporter of the proposed Canadian Securities Act and an active promoter of Toronto as a national regulator’s “logical” headquarters.

“Canada is the only major developed country without a unified approach to securities regulation and that puts us at a competitive disadvantage in a world where financial regulation is becoming more and more harmonized,” the Alliance’s President, Janet Ecker, said after the Supreme Court’s ruling was released. “I urge our government leaders to put good public policy first and reach a cooperative solution – as our governments have done in the past when matters of vital national interest have arisen.”

18 March 2012 | Canadian Property Management

In contrast, constitutional debate and decisions address jurisdictional authority to govern, not necessarily the reasonableness of the policy or law. The federal government staked its claim on its responsibility for general trade and commerce, while opposing provinces asserted their power of property and civil rights.

The Supreme Court ruled that federal reasoning did apply to the issue of systemic risk, but that the main thrust of the proposed legislation couldn’t be justified because it would simply replicate day-to-day operations that are clearly w i t h i n t h e r e a l m o f p r ov i n c i a l responsibility.

RED TAPE RELATIVE The Justices did not consider how the proposed law might affect either regulated entities or investors in the market.

Nevertheless, proponents of a national securities regulator emphasize the practicalities of the proposed reform, such as more efficient administration, reduced fees, streamlined enforcement and consistent rules for investor protection.

Some critics of multiple securities commissions also contend that they have been an off-putting obstacle to foreign companies’ efforts to raise capital in Canada. Other market observers counter that administrative details are peripheral to that business case.

“Most foreign companies come to Canada because when they look at our markets, there are many reasons to be here,” Goodman maintains. “Our regulatory environment might appear to be complicated, but, practically, it’s not that difficult to manoeuvre. For example, we do not have some of the same administrative burdens imposed by Sarbanes-Oxley legislation in the United States, which can make the Canadian markets more appealing.” zz

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Professional Development Pays Off for Facilities Managers Geography and Gender Also Influence Earning Prospects

By Barbara Carss Young women make up a growing share of the facilities management workforce, but men predominate in sheer numbers and still garner higher salaries on average.

Recently released results from the International Facility Management Association’s (IFMA) 2011 survey of job responsibilities and compensation reveal that the typical respondent is a 49-yearold man with a post-secondary degree and 28 years of work experience.

Nearly 3,570 of the survey’s 4,350 respondents are employed in the United States, while 285 Canadian participants accounted for 7% of the total and the next largest national component among the 38 countries represented. For consistency, all salaries were converted to US values, with the Canadian dollar pegged at US $1.01.

Average salaries for Canadian respondents ranged from $73,000 for Level 1 occupations, defined as professional specialists who do not supervise other staff, to $134,000 for Level 5 roles in the senior executive 20 March 2012 | Canadian Property Management

ranks. This is largely on par with the average salary for Level 5 jobs among American respondents, at $133,200, but lower than the US average for Level 1 jobs, which is $76,600 among the 502 respondents who reported.

VARIABLES WITH VALUE Nevertheless, average salaries vary from region to region across the United States, meaning that surveyed Canadian facilities professionals typically receive higher compensation than their counterparts in five of seven American regions. IFMA’s regression analysis of the survey responses, which assigns a dollar value to a number of factors and variables that any individual employee may possess, deduces that a Canadian locale adds a $7,076 annual premium.

The regression analysis assigns a $2,057 annual premium for being male, and a $2,948 annual premium for holding the CFM (Certified Facility Manager) designation. This may explain in part why a higher percentage of female respondents are pursuing advanced professional

facilitiesmanagement designations – to counterbalance the structural financial penalty of being a woman.

As with their male peers, the majority of female respondents fall into the 45-to-54 age category. However, the 2011 survey results do show an increasing percentage of women under the age of 35 – 12% of female respondents versus 7% in the previous 2007 survey.

Meanwhile, 8% of men participating in the 2011 survey were younger than 35.

On average, male respondents in Level 1 roles earned about $5,700 more annually than female respondents. At Level 5, the gap in earnings had closed somewhat among respondents, with male senior executives earning approximately $4,900 more annually than female counterparts. Male respondents in Level 1 positions outnumbered female respondents 2 to 1, while male respondents in Level 5 positions outnumbered female respondents more than six to one.

The majority of respondents are employed in institutional or service providing workplaces.

Health care, financial services and government buildings are among the most common facilities. The remaining 16% of respondents were employed in the manufacturing sector.

In total, 42% of respondents earned at least $100,000 annually. Only 15% earned less than $60,000.

“Facilities management is a competitive, compelling profession with the potential to attract top-tier talent, both today and in the future,” maintains IFMA’s President and CEO, Tony Keane. “Facilities management provides strategic value and contributes to organizational success, and facility professionals are increasingly getting greater recognition and compensation for these contributions.”

CAREER COMPETENCIES Survey analysts also looked at employees’ compensation in relation to their education, experience and specialized credentials. Nearly two-thirds of respondents have at least a Bachelor’s degree – most commonly in business, engineering or facilities management.

Nine percent of respondents have a Master’s in Business Administration (MBA), while another 5% are working toward the degree.

Twenty percent of respondents entered facilities management via previous work in the engineering and construction fields. Eight percent launched their adult work life in facilities management.

The majority of respondents now carry multiple job responsibilities. Nearly one-third oversaw operations, maintenance and energy management, while 43% carried some other combination of roles that might also include: construction and project management; space management and planning; environmental health and safety; and other roles.

Eleven percent of respondents managed just one facility, while 39% managed more than 20. Almost one-quarter of respondents manage less than 100,001 square feet of space, but 15% managed more than 2 million square feet.

CFM is the most common professional designation among respondents; 22% have achieved that status, while 24% are working toward it. Currently, there are more than twice as many holders of IFMA’s FMP (Facility Management Professional) designation than of LEED

credentials offered through the Canada and US Green Building Councils, but a shift seems to be occurring as 10% of the respondents are now pursing a LEED designation compared to 9% working to attain FMP status. zz The preceding article summarizes findings presented in the International Facilities Management Association’s Profiles 2011 Salary and Demographics Report. For more information, see the web site at www.ifma.org.

