FALL 2021EDITION
The market for industrial space continues to see unprecedented increases in rental rates and near zero vacancies. Retail space seems to be turning a corner now that the Province has been in Step 3 since mid-July. We seem to be making some progress in this regard. 

However, the office market has been a laggard with return-to-the-office programming for many companies still in the works. Many companies planned to start returning to the office this fall while others will not return until sometime early in 2022! Others are changing their workplace strategy altogether moving to remote work for all employees.  

One of the biggest challenges while working remotely is employee engagement. Most senior leadership teams see the benefits of in-person meetings and collaboration to help ensure employees stay engaged. Studies have shown that physically distanced teams make it hard to align on work priorities. Simply put, communication becomes more challenging when an employee is not located with physical proximity to their co-workers. It will take time for some companies to fully realize these benefits and there’s no doubt some will learn the hard way. In the meantime, we will continue to provide the safest work environment possible for our staff in an effort to maximize in-person work conditions. 

In this Fall 2021 newsletter, you’ll read about Orlando’s robust leasing and construction pipeline, new employees joining our team and others retiring after long and distinguished careers at Orlando. You’ll also see the incredible impact Orlando’s and FDC Foundation’s philanthropy is having on the lives of Ontarian’s. 

Please enjoy this Fall 2021 edition of O.News.
GTA WEST INDUSTRIAL MARKET OUTLOOK
The GTA West Industrial Market remains locked in a prolonged period of low availability (1%) with new product delayed in coming to market and construction-ready land in very short supply; pre-leasing activity accounts for over 80% of all projects under construction. These conditions continue to push asking rates higher which are currently averaging over $11/SF, a year-over-year increase of 14%. Rates have been climbing at a steady pace since 2018 when the asking rate was $6.50/SF making the GTA rates now comparable to other major North American markets like New York, LA, and Vancouver.
GTA WEST OFFICE MARKET OUTLOOK
Uncertainty about the severity of the “fourth wave” of COVID-19 and the potential impact of children going back to school has tempered businesses plans to re-open their offices even though vaccination rates have improved greatly over the summer. Many companies have made substantial investments to improve their ability to conduct business remotely and continue to assess their space needs. The GTA West Office Market Availability Rate rose 2.2% to 15.2% in Q2 2021 and is expected to remain flat well into 2022.
ORLANDO INDUSTRIAL PORTFOLIO ACTIVITY 
Orlando’s Industrial Portfolio continues to enjoy the benefits of the extremely competitive market conditions; there are no industrial units that are vacant and the next significant available space won’t be available until September 2022. Renewal activity is consistently high with 69 individual leases expiring over the next 24 months representing over 6.5M SF of the Industrial Portfolio, but tenants are faced with steep increases in Net Rent: +65% (+$4/SF) as an average.
 
Leasing activity remains light within the Office Portfolio but has shown some interest in space that is 4,000-6,000 SF, but the discounts available in competing sublet space continues to suppress the appetite for direct leases. Our current Vacancy Rate is 10.3%.
RECENTLY COMPLETED DEALS
General Mills Canada Corporation has been a tenant with Orlando Corporation since 2004 when the Churchill Business Park was launched. They currently occupy a combined 581,000 SF at 100 Edgeware Road and 1 Hereford Street, and they will be upgrading to a modern cross-dock facility at 1820 Reading Court in our Milton South Business Park starting March 2023. 
Alliance Labeling Inc. is a leading service provider of container decorating and contract packing who has signed a 10-year lease for the our new 215,000 SF building located at 7330 Mississauga Road, just south of the 407 ETR.
D&H Canada ULC, a leading technology distributor of IT and electronics offering end-to-end solutions, recently agreed to lease 6370 Belgrave Road for eleven years commencing September 2023. D& H will be relocating from their current 89,000 SF unit at 7975 Heritage Road to the new 253,000 SF building located at Mavis Road and Highway 401.
Nippon express Canada Ltd. has extended their Lease at 6250 Edwards Boulevard for an additional five years. 
Metro Logistics Inc. extended their lease at 6099 McLaughlin Road for an additional five years. Metro leases four buildings with Orlando totaling over 720,000 SF.
Husqvarna Canada Corporation have agreed to lease 147,849 SF at 125 Edgeware Road in addition to the 102,793 SF they already lease at 850 Matheson Boulevard West.
Comtrad Strategic Sourcing Inc. offers products to furniture, kitchen, and bath cabinet manufacturers and distributors and has signed a lease for 43,831 SF at 5775 McLaughlin Road starting January 1, 2022.
Amazon Delivery Station DTY4 
6305 Kateson Drive and 50 Capston Drive
50 Capston Drive
This facility will be utilized for interior van parking only, (238 spaces). The HVAC system has been upgraded to detect and handle vehicle exhaust and the floor slab has been modified to resist road salt. With additional exterior van parking spaces, approximately 340 vans will eventually operate from DTY4.

