FM College Inc.’s Post

Ottawa landlords are contemplating a list of new expectations from a prized office tenant following recently announced updates to the federal government’s green operations strategy. Along with added low-carbon and climate-related criteria for procurement and the development, retrofit and management of federally owned facilities, the government will be looking for leased space that has or will soon achieve net-zero greenhouse gas (GHG) emissions, reported Canadian Property Management. "Beginning in 2025, federal departments and Crown corporations that are entering into or renewing leases are instructed to: prioritize net-zero emissions; assess climate-related operational risks and ability to meet contingency standards; and ensure adequate electric vehicle (EV) charging capacity in locations where “significant federal fleet operations” will be accommodated. For new and renewed leases, landlords will be expected to report energy and water usage, solid waste output and GHG emissions through ENERGY STAR Portfolio Manager for any space 500 square metres (5,382 square feet) or greater, and those results will be publicly posted for buildings in “major urban centres”. "By 2030, the government has set a target to secure net-zero office space in at least 75 per cent of its new or renewed leases. Looking to other types of suppliers, bidders on “high-value” government contracts will be required to provide GHG life cycle assessment reports with their offered products and services beginning in 2025. Contractors and project managers will also have to fulfill requirements for the construction and renovation/retrofit of federally owned facilities, which include life cycle analysis based on a shadow carbon price of $300 per tonne and climate change risk assessment." https://lnkd.in/ganyQ8_C #canada #federal #government #lease #conditions #sale

There are some major changes to the commercial office sector coming soon, largely led by Federal Government mandates requiring "greener" accommodation. "From July 1, 2025, new building leases signed by government departments for more than four years must have a 5.5-star or higher NABERS energy rating. Reaching this rating requires a stringent list of requirements, which developers say would cost millions of dollars to meet in most existing C- and D-grade Canberra buildings... Knight Frank's ACT head of asset management Rebecca Jakubaszek - AAPI said that given the significant number of government tenures in Canberra, she expects landlords would aim to upgrade buildings, even at substantial cost. There are an increasing number of clients looking for advice on electrifying existing buildings and exploring sustainability roadmaps to maximise the opportunity of retaining all tenants," Ms Jakubaszek said..." A number of complications yet to play out, including: - Most Federal Government tenants are in office accommodation with a rental rate of $500 - $600 psqm per annum. New buildings that support required NABERS will cost $700 - $800 psqm pa. - New fit outs typically cost $2,000 - $3,000 psqm so these moves will further hurt the hip pocket of Departments and Agencies. - Electrification: can the grid in fact support this sudden influx of usage? If you're a landlord and want to discuss your building, and perhaps a roadmap towards a greener asset, our dedicated ESG team led by Jenine Cranston is a great starting point. https://lnkd.in/gxhUkAqg

Ahead of final policy recommendations regarding the Office Replacement Bylaw to be considered by Planning and Housing in Q4, JLL has released a study calling for a "full and unconditional repeal of the Office Replacement Bylaw to unleash supply." #realestate #realestatenews #Toronto #housing https://lnkd.in/dFh2vrhu

Let's study this for 4 years.. Doesn't matter that's there's a housing crisis..and office vacancies.. 🙄 "In the coming months, the City will determine to what degree the Bylaw will be repealed, if at all. But in lieu of making any rash decisions, city staff are proposing that any policy revisions to the Official Plan undergo a four-year trial, after which, if any negative implications are felt, the City may revert back to the original 100% replacement requirement, or another specified amount." #developer #construction #planning #design #affordablehousing #affordablerentals #realestate #commercialrealestate #condos #realestateindustry #interestrates #loaninterest #inflation

San Francisco's commercial real estate crisis is also impacting contractors and their workers. "..The valuation of the work permitted last year for office alterations and repairs in The City was at its lowest level since 2016, and only a little better in the first half of this year, according to data provided by the Department of Building Inspection. The $432.9 million total for 2023 was down more than 71% from a peak of $1.5 billion in 2019. The total was $218.5 million for the first six months of 2024.... ...San Francisco’s office-vacancy rate hit a record high of 37% in the second quarter of 2024, up from 36.7% the prior quarter, according to preliminary data released by commercial real-estate company CBRE..." https://lnkd.in/eZYrSPQc

All around the country, with hybrid work become more and more popular, many office remind empty. Many may suggest to office-to-residential conversions a solution for housing, but this doesn't mean they automatically can happen because of city's zoning laws. I am sharing this article because explains the studies, efforts e incentives to convert offices to housing. https://lnkd.in/gH_8frAn

Harrell Rolls Out Incentive Proposal for Converting Offices to Housing - The Urbanist 🏢 Converting offices into housing is a complex process that requires experience and a deep understanding of its intricacies. As an investor, one wrong move can make or break your success. That's why it's crucial to have the right expertise by your side. With my experience in office conversions, I can guide you through the nuances and ensure a successful outcome. From zoning regulations to construction costs, I have the knowledge and skills to make your investment a profitable one. Don't take any chances, trust a professional like me to help you achieve your goals. 💼🏠 #officeconversion #housinginvestment #expertadvice #success #investing #realestate #realestateinvesting #knowledgeiskey #trustaprofessional #nuancesmatter/ via @urbanistorg

Great article on some of the challenges and things to consider for office conversion. We haven’t seen many office conversions to this point in SWO but with the downtown office vacancy rates, it’s been something that has been talked about a lot. Not many buildings are ideal candidates and a lot of due diligence is required.

💡 Informative article in the Irish Times on the increased preference by occupiers for ESG (environmental, social, and governance) office space credentials. This shift is expected to accelerate further over the coming quarters and to become a key component when occupiers are undertaking their office searches in the local market. It's anticipated that in the near future that supply constraints will severely limit the ESG options for occupiers so it's important that building owners act now to future proof their assets. The same will apply to the Belfast office market. 💡 Now's the time to act to improve your buildings ESG considerations to maintain prime rents! Feel free to reach out to discuss your options for future proofing your assets ✅#hollis #projectmanagement #refurb https://lnkd.in/encZu8He