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Industry Hot Topics Infrastructure leaders commit to decarbonization retrofits
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he Canada Infrastructure Bank (CIB) and Johnson Controls (JCI) have signed an agreement that commits more than $125 million to accelerate private sector decarbonization retrofit projects across Canada. CIB will invest up to $100 million toward commercial, industrial, manufacturing, and multi-residential buildings leveraged through Johnson Controls OpenBlue Net Zero Buildings.
The sustainable retrofit projects will simultaneously make facilities smarter, safer, and healthier for occupants, all while preserving capital for investment in core strategic priorities. This offering also provides an important tool to mitigate the increased price of many carbon-based fuels. Over the next five years, the CIB’s and Johnson Controls’ collaboration is
expected to reduce greenhouse gas emissions by more than 48,000 tonnes per year, resulting in significant decarbonization of retrofitted buildings. In addition, the projects, that Johnson Controls will identify and manage, are expected to create more than 900 jobs in the trade sector. “We are delighted to partner with Johnson Controls, one of Canada’s largest energy service companies to enable large-scale retrofit projects that will be carried out with no upfront investment from building owners,” said Ehren Cory, CEO, Canada Infrastructure Bank. “This is another CIB investment that fits perfectly with our $2 billion green infrastructure priority sector and will have a long-term material impact on Canadian infrastructure.” The financing represents 80 per cent of the overall capital cost of projects. An equity investment representing no less than 20 per cent of the capital cost will be provided by Johnson Controls and its affiliate, Johnson Controls Capital Canada Inc.
COVID’s impact on renter behaviours
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new study by Entrata looks at shifting renter behaviours and patterns over the past year, shedding light on the pandemic’s impact on the Canadian rental market. Among the findings, Entrata, a maker of multifamily operating systems, revealed that 29 per cent of its 1,000 respondents moved within the last year, while 51 per cent said they planned to move once their current lease was up. Two-thirds of respondents said that renting “fit with their current lifestyle” versus owning a home. “The last two years have been life-changing for people, industries and businesses across the globe,” said Chris Harrington, Entrata’s chief revenue officer. “Our survey of Canadian renters shows that many have moved to larger spaces to accommodate work from home needs, moved back to hometowns and some even moved to the city to take advantage of lower rental rates. We’re seeing a shift in the industry as renters look for more flexible leasing options and think differently about apartment amenities.” Notably, two-thirds of respondents stated they are currently satisfied with their renting lifestyle and have no plan to pursue homeownership. Almost half said they will likely stop renting within the next three years in order to buy a home. A whopping 43 per cent said “the need for more 30 | Canadian Apartment | Part of the REMI Network |
space”, possibly to accommodate ongoing work-from-home needs, is what would drive them to seek new accommodations. The main reason cited for renting vs. owning was cost-related — i.e. the inability to afford a down payment and to maintain a home. With more time at home since COVID-19, many Canadian renters are now placing a higher priority on apartment building amenities. Nearly 38 per cent said that on-site amenities are “why they love renting.” The most important on-site amenity for today’s renter is high-speed internet with controlled secure building access, followed closely by in-unit laundry facilities. Nearly all respondents said they care more about on-site amenities now versus before the pandemic, and 13 per cent said building amenities could “make or break” a rental property. Finally, one-third said they would switch to month-to-month payments, including half of millennial respondents and 39 per cent of Gen Z respondents. All tolled, nearly a quarter said their interest in month-to-month rent payments has increased; with nearly half saying “it’s nice to have more financial flexibility” and 37 per cent saying they “like not having to worry about picking a place they’ll be forced to live in for a year.”
