A G u i d e t o B u i l d i n g a
\nD a t a – D r i v e n O f f i c e<\/p>\n
HYBRID WORKSPACE
\nF O R A<\/p>\n
U n g u i d e p o u r c r \u00e9 e r u n
\nb u r e a u a x \u00e9 s u r l e s d o n n \u00e9 e s<\/p>\n
ESPACE DE TRAVAIL HYBRIDE
\nP O U R U N<\/p>\n
Vol 66 | Book 1 \/ Tome 1 2022<\/p>\n
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\na<\/p>\n
The Official Publication of the
\nAppraisal Institute of Canada \/
\nPublication officielle de l\u2019Institut
\nCanadien des \u00c9valuateurs<\/p>\n
WHAT WILL 2022
\nBRING FOR COMMERCIAL
\nREAL ESTATE?
\nQu\u2019apportera 2022 \u00e0
\nl\u2019immobilier commercial ?<\/p>\n
WOMEN IN APPRAISING II
\nLes femmes dans
\nl\u2019evaluation II<\/p>\n
UNCONSCIOUS BIAS
\nIN APPRAISAL
\nLes pr\u00e9jug\u00e9s inconscients
\ndans l\u2019\u00e9valuation<\/p>\n
Immobili\u00e8re au Canada<\/p>\n
Canadian Property<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@aicanada.ca
\nmailto:info@aicanada.ca<\/p>\n
Recruiting top talent<\/p>\n
Leverage technology to
\nservice clients<\/p>\n
Competitive compensation
\npackages<\/p>\n
High performance,
\npeople-first culture<\/p>\n
To learn moreTo learn more, please contact us at:
\ncanada.valuation@avisonyoung.com<\/p>\n
The Avison Young Valuation &
\nAdvisory Services team is growing
\nand we are looking for individuals,
\nteams and companies across Canada
\nseeking an opportunity to grow and
\ncollaborate nationally with our
\nmulti-disciplinary team.<\/p>\n
mailto:canada.valuation@avisonyoung.com<\/p>\n
Recruiting top talent<\/p>\n
Leverage technology to
\nservice clients<\/p>\n
Competitive compensation
\npackages<\/p>\n
High performance,
\npeople-first culture<\/p>\n
To learn moreTo learn more, please contact us at:
\ncanada.valuation@avisonyoung.com<\/p>\n
The Avison Young Valuation &
\nAdvisory Services team is growing
\nand we are looking for individuals,
\nteams and companies across Canada
\nseeking an opportunity to grow and
\ncollaborate nationally with our
\nmulti-disciplinary team.<\/p>\n
We embrace different
\nperspectives and
\nwe\u2019re interested in
\nyours. Join our
\ngrowing valuation
\nteam. Let\u2019s shape
\nthe future of
\nreal estate<\/p>\n
For more information, please contact:<\/p>\n
Dave Black
\nAACI, P. App., MRICS
\nExecutive Vice President & National Practice Lead
\nJLL Valuation Advisory
\nDave.Black@am.jll.com
\njll.ca\/value<\/p>\n
#shapethefuture<\/p>\n
mailto:Dave.Black@am.jll.com
\nhttp:\/\/jll.ca\/value<\/p>\n
Colliers recently introduced new market leading report
\nwriting software which upon its introduction increased
\naverage report production speeds by upwards of 30%.
\nColliers AACI designated appraisers in Canada had an
\naverage net compensation in 2020 in excess of $200,000.
\nReach out today to learn how to leverage Colliers brand,
\ntechnology and resources to take your career to the next
\nlevel.<\/p>\n
Contact Brandi Skaggs at Brandi.Skaggs@colliers.com
\nto learn more about joining Valuation & Advisory Services
\nat Colliers International.<\/p>\n
colliers.com<\/p>\n
Be the expert
\nColliers is seeking motivated appraisers to join our
\nValuation and Advisory Services team.<\/p>\n
mailto:Brandi.Skaggs@colliers.com
\nhttp:\/\/colliers.com<\/p>\n
The articles printed in
\nthis issue represent
\nauthors\u2019 opinions only
\nand are not necessarily
\nendorsed by the
\nAppraisal Institute
\nof Canada. Copyright
\n2022 by the Appraisal
\nInstitute of Canada.
\nAll rights reserved.
\nReproduction in whole
\nor in part without
\nwritten permission
\nis strictly prohibited.
\nSubscription, $40.00 per
\nyear. Printed in Canada. <\/p>\n
Les articles imprim\u00e9s dans
\nce num\u00e9ro ne rep\u00e9sentent
\nque l\u2019opinion de leur auteur
\nrespectif, mais ne sont pas
\nn\u00e9ces\u2013sairement endoss\u00e9s
\npar l\u2019Institut Canadien des
\n\u00c9valuateurs. Tous droits
\nreserv\u00e9s 2022 par l\u2019Institut
\nCanadien des \u00c9valuateurs.
