Building Magazine - Feb:Mar 2017
Building Magazine - Feb:Mar 2017
Building Magazine - Feb:Mar 2017
67 building.ca
February
March
2017
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01
How
big
a deal
is big
data ?
PM#43096012
Tech Jobs
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City Branding
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Reforms
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READ >
Passive House
Building Boom
The Pembina Institute
explains how a low car-
bon future may be closer
than we think.
FEATURES 15 > Smart Data,
Smart Cities /
The city of the future “looks very
different from the one that has been the
cornerstone of society for the past
centuries.” Building design profession-
als should and will have a huge role to
15
play in this monumental transition.
By Paul Barker
READ >
Beyond the Election 20 > Tech Talks /
Dodge Data & Analytics
discusses how Donald
Toronto and Vancouver are Canada’s top
Trump is likely to be tech talent markets, but tech jobs are
a plus for the U.S. con- growing quickest in smaller and
struction industry cheaper markets. By Shannon Moore
building.ca
Intelligent buildings have been around for decades, but we are 01 Number
06 being told that the real advantages are when they are connected to
smart infrastructure, utilizing analytics, sensors and big data. But Editor / Peter Sobchak
how big a deal is big data, anyway, you ask? Well, industry analysts
Art Director / Roy Gaiot
estimate that globally 2.5 exabytes of data is created each day (one
Assistant Editor /
exabyte equals one million terabytes), which is why the real estate industry continues Shannon Moore
to spend billions of dollars updating its hard assets with sensor-based, data-collecting Legal Editor / Jeffrey W. Lem
technology through building automation systems and smart building technologies. Contributors /
So is the industry taking advantage of this wealth of market, property and business David Allison, Paul Barker,
Daniel Davies, Richard Joy,
data to better streamline their operations and generate critical information required Megan J. Lem
to drive investment performance? Not really, says the latest Altus Group report , titled Customer Service / Production
Laura Moffatt
Harnessing the Power of Data in Commercial Real Estate. The sheer volume of unrefined
416 441 2085 x104
data being created, as well as a lack of data structure, makes it difficult for companies
Circulation Manager
to take raw, crude data and turn it into something useful. circulation@building.ca
“What’s referred to as a data chasm in commercial real estate exists because the Sales Manager
ability to refine data and put it to strategic or operational use lags the amount of data Faria Ahmed
416 441 2085 x106
that is being produced,” says Peter O’Brien, the director of the national valuation advis- fahmed@building.ca
ory team at JLL United Kingdom. “The ability to refine data and utilize it is not just a Vice President & Senior Publisher /
matter of tools and systems and skillsets for CRE; it is also a matter of the data itself. Steve Wilson
Specifically, data is neither produced nor organized in ways that allow it to be easily re- President, iQ Business Media Inc.
Alex Papanou
fined and consumed for business purposes.”
According to Altus, the lack of refined data in CRE has left a gaping hole in the in-
Building magazine is published
dustry’s ability to benchmark. As an industry vying for global investment, the trans- by iQ Business Media Inc.
parency provided by benchmarking is needed if CRE is to truly compete for capital 101 Duncan Mill Road, Suite 302 Toronto,
ON M3B 1Z3
against other well-established investor asset classes, which by comparison all util- (416) 441 2085 x104 • info@building.ca
Website: www.building.ca
ize well-established benchmark indices and capabilities. CRE firms need to prioritize SUBSCRIPTION RATE: Canada:
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Building is indexed in the Canadian Magazine
and the associated trends simultaneously. This will bring real estate further into the Index by Micromedia ProQuest Company,
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Archive Publishing Company, Ann Arbor,
There is an industry-wide gap between having data and making use of it. But very Michigan (www.napubco.com)
soon, big data will become a necessary asset for every real estate sector, as it turns
data into insight: imagine a future where energy consumption in a hospital or busi-
ness premises is predicted and managed according to the weather or a day of the week
or time of day. “There is going to be a future where there is very detailed predictive Occasionally we make our mailing list avail-
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OTTAWA | The Canada Green Building Council (CaGBC) commends the Pan-Can-
adian Framework for its recognition of the building sector as an area critical to
the reduction of emissions; as an aid in providing climate change resiliency; and
as a means to driving innovation.
