Latest technology improves property management

Parisa Tong
Western Investor

Sophisticated real estate investors now demand and deserve more than email communications. Property management firms must embrace cutting-edge technologies in order to stand out from the competition and serve their clients. 

Accounting and business intelligence:

Remember the days when accounting and managers shared different records? Those days are gone. Any reputable property management firm must have a centralized database. We all feel on top of the world when we visit a hotel where the front desk staff greet us by first name and know our preferences. Imagine the same in property management, where, when someone calls, we immediately have which property, which unit and everything about it in front of us. It also provides insights into trends, expenses and how well the resources are utilized. That’s the power of business intelligence. Many property management firms have ditched hosting on site and turned to hosted services for their reliability and security. We now have the information at our fingertips. 

User portals:

WordPress has made user login possible, where strata owners can quickly view strata documents. Advanced technology is now taking user portals to the next level. Tenants and strata owners can update contact information, view real-time account statements, pay rent or strata fees directly on the portal and set up pre-authorized payments. A few companies have adopted the technology even further. Via the portal, you can view rent collections, vendor invoices and financial statements all in real time, just as if you were sitting in your property manager’s office. 

Tools for managers and maintenance: 

Property managers are also equipped with useful tools that make their jobs and record keeping much easier. Have a question about a particular unit at a council meeting? No problem, we can pull that information right away on a laptop or a phone. How about approving invoices from anywhere? Move-in and move-out inspections have never been so pleasant. Inspection reports are readily available on the manager’s phone – take a picture to record damage and compare with move-in conditions. All reports are synchronized with the central database and can be emailed to anyone, including accounting to process security refunds. 

Mobile technologies:

Residents can easily connect with neighbours, post memos, organize parties or get notified of a package delivery.

Green technology:

Research suggests buildings with green characteristics increase in asset value by 5 per cent to 10 per cent, compared to traditional buildings, and can reduce operating costs by 13 per cent to 14 percent. Smart HVAC technology collects and analyzes data, has the ability to adjust temperature and humidity and optimize comfort level in the building. Smart technology allows technicians to diagnose and address any issues remotely. 

IoT:

Just as in every other industry, IoT (internet of things) has forever changed how we manage properties. We are confident that technology will continue to evolve our industry. At the same time, we have an increased responsibility to use the data and technology with care. 

Parisa Tong is co-founder and vice-president of Remi Realty Inc., a property management firm covering Metro Vancouver.

 

© Copyright 2020 Western Investor 

The federal government updated CERB

other

Please note: the federal government is constantly updating their website as new information is announced. Remember to check Canada’s official coronavirus webpage and CREA’s COVID-19 online hub to stay up to date.

In a busy week for government announcements, the Canada Emergency Response Benefit (CERB) was extended to ensure ongoing support for Canadians, while the initially proposed enhancements to the Canada Emergency Business Account (CEBA) were delayed at the 11th hour.

On Tuesday, June 16, Prime Minister Justin Trudeau announced the extension of the CERB by eight weeks, making the benefit available to eligible workers for up to a total of 24 weeks. The CERB is a taxable benefit of $2,000 over a four-week period for eligible workers who have stopped working or whose work hours have been reduced due to COVID-19.

Meanwhile, as a follow-up to the Tuesday, May 19 announcement, Prime Minister Trudeau had initially said the government’s updated application process for the CEBA would open today (Friday, June 19), making the program available to more businesses, such as sole proprietors receiving income directly from their businesses, businesses relying on contractors, and family-owned corporations paying employees through dividends rather than payroll.

As per the CEBA website, expanded eligibility is set to include Eligible Non-Deferrable Expense categories, such as “wages and other employment expenses to independent (arm’s length) third parties.”

Unfortunately, Minister of Finance Bill Morneau announced late Thursday, June 18, applications would not open as scheduled, with more details available in the near future.

Brokerages seeking assistance also have access to the Canadian Business Resilience Network (CBRN), an initiative launched by the Canadian Chamber of Commerce in partnership with the Government of Canada. The CBRN provides tools and resources for small and medium-sized businesses, as well as guidance on COVID-19 financial support program options and eligibility. For more information about the CBRN, please visit their website or call 1-866-989-1080.