\nLa reproduction totale ou
\npartielle sous quelque
\nform que se soit sans
\nauthorisation \u00e9crite est
\nabsolument interdite.
\nAbonnement $40.00 par
\nann\u00e9e. Imprim\u00e9 au Canada.<\/p>\n
* The Appraisal Institute of
\nCanada reserves the right
\nto reject advertising that it
\ndeems to be inappropriate.<\/p>\n
** The publisher and the
\nAppraisal Institute of Canada
\ncannot be held liable for
\nany material used or claims
\nmade in advertising included
\nin this publication.Indexed
\nin the Canadian Business
\nIndex and available on-line
\nin the Canadian Business &
\nCurrent Affairs database.
\nISSN 0827-2697<\/p>\n
Publication Mails Agreement
\n#40008249<\/p>\n
Return undeliverable
\nCanadian addresses to:
\nAppraisal Institute of Canada
\n403-200 Catherine St.,
\nOttawa, ON K2P 2K9.
\nEmail: info@aicanada.ca<\/p>\n
Director \u2013 Communications:
\nPaul H\u00e9bert, Ottawa<\/p>\n
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7 Executive Corner
\nNew Year, new thoughts: What to expect in 2022<\/p>\n
13 Remembering Tyler Beatty<\/p>\n
34 Legal Matters
\nArbitrations: privacy, confidentiality and the appraiser<\/p>\n
41 Equity, diversity and inclusion (EDI)
\nUnconscious bias in appraisal<\/p>\n
46 Advocacy
\n2022 Pre-Budget Submission \/ AIC Hill Day 2021<\/p>\n
52 The Future is Bright
\nRene Cabusas, Candidate Member: Ensuring career
\nsuccess by making the most of his educational journey <\/p>\n
60 News
\n\u2022 AIC 2022 National Conference
\n\u2022 Important Dates
\n\u2022 In Memoriam<\/p>\n
64 Designations, Candidates, Students<\/p>\n
10 Le coin de l\u2019\u00e9xecutif
\nNouvelle ann\u00e9e, nouvelles perspectives : Que nous r\u00e9serve 2022 ?<\/p>\n
13 En m\u00e9moire de Tyler Beatty<\/p>\n
37 Questions juridiques
\nArbitrages : vie priv\u00e9e, confidentialit\u00e9 et l\u2019\u00e9valuateur<\/p>\n
43 \u00c9quit\u00e9, diversit\u00e9 et inclusion (\u00c9DI)
\nLes pr\u00e9jug\u00e9s inconscients dans l\u2019\u00e9valuation<\/p>\n
49 D\u00e9fense
\nM\u00e9moire pr\u00e9budg\u00e9taire 2022 \/ Journ\u00e9e sur la Colline 2021<\/p>\n
56 L’avenir est prometteur
\nRene Cabusas, membre stagiaire : Assurer sa r\u00e9ussite
\nprofessionnelle en tirant le meilleur parti de son parcours \u00e9ducatif <\/p>\n
60 Nouvelles
\n\u2022 La Conf\u00e9rence Nationale 2022 de l’ICE
\n\u2022 Dates importantes
\n\u2022 En m\u00e9moire<\/p>\n
64 D\u00e9signations, stagiaires, \u00e9tudiants<\/p>\n
COLUMNS CHRONIQUES<\/p>\n
Blueprint for a hybrid workspace:
\nA guide to building a
\ndata-driven office<\/p>\n
Plan pour un espace de travail hybride :
\nUn guide pour cr\u00e9er un bureau
\nax\u00e9 sur les donn\u00e9es<\/p>\n
14<\/p>\n
Women in appraising II
\nLes femmes dans l\u2019\u00e9valuation II<\/p>\n
What will 2022 bring
\nfor commercial real estate?
