August 2017
www.reic.ca
Growing
Together
REIC News
Pursuit of Excellence Awards
REIC Membership Milestones
REIC Celebrates Canada 150
... and more
INSIDE
Exchange
Real Estate Institute of Canada
Inside This Issue
REIC News
Nouvelles de L’ICI
Message From the President
MESSAGE Du PRÉSIDENT
Message from the RVP
Message du Vice-Président Régional
REIC National Board
7
REIC Pursuit of Excellence Awards
8
Lead. Serve. Inspire. Becoming a CPM®
10
#REIC2017 Annual Conference & AGM
13
REIC Launches 2017-2020
Strategic Plan
14
REIC Celebrates Canada 150
16
Why You Have to Care (and Know!)
About More than Per Square Foot
Rate
18
REIC Membership Milestones
Étapes des membres de l'ici
Inside This Issue
Visit Us Online
/reicnational
Real Estate Institute of
Canada - REIC
@reicnational
www.reic.ca
President
Bruce Bassett, CRF
Vice President
Winson Chan, FRI CRES
Secretary/Treasurer
Lindsay Carlson, FRI CRES
Executive Director & CEO
Maura McLaren, CAE
Editor
Britny Rodé, Marketing and
Communications Coordinator
About REIC
REIC is a provider of advanced education and
designation programs to professionals in the
real estate industry. With 9 Chapters across
Canada, we have been educating and certifying
professionals since 1955.
208-5407 Eglinton Avenue West
Toronto, ON M9C 5K6
Tel: 416-695-9000 or 1-800-542-7342
Fax: 416-695-7230
www.reic.ca
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5255 Yonge St., Suite 1000
Toronto, Ontario M2N 6P4
E-mail: info@mediaedge.ca
Tel: 416-512-8186
Fax: 416-512-8344
REIC Career Centre
Quality career
positions
www.reic.ca
REIC Exchange, August 2017
REIC News Nouvelles de l'ICI
REIC Greater Vancouver and IREM BC Chapters
Merge
Earlier this year, the REIC Greater Vancouver Chapter and the
IREM BC Chapter voted to merge and become the REIC BC
Chapter with a newly formed IREM Chapter Council. Maria Jeck,
CRP will serve as Chapter President and Lisa Biggin, CPM® will
serve as Chair of the IREM Council. The merger will strengthen
chapter resources to enhance member services and support in the
region. The IREM Chapter Council ensures property management
members receive full chapter representation and support from
IREM.
FIN402 Now Available in French
REIC is pleased to announce that the FIN402: Investment Real
Estate – Financial Tools course has been translated into French
for use in the Quebec marketplace. This initiative was realized
through our work with CMHC Assisted Housing Division’s desire
to educate many of their residential managers in Ottawa and
Quebec. The course was held in May and June with Jean-Francois
Bigras, CPM® as the instructor, conducting two classes in English,
and two in French.
REIC Quebec Chapter Success
Chapter success is great to share! Over the last few months, the
Quebec Chapter successfully held 100% of their scheduled REIC
courses. The Chapter was also able to welcome 6 new candidate
members (4 FRI and 2 CPM®). This success was achieved through
collaboration with the REIC National office and the hard work of
the Chapter leadership – great job!
Fusion des divisions de l’ICI du Grand Vancouver
et de l’IREM de la Colombie-Britannique
Plus tôt cette année, la division de l’ICI du Grand Vancouver et la
division de l’IREM de la Colombie-Britannique ont voté en faveur
d’une fusion en vue de devenir une seule division de la Colombie-
Britannique avec la formation d'un nouveau Conseil de l'IREM.
Maria Jeck, CRP, sera présidente de division, et Lisa Biggin,
CPM®, sera présidente du Conseil de l'IREM. La fusion permettra
d’améliorer les ressources de la division, ainsi que les services aux
membres et le soutien dans la région. Le Conseil de division veille à
ce que les membres en gestion immobilière soient bien représentés
et obtiennent du soutien de la part de l’IREM.
Le cours FIN402 est maintenant disponible en
français
L’ICI a le plaisir d’annoncer que le cours FIN402 « Investissement
immobilier : Outils financiers » a été traduit en français pour le
marché québécois. Cette initiative a été réalisée suite au désir de la
Société canadienne d'hypothèques et de logement d’informer les
nombreux gestionnaires immobiliers d’Ottawa et du Québec. Le
cours a eu lieu en mai et en juin, et Jean-Francois Bigras, CPM® était
le formateur. Il a animé deux cours en anglais et deux en français.
Succès de la division du Québec de l’ICI
Le succès d’une division fait toujours plaisir à partager! Au cours
des derniers mois, la division du Québec a tenu 100 % des cours
de l’ICI prévus. La division a également accueilli six nouveaux
candidats (4 FRI et 2 CPM®). Cette réussite a été possible grâce à la
collaboration avec le bureau national de l'ICI et le travail acharné
de la direction de la division – beau travail!
