Built canadian real

eal Estate Perspectives 2011

IN THIS ISSUE: NaTIoNal SUrvEy: a look aT GrEEN BUIldING TrENdS // PoST olymPIc
look aT vaNcoUvEr // dEEP SEa coolING IN HalIfax // BrowNfIEld rEdEvEloPmENT IN
kINGSToN // INdUSTrIal GovErNmENT GraNTS IN moNTrEal // foUr NEw GrEEN offIcE
TowErS IN calGary // EdmoNToN'S lrT SySTEm
DTZ Global Reach
Manitoba
Content
4 Letter from the Chairman /
Note from the Editors
5 Lettre du président du conseil /
Note des éditeurs
6 Office Locations from Coast
to Coast
8 Green Barometer //
Baromètre écologique national
The DTZ global team is united by a single focus — to deliver our British Columbia
clients exceptional service, rooted in a deep understanding of 13
Olympic Pride Fuels Development //
La Fierté olympique stimule le
their needs and a commitment to their long–term success. développment
16 Government Relocation Affects
Victoria Office Market
With over 10,000 personnel spanning 140 cities in 42 countries, DTZ has
17 New Demand for Strata Office Space
enjoyed a reputation for excellence providing leading-edge property insight
and on-the-ground delivery to investors, developers, corporate and public Alberta
21 Expanding the Edmonton
sector occupiers and financial intermediaries. Transportation System
23 Overbuilt or Underestimated?
Saskatchewan
27 The Changing Landscape of
Regina's Downtown
Manitoba
31 CentrePort Canada
Built is printed on FSC certified recycled paper.
British Columbia Alberta Saskatchewan
Ontario Québec Nova Scotia
Ontario Québec
35 A Toronto Retailer Goes Solar 55 Les cinq édifices commerciaux
à l'évaluation la plus élevée de
36 The Imperial Oil Building: Then
and Now Montréal // The Top Five
Commercial Buildings in
37 The Retail Master Plan
Montréal
38 Mississauga Core Revival
58 Des programmes incitatifs
39 Airport Corporate Centre Eco à Montréal // Assistance
Industrial Park // Le parc éco- Programs in Montréal
industriel du centre des affaires
de l'aéroport Nova Scotia
61 Deep Sea Cooling
41 The Economical Growth
of Hamilton
42
43
Food Belt Versus Urban Sprawl
Spotlight on Logistic Trends:
People
44 Spotlight on Logistic Trends:
Goods // Point de mire sur les
tendances de la logistique : le
transport de beins
46 Waterloo in Transition
47 London/Windsor/Sarnia
48 Creative Economy
49 Kingston's Brownfield
Redevelopment Pilot Project
50 Kingston Downtown Revitalization:
An Action Plan
52 Landsdowne Park Redevelopment:
A Unique Opportunity For Community
Sustainability
 Letter from the Chairman Lettre du président du conseil
Thomas G. McCarthy

As we embark on a new year, I think it would be timely to pause and
reflect on our truly good fortune of living and working in this great
country of Canada. No individuals or corporations are immune from
the ravages of a recession, and the one that we are now exiting
was one of the most challenging in recent memory. The United
States has had to face unprecedented problems and take serious
measures to combat many of the issues. The housing market is one
of the best barometers of the economic health of any economy,
and in some areas such as Nevada, Arizona and California, the
effects have been devastating. Huge numbers — in excess of fifty
percent — of all mortgages in these areas have been under water,
as the values of the mortgages exceed the values of the homes.
The U.S. administration is struggling daily with the unemployment
issue and the confidence in the U.S. banking system is at an all
time low. There are many who feel that it could be years before the
U.S. recovery is complete.
If we contrast that with Canada, our housing markets, particularly
in the large metropolitan areas such as Toronto and Vancouver, are
at an all time high. Average prices continue to rise and condo­
minium development continues unabated. The Canadian banking
system is the envy of the world, as it has outperformed every
other country during this difficult time. Their lending practices, the
regulations in effect and the superb management of our banks have
been major reasons for our economy to continue to be rock solid.
While we have taken on considerably more debt, the stability of our
political system and the consistent conservative financial policies
of The Bank of Canada have made it so much more attractive to do
business here at home.
Our commercial markets remains strong, as much of the high quality
office tower inventory is held in institutional hands and rental rates
continue to be predictable and strong. There is a scarcity of first
class office buildings for sale in this country and the competition
remains fierce for these assets.
And so, on balance, we have the privilege of living and working
in a country that itself works very well. For those people who are
diligent in their efforts and keep well informed and knowledgeable
in our business, there is every reason for optimism.
We also have the advantage of combining in DTZ Barnicke
Limited the rich tradition of two outstanding firms. DTZ has over
ten thousand employees worldwide and is doing business in forty-
two countries. They are leading the way in China, a market of
growing importance in the future. The Barnicke organization
brings to this partnership an impressive record of outstanding
performance over the past fifty years. The Barnicke name continues
to have strong identification among our corporate clients, and the
culture that was created of community service continues under our
merged entity. These combined credentials will serve us well in the
coming days.
I recently attended a memorial service for one of Canada’s best
known and most successful businessmen. Not withstanding
his prominence and notoriety across our land, the single theme
that resonated on this particular occasion was the consistency
of his gentlemanly behaviour, his gracious caring and generous
attitude toward others. He was living proof that in a highly
competitive world it is not necessary to treat one another in an
aggressive or inappropriate manner. As we move forward together
as a regenerated team, it is my goal to have the DTZ Barnicke
organization emulate this behaviour which I believe will shine
like a beacon for all to see, among our clients, our friends and
our competitors.
En ce début de nouvelle année, je crois qu’il est opportun de
prendre un temps d’arrêt et de réfléchir à la véritable chance
que nous avons de vivre et de travailler dans ce grand pays
qu’est le Canada. Aucune personne, ni aucune entreprise n’est
immunisée contre les ravages d’une récession. De mémoire
d’homme, celle dont nous émergeons était l’une des plus
éprouvantes. Les États-Unis ont dû affronter des problèmes
sans précédent et prendre des mesures importantes pour
lutter contre bon nombre d’entre eux. Le marché de l’immobilier
résidentiel est l’un des meilleurs baromètres de la santé d’une
économie, et dans certaines régions comme le Nevada,
l’Arizona et la Californie, les effets ont été dévastateurs. Une
proportion considérable – plus de cinquante pour cent - de
toutes les hypothèques de ces régions présente un solde négatif
puisque la valeur des hypothèques excède celle des maisons.
L’administration américaine est aux prises quotidiennement
avec le problème du chômage et la confiance dans le système
bancaire américain est à son plus bas. Nombreux sont ceux
qui pensent que de nombreuses années seront nécessaires
avant que les États-Unis s’en relèvent complètement.
Si l’on compare avec le Canada, nos marchés immobiliers,
notamment dans les grandes régions métropolitaines comme
Toronto et Vancouver, sont à un sommet inégalé. Les prix
moyens continuent d’augmenter et la mise en chantier de
condominiums continue sans relâche. Le système bancaire
canadien fait l’envie du monde entier surclassant celui de tous
les autres pays en cette période difficile. Les pratiques d’octroi
de prêts, la réglementation en vigueur et l’excellente gestion de
nos banques font partie des principales raisons pour lesquelles
notre économie continue d’être solide comme le roc. Bien que
nous ayons accepté d’augmenter l’endettement, la stabilité
du système politique et les politiques financières toujours
prudentes de la Banque du Canada rendent la perspective de
faire des affaires, ici, beaucoup plus attrayante.
Les marchés commerciaux demeurent solides puisqu’une forte
proportion des tours de bureaux de qualité sont détenues par
de grandes institutions et les prix de location continuent d’être
prévisibles et élevés. Les immeubles de bureaux de catégorie
A se font rares au pays et la concurrence demeure féroce pour
ces actifs.
Dans l’ensemble, nous avons le privilège de vivre et de travailler
dans un pays très bien structuré. Pour les personnes qui sont
diligentes dans leurs efforts, qui demeurent à l’affût et qui
connaissent bien notre marché d’affaires, il y a tout lieu de se
montrer optimistes.
Chez DTZ Barnicke Limitée, nous avons l’avantage de jumeler
les riches traditions de deux excellentes entreprises. DTZ
compte plus de dix mille employés dans le monde entier et fait
des affaires dans plus de quarante-deux pays. Elle mène le
peloton en Chine et pour le futur, son marché tend à gagner en
importance. Quant à Barnicke, elle apporte à ce partenariat un
dossier impressionnant dû à son rendement hors du commun
cumulé depuis cinquante ans. Le nom Barnicke maintient
sa notoriété auprès de la clientèle corporative et la culture
créée pour le service communautaire se poursuit dans l’entité
fusionnée. Ces compétences conjointes nous seront fort utiles
dans le futur.
J’ai récemment assisté au service commémoratif de l’un
des hommes d’affaires les plus connus et les plus prospères
du Canada. Nonobstant son importance et sa notoriété au
pays, la constance de sa courtoisie, de son empathie et de
son attitude généreuse envers les autres était constamment
mise de l’avant pendant la cérémonie. Il était la preuve vivante
que, dans un monde hautement concurrentiel, l’agressivité et
l’incivilité ne mènent à rien. Tandis que notre équipe renouvelée
va de l’avant, mon objectif est que DTZ Barnicke adopte ce
comportement qui, à mon avis, servira de phare, à la fois pour
nos clients, nos amis et nos concurrents.

Note from the Editors: This real estate magazine is the culmination of the work, ideas, and innovation of colleagues from our
DTZ Barnicke offices across the country. Each contributor researched and wrote articles on topics that best highlighted their local real estate
environment. The result, is a collection of facts, articles, photographs and predictions from coast to coast that, when read together, offers
insight into new developments, trends and market conditions in Canada. In addition, we conducted our first survey on sustainability polling
a cross-section of players in the Canadian real estate industry where you can read our results in the feature story titled "Green Barometer."
Note des éditeurs  :  Ce magazine d’immobilier est la culmination du travail, des idées et de l’innovation des collègues de nos
bureaux de DTZ Barnicke de tout le pays. Chaque collaborateur a fait des recherches et rédigé des articles sur les sujets qui mettaient
le mieux en valeur le milieu de l’immobilier de sa région. Il en résulte un recueil de faits, d’articles, de photographies et de prédictions
d’un océan à l’autre qui, lorsqu’ils sont lus ensemble, donnent un aperçu de l’évolution, des tendances et des conditions du marché au
Canada. En outre, nous avons effectué notre première enquête sur la durabilité auprès d’un groupe transversal de participants de l’industrie
canadienne de l’immobilier. Vous pouvez en lire les résultats dans l’article vedette, intitulé « Un baromètre écologique ». Les articles portant
sur le marché québécois et ceux ayant une pertinence nationale peuvent être lus en français.
Office Locations from Coast to Coast

Toronto Toronto Toronto Toronto

Nanaimo victoria vancouver kelowna Corporate Head Office Corporate Head Office Corporate Head Office Corporate Head Office

Bob moss rick Pettinger mark Herbert murray wills Tom mccarthy Steven alikakos andrew Barnicke colin ross
Managing Partner Partner, President and CEO Managing Broker Chairman Senior Vice President, Senior Vice President, Senior Vice President
Managing Broker Retail, Canada Capital Markets Group & Manager, Office Leasing

calgary Edmonton regina winnipeg richmond Hill kingston ottawa montréal

Terrence Philps lance frazier mike Hogan martin mcGarry Paul langer Peter kostogiannis roger casagrande Erik charton
Senior Vice President Broker President, Broker President Senior Vice President President, Senior Vice President, Senior Vice President
Broker of Record Managing Director Courtier immobilier,
Real Estate Broker

london waterloo Niagara mississauga montréal Halifax

rick Gleed John whitney Taylor wilson Jim murray michael david owen Tom carpenter
President, President, President, Senior Vice President Senior Vice President Vice President,
Broker of Record Broker of Record Broker of Record & Managing Director, Courtier immobilier agréé, Broker of Record
Broker of Record Chartered Real Estate Broker
National // Scène nationale
Green Barometer
By Sarah Lambersky
As interest in the economic and environmental benefits
of “going green” has flourished, we thought it would be
useful to our readers to conduct a survey on the state
of environmentally-driven real estate trends. Landlords,
brokers, developers, bankers, economic development
officers, and engineers across Canada shared with us
their opinions on topics ranging from green cost premiums
to motivations driving green practices.
According to our 109 respondents, the green building
movement is alive and well with 93% of individuals
surveyed agreeing that green building practices are here
to stay in contrast to 7% of respondents who indicated
that sustainable real estate practices were a short
term fad. In 2005 the Canadian Green Building Council
(CaGBC) released a “state of the nation” report titled A
Business Case for Green Buildings in Canada quantifying
the environmental impact of the real estate industry and
qualifying the case for adopting green building practices.
Astonishingly, this report found that Canada’s 500,000
8 Built 2011
Un baromètre écologique
par Sarah Lambersky
Puisque l’intérêt envers les avantages économiques et
environnementaux du virage écologique est florissant,
nous avons pensé qu’il serait utile pour nos lecteurs
d’effectuer un sondage sur les tendances immobilières
écologiques. Les propriétaires, les cour tiers, les
promoteurs, les banquiers, les bureaux de développement
économique et les ingénieurs du Canada entier nous
ont donné leur avis sur des sujets aussi variés que les
suppléments de coûts liés aux bâtiments écologiques et
les motivations suscitant des pratiques écologiques.
Selon les 109 répondants, le mouvement des bâtiments
écologiques se porte bien. En effet, 93 % des personnes
interrogées croient que les pratiques de bâtiments
écologiques sont enracinées, comparativement à 7 %
qui sont d’avis que les pratiques immobilières durables
sont une mode passagère. En 2005, le Conseil du
bâtiment durable du Canada (CBDCa) a publié un
rapport intitulé Analyse de rentabilité pour les bâtiments
écologiques au Canada, qui quantifiait les répercussions
Bringing You the Power of One™
commercial and institutional buildings account for one third of
the nation’s energy production, 50% of our extracted natural
resources, 25% of landfill waste, 10% of airborne particulates
and 35% of greenhouse gases1. Since the release of this report,
the industry has progressed considerably in its adoption of
green building practices as evidenced by how fast green
certifications such as BOMA BESt, and Leadership in Energy
and Environmental Design (LEED) are growing.
The benefits of going green as a function of reducing real estate
risks, and improving the economic and environmental returns
on a building, both for owners and tenants, has moved from
nice-to-have towards becoming a must-have that is integrated
into corporate strategy. For building owners, benefits include
higher occupancy rates, higher future building values, reduced
risk of building obsolescence, lower operating costs, and the
ability to command a rent premium. For building occupants
benefits include better indoor air quality, higher employee
productivity, lower employee absenteeism rates, alignment with
corporate brand identity and potentially lower operating costs.
Clients are the major catalyst driving green building trends as
51% agreed that demand fuelling green building trends was
client driven. Conversely, 19% indicated government policy was
driving demand, 17% indicated society was driving demand
and 13% stated that corporate policy was driving demand.
Looking forward, 72% of respondents anticipate demand for
green buildings will increase, compared to 23% who stated
demand for green buildings would remain the same. Only 2%
of respondents suggested demand would decrease and 3%
were unsure of the future trend.
Depending on the scale, scope and type of undertaking,
green projects may come with a higher up-front price tag. In
some cases, the cost of going green can come at a discount
whereas in other projects, the cost can escalate to premiums
Bringing You the Power of One™
environnementales de l’industrie de l’immobilier et présentait
les arguments en faveur de l’adoption de pratiques de
construction écologiques. Contre toute attente, ce rapport
révèle que les 50 0,0 0 0 immeubles institutionnels et
commerciaux représentent le tiers de la production d'énergie
du Canada, 50 % des ressources naturelles extraites, 25 %
des déchets enfouis, 10 % des particules en suspension dans
l’air et 35 % des gaz à effet de serre1. Depuis la publication
de ce rapport, l'industrie a considérablement progressé dans
l’adoption de pratiques de construction écologiques, tel que
le démontre la rapidité de la croissance de certifications
écologiques comme BOMA BESt et LEED.
Les avantages du virage écologique pour ce qui est de la
réduction des risques immobiliers et de l’amélioration du
rendement économique et environnemental d’un immeuble,
tant pour les propriétaires que pour les locataires, sont
passés « d'agréables » à « indispensables » et intégrés à la
stratégie d’entreprise. Pour les propriétaires d’immeuble, ces
avantages incluent des taux d’occupation plus élevés, une
valeur immobilière plus élevée à long terme, une diminution
du risque de désuétude des bâtiments, une diminution des
coûts d’exploitation et la capacité de justifier des loyers
plus élevés. Pour les occupants, les avantages incluent une
meilleure qualité de l'air ambiant, une meilleure productivité
des employés, un taux d'absentéisme au travail moins élevé,
le respect de l’image de marque et un potentiel de réduction
des frais d’exploitation.
Les clients sont les principaux catalyseurs des tendances
liées aux bâtiments écologiques, car 51 % des répondants
conviennent que la demande provient des clients. Par contre,
19 % croient que les politiques gouvernementales déterminent
la demande, 17 %, que la société en est responsable et 13 %,
que ce sont les politiques d’entreprise qui la justifient. Dans
une perspective d’avenir, 72 % des répondants prévoient
2011 Built 9