\nQu\u2019apportera 2022 \u00e0
\nl\u2019immobilier commercial ?<\/p>\n
26<\/p>\n
24<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@kelman.ca
\nhttp:\/\/www.kelman.ca<\/p>\n
http:\/\/www.cdcinc.ca<\/p>\n
Return to CONTENTS<\/p>\n
New Year, new thoughts
\nWhat to expect in 2022<\/p>\n
BY ANDR\u00c9 POULIOT, AACI, P.APP <\/p>\n
President, Appraisal Institute of Canada<\/p>\n
W ith Q1 of a new year upon us, it is a good time to look into the crystal ball
\nbefore it gets packed away with the holiday
\ndecorations for another year. Real estate
\nprofessionals, including our own CRAs
\nand AACIs, have written articles, tweeted,
\npodcasted, and LinkedIn-ed (from the
\nverb \u201cto-LinkedIn\u201d) on what we will see in
\nCanadian real estate this year. It turns out
\nwe should expect to see the housing market
\nthrough lenses with varying degrees of red
\nhot. If we have not already, by the end of
\n2022 we will all wish we had added industrial
\nto our portfolios, even if we were late joining
\nthe party last year. There will be very few
\nmemorial services for our office and retail
\nproperties and the eulogies we deliver will be
\na celebration of a second life for these assets
\nas they are converted to other uses.<\/p>\n
There is little I can add to these well-
\ndiscussed topics. Instead, I am going to <\/p>\n
identify and share some of my insights on
\na few of the less discussed real estate-
\nrelated topics that I predict Members will
\nsee or talk about in 2022. <\/p>\n
Taxation<\/p>\n
Expect taxation to increase. Taxes are
\ngenerally born from government spending
\nand all levels of government have been
\nspending at unprecedented levels since
\nthe onset of the pandemic. For the fiscal
\nyear ending March 31, 2021, Canadian
\npublic debt (National and Provincial)
\ntotalled $2.8 Trillion, up from $2.2 Trillion <\/p>\n
We should expect there to be discussion surrounding
\nthe capital gains exemption on the sale of our
\nprincipal residence, but do not expect there to be
\nchanges in the near future.<\/p>\n
We should expect that rising property values will not
\nbe met with a revenue-neutral reduction in rates
\nand that business properties will shoulder a greater
\nproportion of the municipalities\u2019 increased spending.<\/p>\n
EXECUTIVE CORNER<\/p>\n
7Volume 66 | Book 1 \/ Tome 1 | 2022<\/p>\n
Return to CONTENTS<\/p>\n
EXECUTIVE CORNER<\/p>\n
the year before. New taxes will likely be
\na part of reining in our deficit. Will real
\nestate be a target? <\/p>\n
We should expect there to be discussion
\nsurrounding the capital gains exemption on
\nthe sale of our principal residence, but do
\nnot expect there to be changes in the near
\nfuture. If you are a tax collector looking to
\ncover off borrowing from your central bank
\nthat, in part, played a role in unprecedented
\ngrowth in home values, it would be tempting
\nto tinker with the exemption to get some
\nof that money back. Although declining,
\n67.8% of Canadians owned their own
\nhome in 2016, which would make the tax <\/p>\n
wildly unpopular. So, the discussion in favour
\nwill come from academics. Expect proposals
\nto be progressive by setting a threshold
\nbeyond which the gain will apply and the
\ncounter-arguments that markets are local
\nand the threshold will treat homeowners in
\nthe hottest market unfairly. <\/p>\n
Municipalities have seen their expenses
\nincrease as a result of the pandemic and
\nare on the front line for many of the social
\nissues we face (housing, crime, poverty,
\nclimate change). Many have already decided
\nto participate in the solution, even if the
\nissue is primarily a provincial or federal
\njurisdiction, and these commitments will start <\/p>\n
playing into municipal budgets. The challenge
\nfor municipalities is that most of their revenue
\nis drawn from property taxes levied against
\na property\u2019s value, so funding rising costs
\nand new program spending will come from
\nhigher property taxes. Accordingly, we should
\nexpect that rising property values will not be
\nmet with a revenue-neutral reduction in rates
\nand that business properties will shoulder
\na greater proportion of the municipalities\u2019
\nincreased spending. <\/p>\n
Affordable housing<\/p>\n
Expect action from all levels of government
\non the affordable housing file, but expect
\nthe solution to play out over the long-term.
\nUnfortunately, affordability will continue to
\ndecline before it improves. The government
\nwill follow through on some proposals
\nto cool demand by taxing foreign buyers
\nand assisting new home buyers, but the
\nactual solutions which rest with supply will
\ntake much longer to implement. Expect
\nannouncements of federal funding to speed
\nup municipal planning processes and to
\nenhance programs already in place, such as
\ndensity bonusing. Although public housing
\nin some form will be part of the solution,
\nexpect the first initiatives to break ground
\nto involve private sector investment and or
\npublic\/private partnerships. <\/p>\n
Environmental, Social, <\/p>\n
and Governance (ESG)<\/p>\n
Expect to read more about ESG in 2022. If you
\nare not reading about ESG and thinking about
\nhow it impacts your business and your client\u2019s
\ndecision-making in real estate, you are already
\nbehind. Expect new commitments from
\nlandlords to have carbon-neutral portfolios by
\n2050 and expect those who have announced
\ntargets to announce more aggressive
\nones. You will likely be asked to evaluate
\ncomparables based on their energy efficiency,
\ntheir climate resilience, and how they measure
\nup to the Well Performance Standard. Expect
\nthe word \u201caccretive\u201d to be extended beyond
\nhow an acquisition impacts a portfolio\u2019s
\nreturn, to how it helps further a company\u2019s
\nnet-zero objectives. Valuing a mixed-use
\ncomplex? Be prepared to discuss amenities
\nthat contribute to employee well-being, <\/p>\n
Expect action from all levels of government on the
\naffordable housing file, but expect the solution to
\nplay out over the long-term.<\/p>\n
Canadian Property Valuation | \u00c9valuation Immobili\u00e8re au Canada 8<\/p>\n