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security

New Laws Aim to Thwart Thievery

B.C. and Nova Scotia Scrutinize Scrap Metal Sales

By Barbara Carss Current market prices make scrap metal a lucrative commodity for deliberate thieves or random passersby who see an opportunity. Tales abound of stolen cabling, piping, equipment and decorative fixtures from utility storage yards, unattended worksites, abandoned buildings, temporarily vacant premises and unwatched public venues.

“This is just a cross-industry concern as the price of copper and steel has risen in the past couple of years,” says Warren Heeley, President of the Heating, Refrigeration and Air Conditioning Institute of Canada.

“Metal comprises 70 to 90% of the content of most of the products we use. That becomes attractive to a certain element.”

Copper, which has been hovering around $4 per pound, is a frequent target, but other metal products can also attract attention if they’re accessible and in sufficient quantities to be valuable.

“In high-rise construction, aluminum forms are popular,” reports Richard Lyall, President of the Residential Construction Council of Ontario. “Security is an important necessity on sites.”

Security consultants recommend storing metal inside in a locked facility wherever practical. However, such precautions are problematic if not logistically impossible when the metal is part of a building system, or in equipment and structural features that are anchored in a space.

“Some cemeteries have had problems with metal theft, and they are very, very hard to protect,” notes Mike Fenton, Director of Consulting and Client Support with Paragon Security.

Losses from petty thievery may not justify extra security costs that can fairly quickly exceed the value of the material. “But if you’ve got a couple hundred thousand dollars worth stored outside, then it likely makes sense to pay for a security guard and, increasingly, insurance companies are going to ask for that,” Fenton observes.

Dealers are prohibited from purchasing metal from prospective sellers who refuse to divulge the required information.

Two Canadian provinces have recently adopted legislation intended to make it more difficult for thieves to unload and profit from stolen items. The British Columbia legislature passed the Metal Dealers and Recyclers Act last November, while legislators in Nova Scotia followed with the Safe Collection of Scrap Metal Act in December.

Both Acts designate scrap metal dealers as frontline lookouts and mandate formal scrutiny and documentation of all transactions. Dealers in both provinces are now required to confirm and record personal identification information from all sellers, and to keep the information on file for at least one year. (This will also compel record keepers to comply with applicable privacy legislation.) Dealers are prohibited from purchasing metal from prospective sellers who refuse to divulge the required information.

Operators of Nova Scotia’s recycling depots, who opposed the new legislation and decried the lack of consultation before it was introduced, argue that the focus on record keeping creates costs, administrative burden and the risk of undue fines for business operators rather than targeting the actual culprits.

“A fine of $5,000 to $15,000 could close a business whose total revenue is $80,000. What is the penalty for the thief?” Bruce Rogers, Executive Director of the Eastern Recyclers Association, wrote in a submission to the legislative committee examining the Act. Scrap dealers in B.C. are further conscripted into the enforcement process since the B.C. Act directs them to immediately inform the police if they have “reasonable grounds” to suspect

metal is stolen, whereas Nova Scotia’s dealers are simply required to gather information and provide it to police when asked. In addition to collecting personal information about the sellers, dealers in B.C. must also determine the origin of the metal and keep a record of its weight and distinguishing markings.

Yet, there is a potential flaw in the Province’s approach. “It assumes that all scrap metal dealers are ethical,” Fenton says.

Meanwhile, property owners everywhere are advised to be vigilant and consider the principles of crime prevention through environmental design (CPTED) even if extra security doesn’t fit into their budget. Evidence suggests that perpetrators are less likely to enter a site with camera surveillance or where they are more visible to passing traffic and from neighbouring properties.

Material stored near perimeter fencing makes it easier for thieves to quickly load it onto a vehicle they’ve parked nearby.

“Most fences can be breached in under 30 seconds,” Fenton cautions.

Clear sightlines should be maintained between a property’s frontage and any storage locations deeper on the lot. Fenton also suggests reaching out to residents and business owners in the vicinity and urging them to contact police and/or the company’s security contractor if they see suspicious activity. zz Canadian Property Management | March 2012 23

SWOT Analysis Directs Property Rescue Strengths, Weaknesses, Opportunities and Threats Factor in Turnaround Strategy

By Lawrence Baiamonte, John Gallagher, Kenneth Goodacre, Kathleen Harmon and Richard Muhlebach There has always been and always will be need to reposition and repurpose assets. Recently, the advent o f s u s t a i n a b i l i t y, d r o p i n n ew construction, increased tenant demands and tightened fiscal oversight have prompted building owners/ managers to look for creative ways to reuse and repackage underperforming assets, reignite market interests and achieve profitability.

Analysis of a troubled property is usually organized into three main c a t e g o r i e s : 1 ) t h e p r o p e r t y ’s appearance and deferred maintenance; 2) mechanical, electrical and plumbing operations; and 3) financial condition of a property. Ideally, two specialized 24 March 2012 | Canadian Property Management

teams should separately examine the physical structure and fiscal status.

The physical structure team should include a building engineer, maintenance personnel and a general contractor to thoroughly examine the physical condition of the property. Video or photos of each unit are recommended for later reference in preparing cost estimates, design changes, reporting and documenting the progress of the turnaround.

The accounting team will focus on the lease analysis/rent roll audit, reviewing the square footage, lease terms, base and additional rent, expense stops and/or pass-through expense recoveries, any options, termination rights and concessions. The accounting team will

industrynews&trends also review each lease and ensure that all operating expenses, real estate taxes, and every rent required is being billed and collected.

Poorly designed buildings with awkward spaces and inefficient mechanical systems are all too common. Problems may have been masked in better economic times, but become more apparent when the marketplace provides prospective tenants with more choices. So it’s likely that many design flaws will be identified in the repositioning planning process.

Troubled assets can also acquire bad reputations that are difficult to overcome. If a property is left to languish for an extended period of time, the lack of funds to maintain physical operations, necessary services and staffing will take a huge toll on the building’s reputation For example, loss of an anchor tenant may erode the surrounding community’s confidence in a local shopping centre, while new retailers will be less likely to relocate to a shopping centre with a failed history.

Remaining stores may flounder further as business slips away.

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DESIGN DILEMMAS

A weakening economy can bring a number of problems to the surface – especially issues related to design. Specific spaces with design problems may need to be targeted to a different market than the other available spaces in the building.