ranging from 10-30%2. Nevertheless, when questioned at what
premium survey respondents were prepared to pay beyond
basic costs, 55% revealed they would be comfortable paying
a one to five per cent premium for a sustainable green project,
12% are willing to pay a six to 10 per cent premium for green
space and 6% per cent of businesses are willing to pay a
premium greater than 10%. 27% said they would not be willing
to pay a premium for a sustainable green project.
Similarly, 89% of those polled agreed the cost of going “green”
meant an increased up-front cost as a trade-off for long term
savings. 2% of respondents agreed that green initiatives would
reduce up-front costs as a trade off for long term savings, 6%
responded green costs were the same as non-green project
costs and that green costs would bring about long term savings
and finally 3% disagreed that there were any long term savings
to be reaped from implementing green initiatives.
Finally, we polled our respondents on which green initiatives
they would be implementing in 2011 on a corporate level and it
seems that despite the breadth of priorities, the top three were
to be more conscious of turning off lights and office equipment
when not in use, increase recycling initiatives, and reduce
greenhouse gases and one’s carbon footprint.
Green building trends clearly have a foothold in the market and
have gained momentum in the Canadian real estate industry.
There is still a long way to go towards greening new and existing
building stock however, as decisions makers gain experience
and knowledge in this discipline, it will be exciting to watch the
green movement continue to unfold. »
1. CaGBC, A Business Case for Green Buildings in Canada, 2005
http://www.cagbc.org/uploads/A Business Case for Green Bldgs in Canada.pdf
2. CaGBC, A Business Case for Green Buildings in Canada, 2005
http://www.cagbc.org/uploads/A Business Case for Green Bldgs in Canada.pdf
10 Built 2011
Bringing You the Power of One™
que la demande de bâtiments écologiques augmentera,
comparativement à 23 % qui déclarent qu’elle restera la même.
Seulement 2 % prétendent que la demande diminuera, tandis
que 3 % ne sont pas certains de la tendance future.
Compte tenu de leur échelle, de leur portée et de leur type,
les projets écologiques peuvent coûter plus cher à construire.
Dans certains cas, le virage écologique peut favoriser une
réduction des coûts, tandis que dans d’autres, les dépenses
en immobilisations peuvent augmenter de 10 % à 30 %2.
Néanmoins, 55 % des répondants ont répondu qu’ils étaient
prêts à payer des frais supplémentaires de 1 % à 5 % pour
un projet de bâtiments écologiques durable, 12 % étaient
disposées à payer des frais supplémentaires de 6 % à 10 %
pour jouir d’un espace écologique et 6 % des entreprises
sont enclines à débourser des frais supplémentaires de plus
de 10 %. Par contre, 27 % des répondants ont déclaré qu'ils
ne paieraient pas de frais supplémentaires pour un projet
écologique durable.
Dans le même ordre d’idée, 89 % des répondants convenaient
que le virage écologique s’associait à des frais initiaux plus
élevés en contrepartie d’économies à long terme. Cependant,
2 % des répondants pensaient que les initiatives écologiques
réduiraient les frais initiaux en contrepartie d’économies à long
terme, 6 % étaient d’avis que les coûts liés aux projets écologiques
étaient identiques à ceux des projets non écologiques et enfin,
3 % croyaient que la mise en œuvre de projets écologiques ne
suscitait aucune économie à long terme.
Finalement, nous avons demandé aux répondants quelles
initiatives écologiques ils implanteraient dans leur entreprise
en 2011. Malgré l’éventail des priorités, les trois plus populaires
semblent être de se rappeler d’éteindre les lumières et
l’équipement de bureau lorsqu’ils ne sont pas utilisés,
d’augmenter les projets de recyclage et de réduire les émissions
de gaz à effet de serre et l’empreinte de carbone.
La tendance pour les bâtiments écologiques s’est
indéniablement implantée sur le marché et a pris de l’ampleur
au sein du marché canadien de l’immobilier. Il reste un long
chemin à parcourir avant de rendre écologique l’ensemble du
parc immobilier, nouveau comme ancien. Néanmoins, il sera
passionnant d’observer l’évolution du mouvement écologique
tandis que les décideurs gagneront en expérience et en
connaissances dans ce domaine. »
1. CBDCa, Analyse de rentabilité pour les bâtiments écologiques au Canada, 2005
http://www.cagbc.org/uploads/A Business Case for Green Bldgs in Canada.pdf
2. CBDCa, Analyse de rentabilité pour les bâtiments écologiques au Canada, 2005
http://www.cagbc.org/uploads/A Business Case for Green Bldgs in Canada.pdf
Bringing You the Power of One™ 2011 Built 11
British Columbia
ABOUT BC
B.C.'s total land and freshwater area is BC is Canada's second­largest natural
95 million hectares, larger than France gas producer, and the oil and gas industry
and Germany combined. BC occupies continues to see tremendous growth,
about 10% of Canada's land surface. particularly in north­eastern B.C.
Vancouver
Olympic Pride
Fuels Development
By James Fraser
Many in the city feared that Vancouver would
suf fer the same debt-ridden fate of other
Olympic host cities during the 2010 Olympics
Games. Montreal, host of the 1976 Olympics,
finally paid down the $1.4 billion mortgage on
its Olympic Stadium after three decades. In a
milder example, Salt Lake City, took almost two
years to recuperate from Olympic spending and
development. The honour and pride associated
with hosting an international event typically fuels
architectural bravado, overbuilding and optimistic
property sellers. The Vancouver real estate
market, however, has managed to escape the
wrath with minor economic setbacks and instead
benefited from steady growth that continues to
Vancouver • Victoria • Nanaimo
signal positive future demand.
Infrastructure investments are one of the key
elements that has supported the Vancouver real
estate market and added to its competitiveness.
For example, projects such as the new Canada
Line, a rapid transit line that connects to Trans-
Link’s SkyTrain metro network, has greatly bene-
fited the city with its 19.2 kilometers of track
linking Vancouver to Richmond. Similarly, the
$579 million plan to upgrade the Sea-to-Sky
Highway and Whistler Highway relieved traffic
congestion and made transportation avenues
through the city and up the Coast more accessible.
Finally, new spin-offs in the form of new social
housing, community centre, waterfront park space
and a street car line enhanced Vancouver’s south
east False Creek Area from both an economic
and social perspective.
Vancouver Winter Olympics Cauldron. Vancouver, B.C. Bringing You the Power of One™
demographic Information
(2011 Estimates):
Population: 4,603,013
Avg. Household Income: $82,060
Source: FP Info Markets 2011 Estimates
Source: Government of British Columbia
La fierté olympique
stimule le développement
par James Fraser
Lors des Jeux olympiques de 2010, nombreux
sont ceux qui, à Vancouver, craignaient que la Ville
devienne tout aussi criblée de dettes que d’autres
villes hôtes. En effet, il a fallu trois décennies pour
que Montréal, hôtesse des Jeux de 1976, réussisse
à se libérer de l’hypothèque de 1,4 milliard de
dollars sur son stade olympique. Salt Lake City n’a
pas subi un sort aussi déplorable, mais il lui a tout
de même fallu près de deux ans pour se remettre
des dépenses et de la mise en valeur engagés en
prévision des Olympiques. L’honneur et la fierté
associées à la tenue d’un événement international
incitent souvent à l’esbroufe architecturale, à la
surconstruction et à des vendeurs de propriétés
optimistes. Toutefois, le marché de l’immobilier
de Vancouver a réussi à échapper à ce fléau. Les
revers économiques se sont révélés mineurs,
et on a plutôt constaté une croissance constante
qui signale une future demande positive
de l’immobilier.
Les investissements dans les infrastructures font
partie des principaux éléments ayant soutenu
le marché de l’immobilier et accru le caractère
concurrentiel de Vancouver. À titre d’exemple, la
nouvelle ligne Canada Line du réseau de métro
SkyTrain de la société TransLink représente
un énorme avantage pour la ville, avec ses
19,2 kilomètres de rails entre Vancouver et
Richmond. De même, le projet de 579 millions de
dollars visant à rénover le tronçon de l’autoroute
Sea-to-Sky jusqu’à Whistler a allégé la congestion
British Columbia 2011 Built 13
Close Up:
Vancouver
Demographic:
Population 2,413,546
Avg. Household Income $89,077
Source: FP Info Markets 2011 Estimates

Market Health Overall:

“Held steady this year”
“Looks promising for 2011”

Economic Drivers:
Forestry, Construction,
Manufacturing, Mining

Office Market:
The Metro Vancouver vacancy rate in­
creased from 8.0% to 9.0% due to a
large quantity of space brought to
market in the suburbs. Leasing activity
was dominated by demand for smaller,
higher quality space, especially in Down­
town Vancouver. Development activity
continues with 14 projects in the planning
or pre­leasing stages.

Industrial Market:
Industrial vacancy rates increased in
2010 from 3.6% to 4.7% due to an
oversupply of space relative to demand
and are expected to increase in 2011,
particularly in Surrey and Delta. Surrey
expects 270,000 square feet of space
to come to market in 2011 and Burnaby
expects 220,000 square feet of space
from the New Haven Phase II project
alone. Development continues including
the Burnaby developments of Glenwood
6 & 7 (200,000 square feet) and 4061
McConnell Avenue (150,000 square feet).
Retail Market:
Retail was off to a rocky start in 2010
but the revival in consumer confidence
coupled with employment gains bolstered
retail sales and fosters a degree of
optimism for 2011. The true test of retail
revival will have been the 2010 holiday
season. Many retailers are back in the
market albeit looking for sharper deals.
The residential legacy component of
the Olympic Village is one piece of real
estate that was not immune to the over-
optimism leading up to the Olympics. The
high profile, $1 billion multi-residential
Vancouver's continued
growth shows no signs
of stalling.
Olympic Village known as the Millennium
Water development housed more than
2,700 athletes but has seen few buyers
after the Games, with only 35 per cent
of the units sold. Recently, the developer
Millennium went into receivership, and
handed over control to Ernst and Young.
A new marketing strategy will be dev-
eloped with prices for the remaining units
adjusted to reflect the market’s demand.
Construction of the Athletes Village
et permis une meilleure accessibilité
aux avenues de la ville et de la côte. De
plus, d’autres retombées, sous forme de
nouveaux logements sociaux, d’un centre
communautaire, d’un parc au bord de
la mer et d’une ligne de tramway, ont
également amélioré le quartier de False
Creek, au sud-est de Vancouver, tant sur
le plan économique que social.
Toutefois, l’héritage résidentiel du Village
olympique est un projet immobilier qui
n’a pas échappé au suroptimisme
précédant les Jeux. En effet, Rebaptisé
Millennium Water, le complexe haut de
gamme de 1 milliard de dollars a accueilli
2,70 0 athlètes, mais compte peu
d’acheteurs depuis les Jeux, puisque
seulement 35 % des unités sont vendues.
Récemment, le promoteur Millennium a
été mis sous séquestre et son contrôle
a été transféré à Ernst & Young. Une
nouvelle stratégie de commercialisation
sera élaborée, et le prix des unités
restantes sera corrigé de manière à
refléter la demande du marché.
While it is seldom the case that Olympics
are free from cost-overruns, economic
indicators in the Metro Vancouver Area
are reflecting the benefits of post-
Olympic hype and international exposure.
The strength of Vancouver’s real estate
market shows no signs of stalling as new
office towers are proposed downtown
and demand for housing is increasing
less than a year after the Olympics. This
city looks to be reaping the benefits that
global exposure brings from hosting a
high profile international event. »
La croissance du marché de l’immobilier de
Vancouver n’affiche aucun signe de stagnation.
The Olympic Village – False Creek, British Columbia
Il est rare que les Olympiques
n’engendrent pas de dépassements des
coûts, mais les indicateurs économiques
du district régional du Grand Vancouver
reflètent les ef fets du bat tage
publicitaire post– olympique et de
l’exposition médiatique internationale.
La croissance du marché de l’immobilier
de Vancouver n’affiche aucun signe
de stagnation tandis que de nouveaux
projets de tours de bureaux sont
proposés au centre-ville et que la
demande d’hébergement augmente,
moins d’un an après les Olympiques.
La Ville semble récolter les fruits
de l’exposition médiatique mondiale
qu’elle a engendrée en tenant un
événement international de prestige. »
English Bay, Vancouver

14 Built 2011 British Columbia Bringing You the Power of One™ Bringing You the Power of One™ British Columbia 2011 Built 15
 Victoria
Close Up:
Victoria
Demographic:
Population 363,194
Avg. Household Income $81,847
Source: FP Info Markets 2011 Estimates
Market Health Overall:
“Reasonably healthy”
“A return to 2007 levels of activity”
British Columbia Legislature, Victoria
Economic Drivers:
Tourism, Technology, the Vancouver Olympics
Office Market:
Significant provincial government cutbacks caused
vacancy rates in Class B and C office space to rise
in 2010 affording existing tenants the opportunity
to trade up to higher quality Class A space. Expect
the same vacancy rate levels in 2011 and no new
projects coming to market. Lower rental rates in the
downtown office market present an opportunity for
tenants to upgrade their premises or get the best
competitive rates. The time frame to act is between
now and 2012 when the provincial government will
be back in the market looking for space.
Industrial Market:
The industrial vacancy rate is among the lowest in
North America and will hold at 3% through 2011.
Land values and rents have escalated dramatically
over the past few years, however, both stabilized in
2010. Head­lease space held firm while sublease
space can be found at rates 20% below market
rents. A new resurgence of industrial activity from
tenant expansions puts pressure on rents given
the limited supply. This is particularly relevant to
tenants in the tech sector looking for larger space.
Landlords of smaller industrial buildings may find it
challenging to fill their space. Positive absorption
in the industrial market primarily stemmed from
Sysco Foods’ expansion into its new location as
well as, new industrial product that came online in
2010 which was 90­100% pre­leased.
Investment Market:
There were many active private investors and
REITS in the market but a shortage of quality
investment product continued. Demand for all
product classes will persist in 2011, particularly
retail and apartment. During 2010, yields returned
to pre­crash levels and will stay the same in 2011.
Retail Market:
The brakes were put on retail sales in early 2010
as tourism dried up and residential property
sales fell. Downtown vacancy rates increased
as retailers catering to tourists were forced to
downsize or close. In the second half of 2010,
market conditions improved along with increased
consumer confidence. Uptown Centre, which is
currently under development and redevelopment
attracted large retailers like Urban Barn, BCBG
Max Azria, Mexx, Sephora and Children’s Place.
Phase II is estimated to be completed by 2012.
New developments are underway in the Capital
region which will bring new retailers to the area
despite the slight increase in vacancy rates.
16 Built 2011 British Columbia
Government Relocation
Affects Victoria Office Market
By Jessica Mavrikos
Consolidation of office space in Victoria is a growing trend
among government users in order to reduce real estate costs.
As a result of budget pressures brought on by the global
financial crisis, the provincial government has taken advantage
of market opportunities to do just this in downtown Victoria.
Eight public sector companies are in the process of relocating
their offices to more environmentally friendly buildings while
hoping to achieve productivity efficiencies and cost savings
by having staff under one roof.
While greening the public portfolio of office space has its
upside for the user, the downside to the office market is the
impact that such large-scale relocation has on downtown
Class B and C space. The downtown market has been most
affected, experiencing a loss of nearly 150,000 square feet
of occupied space since the end of 2008. As a result, the
Victoria office market vacancy rate has increased from a
dysfunctional level that persisted until the end of 2008 (below
3%) to roughly around 8% at the end of 2010.
Landlords are becoming increasingly competitive with leasing
rates. “Vacancies are going up, rents are going down," says
Gerald Hartwig, who owns and manages more than 100,000
square feet of downtown Victoria office space, including
Nootka Court, which recently lost provincial tenants. Not
surprisingly, slowing of demand coupled with increasing
vacancy has forced rental rates to come off their all-time highs
in all classes of space. Nootka Court, for example with 40,000
square feet available, is now listed for $11 per square foot.
As we proceed through 2011, Victoria expects vacancy rates
to increase further as 80,000 square feet of large block office
space at 1019 Wharf Street and other smaller pockets of space
come back to the market from government users. Absorption
of excess office space will likely begin in mid-2011 when the
federal government takes occupancy of some of the space
vacated by provincial public agencies. As a result of this
absorption, rental rates will increase as space is absorbed,
thereby ending the second half of 2011 in a more balanced
state of supply and demand. »
Bringing You the Power of One™
Nanaimo
New Demand for
Strata Office Space
By Bob Moss
With interest rates at historical lows in Canada, the trend to
own office space, rather than lease it, is gaining traction in
Nanaimo. Office strata, also known as office condominiums,
is the process by which investors or owner-occupiers buy
office space as an asset for rental purposes or for their own
use. In addition to offering office users an opportunity to
build equity, strata office space provides new premises in
the Nanaimo market where much of the existing office rental
stock is twenty years old or more. In markets where there is a
shortage of office space and no new product in the pipeline,
office strata is an option to hedge against supply deficits and
makes sense in specific cases.
Over the past two years, developers in Nanaimo responded to
increasing demand for strata office by bringing new product
to the market targeting professionals who have a strategy to
own their own space. Three projects were completed during
2010 and another one is planned for construction in 2011.
Of the projects completed in 2010, two were mixed use with
office space on the main floor and residential on top. The third
project was a conventional two story office building totaling
17,500 square feet. Sizes for the individual units for the three
properties range from 1,000 to 4,000 square feet and selling
prices during the past year ranged from $280 to $300 per
New strata office, Nanaimo
Bringing You the Power of One™
Close Up:
Nanaimo
Demographic:
Population 155,838
Avg. Household Income $69,780
Source: FP Info Markets 2011 Estimates
Market Health Overall:
“Steady during 2010”
“Expect the same in 2011”
Economic Drivers:
Lifestyle in­migration, Tourism, Education,
Healthcare
Office Market:
The office vacancy rate stabilized in 2010 at 8%
despite the fact that the provincial government
downsized and returned space to the market.
Three new office strata developments were com­
pleted in 2010 and no new projects were planned
for 2011. Rental rates remained steady in 2010 and
will likely decline in older office stock in 2011, a
boon for tenants.
Industrial Market:
Industrial vacancy increased to 6% in 2010 and
demand is expected to remain weak during 2011 due
to the slowing regional economy. Rents softened
slightly and will trend downward in older industrial
product whereas rents in new product with good
amenities are expected to hold firm in 2011. No new
buildings were completed in 2010 and none are
expected for 2011, however a few local developers
are preparing projects for 2012 completion.
Investment Market:
Strong demand and limited supply of product.
Regional, private investor s with long term
investment horizons are keen on Central Vancouver
Island apartment buildings and retail strip plazas.
Attractive long term interest rates will keep yields
at current levels. Wellington Court Retail Centre
sold in 2010 for $11.2 million at a 7.4% cap rate.
Retail Market:
Retail vacancy increased in 2010 as consumer
spending decreased. As the population continues
to grow, retailers opening in Nanaimo are showing
a preference for locating in the south. Country
Grocer, Rona and Rexall all built new stores in
the Southgate node. 2010 rental rates were under
pressure and are expected to drop again in 2011,
favouring tenants. Phase I of Port Place Shopping
Centre in downtown Nanaimo is expected to be
completed in 2011; subsequent phases will add
retail and residential to the area.
British Columbia 2011 Built 17