REIC
NEWs
Nouvelles
de l'ICI
www.reic.ca
Message From the President
MESSAGE FROM
THE PRESIDENT
Message du
PRÉSIDENT
I am pleased to report that our Annual Conference and AGM
in June was a great success. Members and partners from across
North America gathered in my home town of Halifax for three
days of informative sessions and fun social events. We learned
how to engage young professionals, inspire volunteers, and
get our #REICHUSTLE on with an inside look at social media
marketing. Our delegates were also given a chance to explore
some of what Halifax has to offer, enjoying some beautiful
weather and partaking in the age-old Maritime tradition of the
‘sociable’! We had the privilege of touring a national historic site,
the Canadian Museum of Immigration at Pier 21, which served
as a gateway for one million immigrants between 1928 and 1971.
It was truly inspiring to hear the stories of those who left their
homeland in pursuit of a better life in Canada. If you did not
have the opportunity to attend this year’s event, please consider
joining us next year in Montréal, May 29-31, 2018! I certainly
look forward to seeing you there.
I would be remiss if I did not extend my sincere gratitude to
our Past-President, Don Kottick, FRI CRES, for all he has done
for our Institute in this past year. I am eager to continue his
work as we move forward with the 2017-2020 Strategic Plan: e3
- enrich, elevate, exceed. I would also like to congratulate our
newly elected National Board! I am very excited to work with you,
alongside our Members and staff, as we position the Institute for
an even brighter and more successful future.
Here’s to another wonderful year of growing and learning
together!
Bruce Bassett, CRF
REIC National President
Je suis heureux de souligner que notre conférence et assemblée générale
annuelle de juin a remporté un vif succès. Pendant trois jours, des
membres et des partenaires de partout en Amérique du Nord se sont
rassemblés dans ma ville natale de Halifax pour assister à des séances
d’information et des activités sociales divertissantes. Nous avons appris
comment intéresser les jeunes professionnels et inspirer les bénévoles,
et nous avons amorcé notre campagne #REICHUSTLE en jetant un
regard sur le marketing dans les médias sociaux. Nos représentants
ont également eu la chance d’explorer Halifax sous une température
magnifique et de vivre la tradition ancestrale du « social » des Maritimes!
Nous avons eu le privilège de visiter un site historique national, le Musée
canadien de l'immigration au Quai 21, qui a servi de porte d’entrée à
un million d’immigrants de 1928 à 1971. C’était vraiment inspirant
d’entendre l’histoire de ceux qui ont quitté leur pays natal en quête
d’une meilleure vie au Canada. Si vous n’avez pas eu l’occasion d’assister
à l'événement de cette année, pourquoi ne pas vous joindre à nous l’an
prochain à Montréal, du 29 au 31 mai 2018? J'ai assurément hâte de vous
y voir.
Je manquerais à mes devoirs si j'omettais de mentionner ma profonde
gratitude envers notre ancien président, Don Kottick, FRI CRES, pour
tout ce qu’il a fait pour notre Institut au cours de la dernière année. Je
suis impatient de poursuivre son travail avec le plan stratégique 2017-
2020 : e3 - enrichir, élever et exceller. J’aimerais également féliciter notre
conseil d’administration national nouvellement élu! Je suis très heureux
de travailler avec vous, ainsi qu’avec nos membres et le personnel, afin
d’orienter l’Institut vers un avenir encore meilleur.
Je me réjouis déjà à l'idée d'une autre année au cours de laquelle nous
pourrons progresser et apprendre ensemble!
Bruce Bassett, CRF
Président national de L’ICI
It is an honour to take a leadership role in an
organization whose hallmark is that of professionalism
and high ethical standards. There are many dynamic
forces shaping the real estate industry and REIC
Members are uniquely qualified to adapt to these
changes and create value for their clients. It’s
an exciting time to be in the industry and to be a
Member of the Institute.
C’est un honneur de jouer un rôle de leader dans une
organisation caractérisée par le professionnalisme et
des normes d’éthique élevées. De nombreuses forces
dynamiques s’exercent sur l’industrie immobilière, et
les membres de l’ICI sont spécialement qualifiés pour
s’adapter à ces changements et créer de la valeur pour
leurs clients. C’est une période stimulante pour travailler
dans l’industrie et être un membre de l’Institut.