The measures covered in this email are part of the Government of Canada’s COVID-19 Economic Response Plan. The government is constantly assessing the evolving situation and is likely to introduce additional measures as it deems necessary. We are monitoring the implementation of existing measures and continue to advocate on behalf of REALTORS® as new initiatives are developed.

CMHC’s new minimum Beacon requirement: Who’s going to suffer?

Clayton Jarvis
Mortgage Broker News

Sublease office space spikes in Vancouver

WI Staff
Western Investor

Sublease office space spikes in Vancouver

WI Staff
Western Investor

Vancouver’s downtown office market remains solid, CBRE report contends

A “shockwave” increase in sublease space has nearly doubled the vacancy rate in downtown Vancouver office towers, according to a new survey by CBRE.

The commercial agency reports that the number of subleases has increased from 37 at the end of 2019 to 90 this month, representing more than 500,000 square feet of space, as a direct result of the pandemic.

“The first real shockwaves to hit the market were delivered via the downtown Vancouver sublease market. Uncertainty pushed some tenants to withhold from moving forward with leasing contracts, with some refusing to take occupancy. This has resulted in a proliferation of subleasing activity,” the June 15 report stated. 

Downtown Vancouver has about 24 million square feet of office space and the subleases have pushed the vacancy rate in  to 4 per cent, up from 2.2. per cent at the start of the year. 

But CBRE notes that Vancouver still has one of the lowest office vacancy rates in North America. Only six of the available subleases pushed back onto the downtown market are bigger than 10,000 square feet and only five are greater than 20,000 square feet.

“With current low vacancy rates, coupled with the long lead time before the new office buildings under construction are complete, we expect a minimal negative short-term impact on office rental rates,” CBRE noted.”While some smaller users may benefit from potentially lower rental rates in short-term sublease space, the integrity of the overall market is expected to remain very stable.”

About 3.9 million square feet of new office space is under construction in Metro Vancouver, but two-thirds of that space is pre-leased, the study noted.

The agency’s most conservative estimate is that the Vancouver office vacancy rate may reach 7 per cent by 2024, still below what it considers a “balanced” market.

 

© Copyright 2020 Western Investor 

Eastridge Panorama ticks all the downsizer boxes

Simon Briault
The Vancouver Sun

If you asked a typical downsizer what they’re looking for in a new home, they’re likely to come up with some combination of the following: a place that doesn’t feel too small after moving out of their house, a lock-and-go lifestyle with no exterior maintenance or yard work to worry about and fewer stairs. A new development by Infinity Properties in Surrey checks all these boxes and more besides.

Eastridge Panorama is a collection of 36 rancher-style townhomes. The development provides a particular and very discerning type of buyer with master-on-the-main living, lots of customization options, and interior features and finishes that you would expect in a single-family home.

Doreen and John Mellard are just such buyers, and they duly bought one of the homes at Eastridge Panorama. They’re scheduled to move in this summer.

“We have a four-bedroom house, and there are four bathrooms and only two of us living in it,” said Doreen Mellard. “We’re only about four blocks away from Eastridge Panorama right now, so we really like this area. It’s super central, and we can be on the number 10 highway in seconds so we can get into Langley or drive to the airport.”

“I have a very strong group of friends in this area, so that’s another reason for staying here,” Mellard added. “The complex looks beautiful. It’s only 36 homes, so I think it’s going to be a really nice and friendly place to live.”

The homes at Eastridge Panorama can be described as two-level townhomes or ranchers with basements. Master bedrooms are on the main floors, and lower floors have two bedrooms, a bathroom and a rec room. Having previously built Heritage in Langley and The Links in Surrey, this type of master-on-the-main development is not new to Infinity Properties.

“This type of home is very unusual, and there’s a lot of demand out there for it,” said Ashley Kapler, project sales director at Momentum Realty, which is handling the sales and marketing for Eastridge Panorama. “When I was selling Heritage and The Links, we had master-on-the-main townhomes, but they had three levels, and they were about 3,000 square feet. They were received very well, and people loved them, but we also had feedback that they were a bit too big and didn’t necessarily need that upper floor. So, we took all that feedback and now we have Eastridge.”