In markets where there is
a shortage of office space
and no new product in the
pipeline, office strata is an
option to hedge against
supply deficits and makes
sense in specific cases.
18 Built 2011 British Columbia
square foot. In each case, premises
were finished to base building level,
typical of office strata, and developers
were prepared to complete tenant
improvements at the buyer’s cost. The
strata corporation will be responsible
for maintenance of all common areas
so the professional owners will have the
benefits of ownership without the regular
maintenance obligations. Interestingly,
the majority of buyers of strata office this
past year were medical professionals.
While it is anticipated that demand for
office strata will increase, there are still
risks associated with purchasing this
type of asset including interest rate
fluctuation and the proper management
New strata office space, Nanaimo
of the strata corporation. Many buyers
finance their purchase with first mortgage
borrowings. Much of the purchaser’s
occupancy cost is based on the interest
rate of the mortgage and when interest
rates rise, demand will be reduced,
especially if interest rates increase
drastically. Likewise, some buyers are
tempted to self manage their strata
corporations, but lack the time and
end up relying on strata management
agents. In order for purchasers to con-
tinue to be attracted to these new
developments, management of building
structure and common areas will need
to be done at a high level. »
Bringing You the Power of One™ Science World, Vancouver
Alberta

ABOUT AB
Alber ta's forests suppor t the
province's 3rd largest industry, and
provide opportunities for hunting,
wildlife viewing and recreation.
Oil and gas produce one­quarter of demographic Information
Alberta's gross domestic product. (2011 Estimates):
The energy industry accounts for
Population: 3,803,047
275,000 direct and indirect jobs.
Avg. Household Income: $110,056
Source: FP Info Markets 2011 Estimates

Source: Government of Alberta

Edmonton Light Rail Transit (LRT)

Edmonton

Expanding the Edmonton Transportation System

By Carolyn Bull

Seven Light Rail Transit (LRT) arms are
being built in Edmonton over the next thirty
years which is good news for real estate
values, accessibility and marketability of
properties in the city. As outlined in “The
Way We Move” the City of Edmonton’s
Transportation Master Plan, the Edmonton
LRT will double its length and capacity
beyond the current 21 kilometer, 15 station
system. The LRT will expand stations to the
west end, Mill Woods and NAIT. Currently,
the city is forging ahead with the northwest
line to NAIT, with preliminary construction
starting in the 105 Street/107 Avenue area.
Pending council decisions in the latter
half of 2010, design work will start on the
east-west LRT line, from the west-end
(Lewis Estates) through downtown to the
Calgary • Edmonton
of transportation to new neighbourhoods
and areas including access to Edmonton’s
downtown core, the financial and govern-
ment districts, as well as, access to Grant
MacEwan University College, NAIT and
West Edmonton Mall.
To accommodate and support population
growth in Edmonton, “The Way We Move”
sets to integrate Edmonton’s transportation
systems within the existing urban land-
scape, to develop a sustainable transit
system with the hopes of moving 120,000
riders per day on the LRT’s busiest routes.
The City’s goal of providing Edmonton’s
growing population with an alternative
form of transportation is one step closer
to realization.

southeast Mill Woods Town Centre.

Edmonton’s transportation strategy aims
to expand the LRT into residential areas
to create a system where commuters can
make a better use of public transportation
in order to reduce congestion, pollution
and increase productivity as well as
encouraging a shift away from dependence
on single passenger cars. The LRT system
will bring an efficient, convenient mode
These changes to the Edmonton public
transit system will also affect real estate
by fueling development along LRT lines,
and increasing property values in close
proximity to transit. The expansion of the
LRT development is expected not only
to impact how Edmontonians travel and
live, but also the evolution of the city’s
infrastructure, economy and real estate. »

Skyscrapers towering over Calgary Alberta Canada with Bow River and Centre Street bridge in foreground Bringing You the Power of One™ Alberta 2011 Built 21
 Downtown Calgary at night

Close Up:
Edmonton
Demographic:
Population 1,190,243
Avg. Household Income $102,304
Source: FP Info Markets 2011 Estimates

Market Health Overall:

Calgary
“Performed well in 2010,”
“A renewed market enthusiasm”

Economic Drivers:
Oil and Gas, Government, Natural Resources,
Engineering

Office Market:
Economic slowdown and corporate downsizing, Overbuilt or Underestimated?
especially in the oil and gas sector, caused vacancy
rates to increase year over year from 9.9% to 10.8% By Sarah Lambersky
by the end of 2010; this is a trend that will continue
into 2012. Low public sector appetite for space
will leave large blocks of contiguous space vacant
until 2011. Several projects are under construction,
including Epcor Tower (Q4 2011). It is a good time
for tenants to take advantage of attractive tenant
improvement packages and discounted rental Investment in non-residential construction in Calgary for the
rates as pre­leasing is a challenge. first three quarters of 2010 was down 12.7% from the same
period in 2009, according to Statistics Canada. This is not
Industrial Market: surprising if you have been paying attention to Calgary’s
There were nominal changes to industrial market office vacancy rates and rental rates lately. Those in Calgary
fundamentals. The vacancy rate hovered around know that when the energy industry grows, so does Calgary’s
4.4% as no new buildings came online in 2010 and population and demand for office space. Between 2004 and
should trend downward in 2011. As oil and gas 2006 when oil and gas prices started to rise and the population
projects resume in the city, absorption levels will
was increasing 3 to 4% per year, real estate developers started
increase as tenants look for space, particularly those
with yard storage and turnkey options. There are planning to keep up with expected growth in employment. As
two projects due in 2011 with no major pre­leasing these buildings come on-line in 2011 and 2012, unscathed by
completed. Rental rates held steady for small and the financial crisis and ready for occupancy, the question on
mid size deals and decreased in larger pockets. everyone’s mind remains: Is Calgary overbuilt? The answer
is no. To understand this contrarian perspective, three things
Investment Market: are important to consider, namely the role of pre-leasing,
The investment market came back aggressively backfill and demand.
in late 2009 and early 2010 as REITs, German
investors, local private investors and developers Firstly, the surge in construction was fueled by a growing
were armed with capital and poised to buy. However,
energy sector and tight supply which led to sufficient demand
buyers who waited for foreclosures and higher cap
rates on quality properties were disappointed, and to pre-lease the new office towers. The Bow (Q1 2012) for
for the most part, unsuccessful at finding deals. example, Encana’s new headquarters, is 100% pre-leased
Demand was low for land and apartment sales which will not have an effect on the market in terms of new
were scarce in 2010, due to high prices from the supply impacting the vacancy rate. Despite the fact that
2008/2009 sale prices. Ample supply and low Encana is consolidating its offices and will leave four Class
demand for land will continue downward pressure A buildings to backfill, there are tenants in those buildings
on prices. Yields will remain low in 2010 and who now have room to expand as the market picks up. The
into 2011.
same goes for Centennial Place (Q1 2010) and Eighth Avenue
Place (Q1 2011). Eighth Avenue Place is 60% pre-leased but is
Retail Market:
close to attaining an 85% occupancy rate as existing tenants
There are limited options for vacant retail space
in quality centres, which makes placing national seek to expand their requirements in the building. The only
tenants a challenge. Additional rents (CAM and building that continues to impact the market is the Palliser
taxes) are increasing which resulted in upward South building (2010) which is 30% occupied. Overall, the
pressure on overall gross rents. Landlords are market is firing up as the oil and gas sector return to drilling.
focusing on long terms deals that make sense in One reason not to be too concerned by a 12% vacancy rate
their centres. Class B and C centres are benefiting is if gas prices increase from their $4 level, it could trigger a
from their creativity in structuring leases to fill vacant rapid absorption of office space and send rental rates up as
space. 2010 rents in Class A centres remained
companies take on more space; a good reason to be bullish
steady whereas Class B and C rents decreased.
2011 rent trends will follow a similar pattern. on Calgary’s office market.
West Edmonton Mall
Top New Office Construction 

22 Built 2011 Alberta Bringing You the Power of One™ Bringing You the Power of One™ Alberta 2011 Built 23
 Top New Office Construction in Calgary

The Bow Centennial Place

Status: Under Construction Status: Completed Q1 2010
What: North Tower and South Tower, 58 stories including three What: Two towers, 1.2 million square feet of office space
floors with sky gardens and two retail floors NRA: 776,753, square feet
NRA: 1.9 million square feet Developer: Oxford Properties
Estimated Completion: Q1 2012 Interesting Fact: The project took five years from pre­
Developer: Matthews Development development and approvals to project completion
Interesting Fact: Will be Calgary’s tallest building and the first
curved building in North America

Green Below­grade parking for 320 bicycles and 100 Green Built in accordance with LEED Gold Standards
fact bicycle parking spaces above grade. fact that will feature a green podium roof.

The Palliser Eighth Avenue Place

Status: Palliser South – completed in early 2010 Status: Under Construction
What: Two office towers, a renovated Palliser Square and a What: Two towers
commercial promenade with two additional towers planned NRA: East Tower 1,042,027 square feet
NRA: 1.2 million square feet Estimated Completion: Q1 2011
Developer: Aspen Propertiest Developer: Hines
Interesting Fact: The south tower includes a slow away from Interesting Fact: First office building in Canada to be pre­
the east side of the sixth floor, so that the floor plates grow certified in the Leadership in Energy and Environmental
progressively larger toward the top level Design (LEED) for Core and Shell

Green Built with efficient and low maintenance Green Targeting LEED Gold Core and Shell Certification.
fact building materials. fact

24 Built 2011 Alberta Bringing You the Power of One™ Bringing You the Power of One™ Alberta 2011 25
Built Calgary
Downtown at night
Saskatchewan

ABOUT SK
daylight saving time does not occur
in Saskatchewan. The clocks remain
on central Standard Time, except in
creighton and denare Beach.
Source: NASA
Estevan, Saskatchewan is the
sunniest place in canada with
2540 hours of sunlight a year.
Source: Canadian Geographic
demographic Information
(2011 Estimates):
Population: 1,026,558
Avg. Household Income: $85,135
Source: FP Info Markets 2011 Estimates

Regina

An aerial view of Regina's Downtown

The Changing Landscape of Regina’s Downtown

As the North American economy rebounds
from the global financial crisis, the Sask-
atchewan economy continues to thrive and
its real estate industry is the economic
barometer for the thriving city of Regina.
According to Enterprise Saskatchewan,
“There are unprecedented opportunities in
Saskatchewan – so many that global investors
now know exactly where Saskatchewan is on
the map. The province has it all: the resources
from potash, oil, gas, steel, uranium, manu-
facturing and abundant and productive
agricultural land; the people who make
up a youthful, highly skilled and energetic
workforce; the competitive environment; and
an economic climate being noticed around
the world.” To support Regina’s commodity-
Regina
new real estate projects have been given
the go-ahead for development in downtown
Regina: Hill Tower Three and City Square.
Harvard Developments, the developer behind
Hill Tower Three, started construction on
the new $100 million Class A office building
where Mosaic Potash will become the lead
tenant. Hill Tower Three will add 200,000
square feet of office space in the downtown
core and change the skyline of the city. It has
been 20 years since an A class, high rise has
been built in Regina. Completion of the new
tower located on the corner of 12th Avenue
and Hamilton Street is slated for 2012. There
are also other proposed developments in the
planning phase, which would include more
office space as well as two residential high

fueled demand and growing population, two rise buildings.

Bringing You the Power of One™ Saskatchewan 2011 Built 27

Downtown Regina, Saskatchewan (photo courtesy of Daniel Paquet)
Close Up:
Regina
Demographic:
Population 210,513
Avg. Household Income $97,043
Source: FP Info Markets 2011 Estimates

Market Health Overall:

“4.5% economic growth projected for 2011,”
“Vacancy at record lows across the board”

Economic Drivers:
Oil and gas, Potash, Uranium, Steel,
Manufacturing, Technology

Office Market:
As existing tenants expanded, office vacancy
d r o p p e d i n 2010 f r o m 2.7% to 2. 5%. T h i s Murals on Saskatchewan's Twin Towers celebrating the Roughriders' Centennial
trend is expected to continue into 2011 with
demand stemming from professional service,
energy, resource and technology firms. Harvard
Development started construction on its new The other project that will have a major impact on Regina’s downtown is
200,000 square foot Class A office tower, the first
the revitalization of Victoria Park, a project called City Square. City Square
high rise development in 20 years, in downtown
Regina. It will be the new home of Mosaic Potash aims to reshape 12th Avenue as a new pedestrian friendly space that aims
and the federal government with expected to create an Urban Public Square in Victoria Park to accommodate special
completion in 2012. There is also a suburban office events and festivals. City Square and the Victoria Park redevelopment are
park in the planning stages. Rental rates increased part of phase one of the downtown master revitalization plan named the
in 2010 and are expected to increase again in WOW project. The transformative project located at the north end of Victoria
2011 as record low vacancy rates boost this Park and 12th Avenue, between Scarth Street and Lorne Street will see the
landlord market. expansion of the park, with the vision of making it more “people friendly.”