REIC Exchange, August 2017
Message from the RVP
Message
from the RVP
Message du
vice-président
regional
All expectations were met, as we had a fantastic time learning,
sharing and networking with Members from across the country,
as well as our IREM partners who were in attendance. Many
thanks to the incoming IREM President Ben McGrew, CPM®,
who led the IREM leadership session and provided us with some
great information, as well as the IREM staff in attendance for
their contributions: Nancy Kirk, Leah Misbin and newest staff
member Bethany Bijonowski. Thanks, as well, to current IREM
President Mike Lanning, CPM® for taking time out of his very
busy schedule to join us for part of the conference. On the final
evening we enjoyed a night of great food and fellowship at the
2017 Pursuit of Excellence Awards gala, where we celebrated
outstanding achievements in the industry - congratulations to all
award recipients!
Congratulations, as well, to the new 2017-2018 Board of
Directors! Welcome to the Board Theresa Salsman, CPM® ARM®
and thank you to outgoing board member Candace LeRoux,
CPM® ARM® for all your hard work. Thank you Don Kottick, FRI
CRES for your dedication as President this past year and welcome
Bruce Bassett as our 2017-2018 President.
I’m looking forward to more Chapter visits out east in the summer
and fall, and connecting with our Members. Please don’t hesitate to
contact me if there’s anything you need from your RVP.
Ron Penner, CPM® CRP
IREM Regional Vice President – Region 14
Toutes les attentes ont été comblées, et nous avons passé ensemble de
bons moments à apprendre, partager et réseauter avec des membres
de partout au Canada, ainsi que nos partenaires de l’IREM qui étaient
présents. Un grand merci au nouveau président de l’IREM Ben McGrew,
CPM®, qui a dirigé la séance de l’IREM et nous a fourni de précieux
renseignements, et au personnel de l’IREM présent sur place, pour
sa contribution : Nancy Kirk, Leah Misbin et Bethany Bijonowski.
Merci également au président actuel de l’IREM, Mike Lanning, CPM®
d’avoir pris le temps, malgré son horaire chargé, de se joindre à nous
pour une partie de la conférence. Le dernier soir, nous avons partagé
un excellent repas dans une ambiance de camaraderie lors du gala des
prix En quête de l'excellence 2017, où nous avons célébré des réalisations
exceptionnelles dans l’industrie. Félicitations à tous les récipiendaires!
Félicitations également au nouveau conseil d’administration 2017-
2018! Bienvenue à Theresa Salsman, CPM® ARM®, et merci à Candace
LeRoux, CPM® ARM®, qui quitte le conseil, de son excellent travail.
Merci à Don Kottick, FRI CRES pour son dévouement à titre de
président au cours de la dernière année, et bienvenue à Bruce Bassett,
notre président pour l’année 2017-2018.
J’ai hâte de visiter d’autres divisions dans l’Est à l'été et à l’automne
et de discuter avec nos membres. N’hésitez pas à communiquer avec
moi en tout temps si vous avez besoin de l’aide de votre vice-président
régional.
Ron Penner, CPM® CRP
Vice-président régional de l’IREM – Région 14
Greetings everyone! I hope you are all enjoying the
summer. We just had an amazing Annual Conference
and AGM in Halifax. Thank you to REIC staff for
putting on a great event and to the Nova Scotia
Chapter for being such wonderful hosts! The theme
of this conference was Growing Together, where we
focused on engagement and excellence.
Bonjour à tous! J’espère que vous passez un bel été.
Nous venons tout juste de vivre une excellente
conférence et assemblée générale annuelle à Halifax.
Merci au personnel de l’ICI d’avoir organisé cet
événement et à la division de la Nouvelle-Écosse de
nous avoir si bien accueillis! Le thème de la conférence,
Progresser ensemble, était axé sur l’engagement et
l’excellence.
www.reic.ca
REIC National
2017-2018 Board of Directors
l-r:
Ken Loeppky, Walter Lui,
Lindsay Carlson, Theresa
Salsman, Bruce Bassett
(President), Maura McLaren,
Don Kottick, Winson Chan,
Diane Glover, Johnmark
Roberts, Steve Kincade
Meet your new board
President
Bruce Bassett, CRF
Regional Manager, Eastern Canada
RBC Global Asset Management
Halifax, NS
Vice President
Winson Chan, FRI CRES
Vice President, Sales Development
Tridel Corporation
Toronto, ON
Secretary/Treasurer
Lindsay Carlson, FRI CRES
REALTOR®, NOW Real Estate Group
Sherwood Park, AB
Past President
Don Kottick, FRI CRES
Executive Vice President, Corporate
Development
Peerage Realty Partners
Toronto, ON
Directors
Diane Glover, CPM®
Senior Property Manager
Globe Property Management
Winnipeg, AB
Steve Kincade, CPM®
CEO, Kincade Management Inc.