The Framework’s recommended actions for buildings include: making build-
ings more energy efficient; setting net zero targets; requiring building labelling;
retrofitting existing buildings; and requiring federal government leadership in
greening their own buildings. These actions were also key recommendations in the
CaGBC’s recent Building Solutions to Climate Change report, submitted to the Van-
couver Declaration Working Group for Specific Mitigation Opportunities on behalf
News of the Canadian green building industry in September 2016.
By outlining a plan to make new buildings more energy efficient and setting net
RAIC expresses strong support zero energy goals while also pledging federal investment in research, development
for Bill C-323. and demonstration, along with industry cooperation, the Framework demonstrates
a clear commitment to innovation that is necessary to making these actions a real-
OTTAWA | The Royal Architectural Insti- ity. The guidelines are in step with advances in the green building industry as shown
tute of Canada (RAIC) has expressed with the CaGBC’s recent launch of Canada’s first Zero Carbon Initiative. This initia-
strong support for Bill C-323, which tive is providing the market with a state-of -the-art guideline and, soon, the third-
would create a 20 per cent federal tax party verification and support required to make net zero carbon buildings readily
credit for rehabilitation of recognized his- achievable even before the 2030 guidelines in the Pan-Canadian Framework.
toric places. Conservative critic for Ca- The Pan-Canadian Framework’s guidelines to retrofit and measure existing
nadian Heritage and National Historic buildings’ energy use are also critical to reaching the maximum emissions reduc-
Sites Peter Van Loan introduced the Pri- tions possible from the building sector, and to strengthening climate change
vate Member’s Bill, which was seconded resiliency. Existing buildings represent over 80 per cent of Canada’s building stock
by Peter Kent, the Member of Parliament which will still be standing in 2030. These buildings present a greater emissions
for Thornhill, Ont. Bill C-323 would seek reduction opportunity than any new construction activity from now to 2030. CaG-
to limit the destruction of Canada’s heri- BC research demonstrates that Canada can achieve a 44 per cent reduction in emis-
tage buildings, and instead encourage sions with a combination of recommissioning, deep retrofitting, adding renewable
the rehabilitation of these culturally sig- energy, and fuel switching in existing buildings over 25,000 square feet by 2030.
nificant buildings. The tax credit would Existing buildings are not only critical to achieving the targeted GHG emissions
be available to properties that appear on reductions, but present a massive economic opportunity. Large-scale upgrades
the National Register of Historic Plac- to existing buildings will create jobs, drive the creation of new technologies and
es. The Bill would also allow owners to could contribute $32.5 billion in total GDP impacts by 2030 and reduce 19.4 mil-
write-off spending on heritage restora- lion tonnes of GHG emissions.
tion at a faster rate.
The RAIC believes there is an impor- New Projects
tant federal role for leadership in heritage
conservation. Policies that promote pres- Design unveiled for new CBC/Radio-Canada
ervation and reuse of historic properties in Montréal.
have demonstrated huge economic re-
turns on investment through job reten- MONTRÉAL | The CBC/Radio-Canada Board of Directors has approved
tion and creation, tourism, and enhanced a proposal for the building of the new Maison Radio-Canada broadcast-
property values. Policies such as tax ing facilities in Montréal. Real estate developer and builder Broccolini
incentives not only help protect cultural will lead a consortium consisting of Béïque Legault Thuot Architect-
resources and the history represented by es (BLTA), a Montréal-based firm with experience in commercial real
heritage places, they promote respectful estate and high-rise residential projects, as well as Quadrangle, a To-
redevelopment in our communities. In ronto-based firm who will contribute their extensive experience with
addition, conservation, repair, and adap- large-scale projects for clients in the telecommunications and media in-
tation fight climate change by produc- dustries. Other consortium members are mechanical and electrical en-
ing less carbon than new construction. gineers Dupras Ledoux Inc. and structural engineers NCK Inc.