For example, space in a shopping centre that has no visibility from the parking lot or street and has limited walk-by traffic could be targeted to small office users instead of retailers and restaurants. Basement space in a downtown office building might be targeted to a fitness club, a printing company or leased for storage space.

Shopping centres are most likely to have design flaws that can negatively affect leasing and rental rates. Shopping centres and their tenants need visibility. If shoppers cannot easily see the shopping centres or individual stores, they are more likely to pass by and go elsewhere.

In office buildings, design dilemmas are more often linked to load factors – that is, the percentage of common area in the building. Most office buildings have load factors of 8 to 12%. A higher percentage of common area – perhaps due to a large atrium – translates into higher rents per square foot of tenant occupied space, which can make the building less competitive.

Bay depths may also be an issue. If the distance from the corridor wall to the exterior of the building is too short or too long, it can be difficult for a space planner to efficiently design an office tenant’s space.

In residential buildings, in particular, design issues can relate to changing demographics as existing stock becomes too large or too small to match market demands. Lack of natural light due to the direction that the unit faces or an inadequate number of windows can make some units habitually unappealing.

The popularity of converted manufacturing, warehouse and commercial space – often featuring exposed brick and wood, poured concrete floors and visible mechanical piping – can nevertheless pose design challenges. For example, support pillars located in the centre of a bedroom make it nearly impossible to place furniture.

Canadian Property Management | March 2012 25 12-03-09 3:00 PM

industrynews&trends ESTABLISHING THE BASELINE Across all troubled property types there is a critical need for thorough, objective and realistic analysis before a direction can be determined and a repositioning plan created. A real estate manager is frequently tasked with creating a SWOT (strengths, weaknesses, opportunities and threats) analysis as a foundation of information for making decisions.

This type of analysis addresses the following topics: Strengths: what makes the asset valuable?

• Location • Historic significance • Reputation • Construction • Architecture • Market demand Weaknesses: what qualities or conditions cause the property to underperform?

• Location • Current use • Reputation • Construction or mechanical issues

• Cost of operation – i.e. energy efficiency) • Current tenant profile • Unit sizes or floor plate design • Market rents and concessions • Family and partnership disputes – more prevalent in multigenerational ownerships Opportunities: how can value be enhanced? What does market research disclose about future potential?

• Is there market demand for this product type if updated and renovated?

• Is there potential to adapt the asset to modify its current use to one with greater market appeal?

• Government assistance availability, such as grants and tax credits • Financing opportunities • Sustainability initiative acceptance by financial institutions, government bodies and the marketplace • Appeal of historic charm • Proximity to future transportation corridors

• Focus on infill development for transportation concurrency reasons Threats: what other factors pose a threat to achieving goals for the property?

• Instability and uncertainty in critical economic trends • Budget deficits • Possible changes in financial support and government policies • Price increase potential in materials as the economy recovers and construction picks up • Competition from new construction or other repositioned properties – i.e. depth of market CHOOSING ALTERNATIVES Pr i o r i t y s e t t i n g i s c r u c i a l . J u s t because something can be done quickly to fix the problem, that’s not necessarily the preferred option. A consistently asked question throughout the repositioning process is: “what is the best and most costeffective alternative?”

T h e S W OT a n a l y s i s a n d t h e resulting assessment will help in

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SKILLS & ATTITUDES FOR THE FRONTLINE

The leasing team is the engine of recovery. It is on the frontline of executing the turnaround plan – a task that can be stressful and not suited to all skill sets. It’s important to critically examine what team members are bringing to the table: • Do they believe they can make the property successful? Why? How? • Are they willing to put forth the effort and dedicate the time required?

• Do they have confidence in the property or constantly mention negatives and excuses?

• Are they engaged in determining a new plan of action?

• What are the track records of individual team members?

• How do they assess the property, ownership and repositioning possibilities?

• Can they be part of the solution or should they move on?

• What do they specifically plan to do to achieve an accelerated turnaround?

• How cohesive is the group? Are there any hidden agendas?

• Is the leasing team leader a team player?

The leasing team’s knowledge can contribute to the marketing plan and a productive leasing effort. Simply sharing ideas as the marketing plan is developed helps create a strong sense of empowerment for the team. If the leasing team understands the importance of the marketing and leasing plan, it will feel invested in its success and work to achieve its goals.

choosing from a number of potential actions, such as: Loan restructuring. The property may have suffered from a time-and-rate issue that can be resolved if a loan restructuring is done without heavy pre-payment penalties.

Modified use. The property may suffer from age and neglect, but market dynamics could justify a major facelift. Perhaps large spaces can be subdivided or smaller spaces combined to conform to market demand, however, the type of asset will remain essentially unchanged.

Adaptive use. This course of action would modernize a building for a use that may be similar to that which was originally intended.

Demolition. Unfortunately, for some structures there is no future. The asset’s greatest value may be the land it sits upon. zz The preceding article is adapted from Troubled Properties: A Practical Guide for Turning Around Trouble Assets, produced by the Institute for Real Estate Management. For more information, see the web site at www.irem.org.

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2012 Who’s Who

Welcome to the 17th annual edition of Who’s Who in

Canadian Real Estate. This year’s list represents all facets of the property management business, including third-party management firms, development/management firms, financial institutions, REITs, insurance companies and pension funds. The inaugural edition, published in February 1996, quickly became an essential industry-defining resource, and we trust this updated list will serve the needs of our information-driven readers.

Although this listing is considered a current and comprehensive listing for the industry, by the nature of the data-gathering process, it is not exhaustive. In addition, Who’s Who in Canadian Real Estate is not a ranking, and should not be misconstrued as such. Every effort

Office Manage Only

millions of sq. ft.

SNC Lavalin and Arcturus Realty Corporation CBRE Asset Services Brookfield Lepage Johnson Controls (BLJC) Bentall Kennedy (Canada) LP GWL Realty Advisors Jones Lang LaSalle Redcliff/Tonko Colliers International Brookfield Office Properties Oxford Properties

Office Own Only

Healthcare of Ontario Pension Plan Ivanhoe Cambridge Dundee REIT Morguard Corporation Morguard REIT Standard Life Investments Real Estate Inc. Concert Properties Cadillac Fairview Allied Properties REIT Industrielle Alliance Asset Services Financiers

Office Own & Manage

Dundee REIT Oxford Properties Cadillac Fairview H & R REIT Fonds de Placement Immobilier Cominar Manulife Real Estate Brookfield Office Properties Morguard Investments Limited Allied Properties REIT Ivanhoe Cambridge 30 March 2012 | Canadian Property Management

71.275 40.076 37.615 29.266 26.521 19.112 16.441 9.970 9.454 7.200

millions of sq. ft.