Saint John, NB
Ken Loeppky, CPM®
Vice President & COO, Innovation Place
Regina, SK
Walter Lui, FRI CPM® CRES
Broker/Manager, Century 21 Leading
Edge Realty Inc., Brokerage
Toronto, ON
Johnmark Roberts, FRI
Broker of Record, B&B
Associates Realty Ltd., Brokerage
Toronto, ON
Theresa Salsman, CPM® ARM®
General Manager, Commercial Division
CitiGroup Properties Limited
Dartmouth, NS
ED & CEO
Maura McLaren, CAE
Quackenbush Thomson Law
Personal Injury Corporate & Commercial Law
·
Real Estate Wills & Estates Civil Litigation
·
·
(902) 492-1655
www.qtrlaw.com
REIC Exchange, August 2017
REIC Pursuit of Excellence Awards
Congratulations to our 2017 Pursuit of Excellence Award recipients. Award recipients were formally
recognized at the Awards Gala held during REIC’s 2017 Annual Conference in Halifax.
“I am honoured to have received the REIC Emeritus Award. Being a member of REIC and IREM has truly been a cornerstone of my
real estate career. I am fortunate to have had the opportunity to serve on the REIC National Board of Directors and lead the IREM
Canada Council, a role that is now called the Regional Vice President – Region 14. I also have the privilege of representing IREM
membership at the international level, currently serving as the Secretary Treasurer nominee (the first International member moving
to an officer role) and as IREM President in October 2019. I am truly thankful for the opportunity to serve and support our members
and be the recipient of this highest honour given to a member of REIC.”
– Cheryl Gray, CPM®
2017 Pursuit of
Excellence Awards
REIC Emeritus Award
Cheryl Gray, CPM® - QuadReal Property Group.
Jim Murphy, FRI - Royal LePage Atlantic
Don Myhre, CRP
J. A. Weber Award
Carmela Corrado, FRI CLO – Metrolinx
Patrick J. Harvey Memorial Award:
Nick Iannazzo, FRI CLO – Iannazzo Law Firm
Longley Condominium Real Estate MANAGEMENT
MEMBER of the Year Award
Barry Williams, CPM® ARM® - Bentall Kennedy LP
REIC Community Service Award
Tahir Qureshi, FRI CRES – City-Pro Realty Inc.
W.P.J. McCarthy Corporate Citizen of the Year
Award
Domus Realty
Globe Property Management
REIC Association of the Year Award
Calgary Residential Rental Association
QuadReal Literary Award
Natalka Falcomer, CLO - Managing Partner, Groundworks
QuadReal Excellence Award
Vanessa Van Dette, CPM® CRP ACoM - Larlyn Property
Management Ltd.
Chapter Administrator of the Year
Sharon Radford, REIC Edmonton Chapter
Chapter Initiative of the Year Award
REIC Calgary Chapter
Don Hill Award - Large Chapter
REIC Toronto Chapter
Don Hill Award - Small Chapter
Real Estate Institute of Manitoba (REIM)
Chapter of the Year Award - Large Chapter
REIC Toronto Chapter
Chapter of the Year Award - Small Chapter
Real Estate Institute of Manitoba (REIM)
IREM Outstanding Chapter Award
Real Estate Institute of Manitoba (REIM)
Visit the REIC website (www.reic.ca/awards) to view the 2017 Awards Gala photos!
www.reic.ca
Getting Designated
One of the most challenging experiences
in the designation program was the
Management
Plan
Skills
Assessment
(MPSAXM) exam; it was one of the most
challenging things I have ever done.
Luckily, I met another amazing student
taking her exam alongside me. Together,
we stayed up all night in preparation for
the exam; studying and bouncing ideas off
each other. This collaboration is what made
the seemingly impossible, possible. We
were all very fortunate to have an amazing
instructor, Steve Leistner, FRI(A) CPM®
CMOC CRU CRP ACoM, who walked us
through every lesson, making sure we all
understood the content. Steve brought a high
level of knowledge, and at the same time
made our classes fun. Although, at times, the
process seemed a bit overwhelming - it was
worth every minute! The CPM® program
has been one of the most powerful learning
experiences of my career.
Since taking these courses over the past
two years, I feel I have grown so much. I
am about to write my final exam, and I
believe I have not only become a better
professional - but also a better person. I
have had the opportunity to meet so many
other like-minded professionals who strive
to be their very best, and to do their best for
our clients. How can we be anything other
than inspired? As I go through my journey
I now know I have an amazing network of
people I can turn to, and they can also come
to me. With the knowledge I have gained
in the CPM® program I am more confident
in my decisions and in my day to day life. I
know I have the ability to find the answers
my clients need, and helping them become
successful is just so rewarding.