Industrial Market: Both projects seek to re-energize the downtown core to further stimulate
Industrial vacancy decreased in 2010 to 2% from
business and activity in the city. »
2.5% with a further decrease expected in 2011.
Demand is strong due to Saskatchewan’s role as
a central transportation hub into Western Canada
complemented by the announcement of the CP
Intermodal Facility (see Spotlight on Logistics),
and Loblaws’ new 1 million square foot warehouse “There are unprecedented opportunities
and distribution centre. New development and
infrastructure projects are underway at the Global in Saskatchewan – so many that global
Transportation Hub to accommodate large parcels
of industrial land that were annexed west of the investors now know exactly where
Regina International Airport. In addition, a section
of land was annexed in the NE quadrant called Saskatchewan is on the map. The province
Ross Industrial Park. Rental rates are forecasted
to increase in 2011. has it all: the resources from potash, oil, gas,
Investment Market: steel, uranium, manufacturing and abundant
The investment climate was quiet in 2010 as
landlords reaped the benefits of unencumbered and productive agricultural land; the people
income streams due to record low vacancy rates
across all product classes. It was difficult for sellers
to find quality assets to deploy their proceeds. The
who make up a youthful, highly skilled
lack of investment opportunities shifts the focus
to build­to­suit alternatives. Local high­net­worth
and energetic workforce; the competitive
buyers are the most active in the market. Cap rates
range from 8­9% and it is anticipated the same
environment; and an economic climate being
range will persist in 2011.
noticed around the world.”
Retail Market:
Record retail sales in 2010 are expected to repeat
in 2011. As a result of a number of tenants able
— Enterprise Saskatchewan
to hit percentage rent objectives, rental rates are
increasing. Power Centre development in East
Regina and North West Regina is complete and
Sherwood Village Mall is in the process of being de­
malled and converted to Rochdale Crossing with a
2011 estimated completion.

28 Built 2011 Saskatchewan Bringing You the Power of One™

South Saskatchewan River across from downtown Saskatoon
Manitoba

ABOUT MB
Manitoba has over 100,000 lakes and
has one of the highest rates of vacation
home ownership in Canada.
The Royal Canadian Mint in Winnipeg
not only produces coins for Canada
but has minted currency for over 60
countries around the globe.
demographic Information
(2011 Estimates):
Population: 1,229,403
Avg. Household Income: $75,588
Source: FP Info Markets 2011 Estimates

Source: Tourism Manitoba

Winnipeg

CentrePort

CentrePort Canada
By Chris Macsymic

Every so often certain projects are brought
to market that have the potential to change
the future of a city. CentrePort Canada is,
without a doubt, one of those projects. It
will not only affect Winnipeg and Manitoba
in terms of generating economic value, but
it will also affect the whole country as it is
the only Canadian inland port with single-
window access to a foreign trade zone
offering companies a one-stop shop situation
to obtain trading permits and applications.
This new 20,000 acre inland port and foreign
trade zone, which will be developed in
phases, is located in northwest Winnipeg and
is situated in close proximity to all major
Winnipeg
savings to investors and businesses through
sales tax and duty exemptions, as well as,
offering companies high quality and high
capacity logistics services, communication
networks, office space, and streamlined
customs processes. These incentives have
the ability to spur employment and economic
growth for the City of Winnipeg. Likewise, the
construction of a $212.5 million expressway
is underway that will link the inland port to the
Perimeter Highway with expected completion
in 2011.
CentrePort Canada CEO Diane Gray and
her team have been spreading the message
throughout the world about this develop-

modes of transportation including air, rail, ment and its benefits, which will undoubtedly
sea and road. Setting up a foreign trade zone boost the commercial real estate market in
allows CentrePort Canada to offer cost Winnipeg. So far there are approximately 130

Provencher Bridge, Winnipeg Bringing You the Power of One™ Manitoba 2011 Built 31
 CentrePort Cargo Plane
Close Up:
Winnipeg
Demographic:
Population 746,618
Avg. Household Income $80,859
Source: FP Info Markets 2011 Estimates

Market Health Overall:

“Vacancies are at record lows and
trending downward"
“Higher activity levels expected in 2010
in comparison to 2009”

Economic Drivers:
Manufacturing, Transportation, Financial Services

Office Market:
The downtown office vacancy rate stabilized at
4.9% as of June 30, 2010. Rental rates held firm
and have not changed in the last decade. A new
suburban medical office, the first to be built in
many years, is being built in Southwest Winnipeg.
Additionally, a new office building in the planning
stages is set to commence construction in mid-
2011 at the James A. Richardson International
Airport. In the first half of 2011, expect the down-
town office market to heat up as five to six large
tenants seek space which could lead to some
big announcements.
businesses operating on CentrePort Canada’s site and going forward, will
Industrial Market: continue to attract businesses and investors to develop the remainder of its
The vacancy rate increased from 2.0% to 2.4% in greenfield opportunities on the 20,000 acre footprint. There are industrial
2010. The final vacancy rate for 2010 is expected developments within the Inland Port that have seen increased interest as
to climb slightly as many transactions are slated companies contemplate locating in CentrePort Canada. One of these pro-
for completion in early 2011. Many tenants chose jects is Brookside Industrial Park West which is selling parcels of land in
to renew rather than move or expand in 2010 as CentrePort Canada. Not only is Brookside Industrial one of the few prime
caution reined the marketplace. However, growing spots, it is also one of the last remaining pieces of land for sale in CentrePort
optimism should help drive expansion later in 2011.
at this time.
With the exception of one 37,000 square foot flex
space under construction, developers held off on
new construction due to high construction prices Winnipeg has always been positioned as a transportation and logistics
and a “wait and see” attitude. Demand will increase hub. Today the remaining building blocks are in place, along with the new
in 2011 as businesses rebound from the global Winnipeg James Armstrong Richardson International Airport, to strategically
recession which should signal to developers to compete in global transportation and logistics. The continued marketing of
bring new product to market by Q3 2011. this project locally and worldwide creates a positive outlook for commercial
real estate in Winnipeg. It is an exciting time to be in Winnipeg as this project
Investment Market: continues to move forward. »
Winnipeg achieved its second best year in terms
of dollar value in history. Activity is apparent as
investors chase what little investment product is
available in the city. Notable transactions include
Timbercreek’s purchase of three apartment
blocks for $100 million and Artis REIT acquiring Setting up a foreign trade zone
two regional shopping centres for $52.5 million.
Expect cap rates to continue a downward trend in allows CentrePort Canada to offer
2011, similar to the pressure on cap rates in 2010.
cost savings to investors and
Retail Market:
New Canadian and U.S. retailers such as Hollister, businesses through sales tax and
Sephora, BCBG, Forever 21, Apple, Pizza Pizza,
Bath and Body Works and Pet Smart opened duty exemptions. These incentives
stores in the city last year. In 2011 expect a Wal-
Mart Supercentre, Lowe’s, H&M, Bed Bath and have the ability to spur massive
Beyond, Bass Pro Shops and T&T Supermarket Inc
to expand to Winnipeg. This year will be marked growth for the City of Winnipeg.
by increased leasing and new construction as
large scale projects such as Polo Park North and
Seasons of Tuxedo where IKEA is being built,
get underway.

32 Built 2011 Manitoba Bringing You the Power of One™ The Canadian Mint, Winnipeg
Ontario

ABOUT ON
Ontario's industries range from
cultivating crops, to mining
minerals, to manufacturing auto­
mobiles, to designing software
and leading­edge technology.
The labour force exceeds six
million people and about half
of Ontario residents over the
age of 25 have completed post­
secondary schooling.
demographic Information
(2011 Estimates):
Population: 13,415,750
Avg. Household Income: $87,389
Source: FP Info Markets 2011 Estimates

Source: Government of Ontario

Toronto
London • Waterloo • Niagara Falls • Mississauga • Toronto • Richmond Hill • Kingston • Ottawa

A Toronto Retailer
Goes Solar
By Jessica Recchi

Canada, known for its unique landscapes
and majestic scenery, is not a country that
people associate as a sun destination.
However government policies and incentives
to reduce energy consumption, along with a
heightened awareness of renewable energy,
may position Canada as the next destination
to soak up the sun via rooftop or ground
photovoltaic panels (solar panels).
The installation of solar panels on roof tops
is a viable means of generating an ancillary
cash flow stream for a commercial property.
Retail and industrial products in particular,
lend themselves as a good economic fit for
solar panels due to the large square footage
needed to derive economies of scale. Large
big box retailers, as an example, typically
occupy floor plates of 100,000 square feet
or greater, which makes economic sense
when evaluating this capital expenditure
from a cost–benefit analysis. One program
that has successfully motivated building
owners to act on renewable energy is the
Feed in Tariff (FIT) program. In Ontario, the
FIT program, which was launched under the
Ontario Power Authority in accordance with
the Green Energy Act, pays participants up
to 80.2 ¢ per kW as a reward to reduce their
dependency on non-environmentally friendly
energy sources such as coal.
The first such retailer in Canada to participate
in the FIT program is IKEA which announced
in October 2010 that it will make its home
furnishings company the first retailer to
exclusively own, install and operate the
largest rooftop solar network in Ontario under
the FIT program. IKEA, which completed
the installation of its solar panels at three of
its Toronto locations the end of 2010, has
partnered with AMP Solar Group in what
is believed to be the largest solar rooftop
installation by a Canadian retailer. Together
the systems will have a capacity of 750kW,
which is the approximate equivalent of what
is needed to power 100 average Ontario
homes. AMP’s extensive knowledge and
expertise on commercial scale solar roof-
tops will enable IKEA Canada to be the first
retailer to carry out this extensive project
at this magnitude. So why did IKEA decide
to invest in solar panels? The answer is
simple — IKEA will generate $684,000 in
revenue annually from its previously unused
rooftops as a result of an investment of $4.6
million. Earning a return from solar power
will enable IKEA to reinvest the revenue in
other sustainability projects; an example of
applying environmental consciousness and
business strategy at its best. »

CN Tower, Toronto Bringing You the Power of One™ Ontario 2011 Built 35
 Toronto Toronto
Close Up:
Toronto
Demographic:
Population 5,834,408
Avg. Household Income $99,168
Source: FP Info Markets 2011 Estimates

Market Health Overall:

“Economic growth finally translates into
demand in later half of 2010”

Economic Drivers:
Financial Services, Professional Services,
Insurance, Technology

Office Market:
Demand for office space picked up as the banking
and professional services sectors looked to
expand. There was also demand for space from
the software, animation and gaming industries
bringing the vacancy rate down to 7.9%. In 2011
the vacancy rate is expected to decrease slightly
as the majority of new space that will come on
market was pre­leased. Going forward, as vacancy
is eaten up due to limited supply expected in 2011,
rental rates will rise.
Industrial Market:
Industrial vacancy rates are stable and will
experience a marginal decline in 2011 from 7.7%
in 2010. 2010 also saw a flight to quality properties
as space came back to the market. Demand for
longer term sublets will continue as well for third
party logistics (3PL) space as manufacturers
hedge their cost of warehousing in a trade off for
something more flexible. In 2011, expect developers
to go through pre­development but until rental rates
rise, and the economy improves, current rents do
not justify development especially considering
rent is flat or declining in existing product.
Investment Market:
Sales of industrial buildings are up due to low
interest rates. Most buyers are institutional. Overall
the investment market is robust and yields are
back to pre­recession levels. Looking forward, the
level of activity will increase as purchasers take
advantage of the sellers market. Retail product
continues to be in high demand in 2010 and 2011
while hotels were the least in demand. Notable
transactions include Erin Mills Shopping Centre
and Atrium on Bay. Yield pressure is greatest for
Class B assets. The challenge going forward is
namely a lack of Class A assets for purchase.
Retail Market:
Overall, the Toronto retail climate is stable, dom­
inated by U.S. expansions. Examples include
Brooks Brothers, Victoria's Secret, Anthropologie
and Crate & Barrel, with the anticipation of J. Crew
opening in Toronto in 2011. The challenge for mall
based retailers is to find a location in a tier one
property as they are 100% leased. Retail rents and
sales were flat in 2010, with the exception of the
top shopping centres such as Yorkdale, Fairview
and the Eaton Centre. We will see more and more
vacancies come up on the street, and expect to
see landlords beginning to drop their net rents to
retain their better tenants.
The Imperial Oil Building at 111 St. Clair Ave. W., Toronto
The Imperial Oil Building:
Then and Now
By Andrew Barnicke
When the Imperial Oil building was built in Toronto in the Yonge
and St. Clair area, it was designed to last for centuries.
Constructed in the mid–1950s as the headquarters of Imperial
Oil Ltd., no expenses were spared in the development of 111 St.
Clair as a modern day masterpiece of mid-century modernism. In
its creation, only the best materials and most advanced building
technologies were used. Not to mention, in 1957, Toronto artist
and Canada’s greatest muralist, York Wilson, was commissioned
to create the building’s lobby mural, the largest mural in Canada
which tells the story of oil and energy.
The design of what became the Imperial Oil building was sub-
mitted by architect Alvan Mathers of Mathers & Haldenby as the
firm’s entry into the national design competition for the new city hall
for the City of Toronto. The City of Toronto opted for an international
design firm instead of Alvan Mathers. However, around the same
time, Imperial Oil was planning to consolidate its operations and
build a new building in Toronto. Imperial Oil liked Alvan Mathers’
design and shortly thereafter, 111 St. Clair was born.
In 2004, Imperial Oil made the decision to move its corporate
headquarters to Calgary from Toronto, reputed to be one of the
largest corporate moves in Canadian history. In light of the oil
company’s relocation decision, a unique real estate opportunity
presented itself to transform one of Canada’s great buildings, totaling
more than 400,000 square feet, into a residential community.
The developer, Camrost-Felcorp, under the leadership of David
Feldman, saw the vision and potential to add value to 111 St. Clair
Avenue West and has set forth to create Imperial Plaza, a premier
residences with over 400 units. Suite sizes in Imperial Plaza will
range from 480 to 2,600 square feet and the building amenities will
be unparalleled with expected occupancy in 2012. »
King Street West, Toronto
The Retail Master Plan
By Steven Alikakos
It is not very often that a landlord has the opp-
ortunity to purchase, master-plan and redevelop
an entire city block in Toronto. In the case of
Allied Properties REIT, what began as a portfolio
acquisition of old, dilapidated brick and beam
warehouse buildings on King Street West,
between Spadina and Bathurst, turned into
a unique opportunity that brought together a
diverse retail and office mix of tenants over 10
years of strategizing, cultivation and execution.
The advantage of owning the majority of build-
ings in a concentrated area, as is the case with
Allied Properties, is that they chose to take
the opportunity and the time to do the right
deals, and not to rush ahead just to fill space.
By standing back and laying out a master plan of
ideal tenants to populate its retail spaces, Allied’s
King West has evolved into the most desirable
streetfront retail in downtown Toronto.
Normally, a group of streetfront retailers in a
neighbourhood band together to form a Business
Improvement Area (BIA) to figure out how best to
attract businesses and consumers to their area.
In King West’s case, the landlord essentially was
its own BIA and set the tone for the street’s future
development by plotting a path that would deliver
the assortment of services and amenities that it
believed its new office tenants and residents would
find desirable. By choosing one-off, flagship-
type users that had no other locations in Toronto
or Canada the landlord aimed to deliver a unique
retail mix and vibe that would appeal to the trendy,
urban, early adopters that were the dominant
demographic flocking to the area.
In 1999, with its plan in hand, Allied began the
process of vacating, sandblasting and upgrading
its collection of historic buildings. One to two years
following the start of the office transformation,
the long term retail strategy began to take shape
with early movers such as Rodney’s Oyster House
(2001), followed by BMW’s Mini Cooper Deal-
ership (2002), Crush Wine Bar (2002), Brassaii
(2003), Calphalon (2003), and the Brant House
(2004) leading the way for Design Within Reach
(2007), and The Spice Route Asian Bistro and
Bar (2008). Today, the ongoing pieces of the
retail plan are falling into place with the recent
opening of Patagonia in December 2010, and
Alimento Fine Food Emporium and SOMA
Chocolate slated for 2011.
With Allied’s office and retail space on King Street
West now completely occupied, and more new
condominiums being built in the immediate area
than any other North American city, the question at
hand is, can this unusual opportunity be recreated
elsewhere in the city, or country? »