09
building.ca
Deal flow
Spotlight:
P3s
All four deals received funding from the PPP Canada Fund,
taking the number of grantors to have procured projects in 2016
to nine. Of the 10 transactions to have closed in 2016, seven were
financed through a bank-bond hybrid. Penticton Hospital and the Defense Construc-
tion Canada’s data center were financed through just the capital markets. One DBF
transaction, the Seneca College P3 project, was financed solely through bank debt.
amid greater TD Securities was the most active bond underwriter/ arranger in 2016, with four
deals totaling $585 million. Scotiabank and RBC arranged $322 million and $191
diversity million in 2016. There were also three public rated credit issuances in 2016: the
Edmonton LRT; the Mackenzie Vaughan Hospital; and the Southwest Calgary
Ring Road. Canada Life, Manulife, SunLife were the most active private placement
investors. Edmonton LRT and Southwest Calgary repre-
The Canadian P3 market saw fewer sented the largest issuances of the year at $403 million and
deals reach financial close in 2016 $380 million, respectively. Total bond financing in the pri-
than in its 2015 banner year, while mary market for the year totalled $1.51 billion, compared to
the 2017 pipeline promises a number $3.52 billion in 2015.
On the bank debt side, SMBC, ATB and TD Bank were the
of new projects. most active lenders having worked on four transactions each
in 2016. Total bank debt was $1.03 billion in 2016 compared
By Daniel Davies to $2.77 billion in 2015. Davies Ward Phillips and Vineberg
were the top legal advisor in 2016, working on six deals with
a combined capex of $3.12 billion. Blakes, Cassels & Gray-
The Canadian P3 market saw 10 deals spanning the coun- don advised on five deals, Fasken Martineau, Torys and Mc-
try from New Brunswick to British Columbia reach financial Carthy Tetrault all advised on four. Deloitte were the top fi-
close in 2016. The transactions have an aggregate value of nancial advisor working on six deals. Scotiabank and KPMG
$4.25 billion (all figures CAD) and include four transport, four advised on two deals in 2016. At a technical advisory level,
social, one environment and one telecommunication projects. Altus and BTY topped the tables on four deals each.
The Province of Ontario was again the leading market by
deal count, as it has been every year since 2006. The province Equity Trends
in 2016 saw four deals valued at $1.36 billion reach financial Nine of the 10 deals to close this year had equity compon-
close. However, Alberta had the largest deal value at $2.21 bil- ents, which takes the total amount of invested equity to $237
lion. The amount covers three deals: the Edmonton LRT; the million across 18 investors. The total equity commitment is
Calgary CNG P3; and the Southwest Calgary Ringroad. Trans- down compared to 2015’s $371 million figure. Developers
actions in British Columbia, Manitoba and New Brunswick take and funds accounted for $157 million compared to $80 mil-
the number of provinces with active P3 procurements to five in lion for constructor and operator equity, a 66:33 ratio.
2016. Notably, there were seven active provinces in 2015. The largest equity check by an investor was Fengate Cap-
British Columbia’s sole deal to have reached financial close, ital’s $41 million investment in the Edmonton LRT pro-
the $200 million Penticton Hospital P3, represents the prov- ject. Plenary Group was the top aggregate equity investor
ince’s lowest deal count since 2012. No projects in Saskatch- in greenfield deals this year with $48 million split across
ewan reached financial close in 2016, though the province saw three deals. Plenary also won the $1-billion Mackenzie
five deals make it over the line in 2016 and four in 2014. Vaughan project as well as the Winnipeg BRT and Stoney
The year also saw four municipally procured deals close in CNG projects.
Winnipeg, the City of Saint John, Calgary and Edmonton. Cal- EllisDon in 2016 also won three deals totaling $22 mil-
gary had closed P3 transactions prior to September’s CNG lion. The company also made two equity investments in
Transit Bus Garage project, but 2016 was the first year the the Penticton Hospital and the Edmonton LRT. Notably,
three other municipalities closed P3 transactions. The largest OPB joined EllisDon in the equity box on Penticton. Bom-
of the four, and also of 2016, was the $1.3-billion Edmonton bardier and Bechtel completed the Edmonton LRT consor-
LRT project which had been won by a Fengate, Bombardier, tium. The project was Bechtel’s first North American P3.