11.300 3.595 2.899 2.715 1.840 0.998 0.678 0.569 0.528 0.378 millions of sq. ft.

17.988 14.600 13.642 10.890 10.162 9.300 9.091 8.643 7.460 5.479

has been made to ensure the accuracy of the figures that follow.

However, listings are based on data that was supplied, but not independently verified. If you have any questions or comments, please contact the editor at barbc@mediaedge.ca Thanks to all who took the time to send in the data. We appreciate your input. If you were not represented in our listing and would like to appear next year, you can obtain a copy of the official survey from our publishing offices at: Canadian Property Management 5255 Yonge Street, Suite 1000, Toronto, ON M2N 6P4 Tel: (416) 512-8186 Fax: (416) 512-8344 www.canadianpropertymangement.ca

Retail Manage Only SNC Lavalin and Arcturus Realty Corporation Brookfield Lepage Johnson Controls (BLJC) FCR Management Services Bentall Kennedy (Canada) LP CBRE Asset Services Redcliff/Tonko 20 Vic Management Inc. Colliers International Morguard Investments Limited Cogir

Retail Own Only First Capital Realty Inc Healthcare of Ontario Pension Plan Morguard REIT Morguard Corporation Ivanhoe Cambridge Standard Life Investments Real Estate Inc. Dorset Realty Group Canada Ltd. Shindco Primaris REIT Richmond Property Group Ltd.

Retail Own & Manage

RioCan Management Cadillac Fairview Ivanhoe Cambridge Primaris REIT Crombie REIT Westcliff H & R REIT Morguard Investments Limited Fonds de Placement Immobilier Cominar CREIT Management L.P.

millions of sq. ft.

32.000 22.877 22.051 14.642 12.030 11.361 10.200 8.880 8.218 4.782

millions of sq. ft.

23.200 7.600 4.212 4.006 2.683 0.973 0.585 0.521 0.362 0.357 millions of sq. ft.

37.334 20.066 18.541 13.110 9.830 9.826 8.560 7.793 7.783 7.661

Top 10 Apartment Manage Only

millions of sq. ft.

Gateway Property Management GWL Realty Advisors The DMS Group Briarlane Property Management Cogir Vertica Resident Services Shelter Canadian Properties Berkley Property Management Colliers International Minto Properties

Industrial Manage Only

13.710 13.569 13.427 8.195 7.133 7.022 4.851 4.630 3.780 3.650 millions of sq. ft.

Bentall Kennedy Canada SNC Lavalin & Arcturus Realty Corporation Redcliff/Tonko CBRE Asset Services GWL Realty Advisors Colliers International Jones Lang LaSalle 20 Vic Management Inc. Morguard Investments Limited Avison Young Real Estate

Other Own and Manage

40.746 32.740 26.434 16.359 15.983 11.420 8.430 5.900 5.596 5.000

millions of sq. ft.

Real Star Management Oxford Properties Northwest Healthcare Properties Hollyburn Properties British Columbia Institute of Technology Crombie REIT Bell Canada Dorset Realty Group Canada Ltd. Gillin Engineering and Construction Limited Baywest Management Corp

Condo Manage Only

in Canadian Real Estate

4.500 4.100 3.700 2.945 2.817 1.717 1.403 0.775 0.750 0.704

millions of sq. ft.

FirstService Residential Management Brookfield Residential Serivces Del Property Management Baywest Management Corp Wilson Blanchard Management Rancho Management Services Gateway Property Management Pacific Quorum Properties ICC Property Management Ltd. AWM- Alliance Real Estate Group

94.000 65.587 56.970 31.325 27.004 18.326 17.173 11.333 11.040 10.356

Apartment Own Only

millions of sq. ft.

Apartment Own and Manage

millions of sq. ft.

Morguard Residential 5.877 Lanesborough Real Estate Investment Trust 1.695 Ivanhoe Cambridge 0.904 Dorset Realty Group Canada Ltd. 0.715 Northland Asset Management 0.497 Industrielle Alliance Asset Services Financiers 0.104

Boardwalk REIT Cap reit Real Star Management Minto Properties Metcap Living Management Killam Properties Inc. Drewlo Holdings Inc. Park Property Management Inc. CLV Group Globe General Agencies

30.000 27.900 23.800 10.781 9.673 9.574 8.253 7.403 7.000 5.417

Industrial Own Only

Industrial Own and Manage

millions of sq. ft.

millions of sq. ft.

Healthcare of Ontario Pension Plan 13.300 Standard Life Investments Real Estate Inc. 4.792 Concert Properties 4.177 Dundee REIT 1.431 Ivanhoe Cambridge 0.829 Dorset Realty Group Canada Ltd. 0.585 Morguard REIT 0.559 Morguard Corporation 0.535 Industrielle Alliance Asset Services Financiers 0.206 Old Oak Properties Inc. 0.064

Orlando Corporation H & R REIT Morguard Investments Limited Fonds de Placement Immobilier Cominar CREIT Management L.P. The Beedie Group Oxford Properties Prologis Inc. Dundee REIT Coca-Cola Refreshments

Other Manage Only

Other Own Only

millions of sq. ft.

BLJC Brookfield Lepage Johnson Controls 29.528 CBRE Asset Services 25.573 SNC Lavalin & Arcturus Realty Corporation 10.800 The Regional Group 7.500 Cogir 6.613 Colliers International 2.580 NewWest Enterprise Property Group 2.503 Shelter Canadian Properties 1.366 The DMS Group 1.164 Harvard Property Management Inc. 0.855

Condo Own & Manage

millions of sq. ft.

Landmark Properties Arnon Corporation O'Shanter Development Company Sheppard Villiage Inc. Lanesborough Real Estate Investment Trust The Beedie Group

35.434 23.672 18.525 12.705 8.815 7.729 7.400 6.383 3.673 3.500

millions of sq. ft.