36 Built 2011 Ontario Bringing You the Power of One™ Bringing You the Power of One™ Ontario 2011 Built 37
 Mississauga
Sheridan College Campus Absolute World Condominiums
Mississauga Core Revival
By Warren D’Souza
Mississauga City Centre (MCC) is going through a
resurgence in real estate activity. The combination
of five years of new condominium development
and city centre infrastructure projects has shifted
demand from the outlying markets back into
Mississauga’s core.
Historically, Mississauga City Centre was made up
of Square One Shopping Centre, a transportation
hub, City Hall, and approximately a dozen office
buildings that were built in the 70s and 80s. Over
the last decade, there was an external move out
of the MCC to outlying nodes such as Airport
Corporate Centre (ACC), Meadowvale and Hur-
ontario North for a couple of reasons. Firstly, dev-
eloped land was readily available in the “suburbs”
of Mississauga and users seeking higher ratio
parking could be met in these areas. Secondly,
the highway 401 corridor, and more recently the
Highway 407 corridor, provided greater visibility
and accessibility than those in the MCC.
In the case of the ACC, this shift in demand to
the outlying areas originated with U.S. based
companies that were drawn to the close proximity
of Pearson International Airport. Around the same
time, Meadowvale, located west of the ACC,
started to populate its land with pharmaceutical
and financial tenants and Hurontario North, located
south of the 401, drew users into developments
mainly from the financial sector.
When the economy slowed in late 2008, out of the
four areas, the ACC was most impacted since large
blocks of space were left empty by U.S. and local
firm closures and downsizing. On the other hand,
38 Built 2011 Ontario
City of Mississauga (Photo courtesy of Ian Muttoo)
many of the buildings in the Meadowvale area were
built based on demand, instead of on speculation,
and therefore was not as greatly impacted as the
ACC. Further south, Hurontario North continued
to grow and attract tenants and MCC activity
remained stable with no new construction.
Today, the MCC has come full circle and is resurging
with a flurry of development projects and new
activity. For example, the residential condominium
market is growing in leaps and bounds attracting
thousands of residents to area. So far, 7,800 units
have been built, 8,000 are under application and
15,700 are under construction. Likewise, the City
is redeveloping City Hall and the Central Library, a
project called the Civic Square Restoration, which
will create a large gathering area for residents, and
the ability to host large scale concerts and events.
Sheridan College has also chosen the MCC for its
newest campus, slated for fall 2011 completion; the
new college will house over 1,700 students. Finally,
the Bus Rapid Transit (BRT) project is underway
which will bring a dedicated bus lane along Highway
403 running east-west between Winston Churchill
Boulevard and Renforth Drive. Not only will the
BRT cut down travel time across Mississauga
and also improve access to the city core, it will
also enhance the competitiveness of the area for
employment purposes. Given the proliferation of
infrastructure projects, transportation initiatives
and new residents, it is only natural that demand
for new office development will resume. The only
challenge that remains which may hamper growth
is the parking situation for the city. However with
increased demand, perhaps developers can justify
the cost to make these improvements. »
Bringing You the Power of One™
Mississauga
The Pearson Eco-Business Zone – An aerial view of Toronto Pearson International Airport and the surrounding business community. Source: Partners In Project Green
Airport Corporate Centre Le parc éco-industriel
Eco Industrial Park du centre des affaires
By Sarah Lambersky de l’aéroport
par Sarah Lambersky
An Eco Industrial Park (EIP) is a type of Un parc éco-industriel (PEI) est un type de parc
industrial park where a group of businesses industriel dans lequel un groupe d'entreprises
share a common property with a focus on partage une propriété en vue d’accroître
increasing economic gains, while minimizing leurs profits tout en réduisant au minimum
environmental impact to the community at large. les répercussions environnementales pour
Unlike regular industrial parks which may have l’ensemble de la collectivité. Contrairement
a limited focus on the environmental impact of aux parcs industriels habituels, qui s’intéressent
its tenants’ businesses, EIPs incorporate green peu aux conséquences environnementales
features such as environmentally friendly site des activités de leurs locataires, les PEI
design and sustainable infrastructure. Their aim intègrent des caractéristiques écologiques,
is to minimize waste and pollution, reduce storm telles qu’un aménagement respectueux de
water runoff, and increase energy efficiency. l’environnement et une infrastructure
durable. Ils cherchent à limiter les déchets
In Toronto, the Pearson Eco-Business Zone was et la pollution, à réduire le ruissellement
launched in 2008 with the goal of increasing des eaux pluviales et à accroître l’efficacité
eco-business activity, a collaborative approach énergétique.
to businesses working together to make pro-
ducts and services easier, cheaper, more inno- À Toronto, la zone pour éco-entreprises de
vative and sustainable, greening the practices l’aéroport Pearson a été lancée en 2008 afin
of existing businesses and attracting eco- d’augmenter l’activité éco-industrielle, qui
friendly businesses to the area. The project is représente une approche coopérative des
situated in the Toronto Pearson International affaires dans le but de rendre les produits et
Airport region, covers an area of 12,000 hectares services plus accessibles, moins chers,
of industrial and commercial land and is home to plus novateurs et plus durables, de
over 12,500 businesses and 355,000 employees. rendre les pratiques des entreprises
Bringing You the Power of One™ Ontario 2011 Built 39
 Hamilton

Aerial view of Hamilton

Bayer Inc. – An aerial view of Bayer Inc. in Toronto and their 8,000 square foot Green Roof. Source: Partners In Project Green
The Economic Growth Of Hamilton

In a raucous meeting on October 13, 2010, “Places to Grow” initiative, the area was
Hamilton City Council voted 13-2 to bring identified in the Growth Related Integrated
the Hamilton Airport Employment Growth Development Study (GRIDS) as a preferred
District (AEGD), approximately 830 hectares area for growth in Hamilton to 2031. The
surrounding the John C. Munro Hamilton growth, development and prosperity of
International Airport, into the urban boundary. several industry sectors, such as the logistics
The City has identified the AEGD as an industry, are dependent upon ready access
Bayer Inc's Green Roof. Source: Partners in Project Green Close up aerial view of Bayer Inc.'s Green Roof important economic engine for Hamilton. to the airport and the servicing of land for
Current projections estimate that 20,000- future development making proper land
30,000 jobs would be created with the future use and infrastructure planning extremely
The Pearson Eco-Business Zone was developed through a existantes plus écologiques et d’attirer des entreprises development of the AEGD. important in this area.
partnership between three municipalities, the Toronto and respectueuses de l’environnement. Le projet est situé près de
Region Conservation Authority and the Greater Toronto Airport l’aéroport international Pearson de Toronto sur une superficie The AEGD is a City-led project which aims to During the animated City council meeting
Authority. The resident companies have the opportunity to de 12,000 hectares de terrains industriels et commerciaux. Il expand Hamilton’s employment opportunities on October 13th, council voted against the
join Project Green programs, receive training on how to adopt accueille 12,500 entreprises et 355,000 employés. and support its population growth. In an motion to refer the issue back to the economic
and implement green initiatives and benefit from resources October 14, 2010 article in the Hamilton development and planning committee opting
to support green endeavours that impact environmental La zone pour éco-entreprises de l’aéroport Pearson a été Spectator newspaper, City staffs were quoted instead to have it dealt with by a new council to
performance. Businesses participating in Project Green span mise en valeur grâce à un partenariat entre municipalités, as saying the plan will generate annual tax be elected Oct. 25th. The majority supported
sectors including manufacturing, professional services, l’organisme de conservation de la ville de Toronto et revenue of $52 million and cost an estimated the view that development is required to
transportation, warehousing and hospitality. l’autorité aéroportuaire du Grand Toronto. Les entreprises $353 million in infrastructure when fully dev- attract business, create jobs, lower taxes
locataires ont la possibilité d’adhérer à des programmes du eloped by 2031. The Spectator went on to report and help rebalance the current assessment
Currently, there are 600 companies signed up as participants Projet vert, à suivre une formation pour adopter et mettre en that a City consultant estimated “45 percent which is 70 percent residential and 30
in the program with another 400 involved as partners and œuvre des initiatives écologiques et à profiter de ressources of the employment will be through wholesale percent commercial/industrial. Council also
100 as ambassadors. » en vue de soutenir les efforts écologiques qui influent sur le trade, transportation and warehousing.” supported the mayor’s proposal that, upon
rendement environnemental. Les entreprises qui participent 33 percent project completion, the City will
au Projet vert couvrent le milieu de la fabrication, des services The land surrounding the Hamilton International undertake a review to assess Hamilton’s need
professionnels, du transport, de l’entreposage ainsi que de Airport was first earmarked as potential for further employment land. This decision
l’industrie hôtelière et du tourisme. employment land in the early 2000’s as a may prove to be an exciting opportunity for
result of the provincial government’s initiative commercial and industrial development on a
Déjà 600 entreprises participent au programme, 400 en sont entitled “Places to Grow”. Following the scale seldom seen in Hamilton. »
partenaires et 100 en sont ambassadrices. »

40 Built 2011 Ontario Bringing You the Power of One™ Bringing You the Power of One™ Ontario 2011 Built 41
 Markham
Food Belt Versus
Urban Sprawl
By Angela Forth
An example of Markham's sprawling residential area
The Town of Markham, located approximately 24
kilometers north of Toronto’s city centre, is a rapidly
expanding community with a population expected to
grow by more than just over 150,000 people by 2031.
The Town is also home to a contentious debate over
whether some of the best agricultural land in Canada,
which is located in Markham, should be developed. The
argument, to build or not to build, is forcing some of the
Town’s councilors into a fight with a counter proposal:
to create a permanent “food belt” in Markham.
To provide a bit of background on the issue, at stake
is the remaining 2,000 hectares of prime agricultural
land, which is referred to as the “whitebelt”. This land
is currently outside of Markham’s urban area but not
in the designated Greenbelt — 728,000 hectares of
permanently protected green space wrapping around
the Golden Horseshoe in southern Ontario. This area
is considered by Markham’s growth plan strategy to
have development potential. The expansion alternative
is for Markham to see urban sprawl onto nine square
kilometers of already scarce farmlands, fields and
forests. The proposal of a permanent food belt within this
area will attempt to stop the urban sprawl by asking the
Province of Ontario’s government to reduce the number
of allocated new residents by 40,000 and contain 100%
of growth within the existing urban boundary.
Land is expensive in Markham, making the financial
stakes significant. For example, the sale of the 205
acre Beckett Farm, at Kennedy Road and Sixteenth
Avenue in 2009 for just over $100 million (approximately
$500,000 per acre), provides strong evidence that if the
land is available, developers are willing to pay but, at
what cost to the town and its residents? A recent poll
conducted by Pollara for the Ontario Greenbelt Alliance
indicates that 27 percent of residents placed growth,
sprawl and congestion as the most important issues
facing Markham. “Instituting a food belt would place
Markham in a leadership position,” according to Rick
Smith, executive director of Environmental Defense, a
key member of the Ontario Greenbelt Alliance. “This is
Markham’s decision to make, but the Greenbelt Alliance
commissioned the poll because we were curious about
the levels of public support for the food belt.”
42 Built 2011 Ontario
The result of the debate? The proposal of a permanent
food belt in Markham — which has piqued the interest
and sparked heated debates between environmentalists,
local residents and developers alike — was defeated in
a 7-6 vote in May 2010. As a result, approximately 1,000
hectares of whitebelt land will be developed, while the
remaining 1,000 hectares will be the subject of study
by town staff which will require a decision at that time
whether or not it should be included in a Greenbelt
expansion request to the province. »
Farmland in Markham
Bringing You the Power of One™
Spotlight on Logistics Trends: People
Greater Golden Horseshoe
HOV Freedom
By Dave Thomaes
If you work in a major Canadian city, it is likely that sitting in traffic
has become a daily ritual for you. In the Greater Golden Horseshoe
(GGH) region in Ontario, it has become a nightmare. The GGH
stretches from Fort Erie through the Niagara Peninsula, around Lake
Ontario, across the Greater Toronto Area, over to Peterborough and
north to Collingwood. With the population projected to grow by an
additional 3.8 million people over the next 25 years, city planners
across the region have been scrambling to provide solutions to
ensure smooth mobility between communities. Traffic and congestion
negatively impacts the movement of people and goods and can
have a negative impact on productivity and, therefore, the economy
as a whole.
Unfortunately in Ontario, the lack of space available along the 400
series of highways renders it nearly impossible to build our way out
of congestion by adding additional lanes. However, one solution
is slowly rolling out that may clear up congestion on the streets.
High Occupancy Vehicle lanes, often referred to as carpool lanes,
are restricted highway lanes that are reserved at peak travel times
for multi­occupant vehicles, such as transit buses and carpools.
In December 2005, to encourage carpooling and transit use, the
provincial government opened the first freeway HOV lanes in the
province on portions of Highways 403 and 404. The result? Transit
use has increased on routes that offer HOV lanes and users are
experiencing less frustration from traffic congestion. According to
Bringing You the Power of One™
the Ministry of Transportation of Ontario on Highways 403 and 404,
HOV commuters are saving 14 to 17 minutes per trip compared to
their travel time before the HOV lanes were opened. Travelers in
non­HOV lanes have also reduced commutes by 8 to 11 minutes.
HOV lanes also provide environmental benefits as they encourage
commuters to shift away from single passenger vehicles.
Traffic congestion and transportation options play a strong role
in real estate decisions. Employee commute times are one of the
major factors a company considers when planning a corporate
real estate strategy. Lost work productivity due to employees or
clients stuck in traffic delays can translate into economic losses for
a company if they are located in a congested area. Knowing that
your employees, products and services can move smoothly from
your facility to its final destination is an important consideration in
the decision making process.
Recent monitoring on the HOV lanes reveals that all commuters,
even those in the general purpose lanes, are saving time compared
to their travel time to work prior to HOV lanes opening. The Ministry
of Transportation plans to expand the HOV network to over 450
kilometres of new HOV lanes. This extensive system will maximize
use of public infrastructure investments, help manage congestion,
make cross­regional transit systems more effective, and make
movement of goods through the region more efficient. »
Ontario 2011 Built 43
 Spotlight on Logistics
Trends: Goods
Trailers on Trains
By Charles Torzsok
Reduced productivity, environmental concerns and increased
transportation costs have empowered the rail industry to
make some radical changes. It set out to create a solution to
these problems by reducing the number of standard non­
reinforced trailers on North American highways. Intermodal
shipping — the process by which a transport truck is driven
onto the flatbed of a train and transported via rail to its next
destination — reduces a truck’s carbon footprint and drive time
as the train becomes the main carrier responsible for moving
goods. Similar to driving a car onto a ferry, intermodal shipping
is a system that links together different modes of transportation
to reduce volume on main corridors, address public interest in
protecting the environment, conserve fuel, as well as allowing
companies to improve their supply chains. The Office of Energy
Efficiency, part of Natural Resources Canada, reported that
freight transportation accounts for almost half of greenhouse
gas emissions in the transportation sector. In 2007, Environment
Canada found that the transportation sector was the second
largest emission producing category of greenhouse gases.
44 Built 2011 Ontario
Point de mire sur les
tendances de la logistique :
le transport de biens
Des remorques sur des trains
par Charles Torzsok
La diminution de la productivité, les préoccupations environnementales
et les coûts de transport plus élevés ont incité l’industrie ferroviaire à
adopter des changements radicaux. L’industrie a entrepris de créer
une solution à ces problèmes en réduisant le nombre de remorques
non renforcées standards sur les autoroutes nord­américaines. Le
transport intermodal, c’est­à­dire le processus par lequel un camion
de transport est chargé sur la plateforme d’un train et acheminé à sa
prochaine destination, réduit l'empreinte de carbone du camion et le
temps de conduite puisque le train devient le principal transporteur
responsable du déplacement des marchandises. Similaire au
transport d’une automobile par traversier, le transport intermodal
relie différents modes de transport pour réduire l’achalandage des
principaux corridors routiers, répondre à l’intérêt du public envers la
protection de l’environnement, économiser le carburant et permettre
aux entreprises d’améliorer leurs chaînes d'approvisionnement. Selon
l’Office de l’efficacité énergétique (OEE) de Ressources naturelles
Canada, le transport de marchandises représente près de la moitié
des émissions de gaz à effet de serre dans le secteur du transport.
De plus, en 2007, Environnement Canada a découvert que le secteur
du transport était le deuxième plus grand émetteur de gaz à effet de
serre en importance.
Bringing You the Power of One™
As an industrial owner, locating in close proximity to an intermodal
shipping hub can increase the competitiveness of a property. From a
user perspective, intermodal shipping can significantly reduce
supply chain costs. Intermodal shipping is not a new concept, but
as competition and the volume of trucks intensify, intermodal is a
cost effective way to support supply chains as it uses existing rail
capacity instead of requiring new infrastructure investments for high­
way expansion.
Canadian Pacific’s “Expressway” service between Montreal and
Detroit is a good example of a successful and expanding intermodal
service. The terminals are built close to major highway arteries
making it easy to pick­up and set­off the trailers. Two trains operate
in each direction, six days per week, with capacity for up to 90 trailers
per train which allows for flexibility and convenience of a scheduled
service.
Fleet owners such as Hudson’s Bay Company, Canadian Tire and
Frito­Lay now use their drivers and tractors for local deliveries only.
Companies who are set­up for just in time production are also frequent
users of the service. Border issues are significantly reduced as the
trains move quickly through customs inspection. This enables cargo
to bypass clogged highway crossings that interfere with production
lines. Balanced loads are also created in both directions between
parts and assembly plants.
In today’s environment, the economics of intermodal shipping make
sense. The high reliability of scheduled trains and reduced trans­
portation costs improve supply chains, not to mention other social
and economic benefits to the user. Rather than engaging in head to
head competition between rail and trucking industries, an integrative
solution and partnership brought these two modes of transportation
together to benefit the manufacturing, warehousing and logistics
sectors. Due to the success of the intermodal model, plans by other
rail operators to add, improve, or expand this service in many of their
major corridors are in the works. »
Bringing You the Power of One™
Un propriétaire d’immeuble industriel situé tout près d’un centre
de transport intermodal peut voir le caractère concurrentiel
de sa propriété augmenter. Du point de vue de l’utilisateur, le
transport intermodal peut réduire considérablement les coûts
liés aux chaînes d'approvisionnement. Le concept du transport
intermodal n’est pas nouveau, mais devant l’intensification de la
concurrence et du volume de camions, il représente un moyen
rentable de soutenir les chaînes d’approvisionnement, car
il fait appel aux voies ferrées existantes plutôt que de susciter
de nouveaux investissements dans les infrastructures en vue
d’agrandir les autoroutes.
Le service « Expressway » du Canadien Pacifique entre Montréal
et Détroit est un excellent exemple de service intermodal en
pleine expansion. Ses terminaux sont construits près des
grandes artères des autoroutes, ce qui facilite le chargement
et le déchargement des remorques. Deux trains circulent dans
chaque direction, six jours par semaine, pour une capacité
maximale de 90 remorques par train, assurant ainsi la flexibilité
et la commodité d’un service régulier.
Les propriétaires de parc de camions comme la Compagnie la
Baie d'Hudson, Canadian Tire et Frito­Lay n’utilisent désormais
leurs conducteurs et leurs tracteurs de remorque que pour les
livraisons locales. Les entreprises qui favorisent une production
juste­à­temps sont également de fréquents utilisateurs de ce
service. Les problèmes douaniers diminuent nettement puisque
les trains passent rapidement l’inspection. Les cargaisons
évitent ainsi les intersections routières congestionnées qui
nuisent aux chaînes de production. De plus, des chargements
équilibrés sont assurés dans les deux directions, tant pour les
pièces que pour l’usine de montage.
Dans le contexte actuel, l’aspect économique du transport
intermodal est logique. La grande fiabilité des horaires de train
et les frais de transport moins élevés améliorent les chaînes
d'approvisionnement, sans compter les autres avantages
sociaux et économiques pour l’utilisateur. Plutôt que de jouer
la carte de la concurrence féroce entre l’industrie ferroviaire
et l’industrie du camionnage, une solution et un partenariat
intégrés permettent de combiner ces deux modes de transport
au profit des secteurs de la fabrication, de l’entreposage et de
la logistique. Grâce au succès du modèle intermodal, d’autres
exploitants de l’industrie ferroviaire planifient enrichir, améliorer,
voire étendre ce service dans leurs principaux corridors. »
Ontario 2011 Built 45
 Waterloo London/Windsor/Sarnia
Close Up:
Waterloo The Lang Tannery rendering