Being a woman in my 50s - who would
have thought that going back to school and
For the past 10 years I have worked in property management, in the not-for-profit sector, and with it has
brought many challenges and successes. I have always strived to be the best I can be for my clients and even
though I had taken both my strata and my residential property management through the University of British
Columbia, I felt I was falling short. There was just so much more for me to learn. When a colleague mentioned
the CERTIFIED PROPERTY MANAGER® (CPM®) designation I felt inspired again. With this program I would be
able to study at my own pace, bounce ideas off fellow colleagues, meet amazing people, and learn more about
property management - all at the same time! It was an opportunity I just couldn’t pass up.
By Christine Williams, CPM® Candidate
Lead. Serve. Inspire.
Becoming a CPM®
REIC Exchange, August 2017
Getting Designated
bettering my education would even be a
thought, let alone a reality? I would definitely
recommend continued education to anyone
who is thinking about it. Just do it! You have
nothing to lose and everything to gain.
Now, I feel that I have plenty of tools in
my toolbox and I am able to use them in the
best interests of my employers, clients, and
tenants. One of the great things of being a
part of an organization is feeling like you are
part of their success - and with the education
you will gain through REIC and IREM you
will absolutely feel your confidence level
rise and your knowledge increase with
each course you take. I highly recommend
spreading the news to as many fellow
property managers as possible!
I am counting the days until my final
exam, and when I can become a member
of the REIC BC Chapter. Together, we will
bring the public, our clients and our tenants
the best possible service available! I am eager
to take my pledge:
• I pledge myself to the advancement of
professional real estate management
through
the
mutual
efforts
of
Members of the Institute of Real
Estate Management and by any other
proper means available to me.
• I pledge myself to maintain the
highest moral and ethical standards
consistent with the objectives and
higher purposes of the Institute.
• I pledge myself to seek and maintain an
equitable, honorable, and cooperative
association with fellow Members of
the Institute and with all others who
may become a part of my business
and professional life. I recognize and
support the need to preserve and
encourage fair and equitable practices
and competition among all who are
engaged in the profession of real estate
management.
• I pledge myself to place honesty,
integrity, and industriousness above
all else and to pursue my gainful
efforts with diligent study and ongoing
education so that my services shall be
beneficial to the general public and my
obligations to my clients shall always
be maintained at the highest possible
level.
• I pledge myself to comply with the
principles and declarations of the
Institute of Real Estate Management
as set forth in its Bylaws, Statement of
Policies, and this Code of Professional
Ethics.
I would like to take this opportunity to
thank everyone who has helped guide
me through my journey to becoming a
CPM®, with special thanks to the board
at the REIC BC Chapter for making my
journey such a memorable one!
Building
stronger
communities
At BMO Bank of Montreal*, we take pride in our
local communities. That’s why, each year, through
various sponsorships and community involvement
we are committed to providing our support.
BMO Bank of Montreal is proud to support
the Real Estate Institute of Canada
We’re here to help.
TM
www.reic.ca
2017 REIC Annual Conference
10
REIC Exchange, August 2017
Conférence annuelle 2017
11
www.reic.ca
Growing Together
The #REIC2017 Annual Conference & AGM made a splash in sunny Halifax, Nova Scotia this year. We learned
about best practices with volunteers from Sarah Sheila Birnbach, how to #REICHustle with Clinton Wilkins,
the ins and outs of content marketing with Ross Simmonds, and how to figure out your "shtick" with Adam
Growe of Cash Cab.
Delegates experienced Canada's immigration history at Pier 21, and saw all that Halifax has to offer on the
city bus tour. We were very sociable at the Halifax Distilling Company, and again at the Pursuit of Excellence
Awards, hosted by Liz Rigney. Thank you to everyone who attended and help create such a successful event.
We look forward to see you all again in Montreal, May 29-31, 2018!
Many thanks to our sponsors who helped us launch another successful conference!
REIC Annual
Conference & AGM
Platinum Sponsor
Silver Level Sponsors
Award Category Sponsors
Official Media Sponsor
Delegate Gift Sponsors
Bronze Level Sponsors
Harbourside Realty
Keller Williams Select Realty
REIC Ottawa Chapter
REIC Nova Scotia Chapter
REIC Calgary Chapter
REIC Vancouver Chapter
Royal LePage Atlantic
Chapter Sponsors
REIC Edmonton Chapter
REIC Toronto Chapter
Real Estate Institute of Saskatchewan (REIS)
12
REIC Exchange, August 2017
REIC Unveils New Strategic
Plan with a Video
In late spring, REIC presented its Members with the
newly adopted 2017-2020 Strategic Plan: e3 - enrich,
elevate, exceed. This plan commits the Institute and
its Members to the continued pursuit of excellence in
advancing professionalism in the real estate industry.
At the Annual General Meeting in Halifax, REIC
unveiled a new promotional video: an animated short
that outlines the mission, vision and values of the
Institute as well as the goals contained in the new plan.