EllisDon and Bechtel consortium. In New Brunswick, the Axium and DIF IV were the equity participants on On-
Saint John Water deal represents the first water deal to close tario’s Etobicoke General Hospital procurement. The pro-
since Regina Wastewater Treatment Plant in July 2014. ject was DIF’s first greenfield P3 win in Canada. A Meri-
AB Infrastructure
3 deals / $2.21 bn 5 deals / $1.56 bn
9.92
# of deals
MB Environment
Total deal value ($CAD bn)
5.65 ON
4.88 4.24
4.41 4 deals / $1.35 bn
$4.07 3.68
3.59
3.14
NB
1.42 1 deal / $153 mil
7 4 21 13 13 19 15 14 11 21 23 10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
building.ca
Made-In-Ontario Land
rest by categorically rejecting the B.C.
Foreign Buyer Tax, announcing:
phone fax
email
Mail to: Canadian Architect, 101 Duncan Mill Road, Suite 302, Toronto, ON M3B 1Z3
To order online, visit www.canadianarchitect.com • Inquiries at circulation@canadianarchitect.com
0110101010101111101010001101101110111000011
0101101011011101010001010010100011101101010
1011101110110111011110110111100001111011111
0110101110110101011010101000011010110101000
1010101101001010110111011011010101111011101
1110101010101110101101101111101101101011011
1010000110101010011100001110101001011101101
Data,
1010101010101111101111000001100101010101101
1101011011001011110001010110010001110110100
0001110110100110 010110101011011010110101010
1011010111110111010100001010000111010111011
1011101110111011011101110110110111111110111
1100000011010110000001110000011010101110110 By Paul
1101101010110101111101110101101101110110110 Barker
1110100000101101011011011010101101010100001
The city of the future
1010110101000101010110100101011011101101101
“looks very different from
0101111011101111010101010111010110110111110
the one that has been the
1101101011011101000011010101001110000111010
cornerstone of society for the
1001011101101101010101010111110111100000110
past centuries.” Building
design professionals
0101010101101110101101100101111000101011001
should and will have
0001110110000011101101001100101010111110101
a huge role to play in this
0001101101110111000011010110101101110101000
monumental transition.
1010010100011101101010101110111011011101111
0110111100001111011111011010110101000111010
Cities
1011101011011000100010101010100010100010101
0111011101101101101010000110101110101000011
1101010101010100101010101010100011101010101
building.ca
0101101011011101010001010010100011101101010
16 firm Gartner, once likened data to being the oil of the 21st century. He
quantified that prediction by stating that “oil is just useless thick goop
1011101110110111011110110111100001111011111 until you refine it into oil. And it’s this fuel — proprietary algorithms
that solve specific problems that translate into actions — that will
1010101101001010110111011011010101111011101 do something with data, not just what you do with it. This is the prom-
ise of the algorithm economy.”
1110101010101110101101101111101101101011011 He wrote those words 18 months ago and since then much has tran-
spired. The Internet of Things (IoT) revolution is happening at warp
1010000110101010011100001110101001011101101 speed, with upwards of 20 billion devices working their way into every-
thing from building automation systems to the smart city and real prog-
1010101010101111101111000001100101010101101
ress is actually taking place for utilities, municipalities and
organizations that embark on this burgeoning digital jour-
Investments
1101011011001011110001010110010001110110100
ney. Advances are happening so quickly that society today
in hard
is inexorably composed of those that “get it” and those that
0001110110100110 010110101011011010110101010
don’t, and if you are part of the latter, a forced career change
assets vs.
is on the horizon.
1011010111110111010100001010000111010111011
IT systems
and
Nowhere is this more evident than in the building indus-
try and it appears there are some who need to crawl before
1011101110111011011101110110110111111110111
they walk when it comes to understanding the importance
software
of a smart building being connected to smart infrastructure.
1100000011010110000001110000011010101110110
Peter Ronson, vice president of Markham District Energy,
says that “the whole big data thing is probably over-utilized, % increase in spending (US$)
1101101010110101111101110101101101110110110
over-marketed and with hype around that. A lot of buildings from 2015 to 2016
have building management systems, but a lot of it comes
1110100000101101011011011010101101010100001
down to, ‘OK, are we actually using this stuff.’ I was in a build-
ing in our system that will go unnamed a few years ago and
1010110101000101010110100101011011101101101
they had a problem. I asked the building manager ‘where is
your BMS?’ and he replied, ‘we actually have one?’ Literally, he
0101111011101111010101010111010110110111110
didn’t know where it was. He had never touched it.