Homes in this development will all have three bedrooms, are priced from $844,800 plus GST and will range in size from 2,204 to 2,392 square feet.

“They’re very appealing to downsizers and empty nesters because it’s main floor living,” Kapler said. “They can really just live on one floor if they want, but they also have the basement for guests or just extra space.”

Eastridge Panorama, as the name suggests, lies on the east side of panorama ridge, right beside a seven-acre park — a forested area with lots of walking trails. The site is in a quiet little niche offering plenty of green space and views of Mount Baker. According to Kapler, the neighbourhood is a well-established community of single-family homes that’s also close to shopping, the YMCA, Fresh St. Market and many restaurants.

“We’re finding there’s an enormous amount of interest despite the whole COVID-19 situation, although that has slowed things down a bit,” said Kapler. “But this demographic, regardless of the pandemic, is often quite slow-moving. They like to take their time and make sure this is the right decision for them because this might be the last home that they purchase.”

Homes at Eastridge Panorama feature side-by-side garages, vaulted ceilings and shiplap feature walls in living rooms with gas fireplaces. The kitchens have Shaker-style cabinets with soft-close doors and drawers, polished quartz countertops with tile backsplashes and chimney-style, stainless steel hoods over five-burner gas ranges. The appliance packages are by Whirlpool, Panasonic and Venmar.

There are powder rooms on the main floors, including feature shiplap walls and vessel sinks. Ensuite bathrooms, meanwhile, feature polished quartz countertops and backsplashes, double vanities with undermount sinks and polished chrome faucets. They also come with oversize tile floors and spacious walk-in showers with frameless shower doors. All of the above comes as standard, but buyers can also choose from a wide range of customization options.

Mellard is looking forward to the hassle-free living on offer at Eastridge Panorama and the ability to do some more travelling without having to worry about arranging for somebody to cut the grass.

“We have been watching this project for the past two years,” she said. “We knew it was going to happen, so it was always our plan to look at it. While we were waiting, we did look at other developments in Surrey and Langley, but none of them met the standard of Eastridge Panorama. As soon as this place we’re in now has sold, we’ll get into action, get everything packed and be ready to go.”

Eastridge Panorama

Project location: 5528 148 St, Surrey

Project size: 36 rancher-style townhomes with three bedrooms. Prices start at $844,800 plus GST, and homes range in size from 2,204 to 2,392 square feet.

Developer: Infinity Properties

Architect: Focus Architecture

Interior designer: Jill Bauer Design

Sales centre: 5528 148 St, Surrey

Hours: 12 to 5 p.m. (closed Fridays)

Sales phone: 604-398-2161

Website: eastridgepanorama.ca

© 2020 Vancouver Sun

Maple Ridge apartment block sells for $181.6K per door

Mike Guinan-Browne
Western Investor

Property type: Multi-family rental 

Location: 22182 Dewdney Trunk Road, Maple Ridge

Number of units: 30

Land size: 27,878 square feet (0.64 acre)

Zoning: RM-3 (High-density multi-family)

Floor space ratio: 2.2 FSR 

BC Assessment 2020: $4.6 million

List price: $6.1 million

Sale price: $5.4 million

Price per door: $186,600

Date of sale: June 11, 2020

Brokerage: London Pacific Property Agents Inc., Vancouver

Broker: Mike Guinan-Browne

 

Copyright © Western Investor

Getting buildings ready for back to work

Connie Adair
REM

Clean it and they will come. Don’t and it could cost you your business.

If a customer, client or guest looks into your business and doesn’t think it’s safe to venture inside, chances are they won’t. If an employee has to return to work and it doesn’t look safe, they likely won’t be comfortable and that could affect productivity. That’s why businesses need to figure out their best return to work plan now.

Facilities need to be prepared for the challenge of the new normal, says Jarrett Rose, VP sales, strategic accounts, at Citron Hygiene. The Markham, Ont.-based company has provided workplace and washroom hygiene services for more than 45 years.