Visit the REIC
Youtube channel
(www.youtube.com/
user/REICNational)
to watch the video!
13
www.reic.ca
Canada Day Celebrations
REIC Members from across the country celebrated Canada’s 150th birthday in style!
Congratulations to Yolanta Murphy, CPM® ARM® for winning our #Canada150 contest with
her photos from the Calgary Ranchmen's Club and Canada Day parade in Banff, Alberta.
REIC Celebrates
Canada 150!
14
REIC Exchange, August 2017
15
www.reic.ca
Ethics and Real Estate
Why You Have to Care
(and Know!)
How can you avoid a lawsuit? You’ll have to
flip through the 100-page lease and have a
strong understanding of every clause. The
problem, however, is that you don’t have
the time and getting a lawyer involved is
very expensive. Yet, you also can’t afford
to not know the legal dangers lurking to
destroy your deal, client and reputation.
The solution? Educate yourself and read
on to learn about one of the most common
mistakes arising out of lease deals.
The Scenario
Your client is an experienced restaurateur
and needs a space that’s at least 3,000 sq
feet in a trendy Vancouver neighbourhood.
The square footage is critical because
anything smaller won’t fit the number of
seats required for the restaurant to turn a
profit. Losing even one table would destroy
his business.
After months of searching and several
deals falling through, you finally find the
perfect location at a below market rate. The
suite is in a busy strip mall with a gorgeous
green space attached and large parking area.
As you review the Offer to Lease you know
that your client will be pleased because the
Offer clearly states that the Rentable Area is
approximately 3,020 sq feet.
A month later, your client calls. He
tells you that his contractor measured
the suite and the space is actually 2,500
square feet – he won’t be able to make
his business work. He says you and the
landlord intentionally misrepresented
the size of the unit and he wants out of
the deal! If not, he’ll sue.
Is the square footage discrepancy
between what your client measured
versus what is written in the lease and
what he’s paying rent on legal? You bet.
May your client try and sue you? You bet.
What Happened?
Your client assumed that the Rentable
Area was the actual size of the unit and
you didn’t explain the difference between
Rentable and Useable Area.
What is the Difference and Why Does
the Landlord Do This?
Before signing an Offer it is imperative to
always warn clients that there can be a big
difference between the Useable Area and
the Rentable Area. Understanding and
telling your client about these differences is
imperative because rental rates are almost
always based on the basis of Rentable Area.
I’ve seen many disgruntled tenants start
lawsuits over failing to appreciate this
difference and businesses fail because of the
unexpected cost of rent.
Lawyers are great assets for any real estate agent or realty team. They’ll help you craft a legally acceptable
arrangement, but they have their limits. They won’t help you create a good business deal because that’s your
job. And if you don’t do your job your client will be stuck with a bad deal and the courts will not strike down an
agreement just because the deal, well, “sucks”. But, the courts will uphold a lawsuit against you if you failed to
meet your professional duty to provide competent advice!
By Natalka Falcomer, CLO
About More than Per Square Foot Rate
16
REIC Exchange, August 2017
Natalka Falcomer, CLO is a lawyer, real estate sales agent and Certified Leasing Officer with a passion to make the law accessible and affordable.
She founded, hosts and coproduces a popular legal call-in show on Rogers TV, Toronto Speaks Legal Advice. She founded Groundworks, the only
firm specializing in commercial real estate law that offers flat fee rates, online delivery of legal work and a guaranteed turnaround time. Natalka can
be reached at natalka@groundworksfirm.com. For more information about the author or leases visit www.groundworksfirm.com
Ethics and Real Estate
Generally, Usable Area is the space that
a tenant can actually occupy and use, while
Rentable Area includes a tenant’s share of
space in the building deemed beneficial to
the tenant. The tenant doesn’t necessarily
have exclusive possession of such space:
Rentable Area of the Premises means
the area expressed in square feet […] as
certified by the Architect or Lad Surveyor
of all floors of the Premises (including,
without limitation, any Mezzanine Area,
Basement Areas and Storage Areas),
measured from: (a) the exterior face of all
exterior wall, doors and windows […]. The
Rentable Area of the Premises includes all
interior space, whether or not occupied by
any projections, structures, stairs elevators,
escalators, shafts or other floor openings or
columns, structural or non-structural and
[…] the area of such recess or entrance for
all purpose lies within and forms part of the
Rentable Area of the Premises.
This clause essentially means that the
Rentable Area, unlike the Useable Area,
includes the tenant’s share of the building’s
common spaces such as lobbies and other
non-rentable space such as elevators,
mechanical rooms and shared or public
bathrooms. The measurements include
spaces that no one can physically occupy,
such as columns and rooms filled with
laundry machines, boilers and HVAC
systems.