“My point is let’s use what we have before we get to the fan-
1101101011011101000011010101001110000111010
cier stuff. If we can get past the basics, yes, there is promise of
being able to harness and being able to use collectively the de-
1001011101101101010101010111110111100000110
vices and the buildings to manage their loads in concert with
the rest of the buildings on a system.”
0101010101101110101101100101111000101011001
A Slow-Adoption Industry
0001110110000011101101001100101010111110101
Kurtis McBride, CEO and co-founder of Waterloo, Ont.-
Source: Altus Group CRE Innovation Report
0001101101110111000011010110101101110101000
analyzing and commenting on the merits of the smart city.
The company he and two fellow University of Waterloo stu-
1010010100011101101010101110111011011101111
1 Source: Commercial
dents started in 2005 developed technology that is currently Building Automation
0110111100001111011111011010110101000111010
their transportation networks. Miovision has created an in- and Q3 2016
2 Source: Global Smart
telligent transportation system called Spectrum, which is Building Technology $59.3 B $67.1 B $6.3 B $7 B $5.8 B $6.1 B
1011101011011000100010101010100010100010101
Spending 2015-2019
installed in a traffic cabinet and can provide valuable data Forecast, IDC Energy
that can change how a city operates. Insights, March 2015
0111011101101101101010000110101110101000011
3 Source: IDC Market
The firm is in expansion mode and because of that, Mc- and Industry Estimates, 1 2 3
2015 and 2016
Bride is not only a technologist with a firm grip on how best (IT systems includes
1101010101010100101010101010100011101010101
AUTOMATION SMART IT SYSTEMS
to create a smart city, but he has also immersed himself in the licensed software,
SYSTEMS BUILDING AND
enterprise applications,
building design process as a result of a project called Cata- and hardware) TECHNOLOGY SOFTWARE
the intelligence behind how HVAC sys- the biggest problem that the industry has. It is structurally
maker community.
tems get deployed. Security is another The result of a shared set up to avoid innovating.”
prime example — it is, he adds, still all vision between “I don’t know the first thing about building a building, but
based on key fobs and keypads as op- Miovision and Voisin I surround myself with people who do and use the power of
Capital, Catalyst137 ignorance to drive them to places where they are not usually
posed to biometrics.
is being co-devel-
“Even if the technology is available comfortable going. My experience is that if you measure
oped by Toronto-
today to make buildings smarter, the based real estate firm something you never measured before, it generally improves
structure of how the industry comes Osmington Inc. by 25 per cent over a short period of time. That is the order of
building.ca
the
Ronson, meanwhile, sums up the cur- one step further, says Mabberley. She
rent situation this way: it’s all possible also points out that there is no slowing
and really all it takes is the motivated down the smart building and smart
building manager or the motivated ag- city movement. “It is the future of de-
new
gregator to pull it all together. “When velopment and certainly as we see cit-
you start to aggregate systems togeth- ies become more and more concerned
er there are economies of scale and you with their energy use it is becoming
oil.
can do interesting things, but if we much more prevalent in our day-to-
have segregated devices, segregated day conversations and our political
buildings, segregated energy loads you conversations. Everything is moving
don’t have the opportunity until you in that direction. You see cities with
— Peter Sondergaard, can pull it all together. We have lots of more aggressive emission targets and
Senior Vice President, features right now, but we are not see- they only make those targets by either
Gartner Research ing a lot of benefits.” retrofitting older buildings and en-
The so-called smart city will be nur- suring all new buildings are built to
tured by the smart building and a prime more stringent standards. In terms of
example of that is Telus Garden in Vancouver, designed by Henriquez Partners energy use, building automation is one
Architects and developed by Westbank Projects. Sustainability features in- of the biggest items that allow you to
clude a rainwater recycling system for grey water and irrigation, solar panels track that data.”
that capture solar energy to power exterior lighting, tri-
ple-glazed windows to help maintain a consistent temper- From Building to City
ature, sun tracking system that automatically adjusts in- There are also numerous examples of what a so-called
terior blinds, and a raised floor with a displacement smart city can accomplish. In April 2015, Bloomberg Phil-
building.ca
By Shannon Moore
Vancouver
search project by CBRE Limited that explores the growth of
the tech industry, including its impact on real estate and
are Canada’s
prominence in different cities across Canada.