Ivanhoe Cambridge Temple Real Estate Northland Asset Management Concert Properties Lanesborough Real Estate Investment Trust Cadillac Fairview Canpro Investments Shelter Canadian Properties Sluis Properties The Beedie Group

5.020 1.279 0.871 0.383 0.283 0.274 0.245 0.235 0.110 0.012

Supported by:

0.212 0.140 0.135 0.134 0.053 0.018

Canadian Property Management | March 2012 31

W h o ’s W h o i n C a n a d i a n R e a l E s t a t e

SNC Lavalin O&M & Arcturus Realty Corporation

146.815 71.275

32.740

32.000

10.800

CBRE Limited Asset Services

95.663 40.076

16.359

12.030

25.573

FirstService Residential Management

94.000

Brookfield Lepage Johnson Controls (BLJC)

90.019 37.615

22.877

Bentall Kennedy (Canada) LP

88.011 29.266

14.642

Brookfield Residential Services

65.587

GWL Realty Advisors

58.401 26.521

Del Property Management Inc.

56.970

Redcliff/Tonko

54.236 16.441

Morguard Investments Limited

54.106 5.330

Colliers International

46.140 9.970

Oxford Properties

45.000 7.200

14.600

H & R REIT

43.122

10.890

8.643

40.746

15.983

26.434 5.596

18.525

11.420 7.400

1.797

1.625

29.528

3.357 65.587

13.569

0.530

56.970

11.361 8.218

7.793

8.880 2.800

3.780

5.700

9.510

2.580

3.200

4.100

8.560 37.334

RioCan Management Inc.

39.129

1.795

Orlando Corporation

38.808

1.502

Ivanhoe Cambridge

37.648 0.319 3.595 5.479

The Cadillac Fairview Corporation

34.551

Baywest Management Corp.

32.767

Healthcare of Ontario Pension Plan (HOOPP)

32.200

Gateway Property Management Corporation

31.878 0.538

Fonds de Placement Immobilier Cominar

30.650

Boardwalk REIT

30.000

Jones Lang LaSalle

29.053 19.112

8.430

1.511

Wilson Blanchard Management

28.820 1.304

0.265

0.135

Capreit

28.600

Real Star Management

28.300

Dundee REIT

27.753 1.477 2.899 17.988

Rancho Management Services

24.055 1.252

First Capital Realty Inc

23.200

FCR Management Services

22.051

Cogir

21.268 1.159

Minto Properties

20.401

Homestead Land Holdings Limited

20.266

The DMS Group

20.187 1.476

CREIT Management L.P.

19.132

20 Vic Management Inc.

18.800 2.700

Brookfield Office Properties

18.545 9.454

Avison Young Real Estate Management Services

14.000 4.500

35.434

0.039

0.052

0.049

10.162

1.211

2.242

2.657

0.169

0.603 31.325

0.704

0.051 13.710

0.032 17.173

7.783 30.000

0.105

0.700

27.004

0.006

27.900 23.800

4.500

2.727

0.067 18.326

23.200

22.051 4.782 0.718

7.133 3.650

0.153

1.175

0.370

6.613

10.781 2.384

0.339

20.113

13.427

1.164

7.661

10.200

9.091 5.000

4.500

Manulife Real Estate

13.700 1.200

9.300

1.400

0.700

Shelter Canadian Properties

13.659 0.092

0.729

0.504

0.817

Dorset Realty Group Canada Ltd.

13.522 0.122

0.615

Primaris REIT

13.472

AWM- Alliance Real Estate Group

12.612 0.515

32 March 2012 | Canadian Property Management

0.274

1.684

8.815

5.900

20.066

0.177

0.287

2.945

5.020

7.600

12.705

0.107 1.431 3.673

0.904

0.045

13.300

0.158

1.872

0.177 2.683 18.541

0.569 13.642

11.300

Ow ns &

94.000

23.672

0.829 0.099

Man ages

Other

Man ages Man ages Onl y Ow ns & Man ages Man ages Onl y Ow ns O nly

Condo

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Apartment

Ow ns &

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Ow ns &

Tota l (in Sq. Fo mill o ions tage ) Man ages Onl y Ow ns O nly

2012

Retail

Man ages Man ages Onl y Ow ns O nly

Industrial

Office

0.920

0.435

0.500

0.600

0.116 0.011 0.249

4.851

1.254 3.285

2.645 0.585

0.970 0.715

1.366 0.235 0.150

6.175

0.775

0.362 13.110

0.805

0.448

0.025 10.356

0.028

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OPERATIONS & MAINTENANCE I JANITORIAL I ENERGY SERVICES I OFFICE SERVICES I LANDSCAPING

W h o ’s W h o i n C a n a d i a n R e a l E s t a t e

Crombie REIT

12.598

1.051

9.830

Westcliff

12.002

1.550

9.826

Pacific Quorum Properties

11.752

0.419

11.333

Briarlane Property Management Inc.

11.372 0.121

0.304

8.195

2.543

ICC Property Management Ltd.

11.061

0.021

11.040

Timbercreek Asset Management

11.057

Metcap Living Management

11.024

Berkley Property Management Inc.

10.638 1.210

The Regional Group

10.310 0.500

0.295

0.210

0.015

0.331

11.057 9.673 1.298

0.940

0.105

4.630

0.193 3.560

0.200

0.500

1.250

4.177 1.165

0.360

7.500

Concert Properties

9.806

Killam Properties Inc.

9.574

9.574

Park Property Management Inc.

8.990

7.403

Canlight Hall Management

8.827 0.395

0.041

1.504

3.041

0.039

0.042

0.184

1.819

4.769 8.550

Andrejs Management

8.550

Drewlo Holdings Inc.

8.368

NewWest Enterprise Property Group

8.306 2.152

The Beedie Group

8.125

1.241

0.084

2.361

7.729

0.383

0.437

0.115

8.253

0.049

0.151 0.130

2.503

0.018

0.012

Allied Properties REIT

8.078 0.090 0.528 7.460

Morguard Residential

7.998

CLV Group

7.350

Morguard Corporation

7.255

Sterling Karamar Property Management

7.227 0.624

Vertica Resident Services

7.022

Standard Life Investments Real Estate Inc.