Why does the Landlord make this
distinction between Rentable and Useable
Area? Because it costs money to run the
entire facility, which is open for the tenant’s
use and benefit. As such, the Landlord will
want to recoup these costs and, sometimes,
even make a profit for running the building.
What Should You Do?
The first method to protect your client and
yourself from professional negligence
claims is to advise your client to hire an
architect to measure the space. The hired
professional should not only measure
the space, but also help your client
determine if his space needs are met. Be
sure that the architect or professional
has the proper accreditation to provide
a Letter of Area Certification and uses
a
generally
accepted
measurement
standard such as the standard adopted
by Building Owners and Managers
Association (BOMA). Although the BOMA
standard isn’t a standard required by law,
it is very well recognized and will enhance
the legitimacy of your position during
negotiations or if your client has a dispute
with the landlord.
The second protective measure you
should take is to figure out if the Landlord
has added a “loss factor” to the Rentable
Area calculation. Although not contained
in our clause example, above, Landlords
may also add an arbitrary “loss factor”
which is used to “gross up” the Rentable
Area’s size. A “loss factor” is perfectly
legal as there is no measurement standard
required by law.
The final protective measure is to walk
through the entire premises. As outlined
above, the Rentable Area also includes
columns. By doing a walk-through, you
may find that there are numerous columns
within the premises that are not available
for use by your client. If that’s the case
ask the Landlord to reduce the Rentable
Area calculation by excluding a few of the
columns.
The best defence against lawsuits,
damaged reputations and failed deals is
planning and information. With your own
facts you’ll have a more informed basis for
negotiation and you’ll protect your client
from any business-destroying surprises.
DISCLAIMER: This article offers general comments on legal issues and developments of concern to business organizations
and individuals and is not intended to provide legal opinions. Readers should seek professional legal advice on the
particular issues that concern them.
17
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Membership Milestones
10 YEARS / ANS
Laynie Hicks, CPM® CLO
Sarah Meade, CRF
Rob O'Connor, CRF CRU
Lori Sealock, CPM® ARM®
Jennifer Smith, CRF CRU
David Yauch, CPM® ARM®
Willvorn Grainger, CRU
Jasmine Irish, CRU
Cynthia Joseph, CRU
Lindsay Carlson, FRI CRES
Babita Khurana, CPM®
Barry Meckelberg, CPM® ARM®
Zdravko Anthony Prsa, CPM®
Harold Schmidt, CRES
Wendy Taylor, CRF
David Albrice, ARP
Guy Cormier, CRU
Branko Cvoric, CPM®
Allen Hoffer, ARM®
Cristiana Vlasceanu, CPM®
Mark Uddin, CPM®
Alicia Brodie, ARM®
David Chambers, ARM®
Octavio Mendonca, FRI CRES
Theresa Salsman, CPM® ARM®
David Nevins, CPM®
Geoffrey Younghusband, CPM®
Sylvie Beaudoin, FRI
Angelo Guaragna, FRI
Pierre LeSieur, FRI
Rene LeSieur, FRI
Athanase (Tom) Poulis, FRI
Jimmy Vittoria, FRI
Kim Aasen, CPM® CRP ARM®
Lisa Brewster, CPM®
Laurie Wionzek, CPM®
Harminder Athwal, CPM®
ARM®
Desmond Au, FRI CRES
Darlene Cole, CLO
Mark Coward, CRU
Peter Dou, FRI CLO
Karen Doucette, CRF
Ken Finch, FRI CPM®
Scott Fischer, CRP
G. Steven Hughes, CPM
Richard Johnson, FRI(E) CLO
Lenard Lind, FRI CRES
Nick Savino, CPM®
15 YEARS / ANS
Robin Elford, FRI
Lauretta Enders, CPM® CMOC
Vanda Brown, CRU
Molina Shillingford-Samuel,
CRU