Demographic (Kitchener/Waterloo/Cambridge):
Population 508,937
Avg. Household Income $87,804
Source: FP Info Markets 2011 Estimates

Market Health Overall:

“Significant recovery”
“Line up of retailers looking to backfill space”

Economic Drivers:
Technology, Financial Services

Office Market: Downtown London Downtown Windsor

The vacancy rate in 2010 was 11% and is expected to
decrease further in 2011 as technology, financial services
and healthcare tenants look to expand. Office leasing
and developments were active this year. For example,
the Lang Tannery development in downtown Kitchener
signed Desire2Learn, The Digital Media Hub and Google
for 105,000 square feet of space. The Cora Group is
building a 105,000 square foot property in the Research
and Technology Park in Waterloo where Agfa Healthcare
will take 82,000 square feet of office space, and both
Research in Motion and Activa Group have business parks
(campuses) under construction. Rents for smaller office
projects command around $15 per square foot while new
offices command $18. Tenants continue to have choice in
the marketplace which keeps landlords competitive.
Industrial Market:
2011 will be a strong year for industrial development.
Current demand is for flex and drive­up office space.
Although absorption was strong in 2010, the region
overall is still negative. Industrial users will continue
to see bargain prices. As construction costs increase,
the trend is for users to buy vacant industrial buildings
and convert them for reuse such as the Kitchener
Frame building and the Breithaupt Block. Developers
interested in industrial adaptive­reuse can offset net
development charges with credits when the buildings
are demolished.
Investment Market:
Owners are choosing against selling their buildings
because they are unable to find replacement inventory
once they make a sale. Demand for multi­residential
was the strongest in 2010 whereas industrial was the
weakest. Equitable Life and Bentall Kennedy teamed up
to purchase Alpine Plaza from Strathallen Corp. for
$8 million. Cap rates are lowest for multi­residential
project (6­8%) whereas other investment classes are
375 Hagey Blvd. rendering
in the 8­9% range.
Waterloo in Transition
By John Whitney
The Region of Waterloo continues to transition from an
economy that is predominantly industrial based to one
that is geared to office and advanced manufacturing.
Once home to Canadian manufacturers such as Greb-
Hush Puppies, Bauer Skates, Electrohome, Deilcraft
Furniture, Kaufman Footwear, Uniroyal Goodrich, with
each successive recession occurring during the 80s,
90s and 2000s, these companies slowly started to
disappear from the local landscape. Fortunately, the
innovation located in the region allowed for the dev-
elopment and growth of the financial services, technology
and education sectors.
Today, Waterloo is home to several internationally re-
cognized brand name firms such as Research in Motion,
Christie Digital, Agfa HealthCare, Manulife Financial and
Economic Insurance, OpenText, and Desire2Learn that
are bringing prosperity and economic growth to the area. »
London
Two retail malls in London have undergone retrofits and
conversions from retail to mixed use office properties.
City Plaza, formerly Galleria Mall was converted from a
mall to include retail, office space. City Plaza has even
created space for educational usages. Westmount Mall,
also transitioned from a retail property to include a
pharmacy, doctors offices, some retail and a food court.
General Dynamics, located in London has received a
$33.2 million dollar order to produce 21 RG-31 Mk5EM
and 6 RG-31 Mk5E military vehicles as well as the
Government of Canada’s $34.4 million dollar order to
upgrade 550 LAV III vehicles.
A small, London based company has recently installed a
solar system to run in conjunction with London’s regular
electricity system. IndelWorks is contributing to the
renewable energy movement in London and has set up a
10,000 Watt Micro-FIT solar system which is incorporated
within the London Hydro Grid on April 2010 on a 20 year
contract. Also, KACO new energy, the world’s second
largest solar inverter manufacturer, who has delivered
more than 2GW of PV inverters to customers world wide.
Their new facility will be located on the Dancor Campus
in London’s Skyway Industrial Park. »
Windsor
Windsor/Detroit Border Crossing, which handles almost
30 per cent of all Canada-U.S. trade according to the
Canadian Economic Action Plan construction which is
already underway that will include inspection plazas on
both sides of the river and feeder highways linking Highway
401 in Windsor to the I-75 in Detroit.
The renewable energy trend continues to gain traction as
a host of international and domestic renewable energy
companies flock to Windsor to open up offices including
Siliken (Spain), Schletter (Germany). WindTronics (U.S.),
and Solar Source Corp (Canada) which is helping to
stimulate Windsor-Essex economy and generate jobs in
the area.
University of Windsor is constructing a $112 million Centre
for Engineering Innovation on campus that will house its
Faculty of Engineering. The 300,000 square foot facility
will be the largest building in Windsor-Essex to achieve
LEED Gold status the largest building on campus for the
Centre for Engineering Innovation.
St. Clair College is constructing a new Applied Health
Sciences building and downtown Windsor MediaPlex for
$32 million. The new Centre for Applied Health Sciences
is being built to meet regional health care infrastructure
needs and is estimated to be complete by March 2011. »

Retail Market:
Large format retail has little to no vacancy. Recent
Sarnia
expansion in Conestoga Mall added over 130,000 square
feet including a 700 seat food court. New to the site is a Sarnia, Ontario is now home to the largest photovoltaic solar farm in
freestanding CIBC, a redesigned transit terminal as well the world. Enbridge’s $400-million solar project opened in October
as retailers such as Bath and Body Works, Spring Rolls, 2010 and will output 80 megawatts to power more than 12,000 homes
and Oliver & Bonacini. The biggest slowdown in retail is or roughly 40% of the homes in the City of Sarnia. Originally developed
among smaller users in the range of 1,000­2,500 square by First Solar as a 20 megawatt project, Enbridge added an additional
feet. The Boardwalk, a one million square foot mall, is 60 megawatts totaling 1.3 million panels that will work to reduce
under construction on Ira Needles Blvd. Anchor tenants greenhouse gas emissions by 1.5 million tones. Enbridge’s solar farm
include WalMart, Rona, Empire Theaters, LA Fitness
is a plus in terms of positioning Canada as a global solar player. »
and Cara Foods (with five restaurants). The challenge
remains to find new locations for retailers, especially as
the new sites proposed are two or three years away from
breaking ground.

46 Built 2011 Ontario Bringing You the Power of One™ Bringing You the Power of One™ Ontario 2011 Built 47
 Niagara Region Kingston
Close Up:
Niagara Region
Demographic:
Population 451,607
Avg. Household Income $72,986
Kingston’s Brownfield
Source: FP Info Markets 2011 Estimates
Redevelopment Pilot Project
Market Health Overall: By Gillian Ward
“The local market underperformed in 2010”
“Growth in 2011 will be static”

Economic Drivers: Redeveloping neglected brownfield sites — industrial or commercial

Tourism, Green Technology, Post Secondary
land that has been underused, predominantly as a result of
Education Institutions
suspected or real environmental pollution — can result in significant
economic benefits for a city. Potential gains include the creation
Office Market:
The vacancy rate increased by 20% and absorption remained negative and retention of employment opportunities, increased economic
as a number of tenants purchased their own buildings or chose to productivity of surrounding land, increased tax revenue, lower
consolidate office space in 2010. The majority of vacancy is located in municipal infrastructure costs, reduced health risks associated with
the downtown core, while floor plates over 7,500 square feet are difficult contaminated land and improved communities. According to the
to locate in the suburban areas. National tenants are busy securing National Round Table on the Environment and the Economy, there
restrictive covenants in their leases thus blocking “competing” users. may be as many as 30,000 such sites across Canada that have
There is one 20,000 square foot office building scheduled for completion potential for redevelopment. Unfortunately, these abandoned or idle
in North St. Catharines in 2011 with Investors Group as the main tenant.
brownfield lands possess a stigma as well as an environmental
Tenants are seeking incentives such as free on­site parking, access to
the main highways, built out space and early lease termination clauses liability and there is a cost premium for site rehabilitation.
Rendering of the Marilyn I. Walker School for the Fine and Performing Arts
in order to stay put. The Walker Family Cancer Centre continues to take
shape in West St. Catharines. Another large project currently under The Province of Ontario’s answer to unlocking brownfield
construction is the Cairns Family Health and Bioscience Complex at value is its 2001 Brownfield Statutory Law Amendment Act
Brock University. Rental rates continue to decrease due to oversupply of federal and provincial governments, is which provides certain protections and financial incentives
space on the market. Expect a ‘‘tenant market’’ to continue into 2011 as progressing as demolition began on a for developers to encourage the remediation of these lands. In
rates decline approximately 3­4%. series of buildings in December 2010. The conjunction with the Planning Act, municipalities can establish
Creative Economy centre will offer four performance venues Community Improvement Plans (CIP) for defined areas, and are
Industrial Market: including a 900 seat concert hall, a 200 thus able to provide financial incentives such as tax assistance,
The vacancy rate increased to almost 20% as approximately one By Taylor Wilson
seat dance and theatre venue, a 200 loans or grants to developers to offset the burden of remediation
million square feet of space is on the market. Industrial buildings that
are priced at less than $1 million are selling briskly despite adverse seat cinema and a recital hall for Brock costs for brownfield redevelopment projects within the defined
market conditions. 2011 should be a difficult year for industrial leasing, University’s Marilyn I. Walker School for area(s). This effectively uses public sector investment to leverage
especially larger buildings that cannot be sub­divided. Tenants are the Fine and Performing Arts. Likewise, private sector investment.
increasingly looking for shorter terms and “outs” in their contracts. Brock University’s fine arts campus is
Tenants are seeking small flex space with high ceiling heights and clear to proceed after the Ontario Martin L. Skolnick, Vice President of DTZ Barnicke Eastern
which has left large industrial leasing cold. Rents are down to $3 After suffering a decline in employment, the government announced funding for the Ontario Limited, was a member of the 2002 Task Force that
per square foot in Class A industrial buildings and will continue to Niagara region is taking a new direction focusing project in April 2010. The new Marilyn identified two CIP areas for brownfield remediation and re-
decrease in 2011 as lack of demand is affecting rates.
on fostering innovation, the arts and creativity I. Walker School will provide facilities development that were later adopted by the City of Kingston in
in order to drive the economy. An area known for more than 500 full-time students and 2004. These two CIP areas covered 503.1 acres which represented
Investment Market:
for tourism and wine, the Niagara region is dev- faculty and will be located beside nGen. a total of 571 potential brownfield properties in Kingston.
Minimal activity with mostly small, local players involved. The products
most in demand are retail plazas, office buildings and apartment eloping a new niche and laying the groundwork Both the school and performing arts cen-
buildings. Capitalization rates for retail plazas are typically between to become a hub for digital interactive media tre will bring employment opportunities,
8% and 9%; while apartment buildings range from 7% to 8%. The projects, business development and artistic draw residents and increase pedestrian
challenge remains to find good quality, properties available for sale. talent through the creation of nGen, Niagara traffic in the downtown core as well as
A large sale included a modern 115,000 square foot industrial building Interactive Media Generator and the Performing positively impact the economic health of
in the Niagara Falls Industrial Park for $21 per square foot with over Arts Centre. the region.
15 acres of land (under power of sale). Generally, the market is under
supplied with minimal distress sales.
In the past two years, the City of St. Catharines For an area that experienced significant
along with public and private institutions, invested job loss, these projects are contributing
Retail Market:
$7.2 million to launch a space to promote and to growth in a meaningful way that was
The retail market is strong for big box retailers with some new
design builds in 2010. The ongoing reconfiguration of Niagara Falls’ support entrepreneurship, research and ideation previously unimaginable. Keeping the
Queen Street district for specialty shopping that caters to tourist has from small and medium sized companies and re- workforce alive through innovation, tech-
had moderate success. Rents are decreasing and will continue to search from the academic community. Currently a nology and the advancement of artistic
stabilize during 2011. Small units in strip plazas can still command mix of experts, investors and researchers are on- talent will make the Niagara Region unique
$14 to $18 per square foot net rents. A new “large format” WalMart site to mentor nGen residents in order to focus and will reduce the impact of seasonality on
and Lowe’s store is nearing completion in the south­end of Niagara and grow the expertise in the Niagara Region. business sectors in the region by balancing
Falls. Challenges include survival for the downtown core tenants and the earning potential with sectors less
retaining tenants for local strip malls. The most active tenants in the
Funding for creativity and a regeneration of affected by the weather. Taking Niagara to
Niagara region retail market have been the big five banks, franchised
food companies and the LCBO. economic activity has not stopped with nGen. the next level by becoming an important
The Downtown Performing Arts Centre, a player in technology and the arts is the silver Brownfield during redevelopment
$54 million endeavor with backing from the lining to the Region’s ongoing success. »