6.764

GPM Property Management

6.750

Morguard REIT

6.611

Prologis Inc.

6.383

6.383

Canderel

6.185 3.072

1.725

0.300

0.551

Menkes Property Management Services

6.100 1.064

2.744

0.620

1.525

Martello Property Services

5.850 0.600

Globe General Agencies

5.712

Royale Grande

5.559

Redbourne

5.478 0.627

4.440

Shindico

5.446 0.790

0.100

0.100

2.715

0.535

1.239

0.998

1.840

0.559

1.500

0.142

0.384

2.121 5.877

0.250

7.000

4.006

1.604

4.792

3.547

0.213

7.022

0.973 6.750

4.212

0.051

0.392

0.022

0.073

0.147

1.200

0.200

0.295

2.100

0.250

5.417 5.559

0.268 0.596 0.521 2.435

0.118

0.356

0.010

0.135

Samuel Property Management

5.400

5.400

Humford Management Inc.

5.274 0.684

2.315

2.264

0.011

Realspace Management Group Inc.

5.176 1.188

2.888

1.005

Industrielle Alliance Asset Services Financiers

5.167 0.746 0.378 3.408

Canreal Management Corporation

5.008 0.329

3.868

0.812

CitiGroup Properties Ltd.

4.973 0.405

0.058

0.207

Harvard Property Management Inc.

4.868 0.610 0.060 0.989

0.112

0.216

2.025

Monit Management Ltd.

4.836

2.701

0.498

Crosby Property Management

4.789 0.357

34 March 2012 | Canadian Property Management

0.206

1.637

1.225

Ow ns &

1.717

0.038

0.678 1.545

Man ages

Other

Man ages Man ages Onl y Ow ns & Man ages Man ages Onl y Ow ns O nly

Condo

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Apartment

Ow ns &

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Ow ns &

Tota l (in Sq. Fo mill o ions tage ) Man ages Onl y Ow ns O nly

2012

Retail

Man ages Man ages Onl y Ow ns O nly

Industrial

Office

0.095

0.016 0.114 0.196

1.255

0.104

0.896

2.834

0.572 0.855

1.952

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W h o ’s W h o i n C a n a d i a n R e a l E s t a t e

0.316

2.009

1.475

Onni Group of Companies

4.767

GPM Investment Management

4.636

0.810

Downing Street Property Management Inc.

4.533 0.420

0.920

0.715

0.148

1.700

Warrington PCI Management

4.451 1.675

0.469

1.220

0.369

0.718

0.630

Landmark Properties

3.944 0.605

2.800 0.037

0.145

0.145

3.780 2.168

0.123

0.831

0.488

0.141

Anthem Properties Group

3.734

0.105

0.139

3.490

Northwest Healthcare Properties

3.700

SDM Realty Advisors Ltd.

3.694 1.400

1.600

0.610

0.084

Gulf Pacific

3.670 0.734

0.194

2.428

0.299

Devon Properties Ltd.

3.634 0.104

0.107

3.006

0.418

Bonita Management

3.600

0.600

3.000

Scotia Plaza Management

3.600

Coca-Cola Refreshments

3.575

Crown Property Management

3.434 1.557

1.877

Wycliffe Property Management

3.378 0.068

0.031

Dayhu Group

3.340

0.201

Canpro Investments

3.031

1.414

1.372

Old Oak Properties Inc.

3.111 0.300

0.300

0.032

Prospero International Realty

3.060 0.206

0.385

Kevric Real Estate Corp.

3.093 0.110

0.788

0.028

0.212

3.700

3.600

0.075

2.194

0.034

3.500

0.578

0.309

2.962

0.064

0.032

0.794

0.019

1.058 0.487

0.177

0.970

0.977

0.245

1.346 0.061

1.500

Hollyburn Properties

2.945

0.058

2.877

Lawrence Construction Grant

2.938 0.226

0.166

0.136

0.817 0.269

Bosa Development

2.905

0.337

British Columbia Institute of Technology

2.817

0.393

0.115

0.387

0.017

1.939

0.162

0.221

0.385

0.436

0.076

0.142

0.193 2.817

Arnon Corporation

2.756 0.054

1.507

Magil Laurentienne

2.688

2.369

0.204

0.115

Fortis Properties

2.683

1.583

1.100

KRP Developments

2.597 0.195

2.402

Taylor Property Management

2.596 0.080

Bona Building & Management Co.

2.576

1.300

0.011

0.615

O'Shanter Development Company

2.509

0.047

0.084

1.774

Kelson Group

2.345

0.070

2.275

Compass Commercial

2.286 1.251

0.036

0.072

Atlantis Realty Services

2.252 0.213

The Brown Group of Companies

2.189 0.015

Lanesborough Real Estate Investment Trust

2.168

Melcor Developments Ltd.

2.098

1.173

Aspen Properties Ltd.

1.961

1.961

Northcan Property Management Inc.

1.920 0.010

0.110

1.800

Skywater Property Management

1.890

1.890

Terracap Management Inc.

1.850

Tillyard Management Inc.

1.831 0.726

36 March 2012 | Canadian Property Management

Ow ns &

0.158

4.636

Colonnade Management Inc

0.015

Man ages

Other

Man ages Man ages Onl y Ow ns & Man ages Man ages Onl y Ow ns O nly

Condo

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Apartment

Ow ns &

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Ow ns &

Tota l (in Sq. Fo mill o ions tage ) Man ages Onl y Ow ns O nly

2012

Retail

Man ages Man ages Onl y Ow ns O nly

Industrial

Office

0.400 0.081 0.140

0.016

0.026

0.443

0.650

0.135

0.678

0.070

1.408

0.199

0.431

0.045

0.449

0.066

0.097

0.502

0.009

0.179

2.500

0.040

0.200

0.050

1.010

1.103

1.695

0.053

0.283

0.926

1.600

0.095

TM

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info@skylinegroup.ca www.skylinegroup.ca 1.877.417.6336

TM

W h o ’s W h o i n C a n a d i a n R e a l E s t a t e

0.937

Ow ns &

Man ages

Other

Man ages Man ages Onl y Ow ns & Man ages Man ages Onl y Ow ns O nly

Condo

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Apartment

Ow ns &

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Ow ns &

Tota l (in Sq. Fo mill o ions tage ) Man ages Onl y Ow ns O nly

2012

Retail

Man ages Man ages Onl y Ow ns O nly

Industrial

Office

Equitable Real Estate

1.790 0.308

WJ Properties

1.742

East Port Properties Limited

1.722 0.469

Northland Asset Management

1.716

Bluestone Properties Inc.