Titled the 2016 Scoring Tech Talent Report, the document
focuses on established companies with more than 1,500 em-
top tech talent ployees, analyzing labour market conditions for high-
ly-skilled tech workers and ranking 10 Canadian cities “ac-
but tech jobs aims to provide insight into the industry, helping tech-savvy
Canadians pinpoint the most desirable cities to set up shop.
are growing
“The number of tech jobs has soared in Canada in the past
five years, with nine out the 10 top Canadian markets record-
ing growth. Of those nine, eight recorded double digit growth
quickest rates. The tech sector is becoming ever more critical by the
day to the Canadian office market, with technology firms ac-
in smaller counting for 16.1 per cent of all major office lease deals in
Canada last year. This percentage increases markedly in our
and cheaper larger urban areas, for example tech accounted for 43 per cent
of all leases in Ottawa last year, and it’s a trend we only see
markets.
growing in the years to come,” says Raymond Wong, head of
research at CBRE Canada.
Defining Talent
According to Statistics Canada, the term “tech talent” refers
to highly-skilled, sought-after employees working in tech
nological fields. As of 2016, “more than 715,000 tech inno
vators at established companies across Canada are working on technological ad-
vances” — 28.7 per cent are computer programmers, software engineers and web
developers, while 21.7 per cent are information systems analysts and consult-
TECH % OF TOTAL SIGNIFICANT ants. Other talented techs include user support technicians (12.1 per cent); elec-
LEASE ACTIVITY (2015) trical and electronics engineers (10.2 per cent); computer network technicians
(9.7 per cent); computer and information systems managers (8.5 per cent); data-
Tech % of Total base analysts and data administrators (4.1 per cent); mechanical engineering
Source: CBRE Research (Office Market), Q2 2016
Ottawa, ON 47.4% technologists and technicians (2.9 per cent); and information systems testing
Vancouver, BC 28.5% technicians (2.1 per cent).
Waterloo Region, ON 21.9% These tech talent workers account for 4.7 per cent of the country’s total work-
Montréal, QC 20.8% force; and although these employees are concentrated in the high-tech industry,
Toronto, ON 12.3% they are considered to be a driving force of innovation in a variety of companies
Halifax, NS 11.3% across the economy itself.
London, ON 6.1%
Calgary, AB 1.8% Measuring Markets
Edmonton, AB 0.0% In its report, CBRE states that “the rise in technology enabled mobility and the
Winnipeg, ON 0.0% need to pursue talent wherever it is located has encouraged technology compan-
Canada 16.1% ies to spread to markets across Canada.” Indeed, tech occupations are growing
building.ca
Employment
CBRE notes that “demand for tech talent across all industries is growing,” and in
large cities like Toronto and Vancouver, the economy can accommodate a deep
pool of talent. From 2010 to 2015, Toronto saw a 35.6 per cent growth in its tech
occupations alone, compared to 50.1 per cent in Vancouver. Clearly, companies
and employees see opportunities in these cities and are drawn to them as a result.
However, smaller markets are just as capable of attracting talent. In fact,
both Waterloo and Winnipeg beat out the big cities from 2010 to 2015, report-
ing 74.4 per cent and 58.5 per cent growth in tech occupations, respectively.
The affordable business and living costs in these smaller cities make them de-
sirable in comparison, and has led to competitive advan-
tages in the long run. Tech Industry Outlook
Though employment in tech occupations is growing In terms of outlook for the continued growth of the tech in-
everywhere, CBRE notes that highly-skilled tech talent dustry, CBRE looks to millennials and start-up cities as a
workers seem to be concentrated in Toronto, Montréal and guide. Millennials are increasingly attracted to tech-cen-
Ottawa alone. More specifically, “Toronto’s tech employ- tered jobs, and have “exhibited a preference for living in cit-
ment base contains 25 per cent of Canada’s tech talent,” fol- ies rather than suburbs,” two factors which have contribut-
lowed by Montréal with 16 per cent concentration, and Ot- ed significantly to the labour pool of talent in the Top 10
tawa with nine. Reasons for concentration are varied and cities nationwide. Many tech companies tend to cluster
relative to competitive advantages (including real estate around universities, ensuring a consistent flow of talent,
costs and wages, as described below). However, it is clear especially in cities with a high educational attainment rate.
that these cities contain “a sizeable concentration of high- According to CBRE, “tech companies use these clusters to
ly-skilled workers,” resulting in prosperous tech environ- collaborate and compete with one another, thereby acceler-
ments “conducive to innovation.” ating the innovation process in the market.”