48 Built 2011 Ontario Bringing You the Power of One™ Bringing You the Power of One™ Ontario 2011 Built 49
 Kingston
Kingston was the first municipality in
Ontario approved to offer a tax incentive
associated with a brownfield clean up and
its first application was for the downtown
waterfront property commonly known
as Block D. This site was previously Kingston Downtown
considered too costly to redevelop.
Historically known as Mississauga Point, Revitalization: An Action Plan
Block D’s use, dating back to 1892,
was primarily industrial. The Canadian By Gillian Ward
Locomotive Company (CLC), a Canadian
manufacturer of railway locomotives, was
situated on the site at Ontario and Gore
Streets, on Kingston’s waterfront. Because
of this prominent waterfront location and Kingston’s downtown core remains strong and vibrant at a time when
its 7.5 acre size, Block D’s potential for other cities of comparable size are facing a loss of vitality. While some
redevelopment was attractive in terms of cities see residential populations defect to the suburbs and store
value that could be added to the land. fronts being left vacant by retail decentralization to power centres,
Kingston has not. This city’s success provides an excellent example
Block D was redeveloped by Homestead of downtown revitalization and urban planning.
Land Holdings Ltd. in conjunction with
Gillin Engineering. As “in situ” remediation The overall goal of a downtown revitalization project is to boost the
methods were not yet developed, the local economy and increase demand that, in turn, positively impacts
remediation process required excavation local business and real estate. Revitalization generates benefits such
and removal of contaminated soil, with as increased tourism dollars, stronger and more stabilized property Kingston as viewed from Fort Henry (Photo Courtesy of Joan Mann)
extreme care and attention to control of and housing values, and more cultural and social activities. Integral to
groundwater infiltration. Approximately this holistic process is attracting the residential population back to the
30% of the excavated material was rock heart of the city, thus increasing retail sales through higher pedestrian
that could be crushed and reused for traffic. Ideally, downtown revitalization projects integrate the nec-
backfill on the site. The total cost for essary facilities to live, work, shop and play — all right downtown. Another illustration of how this concept has been put into sports and entertainment downtown all contribute to the
remediation was approximately $10M. There are a few key strategies that keep Kingston’s downtown an action is the development of the attractive new Battery Park health of this neighbourhood. These venues complement the
attractive destination for residents, business and tourism alike. that provides public access to the waterfront and is part of the existing amenities, such as restaurants, hotels and public
Through an early public consultation brownfield redevelopment highlighted in the accompanying transportation, and attract additional business through cultural
process, Homestead was able to ach- Firstly, the City of Kingston emphasizes a balance between preserving article. The final stages of this development were completed activities and events. Locating the K-Rock Centre downtown
ieve collaboration between public and its history, and increasing the City’s density through strategically in 2010 and the design includes a limestone seating wall, increased the utility of existing parking facilities, generally
private interests and addressed com- planned infill via new or redeveloped mixed use projects. For example, waterfront pathway, an accessible event plaza and additional underutilized after regular business hours, and prevented the
munity concerns over public access to the the historic S&R retail building, which will maintain its architecturally lights and plantings. necessity of paving greenfield space to provide parking for
waterfront and site lines to the water for significant façade, is currently under redevelopment as The Smith the facility.
neighbouring residences. To demonstrate Robinson Building — three floors of office space above street level A second strategy which the City of Kingston uses to keep its
respect for the historic nature of the site, retail/restaurant space, totaling 60,000 square feet. downtown vital is to situate public service offices, municipal The City of Kingston continues to focus on improving its
Homestead also created a showcase of administrative functions, and institutions such as Queen’s downtown infrastructure, moving forward with its vision and
items discovered during the remediation University, Royal Military College, Hotel Dieu Hospital, and plans for accessible, pedestrian friendly streetscapes, and
work. This display is in the first residential Kingston General Hospital downtown, which helps to increase the redevelopment of more brownfield sites. By enriching
high rise building that was developed on draw and demographic diversity. quality of life in the downtown, they are attracting people and
the site, which was appropriately named business back to the heart of the city and stimulating the urban
“Locomotive Works”. Finally, the City of Kingston’s rejuvenation of historic Springer economy. »
Market Square, refurbishment of Kingston’s Grand Theatre
The opening of Battery Park in June, 2010, and decision to situate the recently built K-Rock Centre for
concluded the final stage of the Block D
redevelopment project. The site has been
transformed from an embarrassing and
potentially hazardous downtown eyesore
into a prime waterfront development with
a public park, a 92 unit condominium Kingston’s “downtown core is one of the most successful downtowns in
complex — most of which was presold—
two residential rental buildings of 142
Ontario, in terms of the size of its commercial sector, retail selection and
units and 130 residential units, plus two
ground level commercial units, and a 141
the balance between chain stores and independent retailers…downtown
unit Residence Inn by Marriott. This dev- Kingston is a major asset to the community and to the regional visitor base.”
elopment has already contributed over
$100M to the local economy during its
Source: urbanMetrics Inc., Commercial Inventory and Market Analysis City of Kingston, 2008
construction phase and will continue to
generate increased economic benefit for
the City of Kingston, particularly its down-
Aerial view of Kingston's downtown area with the redeveloped brownfield area in foreground
town core. »

50 Built 2011 Ontario Bringing You the Power of One™ Bringing You the Power of One™ Ontario 2011 Built 51
Close Up:
Ottawa
Demographic:
Population 369,890
Avg. Household Income $91,005
Source: FP Info Markets 2011 Estimates

Market Health Overall:

“Slow and steady in 2010,”
“2011 steady but not spectacular growth”

Economic Drivers:
Government, Technology

Office Market:
Absorption was positive and the vacancy rate in the
Ottawa office market decreased from 6.6% early on in
2010 to 6.2% due to strong leasing activity in the suburban
west market of Kanata where several large blocks of
vacant space were filled by high tech companies, RIM
and HP. The vacancy rate is expected to increase in 2011
as large blocks of space in downtown Ottawa come back Ottawa River Parkway
to the market. Public sector tenants continue to show
demand for Leadership in Energy and Environmental
Design (LEED) space while private sector tenants look for
high quality, economic, modern office space. Development
activity has been slow in Ottawa for the past several years. Ottawa
Accreditation Canada’s new head office was the only new
office building completed in 2010. One more office will be Lansdowne Park Redevelopment: Integrated site plan, City of Ottawa
completed in 2011 for Export Development Canada. Net
rental rates decreased in 2010 due to increasing vacancy
rates in the downtown core and double digit vacancy in the
suburban west markets of Nepean and Kanata. Downtown
Over the years the site and its buildings have fallen into a state LEED ND is based on the integration of the principles of
rates will likely experience further downward pressure in
2011. Downtown and Ottawa East are landlord markets of disrepair, which prompted the City of Ottawa to proceed smart growth, urbanism and green building. This certification
whereas Kanata, Nepean and Ottawa West are ‘tenant
markets’.
Landsdowne Park with the “ Lansdowne Partnership Plan” to redevelop the park. provides independent third-party verification that a dev-
elopment’s location and design meet accepted high levels of

Industrial Market:
Industrial vacancy increased to 4.1% from 3.6% in 2010
due to the completion of a new spec industrial building
Redevelopment: A The vision for the renewed Lansdowne Park will see the green
space surrounding the Rideau Canal expanded and a re-
environmentally responsible, sustainable development. LEED
ND communities restore green space, make efforts to store and
Unique Opportunity For vitalization of the existing stadium and arena for sports and
entertainment events. The partnership hopes that this site
treat storm water on-site, and have LEED certified buildings.

on Polytek Road. Vacancy is expected to rebound in

2011. The development market has been relatively quiet
in the industrial market with one building coming to
market this year and one in the following year.
Investment Market:
Increased liquidity in the market and the stability of
Ottawa’s economy resulted in an active investment
market. In the first six months of 2010, there were 127
sales of property in comparison to 102 sales during the
same period in 2009. Retail, multi­residential and land
were the most desired products however; office and
industrial assets were also in demand. The sale of Nortel's
Carling Campus (2.2 million sq. ft.) to Public Works
and Government Services Canada was concluded in
December 2010. There is a concentration of ownership
in the multi­residential class with very few players willing
to sell. Cap rates compressed in 2010 returning to 2008
levels. Yields also decreased this year from 7.1% to 6.6%
with the expectation that yields will continue to trend down­
ward in 2011. The challenge remains to be the shortage
of investment grade product in the Ottawa market.
Retail Market:
Overall vacancy in the retail market declined to 2.9% in
2010 while rents increased due to the rent increase in
neighbourhood malls. Rents will continue to increase in
2011 due to low vacancy and tight supply.
Community Sustainability
By Paul Mullin
The City of Ottawa, in partnership with Ottawa Sports and
Entertainment Group (OSEG), is working to redevelop and
transform Lansdowne Park into a world-class venue while
acting as a model of sustainability in the community.
Lansdowne Park is a 37-acre historic sports, exhibition
and entertainment facility owned by the City of Ottawa.
It is located on the east side of Bank Street, south of
Holmwood Avenue and adjacent to the western boundary
of the Rideau Canal in the heart of the nation’s capital.
Lansdowne is framed by lands of local and national
importance: the scenic Queen Elizabeth Drive, owned
by the National Capital Commission, and by the Rideau
Canal, a National Historic Site of Canada and a UNESCO
World Heritage Site.
Lansdowne Park contains Frank Clair Stadium, Civic
Centre Arena, the Horticultural Building and Aberdeen
Pavilion (both designated heritage under the Ontario
Heritage Act), Coliseum and other exhibition buildings.
will stand as a model of modern-day innovation in an urban
form where people can walk, cycle, shop, work, and live in an
The new buildings will be designed to meet a minimum of
LEED Silver standard across all building types (retail, office,
environment respectful of the architectural heritage of the City and residential). The Lansdowne redevelopment has the
of Ottawa. potential to be one of only a few large projects in Canada that
is developed to LEED ND standards.
The Lansdowne project has three key components:
The redevelopment plan has been opposed by some Ottawa
1. The Stadium – a 24,000 seat open-air sports stadium which residents and community groups, particularly those closest to
will be home to a new CFL team. the Lansdowne site. Heritage activists have opposed the plan
to move a heritage building on the site. The plan also faces
2. Urban park component beside the Rideau Canal which court challenges and a review before the Ontario Municipal
will include large open spaces, baseball diamonds, soccer Board before it can proceed to construction. Construction is
fields, outdoor curling sheets and year-round market retail in scheduled to commence in June 2011 and is expected to be
the Horticulture Building. completed in 2013. »
3. Mixed-use commercial development component near
Bank Street which will consist of 300,000 square feet of
retail, restaurants, entertainments, sport and professional
services, and 90,000 square feet – 6 storey office building.
One of the key principles of the Lansdowne redevelopment
project is to create a community sustainability model for urban
revitalization. The Lansdowne redevelopment presents a
very unique opportunity for the City of Ottawa to be a leader
in community sustainability by striving to achieve a gold
certification for LEED Neighbourhood Development (LEED ND).

52 Built 2011 Ontario Bringing You the Power of One™ Bringing You the Power of One™ Ontario 2011 Built 53
 Le parc éolien Le Nordais situé en Gaspésie La forêt québécoise couvre plus de 750 000 Informations démographiques

Québec dans la province de Québec, est l’un des

plus importants au Canada et possède
km2 ce qui représente la taille de la Suède
et la Norvège combinée. Elle représente 20
(estimation basée sur 2011) :
Population : 7 959 230

ABOUT QC
les plus hautes éoliennes à axe vertical au % des forêts canadiennes.
Revenu moyen par ménage : 68 684 $
monde. Un total de 132 éoliennes compose
le parc et produit en moyenne 165,000 Source: FP Info Markets 2011 Estimates
mégawattheures par année.

Quebec has the most impor tant windmill
park in Canada. It’s also one of the largest
in the world. It’s the Le Nordet windmill park
in Cap Chat in the Gaspésie region.
Quebec’s forest covers more than 750,000 Demographic Information
km2, which is the size of Sweden and (2011 Estimates):
Norway together. It represents 20% of the Population: 7,959,230
Canadian forests. Avg. Household Income: $68,684
Source: FP Info Markets 2011 Estimates

Source: Gouvernement du Québec // Government of Québec

Montréal

Les cinq édifices The Top Five

commerciaux à Commercial
l’évaluation la plus Buildings In
élevée de Montréal Montréal
par Mireille Signori By Mireille Signori

La publication du nouveau rôle foncier In September 2010, the City of Montréal

de la Ville de Montréal, publié en
septembre 2010 révèle les cinq édifices
commerciaux possédant les évaluations
foncières les plus élevées de la métropole.
Le rôle foncier représente l’inventaire
des propriétés dont il indique la valeur
commerciale d’après la valeur réelle du
marché au moment de l’évaluation. Cette
valeur a été déterminée en juillet 2009 et
est entrée en vigueur le 1er janvier 2011.
Le rôle d’évaluation foncière servira de
base pour les taxes foncières 2011-2013.
Ainsi, les cinq édifices montréalais à
l’évaluation foncière la plus élevée sont :
La Place Ville Marie : Cet immeuble de
prestige, offrant de plus de 1,5 million
de pieds carrés d’espace de bureau
et une magnifique galerie marchande,
est situé au cœur du centre-ville de
Montréal. Réputée pour la renommée
de ses locataires, la qualité de ses
aménagements et sa galerie commerciale
qui regroupe environ 80 marchands, la
Place Ville Marie est maintenant évaluée
à 725 millions de dollars.
Le complexe Desjardins : Ce complexe
se compose de trois tours à bureau
totalisant 99 étages et trois niveaux
Montréal
published the latest assessment roll.
This property inventory indicates the
commercial value of each property
based on its real market value at the
time of assessment. Real market values
were established on July 1st, 2009 and
came into effect on January 1st, 2011.
The assessment roll valuation makes up
the basis of 2011-2013 property taxes.
According to this assessment roll, the
top five commercial buildings are:
Place Ville Marie: This prestigious
building of over 1.5 million square feet of
office space and a magnificent shopping
mall is located in the heart of downtown
Montréal. Recognized for its renowned
tenants, the quality of its design and
its shopping mall of approximately 80
merchants, Place Ville Marie is now ass-
essed at $725 million.
Complexe Desjardins: This complex
is comprised of three office towers
totaling 99 floors and three levels of
parking. It includes a shopping mall with
110 boutiques and restaurants, a sport
centre, a food court and a magnificent
food fair. Strategically located in the new
Quartier des spectacles, the complex

de stationnement, sans oublier une benefits from excellent visibility and

galerie commerciale de 110 boutiques constant traffic. The assessment roll
et restaurants, incluant un centre sportif, of this complex is now $565 million.