1.676

0.229

0.640

Metcalfe Realty Company Limited

1.619

1.258

0.147

Greenwin

1.060

0.630

Equity Hill Properties Group

1.556 0.159

IMP Group Limited

1.425

Centurion Apartment REIT

1.420

Antrev Property Management

1.406 0.735

Bell Canada

1.403

1.403

Gillin Engineering and Construction Limited

1.375

0.625

0.750

1.267

1.742

1.253

0.112

0.005

0.120

0.056

0.043

0.545

0.231

0.130

0.497

0.807

0.112

0.015

0.278

0.080

1.302

0.013

Busac Real Estate

1.348

1.279

Huntington Properties Ltd.

1.275 0.100

0.081

Madison Properties Inc.

1.158

0.810

Ashelron Limited

1.055 0.600

Axwood Enterprises

0.985

0.247

0.122

Royop Development Corporation

0.982

0.031

0.174

Concorde Properties

0.962

0.100

0.315

1.279

0.050

0.283

0.080

0.274

0.283

1.420

Temple Real Estate Investment Trust

0.405

0.101

0.180

1.086

0.337

0.470

0.871

0.375

0.342

0.777

0.342

0.087

0.520

Richmond Property Group Ltd.

0.925 0.267

Benchmark Properties

0.912

0.477

0.383

Fana Group of Companies

0.900

0.700

0.200

Greenwood Lane Inc.

0.884 0.287

0.061

0.357

0.040

0.206

0.075

Gistex Inc.

0.879

0.862

Fyrst Avenue Property Management Inc

0.850

Twin City Management

0.810

York Heritage Properties

0.749 0.118

0.631

Markcarko Ltd.

0.731

0.731

Marklyn Management

0.716

Shepherd Villiage Inc.

0.675

0.210

Armadale Property Management

0.669 0.077

0.148

The Aldgate Group

0.660

0.195

EcoCondo Management

0.654

Glenview Management Limited

0.621 0.206

Kroma Management Ltd.

0.605

EmTwo Properties Inc.

0.561 0.070

0.058

0.123

0.310

Uniform Developments

0.536 0.083

0.084

0.061

0.028

Frum Development

0.519

0.077

0.442

State Building Group

0.500

0.100

Gestion Plaza Cote Des Neiges

0.480

0.072

0.250

0.440

0.170

0.420

Sterling Group Inc.

38 March 2012 | Canadian Property Management

0.322

0.008

0.052

0.309

0.208

0.183

0.064

0.055

0.024

0.430

0.051

0.097

0.088

0.780

0.160

0.051

0.056

0.387 0.082

0.055

0.759

0.300

0.150 0.100

0.007

0.134

0.332

0.040

0.035

0.014

0.654

0.018 0.022

0.013

0.605

0.400

0.408

W h o ’s W h o i n C a n a d i a n R e a l E s t a t e

Stockton and Bush

0.429

0.429

Gold Castle Holdings Ltd.

0.415

0.360

0.055

Edie and Associates

0.344

0.201

0.143

Gitalis Group Inc.

0.325 0.015 0.250

Civdev Inc

0.320

0.090

Creative Realty Corp

0.294 0.139

0.132

Goodwood Property Investments

0.284

0.004

Square Victoria Immobilier

0.280

0.250

RW Commercial Property Management

0.252 0.252

Nelson Education Ltd.

0.236

Loncom Property Management

0.212 0.025

Remco Properties

0.120

0.120 0.020

0.180

Ow ns &

Man ages

Other

Man ages Man ages Onl y Ow ns & Man ages Man ages Onl y Ow ns O nly

Condo

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Apartment

Ow ns &

Ow ns &

Man ages Man ages Onl y Ow ns O nly

Ow ns &

Tota l (in Sq. Fo mill o ions tage ) Man ages Onl y Ow ns O nly

2012

Retail

Man ages Man ages Onl y Ow ns O nly

Industrial

Office

0.060

0.050

0.023 0.010

0.270

0.030

0.086

0.150

0.038

0.010

0.012

0.023

0.065 0.040

Sluis Properties

0.111

Toronto Chinese Community Church

0.110

0.091

Chester Developments

0.105

0.054

0.026

Oak Bridge Properties Inc

0.060

0.032

0.029

CA Ontario

0.054

0.054

Cedar Range Management

0.049

Bay Shore Property Management

0.034

Kysa Properties Ltd.

0.028 0.028

0.110

0.025

0.049

0.008

0.026

Canadian Property Management | March 2012 39

interiors

Sorting Out the Superfluous Document Management for the Retail Dynamic

By Evan Shkolnik Photo courtesy of Oxford Property Group

Image courtesy of Cion Corp.

40 March 2012 | Canadian Property Management

Efficient “back of the house” operations are a key element of management, particularly in the case of Toronto’s Yorkdale Shopping Centre. The 1.4-million-squarefoot mall, which already houses more than 225 shops and services, is set to grow still larger with the recent launch of a $220-million, 145,000-square-foot expansion project.

With average sales of more than $1,200 per square foot, it’s both a leader in Canada’s retail sector and a prime asset in Oxford Property Group’s portfolio.

“Beyond its remarkable ambience, what makes Yorkdale different from other shopping centres is our tenant group of firstto-market, best-in-class retailers,” maintains its General Manager, Anthony Casalanguida.

“Our management system is a big factor in helping those top brands to locate here.”

As part of those efforts, he introduced a document management system in 2011 – a decision partly arising from his experience in implementing a similar system at the Royal Bank Plaza office/retail complex in Toronto’s financial district. There, a meld of software and associated professional services helped to streamline tasks and significantly speed up drawing and information retrieval from a web-based central repository.

The process of organizing Yorkdale’s thousands of documents began with what Casalanguida calls a “leap of faith.” John

Haylock, Operations Manager at Yorkdale, shared that leap, as he also did when the two managers previously worked together at Royal Bank Plaza.

