Rising opportunities
Tall wood buildings were a key focus for international buyers that industry association BC Wood hosted the first week of September.
B.C. building code changes allowed wood buildings of up to six storeys in B.C. starting in 2010, and more than 20 structures have been completed in the past three years. These include the new fitness centre at UBC Okanagan, Wesbrook Community Centre on the UBC campus in Vancouver, and the 30-metre tall, six-storey Wood Innovation Design Centre in Prince George.
The taller wood structures are supported using cross-laminated timbers (CLTs), which Structurlam Industries Ltd. of Penticton produces (the timbers were a centrepiece of the speed-skating oval built in Richmond for the 2010 Winter Olympics).
“Canada and B.C. are part of the cutting edge of this,” said Brian Hawrysh, CEO of BC Wood. “New building systems are being developed that are wood-based, that allow for the design and construction of these larger buildings.”
Japanese buyers are expressing particular interest in developments in B.C. Wood is a traditional building material in Japan, and B.C.’s proximity to and historical trading ties with the country make it a natural source for timber.
Japan approved the use of CLTs in construction in 2013 and the first structure using them was completed this summer. Standards are still being refined, but the government is encouraging their use and identifies Canada as a model.
“Wired and dangerous”
Japan was also well represented at last week’s International Housing and Home Warranty Conference in Vancouver. Tokyo will host the 2017 conference and accounted for 40 of this year’s 200 registered delegates.
B.C. is not unfamiliar with the challenges and importance of home warranties, and the leaky condo crisis precipitated the requirement for all new homes to be insured against defects.
Yet perhaps one of the most important legacies and lessons the crisis bequeathed to the era of social media is the importance of responding quickly and transparently to what conference presenter Paul Cardis, founder and CEO of Wisconsin-based reputation management firm Avid Ratings, called consumers’ “pain points.”
Addressing home deficiencies and defects isn’t simply a question of workmanship or insurance, Cardis explained, but one of accountability.
While crusaders such as James Balderson of the Coalition of Leaky Condo Owners established websites to hold builders accountable, social media now welcomes users to post comments without the trouble of securing rights to a domain name. And from there, the issue can assume a life of its own independent of the original complainant.
“We’re dealing with new rules of engagement,” Cardis said, describing buyers and potential buyers as “wired and dangerous.”
Keeping on top of the issues requires engaging with consumers, respectfully listening to and addressing complaints, and being willing to fess up to honest mistakes so other consumers know that while companies aren’t perfect, they’re responsive and able to set things right.
“Whether we like it or not, the world has forced transparency on us,” Cardis said.
David Wallace, COO of Avid client Portrait Homes Ltd. of Richmond, said an occasional mistake builds trust rather than diminishes it.
“You’re not credible if you don’t have some honest mistakes to talk about,” he said.
Schooled
Real estate was rooting for B.C. Premier Christy Clark in last year’s provincial election, and Clark personally thanked condo marketer Bob Rennie and developer Peter Wall for backing her during a surprise appearance before the Urban Development Institute the morning after her win.
Clark’s emphasis on resolving the province’s protracted dispute with the BC Teachers’ Federation in a fiscally responsible manner brings to mind Rennie’s forward-looking comments regarding that other bugbear of Clark’s tenure as premier: the harmonized sales tax (HST).
Speaking to the Canada Mortgage and Housing Corp. housing outlook conference in November 2010, Rennie warned that the HST – by then, subject to a binding referendum – was needed to pay for social services, including education.
Clark’s predecessor Gordon Campbell hadn’t made that case, Rennie contended, and hard times were ahead if voters didn’t embrace the tax.
Voters rejected the HST in 2011, and the rest, shall we say, is history – or a lesson in current events.
