Canadian commercial real estate companies must embrace sustainable technologies and practices to remain competitive in the future, say executives who participated in a recent Connect Canada CRE leadership series.

“The journey to net zero is an ambitious goal that will require a collective effort from the entire industry,” said Christina lacoucci, head of Canada and Canadian chief investment officer for BGO. “Rapid advancements in sustainability practices are encouraging, but the path forward is full of unknowns.

“The key to success lies in sharing insights where organizations can collaborate and learn from both successes and failures.”=

Governments are increasingly calling for more ESG and green-building-related measure across all asset classes. But governments are not the only ones demanding them.

Institutional and other major investors increasingly insist on them to help satisfy the demands of clients, shareholders and unitholders. But such policies and technologies can cause friction in CRE boardrooms because of associated expenses.

lacoucci said she is “quite passionate” about ESG and sustainability. She called for increased adoption of AI technologies to enhance the future of commercial real estate.

“The integration of data analytics and AI represents a transformative force in the industry,” she said. “The rise of proptech and the incorporation of AI into everyday operations will significantly alter how real estate functions. These advancements are not just about efficiency – they are integral to driving sustainability and growth.

“As the industry continues to evolve, companies will need to develop the competencies to evaluate and adopt these types of new technologies, or risk getting left behind.:”

Dan van Leeuwen, Greater Toronto Area partner with Windmill Developments, also called for increased adoption of AI technologies to enhance and expand real estate sustainability.

“We need to embrace the adoption of artificial intelligence and understand how best to utilize AI in all aspects of our business to become more efficient and effective,” he said.

“Specifically, in our efforts to improve sustainability, we can use AI to analyze building materials, systems and operations to optimize design. Developers can collaborate with design teams to create AI algorithms and generate multiple design solutions that meet the needs of the project and the market.

“In construction management, we are looking at how AI can enhance staging sequences, create a more competitive tender process, reduce delays, and generate alternatives and cost reduction.”

Augmented reality and other AI-powered tools can create immersive sales centres and online presentation centres that enable clients to experience experience and visualize projects better, he added.

Van Leeuwen suggested that increased adoption of mass timber and factory-built modular-construction materials can also enhance properties’ sustainability.

He is impressed by advancements in those areas thus far, including municipal government and developer partnerships designed to adapt building codes to new construction methods.

“Modular construction can significantly reduce the time needed to build, and reduce construction costs, which can help address housing affordability issues,” he said. “The factory-built environment ensures higher quality and fewer defects, especially in areas where weather significantly impacts the quality of work. 

“On site, traditional construction is noisy and disruptive, subject to noise ordinances that can limit on-site working time. Building in a factory reduces lost time and disturbance to communities. 

“The construction industry is often criticized for doing things the same way and sticking to traditional methods, so to see the scope and number of industry-led innovations in methods, materials and process is impressive.”

Van Leeuwen called on CRE industry leaders to embrace the opportunities offered by innovation and adopt, and adapt to, new technologies.

“Understanding how AI can innovate construction practice is especially important,” he said. “Lead by example to develop truly sustainable buildings and communities and move the industry forward to meet the growing demand for green living.”

Dream Unlimited’s multi-family business strives to develop environmentally friendly communities that are also inclusive and affordable.

Hero Mohtadi, Dream’s vice-president of residential operations pointed to Dream’s Zibi community in the National Capital Region in both Ottawa and Gatineau, Que., as an example of the company’s approach.

Zibi achieves net-zero emissions and features the Zibi Community Utility. The ZCU is an electrical system that was developed in collaboration with Hydro Ottawa and provides net-zero carbon heating and cooling using post-industrial waste recovery.

That makes Zibi North America’s first zero-carbon-emission community and sets a new benchmark for sustainability in master-planned developments, said Mohtadi.

“We’re not just developing new properties; we’re also revitalizing legacy properties with modern amenities and sustainability features that enhance the resident experience,” she said.

Partnerships with government are vital for navigating approvals, accessing incentives, and effectively contributing to community development, she added.

“These partnerships are vital for navigating approvals, accessing incentives, and effectively contributing to community development,” she added.

Pictured, from left to right: Dan van Leeuwen, Christina lacoucci and Hero Mohtadi

Photos: Courtesy of BGO, Windmill Development and Dream Unlimited

Click here to see the full Change Agents: Leaders Driving Progress series.