“Facilities are ill prepared for physical distancing. It’s a huge challenge. Hygiene is more important than ever,” he says.

According to a Leger study conducted in late May, 86 per cent of Canadians are concerned about a second wave of COVID-19 in the fall and more than 50 per cent of Canadians are concerned about leaving their homes and being in public. Angst is top of mind, says Rose, who has more than 14 years of experience in the facility hygiene industry. He also sits on the board of BOMA Toronto and is a contributor to BOMA Canada’s return to work taskforce.

BOMA gathered experts together to create an in-depth guide, Pathway Back to Work: Commercial Real Estate, Coronavirus and Re-entry. It covers everything from building operations to vendors and supplies to the tenant and building community and human resources.

How can you ensure a smooth and safe transition back to work and how can you keep your space as safe as possible in the long term? How do you find and address gaps? How do you address the fears of employees, clients, visitors and guests?

Start with a plan. Proper planning helps mitigate any fears of returning to work.

Some key considerations:

1. The building needs to be as contactless as possible, with features such as automatic taps, touchless doors and automatic flush toilets.
2. Hand sanitizers need to be placed beside high-touch points and in high-traffic areas, including sometimes forgotten places such as board and lunchrooms.
3. Share enhanced cleaning (physical removal of dirt) and disinfection (using Health Canada-approved products) awareness standards to make people feel comfortable.

To offer guidance and direction, Citron Hygiene is sharing its reopening checklist.

Most buildings had some hand sanitizer placement but have gaps, and companies such as Citron help identify and fill those gaps.

Realize that when you change something, you can create issues in the back end, things you may not have thought of, Rose says. For example, people wear face coverings and gloves to work, so they need a place to properly dispose of PPE. The World Health Organization recommends sealed lid containers. And with elevators limited to just a few riders, more people are taking the stairs so railings and doorknobs must be disinfected.

Once the gaps have been identified and filled, it’s important to ensure access to an adequate supply of products and services. Rose says to choose a business partner that has access to supplies so you can open and stay open.

Check those supplies to make sure they are Health Canada-approved (hand sanitizers should contain at least 60 per cent alcohol, for example). Rose says to look for products that have a National Producer Number (NPN) and Health Canada registration.

Citron’s hand sanitizer is 70 per cent alcohol, which is the minimum requirement for hospital use as well, Rose says.

He also says to beware of pretenders – companies that may pop up during these times but don’t have disinfection experience.

When shopping for a hygiene/disinfection company, ask what type of equipment they are using to disperse the disinfectants. Electrostatic sprays wrap around the surfaces, versus a spray bottle in which the product hits the front of the surface but not the back.

Ask about product safety, as well as the downtime involved. Rose says electrostatic systems work instantly, while some applications may result in kill time and delay return to work. Some applications are also “wet” and may not be suitable for use on electronics.

Some companies are arranging a professional disinfecting service prior to opening, with frequency thereafter depending on the specific business. “Some disinfect daily, some every two weeks.”

Citron Hygiene also has a guide outlining what customers should do before and after disinfecting.

Citron, which will do a full assessment, has been helping businesses plan for reopening for the several weeks. Gaps can be identified and filled within a couple of days to a week.

For other checklists, including Citron Hygiene’s Back to Work brochure and a Back to Work webinar, visit www.citronhygiene.com.

© 1989-2020 REM Real Estate Magazine

Home prices up but real estate sales in province continue to slump

Scott Brown
The Province

B.C. home sales dropped more than 45 per cent in May compared with the same time last year but home prices continue to rise, according to a monthly report from the B.C. Real Estate Association (BCREA).

The BCREA says the average residential sales price in May was $728,898, which was a 3.2 per cent increase from the $706,394 average price recorded in May 2019.

In Greater Vancouver, the average sales price was up 2.9 per cent ($1.012 million to $1.041 million) compared with the same time last year, while Fraser Valley home prices climbed 2.6 per cent ($725,292 to $744,322).

Vancouver Island had the biggest price jump with a 9.5 per cent rise over May 2019 ($494,380 to $541,485), while the largest drop was recorded in Powell River where home prices plummeted 19.4 per cent ($366,933 to 295,748).