Start-up cities are similarly good indicators of the fu-
Education ture of the industry. CBRE claims that “while there is much
Similar to employment, education affects the concentration
of tech talent in Canadian cities and helps to determine
ranking in the tech talent report. According to CBRE, high OFFICE ASKING RENT BY MARKET (Q2 2016)
educational attainment — defined by the achievement of a
minimum university degree — is a visible aspect in the top Annual Gross Direct Vacancy Source: CBRE Research Q2 2016; CMHC 2015
tech talent markets. Specifically, “all 10 of the largest mar- Asking Rent Per SF Rate
kets have an educational attainment rate above the Can- Vancouver, BC $39.78 11.2%
adian average of 28 per cent.” Simply put, highly educated Calgary, AB $35.70 21.6%
Source: CBRE Research Q2 2016
individuals are desirable in all fields, and in Canada’s tech Toronto, ON $33.96 9.4%
markets, “demand for these skilled employees is very Edmonton, AB $33.24 13.4%
strong.” Thus, educational attainment rates contribute to Ottawa, ON $32.44 10.7%
the overall ranking of cities in CBRE’s report. Montréal, QC $31.77 13.3%
Of the Top 10 cities, Ottawa leads with more than 40 per Halifax, NS $27.42 14.9%
cent of the working population having received a university de- London, ON $23.63 17.1%
gree. Following behind, Toronto, Halifax, Vancouver, Calgary Winnipeg, MB $23.54 9.8%
and Montréal have all reported attainment above 30 per cent. Waterloo Region, ON $21.87 13.5%
MARCH 2017
AUGUST SEPTEMBER
FEBRUARY 2013 building.ca
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says the report. High-tech companies accounted for 16.1 per CBRE’s final scorecard concludes that Toronto is the market
leader in terms of industry outlook and tech talent, and thus
cent of all significant office leases in 2015 — equivalent to
two million square feet of space — resulting from the addi- places it in the number one spot of Top 10 cities. However,
tion of almost 140,000 new tech jobs over the past five the report uses the salary of 500 employees and a fictional
years. Ultimately, rising rents and declining vacancies are 75,000-sq.-ft. office lease to shine light on the realistic cost
reported across the board. of operations across the board. “What’s interesting to note is
that the markets with the highest rates of tech jobs growth,
Waterloo, Winnipeg and Halifax are all in the bottom half of our rankings of over-
all cost to operate. It’s clear that firms are targeting cities which provide a cheaper
access to labour, but also provide educational attainment levels which are mark-
edly higher than the national basis,” says Wong.
Employee wages are by far the greatest cost within tech talent markets.
Calgary, surprisingly, came out as the most expensive tech market for employ-
ers. This was driven by higher wages, at an average of $83,000 for tech workers,
as salaries remain elevated following a strong energy market performance.
This was approximately $3,500 higher than the next expensive market, Ottawa.
With increasing office vacancy and further energy market job losses, the overall
cost in Calgary is expected to decline in the coming years.
