In the aftermath of the Second World War, North America experienced a rapid shift in demographics as a large portion of the population transitioned from urban centre living to suburban living. On the backs of a growing automobile industry and the abundant availability of low-cost fuel, bedroom communities began popping up outside of the traditional urban centres, connected by an ever-growing infrastructure.

Although the winds of change have been blowing gently for years for many of us, myself included, the change has an almost overnight quality to it with ramifications for everyone. With oil at an all-time high, the world's growing demand for commodities, food shortages, threats to the quality of our food supply and the increasing awareness of the fragility of our environment, change is needed and change is happening. No one is happy with the price of gas but it appears to be the catalyst needed to inspire behavioural change. We are now seeing public transit use at an all-time high while fuel purchases are dropping, and over the next 10 to 15 years we should expect to see significant changes in how we conduct our daily lives.

We are also experiencing a renewed interest in urban living, connectivity with major transportation corridors as well as working and living in energy-efficient and environmentally responsible buildings. This shift is forcing the commercial real estate industry to rethink the type of product it delivers and where it is located. Nancy Searchfield, Colliers International's national leader of sustainable services for Canada suggests "landlords, tenants and brokers all need to prepare themselves if they want to maintain relevance in the marketplace." With over 40 per cent of greenhouse gases worldwide being generated by buildings, real estate practitioners will need to take a leading role in addressing climate change. "Landlords and tenants who aren't placing a strong emphasis on energy efficiency and environmental performance will be facing functional obsolescence much sooner then people realize" she says.

As retail projects located in suburban locations are heavily dependent on vehicular traffic, expect to see urban retail expand. Ottawa's new Canadian Tire store located on Carling Avenue is an excellent example of what retailers are doing to make urban shopping more appealing and accessible. Office buildings that fail to provide the amenities of public transit, retail conveniences and energy efficiencies can expect to lose favour with their customers.

Across Canada, developers and landlords have been meeting the challenge of global warming head-on as they introduce innovative sustainable developments and environmentally responsible business practices. Colliers is in a very unique position as one of the world's largest commercial real estate service providers to significantly impact the environment, while creating significant competitive advantages for our clients.

World Wildlife Fund-Canada (WWF-Canada) is a case in point. With the assistance of Colliers professionals, WWF-Canada was able to satisfy its expansion requirements while reducing its own ecological footprint without having to move to a newly constructed LEED (Leadership in Energy and Environmental Design) certified building. Colliers professionals were able to assist WWF-Canada negotiate a five-year lease renewal with its current landlord. In a departure from traditional leases, WWF-Canada's new lease contains a variety of "green provisions," requiring specific improvements such as energy-efficient lighting and separate metering so savings could be quantified and passed back to the organization. The introduction of green leases requires a like-minded landlord. In this case, Crestview Investment Corp. was interested in reducing its ecological footprint and was a willing partner in the process, making such good faith efforts as replacing equipment with energy efficient products and establishing a building wide Green Committee.

In Edmonton, Qualico, represented by Colliers, is now building Station Lands. This downtown project is a highly anticipated urban development, covering four city blocks that will consist of 2.5 million square feet of space upon completion. Phase one of the development is the 625,000-square-foot EPCOR office tower to be built to a minimum LEED Silver certification. The development will offer a wide range of features including strategies to encourage the use of alternative modes of transportation and the introduction of green roofs. Systems will be incorporated to reduce water use by a minimum of 20 per cent, while HVAC systems will be designed to reduce the size of equipment and energy consumption.

The new reality for commercial real estate is that change is happening, and if we don't stay ahead of it change will pass us by. The question is not why should we do this, but why not? We have the technologies and the resources to make a difference. What will the world look like for our children and our children's children if we don't make the investments in change that are so readily available to us? What sort of legacy do you want to leave for future generations?

Kelvin Holmes, Managing Director

Colliers Macaulay Nicolls (Ontario) Inc., Brokerage

613-567-8050

kelvin.holmes@colliers.com

www.colliers.com/ottawa

Kelvin Holmes is the managing director of Colliers International's Ottawa office, which is a leading provider of commercial real estate services in Ottawa. For more information on office leasing or any other real estate related topics, please contact Kelvin Holmes at kelvin.holmes@colliers.com or at 613-567-8050.

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