There were 4,518 provincial home sales recorded in May, compared with 8,244 sales in May of 2019, which illustrates the drastic impact the COVID-19 pandemic has had on B.C. real estate activity.

The BCREA say the total residential sales dollar volume reached $3.3 billion in May, which was down 43.5 per cent from last year.

Despite the huge year-over-year sales drop, the Canadian Real Estate Association (CREA) says national home sales and new listings were still up significantly from April.

“Home sales recorded over Canadian MLS systems rebounded by a record 56.9 per cent in May 2020; although, that is as a percentage of the weakest month of April on record,” the CREA said in a statement.

The CREA says May home sales jumped 31.5 per cent in Greater Vancouver and 20.6 per cent in the Fraser Valley compared with April numbers.

“There were encouraging signs of recovery in May,” said BCREA chief economist Brendon Ogmundson. “While activity is still far below normal, both sales and listings are up significantly from April’s lows.”

The BCREA says active listings are down nearly 24 per cent compared with 2019 numbers and more than 10,000 below where they would normally be in the spring.

© 2020 Postmedia Network Inc.

Office space could be replaced by work-at-home workplace

Clayton Jarvis
Mortgage Broker News

Canada’s commercial real estate sector is as unsettled as it has ever been. With CECRA struggling to work up a detectable heartbeat, there is growing anxiety that when federal and provincial efforts to support small businesses through the COVID-19 pandemic come to an end, it will leave thousands of business owners unable to pay their employees or their rent.

Retail and restaurant tenants are already having the life squeezed out of them – and social distancing will mean more discomfort for both shops and shoppers going forward – but the damage coming to the office sector is a little harder to gauge since most renters of office space have been able to carry on operations by leveraging a work from home model to generate some form of income. Companies with their leases about to expire, however, will have a large part to play in the future of office real estate. 

“Those companies whose leases have come to an end, they’re looking at what the future is,” says Luciano D’lorio, Cushman & Wakefield’s director of operations in Quebec. “They’re in the process of negotiating with their existing landlord or they’re looking at a new space.”

Office real estate faces several unknowns that could negatively impact demand. Social distancing means more space will be needed per employee, but smaller businesses may not be able to justify the added expense of renting larger spaces. Working from home has proven a productive, if not entirely fulfilling, alternative to the typical office 9-to-5, giving companies the opportunity to greatly reduce their rent expenses.

But D’lorio remains optimistic that the pre-COVID-19 office paradigm is here to stay.

“There’s still a need for office space,” he says. “Think of all the money that companies spend on team-building and building a corporate culture. I think that’s hard to do in a remote situation.”

D’lorio says maintaining office space is also valuable in attracting millennial and Gen Z workers. According to Cushman & Wakefield’s recent Future of Workplace study, neither group particularly likes working from home. D’lorio says if employers want to attract a steady stream of willing young candidates, it’s in their interest to resist a complete work-from-home framework and provide office space, even if it’s on a part-time basis.  

“I think, in the long-run, there’s going to be a mix,” he says, “of people who want to work from home – and employers are going to accommodate them – and groups who want to work in the office.”

D’lorio is particularly optimistic about suburban office space. Downtown offices are still better suited to provide that coveted work-live-play balance, but they are also problematic in a world rocked by COVID-19. Few people will be excited by the prospect of riding in a packed subway car for 45 minutes just to get to an office building where they’ll have to share an elevator with eight other people.

“The public transit issue is what’s keeping many employees from wanting to return,” he says.

A two- or three-storey building in the ‘burbs would alleviate two major concerns. Abundant, often free parking would mean employees could drive themselves to work. A short walk up the stairs would eliminate those uncomfortable, “Should-I-be-inhaling?” elevator rides.

D’lorio says Cushman & Wakefield plans to bring 25 percent of its staff back initially, with the next phase of reopening to be determined by the path COVID-19 takes. A vaccine or treatment for the disease would speed things up considerably – and clear much of the fog obscuring the future of Canadian office space. Until one materializes, office tenants and owners will be forced to wander another few months in the dark.

Copyright © 2020 Key Media