CBRE concludes that cities like Toronto and Vancouver, though highest on the
desirability scale, sit somewhere in between smaller markets like Ottawa and Lon-
don in terms of overall cost. “Despite the higher cost of real estate in Toronto and
Vancouver, this is dwarfed by the cost of wages. So lower salaries than other Can-
adian cities still make these large tech
centres an affordable option for many
APARTMENT RENT-TO-TECH WAGE RATIO companies. When you add that in these
two cities over a third of the labour pool
Annualized 2015 Average Rent-to-Tech is university educated, and they already
Source: CBRE Research Q2 2016; CMHC 2015
Apartment Rent Annual Tech Wage Wage Ratio provide established tech networks and
Vancouver, BC $15,214 $72,356 21.0% communities, it’s little wonder that
Toronto, ON $14,514 $74,165 19.6% many international firms are looking to
Source: CBRE Research Q2 2016
Edmonton, AB $13,641 $75,376 18.1% set up shop there. Compared to the top
Halifax, NS $11,721 $65,445 17.9% 50 most expensive North American
Winnipeg, MB $11,103 $64,294 17.3% tech markets, Toronto and Vancouver
Calgary, AB $13,920 $83,303 16.7% are 49th and 50th in the rankings, as-
Ottawa, ON $13,011 $79,726 16.3% sisted by a low Canadian dollar. This
Waterloo Region, ON $11,115 $72,097 15.4% makes these two cities a relative bar-
London, ON $10,329 $70,399 14.7% gain for U.S. tech firms looking to ex-
Montréal, QC $8,859 $68,244 13.0% pand further north,” says Wong. b
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TRANSIT OPERATIONS
LIGHT UP ENERGY 25
SAVINGS IN BRAMPTON
By The Communications Bridge
building.ca
EXPRESSING
the
EPHEMERAL
T
By David Allison
building.ca
Saying “I’m from Vancouver” will almost always be met with an expression of envy,
10 key principles
or a story about a memorable vacation at some time in the past. It may even elicit
a wistful confession that while Vancouver is high on the bucket list, it just hasn’t Brands without substance
happened yet. “Someday soon,” your new acquaintance will say, she “hopes to are meaningless.
make it there,” because she’s heard “It’s beautiful.” In public-private
Why is that? What is it about Vancouver?
relationships, the private
sector organization’s
There is great beauty here. At first glance we are a bustling cosmopolitan city, brand is just as important
surrounded by towering alpine peaks that slope down to ancient rainforests
as the city’s.
which eventually give way to spray-splashed beaches and wave-polished drift- W hen building brands,
wood, and that one small seashell you found in a tidal pool on your walk, ear- cities must take
ly this morning. advantage of local culture
and history in order to
But there is more. Behind the scenic splendour Vancouver feels like no other differentiate themselves
city on earth because of the endless collision of opposing factors. Vancouver from others. Authenticity
is valuable.
is created fresh daily when nature and culture, tradition and innovation, tech-
nology and craftsmanship move forward together. Vancouver is continuously Increasing citizen pride,
bustling and relaxed, global and local, competitive and caring. engagement, and a sense of
identity are essential com-
ponents of any city brand.
Even though those few paragraphs are
In some cases, especially
just an excerpt from the full story, the Since 1985, David has in smaller cities, re-
contrast is obvious, and it has a chance advised brands such as development must come
of staying with you. I hope at some General Motors, Telus, before re-branding.
point in the future, if asked about Van- Toyota, Westin Hotels,
Different brands attract
couver, you might even repeat some and Sotheby’s different organizations.
part of it in your own words. If a city International Realty. Because developers often
brand can do even that, I think it is do- He’s helped daily share investment with
several companies, it
ing a very good job indeed. newspapers, symphony
is important that a city’s
Limited space on these pages meant orchestras, art brand appeals to a variety
I’ve had to simplify or outright omit ped- foundations, of groups.
antry terms throughout. These terms, government agencies,
Cities should use what
curiously enough, tend to multiply ex- professional service resources they already
ponentially in direct proportion to the firms, restaurant have. “Throwing a lifebelt
amount of money paid to a brand con- groups, retailers and to an abandoned brand
sultant. How many angels can dance more. His work as an
is better than trying to
launch a new one.”
on the head of a pin? Ask a highly-paid author, journalist,
brand consultant and you will get a conference speaker, P reparing for the long-
giant three-ring binder report. It will be university lecturer and term is essential. The
cycle of return on
delivered with great pomp and cere- award-winning writer
branding investments
mony, and no one will ever read it. It’s influences the brand is much longer than any
infuriating. This doesn’t have to be strategies and stories political cycle.
rocket science. Simply figure out who he develops across
T he process is about more
you are, and then consistently tell your industry sectors. www. than just branding. It’s
story in a memorable way. That’s it. b davidallisoninc.com about perceptions, pride
and identity.
A city must believe in their Source: City Branding and
Urban Investment: A ULI
brand in order to make Urban Investment Network
it work. Report, July 2011.
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