Haylock admits to being somewhat reluctant at that time, but was won over to the concept as he watched an accumulated stash of 48,000 drawings winnowed down to approximately 13,500 and then uploaded to a web site.

“Back in 2006, I kept telling Anthony, ‘we don’t have a budget for this,’ and I was very leery about the service company taking all our documents off-site to process them,” he recalls. “But you don’t really have a budget for wasted time and errors either so, at some point, you have to take action.”

Yorkdale presented even more of challenge because retail tenants typically move or renovate more frequently than corporate office tenants. Over a period of two months, architectural or engineering technicians reviewed, evaluated and sorted 68,000 drawings and uploaded about 19,400 of them to a web site.

Comparable discard rates can be expected in almost any comprehensive conversion of documents from paper to digital format. Service providers peg the typical ratio of documents reviewed to those uploaded at 4 to 1.

The original hard copy drawings were indexed and archived into boxes, while

interiors duplicate and unnecessary drawings were shredded. With the new on-line system, the most current version of a drawing can be retrieved from the web site at any time.

TIME, SPACE & COST SAVINGS “The instant access to accurate drawing information assists in the leasing process, of course, but it also really helps the retailer, their architect, the engineer, consultants and on-site coordinator when it comes to building out their new space,” Casalanguida says For building managers/owners it eases administration, saves space and cuts costs.

“At the Royal Bank Plaza, people were asking us for drawings continuously. We had to search for them in storage, courier them to the tenant or their consultant, get them back and, ideally, return them to the proper location in the filing room,” Casalanguida recounts. “I realized that with the new system, we could consolidate all our drawings into a much smaller storage space, so that the plans room could be converted to leasable space. Plus, looking organized and being organized is a great first step in establishing good relationships with clients, consultants and contractors.”

Indeed, Oxford’s National Programs Group has now mandated that each of its properties should budget for a similar drawing and document management system.

Geoff Knowles, recently appointed Maintenance Manager at Yorkdale, notes that the document management system allowed him to easily and quickly step into his new role, as it took less than 30 minutes to be authorized and begin using the system. No new training was needed since he had already worked with a similar system in his previous position with Cadillac Fairview.

“The user experience is so transferable, anyone can take those skills with them when moving from property to property,” he says.

“If we’re trying to get a tenant in, the speed and ease of access to information gives us a real advantage.”

“One example is the great relationship we have with Victoria’s Secret, where they experienced a phenomenally successful launch at Yorkdale, then went on to open several other stores in Oxford properties,” Casalanguida agrees. “For a tenant relationship to work this well, every ‘i’ must be dotted and ‘t’ crossed. And that requires a highly efficient system that enables instant and accurate responses to information needs.”

TROUBLESHOOTING Meanwhile, virtual off-site storage of critical documents protects the building data from disaster and supports emergency response. In

the event of a flood, fire or other building emergency, information can be quickly and easily retrieved without having to enter the building.

This benefit became obvious when a backup in a sanitary drain flooded the food court at one Oxford property. “When the plumber arrived, he needed to know where the clean-outs were. In ten minutes, we had printed a crisply detailed 11 x 17 mechanical drawing, zoomed right in on the area needed,” Haylock reports.

Yorkdale maintenance personnel have also put it to the test. “We were experiencing

a leak in one area, and our people could just radio the office to take a look in the system, and immediately be told where the closest main shut off was, so the problem was solved fast,” Knowles says. zz Evan Shkolnik is Director of Operations for Cion Corp., an Ingenium Group company specializing in development and implementation of document management systems, including the systems in place at Yorkdale Shopping Centre and the Royal Bank Plaza. For more information, see the web site at www.cion.com.

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Canadian Property Management | March 2012 41

technologicaldevelopments

Dashboard Shines Light on Operating Practices

Benchmarking and Proof of Performance

By Nancy Geisler

Dashboards are data delivery vehicles that – much like an automobile’s dashboard – display information in an easily readable format.

Facilities and property managers are now increasingly looking to sustainability dashboards for a quick picture of resource consumption within their organizations.

When used to track, monitor and measure sustainability in a facility and/ or different parts of the same facility, they can provide information on: electricity and gas consumption; waste removal and recycling; water use; transportation costs (fuel used in company vehicles, as an example); office consumables such as paper products and ink cartridges; and cleaning products, especially petroleum-based cleaning products Managers can use these metrics to help reduce a facility’s environmental footprint and reduce costs. Notably, U.S.-based Brandywine Realty Trust uses a dashboard system to support 16 specific targets.

“A dashboard system gives us greater insight into how dollars are being spent,” explains Brad Molotsky, the company’s Executive Vice President and General Counsel. “[It also] allows us to track and monitor our sustainable cleaning and supply activities across our entire portfolio. If one property is operating better than another, we can quickly compare the data and see why this is happening and then take actions to incorporate similar measures in other locations.”

Dashboard systems depend on data entry. In some cases, information about energy, water and/or fuel consumption and other items related to a property’s operation is manually gathered and input from archived utility bills. That might include consumption and costs back one or more years.

Some utilities now have the capacity to transfer this information to their customers in a digital format, which saves time and labour and ensures better accuracy.

Once entered, the historical information can serve as a benchmark for future improvements. Managers can compare consumption figures as new sustainability initiatives are implemented, thus measuring their effectiveness and tracking the progress the company is making.

Dashboard systems can tally the greenhouse gas emissions a facility generates, and the systems can also be designed to make suggestions on steps managers can take to reduce consumption.

The ability to compare a variety of metrics assists in priority setting.

Managers can identify easily implementable and cost-effective initiatives, as well as projects that may be more costly and have to be tackled over time. Meanwhile, the data itself helps with goal setting since it provides a baseline for reductions in consumption.

Sustainability dashboards can also offer marketing support, providing prospective tenants with information about the building’s performance, footprint and ongoing improvement efforts. zz Nancy Geisler is the Executive Director, Business Development, and Director, Stakeholder Relations, at Sustainability Dashboard Tools LLC. For more information, see the web site at www.green2sustainable.com.

42 March 2012 | Canadian Property Management Cion Ad March 2012.indd 1

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