Glen Cowan, CRP
Roseanne Evans, CPM® ARM®
Ghislaine Hebert, CRF
Joel Helm, CPM®
Mary Aubrey, CPM®
Kristofer Hansen, CPM®
Elton Ash, CRES
Darlene Mae Rendell, CPM®
Louis Serafini Jr., CPM®
Franco Falbo, CPM®
Serge Rivet, FRI
Jackie Presnell, CLO
Kelly Skiffington, ARM®
Giselle Gagnon, CPM®
Phillip Galin, CPM® CMOC
D. Chris Innes, CPM®
Karu Kandiah, FRI CRES
Andrus Kung, CPM®
Eddie Lok, CPM®
Parbati Prashad, CRF
Renate Weidner-Lorber, CPM®
20 YEARS / ANS
Alan Tennant, FRI(E)
Vlado Brcic, CPM® CLO
Edgar Jackson, FRI CRP
Lorraine Miller, CPM®
Jonathan Lo, CRES
Mercedes Wong, FRI
Leslie Bessey, FRI CPM®
Cathy Mihailides, CPM®
Mark Coutts, FRI(E)
Douglas McDonald, CPM®
Grant Stevenson, CPM® CMOC
CRP
Ian Lindsay, FRI CRES
J. Scott Wilson, FRI CRES
Lawrence Woytowich, FRI
CRES
Bruce Bassett, CRF
Brian Edmison, CPM® ARP
Janice Edmison, CPM® CRP
Stephen MacKechnie, CPM®
CMOC
Vincent Biello, FRI
Marc-André Bourdon, FRI
Marco Casella, CRES
Bertrand Pelletier, CRF
Sherril Carlson, CPM® CRP
ARM®
Donna Jamieson, ARM®
Henry Moulin, CRES
Joyce Tourney, CRES
Leonid Brandt, CPM®
Stephen Evans, FRI CRES
J. Kelly Hourigan, CPM®
Margaret Liu, CRES
George Miller, FRI CPM® CRF
Nasir Nathoo, CPM® CRF
Suny Rho, FRI CRES
25 YEARS / ANS
Dale Anda, CPM® CRF
Susan Eyre, CPM® CRP
Robert Serr, CPM®
Donna Monkhouse, CPM®
Patrick Rudiger, FRI
Kasturi Chandok, CPM®
Michael Colpitts, CPM®
Jit Varaitch, FRI
Frank Carroll, CPM®
Susan Vered, CPM®
Pierre Moffet, FRI(E) CRF
Francois Paquin, FRI
Christian Pare, CPM®
Carole Pepin, CPM®
Casey Chan, FRI
Joseph Giacomo Donato, FRI
CRES
Ronald Fraser, CPM®
Mario Furgiuele, FRI
Eddie Lee, FRI
Aileen Mak, FRI
30 YEARS / ANS
Sam Kolias, FRI CPM®
Diane Vine, CPM® CMOC
T.J. Crowley, CPM®
Danny Boyd, FRI
Neal Fisher, FRI CMR
Craig Harrold, FRI(E) CLP
Dougal Shewan, FRI
Congratulations to the following members who are
celebrating membership milestones! Thanks for
being part of the REIC family!
Félicitations aux membres suivants qui célèbrant des
étapes! Merci de faire partie de la famille de l’ICI!
2017
Membership
Milestones
Étapes des
membres de
l'ICI 2017
18
REIC Exchange, August 2017
David Hillhouse, CPM® CRES
Scott Reid, CPM®
Perry Staniscia, FRI CPM® CRF
R. Scott Ullrich, FRI CPM®
John Iannuzzi, FRI
Jeffrey Gould, CPM®
Denise Duprat, FRI
Frank Imbrogno, FRI
Paul Mehlsen, FRI CPM®
Luigi Conforti, FRI CMR
A.R.G. Khan, FRI
Edward K.C Li, FRI CMR
Mark McKay, FRI CPM®
Gino Romanese, FRI CMR
35 YEARS / ANS
G.L. Smith, FRI CMR
Vyetta Sunderland, CPM®
Richard Linklater, CPM®
Lloyd Cohen, CPM®
David Blanchard, FRI CPM®
CMR
Fred Waymouth, FRI CRF
Guy Huneault, FRI
Robert Kiledjian, CPM®
Christian Messier, FRI
William Kirkpatrick, FRI CPM®
Alan Moses, FRI CRES
Barry Wyner, FRI
40 YEARS / ANS
John Ayre, CPM®
Klaus Bernhard, FRI CPM®
Michael Chomyshyn, FRI CPM®
CRES
Jacob Ellens, FRI
Ronald Farrington, FRI
William Greenwood, FRI CMR
Veronica Lord, FRI
Donald MacDonald, FRI
W. Brian Patterson, CPM®
John Rogan, FRI
Ernest Smith, FRI
Bruce Spragg, FRI
P. Michael Strus, FRI CRF
45 YEARS / ANS
Ronald Smith, FRI CMR
Ronald Reynolds, FRI
Graeme Rowswell, CPM® CMR
Peter Davy, FRI CMR
Carl Fox, FRI CMR CLP
George Metz, FRI CMR
Michael Novac, CPM® CLP
N.S. Smith, FRI CRF
50+ YEARS / ANS ET PLUS
Philip White, FRI
Lawrence D'Orsay, FRI
Graham Downey, FRI CMR
Ian Macnaughton, FRI
Ian Caunce, FRI CMR
Kent Lyle, FRI CMR
Georges Couillard, FRI CPM®
Roy Wilson, FRI
Terry Barber, FRI CMR
Leonard Potechin, FRI CPM®
Ronald Klombies, FRI CMR
Stanford Korsch, FRI
Étapes des membres
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