Centre-ville de Montréal // Downtown Montréal Bringing You the Power of One™ Québec 2011 Built 55
Point de mire :
Montréal
démographie :
Population 3,892,154
Revenu moyen par ménage 73,851 $
Source: FP Info Markets 2011 Estimates
dTZB montréal :
« Un marché calme, mais stable en 2010 »
« Construction spéculative limitée »
Moteurs économiques :
Les services financiers, la technologie
Marché des immeubles à bureau :
Les activités du marché des immeubles à bureau sont
demeurées stables en 2010. Plusieurs locaux de grande
superficie sont apparus sur le marché de la sous­location
au troisième trimestre de 2010, ce qui accroîtra le taux
d’inoccupation en 2011. La Ville devrait observer une
absorption positive au second semestre, lorsque certains
de ces grands locaux seront loués. Les entreprises de
technologie et de conception de jeux sont actives à
Montréal. Elles sont à la recherche d’espaces dotés
de bonnes infrastructures, situés près des transports en
commun. Aucun grand projet de mise en valeur n’a pris fin
en 2010, sauf quelques projets destinés à des locataires en
banlieue. Le marché était favorable aux locataires, car les
taux de location sont demeurés stables et les forfaits offerts
aux locataires étaient plus élevés qu’à l’habitude. En 2011,
l’équilibre devrait revenir puisque les loyers demeureront les
mêmes et qu’on observera une absorption de l’espace. Bell
Canada a terminé la construction de son nouveau campus
à l’Île­des­Sœurs, où elle a relocalisé son siège social. Elle
laisse ainsi près de 155 000 pieds carrés d’espace à louer
au 1050, côte du Beaver Hall.
Marché des immeubles industriels :
Le taux d’inoccupation des immeubles industriels est
demeuré stable à 8,3 % en 2010, même si un large éventail
d’espace continue d’être offert dans la Ville. La demande
d’espace cubique a augmenté, car Montréal devient
un marché axé sur la distribution. Pendant le deuxième
semestre de 2010, les activités locatives pour les espaces
de 40 000 à 100 000 pieds carrés se sont accrues à Montréal
en raison d’un gain de confiance des entreprises. Les
loyers ont continué de diminuer, notamment les immeubles
à la hauteur libre de moins de 24 pieds. On a observé très
peu de construction spéculative en 2010, de même qu’une
augmentation de la demande de produits LEED. Le nombre
de constructions d’immeubles industriels a atteint son taux
le plus bas des cinq dernières années, mais PR@M, un
nouveau programme d’abattement d’impôt créé par la Ville
(voir l’article intitulé Le programme d’abattement d’impôt
de Montréal) a suscité la construction de nouveaux projets
sur l’île de Montréal. De nombreux terrains sont disponibles
à Vaudreuil­Dorion, à Laval, à Châteauguay et à Salaberry­
de­Valleyfield, à une fraction du prix de ceux de l’île.
Marché de l’investissement :
La demande de propriétés industrielles demeure élevée
puisque les faibles taux d'intérêts incitent les locataires
à explorer les possibilités d’acquisition. Les transactions
majeures sont dominées par des investisseurs
institutionnels, tandis que les transactions plus modestes
sont réalisées par des investisseurs locaux privés. Peu
de propriétés d’investissement sont à vendre, ce qui
crée un écart entre les attentes des acheteurs et les
évaluations des vendeurs. Deux transactions ont retenu
l’attention cette année : le 1801, avenue McGill College et
la Place Innovation.
56 Built 2011 Québec
La Place Ville Marie
un marché d’alimentation et une magnifique foire alimentaire.
Stratégiquement situé dans le nouveau Quartier des spectacles,
le complexe profite d’une excellente visibilité et d’un achalandage
constant. La valeur foncière de ce complexe atteint désormais
565 millions de dollars.
Le Fairview Pointe-Claire : Incontournable et branché, ce centre à la
mode est la destination par excellence de l'Ouest de l'île pour qui veut
vivre une expérience de magasinage inoubliable. Offrant un éventail
incomparable de plus de 200 magasins, boutiques et restaurants,
ce centre commercial possède désormais une valeur foncière de
68 millions de dollars.
Le 1250 René-Lévesque Ouest : Un des plus récents immeubles
de prestige du quartier des affaires du centre-ville de Montréal, ce
magnifique gratte-ciel est l’un des plus hauts de l’île de Montréal, avec
ses 47 étages et ses cinq niveaux de stationnement souterrain. La
valeur foncière de cet immeuble de plus de un million de pieds carrés
d’espace de bureau est évaluée à 332 millions de dollars.
Les Galeries d’Anjou : Regroupant plus de 175 magasins et services
de premier choix, ce centre commercial est l’un des plus imposants
de l’Est de Montréal. Son emplacement stratégique à l'intersection
des autoroutes 40 et 25 en fait une destination prisée. Désormais, la
Ville de Montréal évalue cet immeuble à 328 millions de dollars. »
Bringing You the Power of One™
Le complexe Desjardins Le 1250 René–Lévesque Ouest
Le Fairview Pointe-Claire
Les Galeries d'Anjou
Fairview Pointe-Claire: Inescapable and trendy, this fashion centre
is the West Island destination of choice for an unforgettable
shopping experience. With its incomparable range of over 200 stores,
boutiques and restaurants, this commercial center is now assessed
at $368 million.
1250 René-Lévesque West: One of the most recent prestigious
buildings in Montréal’s downtown business district, this magnificent
skyscraper is one of the tallest building on the island, with its 47 floors
and five levels of underground parking. The assessment value of
this over one million square feet of office space building is assessed
at $332 million.
Les Galeries d’Anjou: With its over 175 stores and first class services,
this shopping mall is one of the most impressive of the East End of
Montréal. Because of its strategic location at the corner of Highways 40
and 25, the Galeries d’Anjou is a popular destination. The City of
Montréal assesses this building at $328 million. »
Bringing You the Power of One™
Close Up:
Montréal
demographic:
Population 3,892,154
Avg. Household Income $73,851
Source: FP Info Markets 2011 Estimates
market Health overall:
“A flat but stable market in 2010”
“Limited speculative construction”
Economic drivers:
Financial Services, Technology
office market:
In 2010, the office market was flat in terms of activity.
Large blocks of sublet space came back on the market
in Q3 2010 which will negatively impact the vacancy rate
in 2011. The city should see some positive absorption
during the second half of 2011 as some of the large
sublet space that came back on the market is leased
up. Technology and gaming firms are active in Montréal
seeking out space with good infrastructure located close
to public transportation. No significant development
projects were completed in 2010 except for a few tenant
specific projects in the suburbs. Rental rates were stable
with higher than normal tenant incentive packages
making it a ‘tenant market’ in 2010. In 2011 rents will
level off as space is absorbed. Bell Canada completed
its new campus on Nun’s Island and relocated its head
office to the new facility leaving 200,000 square feet of
space to backfill at 1050 Beaver Hall Hill.
Industrial market:
The industrial vacancy rate held steady at 8.3% in 2010
despite the fact that a wide range of space continues to
be available in the city. Demand for cube space increased
as Montréal becomes a distribution driven market. In the
second half of 2010, Montréal saw more leasing activity
in the 40,000 to 100,000 square foot range as businesses
became more confident. Rental rates continued to
decrease, particularly those with clear heights less than
24”. The market saw limited speculative construction in
2010 and increased demand for Leadership in Energy
and Environmental Design (LEED) products. Montréal’s
industrial construction numbers were its lowest in five
years however a new tax abatement program, PR@M,
created by the City (see Montréal’s Tax Abatement
Program) resulted in some new projects on­island. There
is a large supply of off­island land available in Vaudreuil­
Dorion, Laval, Châteauguay and Valleyfield at a discount
of on­island land.
Investment market:
Demand for industrial properties remains strong as low
interest rates encourage existing tenants to explore
ownership opportunities. Large transactions are dominated
by institutional investors whereas smaller deals are done
by private, local investors. There is limited product for
sale creating a gap between buyer expectations and
seller valuations. Two notable deals this year include
1801 McGill College and Place Innovation.
Québec 2011 Built 57
 Montréal
Architecture historique de Montréal //
Montréal's Historical Architecture Centre-ville de Montréal // Downtown Montréal
Des programmes
incitatifs à Montréal
par Marie-Hélène Boulay
Le marché de l’immobilier est demeuré
relativement stable compte tenu de la crise
financière des dernières années. Malgré la
récession, la Ville de Montréal a su se démarquer
et maintenir le cap en stimulant l’économie. Elle
a mis en place plusieurs programmes d’aide
entre 2007 et 2010, dont les suivants :
Le PR@M — Industrie est un programme incitatif
destiné aux propriétaires de bâtiments industriels
de Montréal. Il offre un remboursement de la
taxe foncière générale liée à l’augmentation de la
valeur de la propriété découlant de la construction,
de la reconversion ou de l’agrandissement d’un
bâtiment industriel, et ce, sur une période de
cinq ans. Le PR@M — Industrie a été créé pour
accélérer l’investissement immobilier, revitaliser
ou reconvertir le patrimoine industriel de la Ville,
améliorer le caractère concurrentiel de Montréal et
maintenir une structure économique diversifiée.
Le PR@M — Commerce vise à moderniser les
artères et secteurs commerciaux afin de permettre
aux propriétaires d’entreprises d’augmenter la
rentabilité de leurs investissements. Il propose
un soutien financier jusqu’à concurrence de
4,000 $ par projet de rénovation (couvrant 50 %
58 Built 2011 Québec
Gratte-ciel de Montréa // Montréal Skyscrapers
Assistance Programs
in Montréal
By Marie-Hélène Boulay
The real estate market has remained relatively
stable despite the financial crisis of the last few
years. During the recession, the City of Montréal
managed to stay on track by stimulating the
economy. It launched several assistance pro-
grams between 2007 and 2010, including the
following:
PR@M— Industry is a subsidy program for
owners of industrial buildings located in Mon-
tréal. It offers a five-year general property
tax rebate on the increase in property value
resulting from the construction, conversion
or expansion of an industrial building. PR@M
Industry was created to accelerate investment in
property development, revitalize or convert the
city’s industrial heritage, improve Montréal’s
com petitive position and maintain a diversified
economic structure.
PR@M – Commerce is meant to modernize com-
mercial arteries and neighbourhoods, so that
business owners improve their profitability. Fin-
ancial support of up to $4,000 per renovation
project (covering 50% of design/planning costs)
is available as well as a financial support up to
$33,000 per building (covering a third of eligible
work costs).
Bringing You the Power of One™
des honoraires professionnels en design d’aménagement) de
même qu’un soutien financier pouvant atteindre 33,000 $ par
bâtiment (couvrant le tiers du coût des travaux admissibles).
Le PR@M — Revitalisation est un programme incitatif à
l’intention des propriétaires de bâtiments commerciaux à
usage dérogatoire, maintenu par droits acquis, afin qu’ils
construisent des unités d’habitation conformes au zonage
maintenant en vigueur. Le programme vise à améliorer la qualité
de l’environnement, à nettoyer certains terrains contaminés et
à construire de nouveaux complexes résidentiels ou à usage
mixte, au moyen d’une aide financière maximale de 1,5 million
de dollars.
ClimatSol est un programme de décontamination qui intègre
des mesures de réduction des émissions de gaz à effet de serre
et d’amélioration de l’’efficacité énergétique des bâtiments.
En 2007, le gouvernement du Québec s’est donné le mandat
de lutter contre les émissions de gaz à effet de serre. C’est
pourquoi il a octroyé un budget de 25 millions de dollars à cet
effet à la Ville de Montréal, qui en assure la gestion. Jusqu’à
présent, 156 projets ont obtenu un financement, ce qui totalise
un investissement de près de 1,3 milliard de dollars. Dans
le cadre du dernier budget provincial, ce programme a été
reconduit jusqu’au 31 mars 2015.
Réussir@Montréal est la stratégie de développement
économique de la Ville de Montréal qui s’échelonne sur
15 ans, en vue d’améliorer le niveau et la qualité de vie dans
la métropole.
Pour en savoir plus au sujet de l’un ou l’autre de ces
programmes, il suffit de consulter le site Web de la Ville de
Montréal, à l’adresse suivante : http://ville.montreal.qc.ca. »
Bringing You the Power of One™
Palais Des Congrès De Montréal
PR@M-Revitalization is an incentive program for owners of
buildings where industrial or commercial activity takes place
that does not comply with zoning regulations, but the use of
the building is under grandfather protection (acquired rights).
The purpose of this grant is to improve the quality of the
environment, rehabilitate certain contaminated sites and build
new residential or mixed-use complexes, with a maximum
subsidy amount of $1.5 million.
ClimatSol is a site decontamination program that includes
measures aimed at reducing greenhouse gas emissions
and improving energy efficiency of buildings. In 2007, the
government of Québec has committed to reducing greenhouse
gas emissions. For this purpose, it has granted a $25-million
budget to the City of Montréal, who manages it. So far,
156 projects have received support, for an investment totaling
$1.3 billion. As part of the last provincial budget, this program
has been extended until March 31st, 2015.
Success@Montréal is the City of Montréal economic dev-
elopment strategy with a 15-year timeline, meant to raise the
city’s standard of living and quality of life.
To learn more about any of the previous programs, visit the
City of Montréal website at http://ville.montreal.qc.ca. »
Québec 2011 Built 59
Nova Scotia

ABOUT NS
Nova Scotia is one of the founding
provinces of Canada. It is known for
its high tides, lobster, fish, blueberries,
and apples.
Halifax is the capital Nova Scotia
and is the largest urban area in the
Canadian Atlantic provinces.
demographic Information
(2011 Estimates):
Population: 946,117
Avg. Household Income: $68,212
Source: FP Info Markets 2011 Estimates

Source: Canada Online

Halifax

Halifax's Purdy's Wharf

Deep Sea Cooling

By Susan Drake

HVAC systems represent one of the largest
expenses for building operators and can
create indoor air quality issues and pollution.
Balancing tenant needs, environmental goals
and bottom line expectations by building
owners can be challenging depending on the
age of the building, the age of the HVAC system
and costs associated with maintenance and
repair. One building manager in Halifax, Nova
Scotia has a solution that addresses all three
of these concerns.
The Purdy’s Wharf Complex, managed by
GWL Realty Advisors Inc., strives to address
HVAC challenges with an innovative Sea
Water Cooling System. Purdy’s Warf uses
low-temperature sea water from the Halifax
Harbour to cool its towers which proves to be
a viable solution to reduce building operation
costs, and to meet owner and tenant ex-
pectations. The concept of sea water cooling
is rather simple and is an effective means to
Halifax
“The cost to install the open-cycle system
was approximately $400,000 greater than
purchasing a conventional cooling system,”
says Amber Cox, Senior Property Manager,
“But with annual savings of $177,350 in
electrical costs and reduced building and
operational costs, the system yielded a pay-
back of in just over two years.”
The system works by having two centrifugal
pumps draw cold water from the sea, drive
it through two heat exchangers into an open
piping loop, and expel warm sea water back
into the harbour. Chilled water from the heat
exchanger cools the coils on each floor as
an air circulation fan moves warm air from
the building through a coil into the closed
loop system. Only a small amount of energy
is required to pump water in and out of the
building and the system typically runs for ten
and a half months of the year. »

cool a building in an environmentally friendly

and cost effective way.

Historical Town Clock on Citadel Hill, Halifax Bringing You the Power of One™ Nova Scotia 2011 Built 61
 Halifax Downtown

Close Up:
Halifax
Demographic:
Population 406,644 Headquartered in Toronto, DTZ Barnicke has
Avg. Household Income $79,542
Source: FP Info Markets 2011 Estimates 19 full service offices across Canada with an
Market Health Overall:
excess of 500 employees, including over 250
“No cranes in Halifax’s CBD…Yet”
“Local market conditions consistent across
sales professionals. Operating in all major
Atlantic Canada” real estate sectors including office, industrial,
Economic Drivers: capital markets/investment, retail, hospitality
Logistics, Government, Institutional
and corporate services, DTZ Barnicke acts
Office Market:
The downtown Halifax vacancy rate rose to 6.5% as
as a broker to service tenants, developers,
the suburban market continued to attract downtown owners, investors, governments and landlords.
tenants with its low taxes, abundance of free parking,
and improving transit schedules. Most of the major
leasing activity in 2010 was attributed to government
and institutional moves. New projects may surface in A view of downtown Halifax from Citadel Hill DTZ Barnicke provides a comprehensive
2011 however tenants will be faced with the reality of
higher rental rates to justify development costs. Four range of brokerage services and value-added
new buildings were available in Halifax in 2010. Emera
(Nova Scotia Power) is developing a 130,000 square foot business advice in commercial real estate to
office building that they will move into in 2011 vacating
its CDB location where they have been for 20 years. leading international corporations, institutions
However a significant amount of this space is being
backfilled by the Province of Nova Scotia Department
and portfolio owners across Canada.
of Heath in 2012. Anticipate an increase in rent in 2011.
Next year look for Halifax’s new $150 million convention
centre to announce construction. www.dtzbarnicke.com
Industrial Market:
In 2010, the industrial vacancy rate was just below 6%.
Demand for space was so strong that it is nearing the
point of insufficient supply. The opening of Atlantic
Gateway–Halifax Logistics Park, a hub to distribute
high­value imports throughout eastern North America,
attracted large distribution companies to the newly
developed area of Burnside. Positive absorption in
Halifax’s largest industrial park has supported a low
vacancy rate among industrial properties. Most activity
in the business parks is end user driven either as an
expansion, or move from leasing to owning. New work
has begun on an 80,000 square foot spec building for
Peggy's Cove famous sea side town
CREIT in Burnside Park. 300,000 square feet of new
multi–tenant buildings is anticipated for 2011 as well as
the new 250,000 square foot regional RCMP building
is underway.

Investment Market:
There were few investment transactions in 2010. Well
positioned retail and multi­tenant commercial/industrial
properties seem to be in strong demand as well as
high density residential properties located in better
neighbourhoods. Retail and commercial/industrial
products were dominated by institutional investors while
private equity players sought out office and high density
residential buildings. Cap rates are compressing in
all categories.

Retail Market:
Retail was strong in 2010 with continual growth of
Dartmouth Crossing and the expansion of other shopping
centres driven by large national and international retailers.
New retailers to Halifax include Bed Bath and Beyond, Tag,
Calvin Klein, and Pro Hockey Life.

62 Built 2011 Nova Scotia Bringing You the Power of One™

Canadian Head Office
Toronto, Ontario +1 416 863 1215

British Columbia
Victoria +1 250 382 3400
Nanaimo +1 250 753 5757
Vancouver +1 604 684 7117
Kelowna +1 250 808 6877

Alberta
Calgary +1 403 508 1215
Edmonton +1 780 421 1488

Saskatchewan
Regina +1 306 777 0678

Manitoba
Winnipeg +1 204 928 5000

Western Ontario
London/Windsor/Sarnia +1 519 438 5588
Waterloo Wellington +1 519 746 6300

Central Ontario
Niagara Falls +1 905 354 7413
Mississauga +1 905 848 1215
Richmond Hill +1 416 449 1710
Contact
Eastern Ontario
Kingston +1 613 542 2724 DTZ Barnicke Limited
Ottawa +1 613 232 1215 2500 – 401 Bay Street,
Toronto, Ontario, Canada, M5H 2Y4
Québec Tel: +1 416 863 1215
Montréal +1 514 868 1215 Fax: +1 416 863 9855

Atlantic Canada Although the information contained within is from sources

believed to be reliable, no warranty or representation is
Halifax +1 902 429 9249 made as to its accuracy being subject to errors, omissions,
conditions, prior lease, withdrawal or other changes
without notice and same should not be relied upon without
independent verification. DTZ Barnicke Limited, Real
www.dtzbarnicke.com Estate Brokerage 01/2011