Orlando team members involved with this project:
- Design: Sheldon Siewnarine, Sandro Cerqua, Ivan Morson 
- Project Management: Kerry Horrigan 
- Site Superintendent: Ben Pirraglia, Austin Pay
6305 Kateson Drive
Pre-addressed Amazon packages arrive at this facility in 53’ trailers from sortation (mid-mile) centers. Upon arrival, they are unloaded by flexible conveyors, then they are sorted over night and placed on carts which are rolled out to the loading canopy and loaded into vans operated by Amazon’s Delivery Service Partners. Site superintendent, Ben Pirraglia, has delivered another Amazon facility under very tight timelines. Well done Ben!
Amazon Fulfillment
7850 Heritage Road
Orlando successfully moved-in Amazon Fulfillment to the new building at 7850 Heritage Road, Brampton. This 382,000 square foot facility will serve as one of Amazon’s “mid-mile” sortation centres as they pursue further expansion of their growing business. Orlando provided a “turnkey” approach to Amazon’s fit up scope, coordinating tenant work through a multitude of unique challenges including installation of Amazon security and communication services, building automation, life safety for conveyor/material handling equipment, security guard house, and many site alterations to suit Amazon’s prototype layout. Orlando is also in the site plan approval stage of a parking expansion and driveway link over to Amazon’s neighbouring building at 7995 Winston Churchill Blvd, which will act as secondary access and overflow parking to the site.

Orlando team members involved with this project:
- Design: Jeremy Sguigna
- Project Management: David McKeown
- Site Superintendent: Anthony Mulvale
Princess Auto
1825 Reading Court
Construction at 1825 Reading for our Princess Auto Ltd. continues with site and building envelope work being finalized and slab on grade placement complete. Tenant Fit-up work has commenced with office, aerosol storage, and hazardous storage construction well underway. Tenant fit-up is expected to be completed well in advance of the Lease Occupancy date in part due to a detailed Lease Agreement and advanced planning by the Tenant. Site Superintendent, Renato Saluri, must be commended to an outstanding job on the first of four buildings on the Milton South site during challenging times. He has set the bar high for the three remaining buildings.

Orlando team members involved with this project:
- Design: Sandro Cerqua 
- Project Management: Shawn Stirling
- Site Superintendent: Renato Saluri
RETAIL NEWS
TENANT UPDATES
Coming Soon

-Complete MD Family Practice and Med Spa Clinic
-Big Brand Fashion
BRANDING
Heartland Town Centre. It's all here.

The retail team is excited to present the new brand and logo for HTC! Over the past few months, Orlando partnered with a reputable Canadian creative agency, Vanderbrand, to revamp the HTC brand and create a new and exciting identity for the shopping centre.

The new brand will be launched to the public in early November along side a new website.
CONSTRUCTION NEWS
As outlined in the Spring Newsletter, the construction department has now gone electronic. They have traded in their drawing tables for large screen TVs mounted on walls. Utilizing a project management software app called Fieldwire they are able to view drawings, site photos and manage projects more efficiently. Printing of drawings has been dramatically reduced.
HUMAN RESOURCES NEWS
NEW EMPLOYEES
Orlando Corporation welcomes the following employees to the team:
Jennifer Mandel 
Associate General Counsel, Legal Department

Jennifer joins Orlando’s legal team with more than 15 years’ experience in real estate law. After completing both her undergraduate degree and LLB at Western, she articled and practiced for two years as an associate at DelZotto, Zorzi LLP. After leaving Delzotto to experience a wider variety of work, she spent the next eight years at Fogler, Rubinoff LLP where she was promoted to partner. Most recently, Jennifer spent the last five years at McMillan LLP where she enjoyed a diverse practice including all manner of transactional work (acquisitions, dispositions and financings) and residential and commercial development.  

Jennifer is thrilled to have joined Orlando and looks forward to having the opportunity to meet and get to know everyone. She will be actively engaged in all matters that the legal department handles.

Jennifer is married and has a nine-year-old son, Ethan, who plays rep hockey in Burlington. When not at the office she can usually be found at the hockey rink or up north at her family cottage in Haliburton.  
Pasquale Abbruzzese 
Project Co-Ordinator, Construction Department

Pasquale recently graduated in April of 2021 with a Bachelors of Applied Science (Civil Engineering) and Option in Management Science from the University of Waterloo. His main focus during senior years of the programs were project management, construction, and building science. His previous co-op experiences all revolved around construction project coordination roles and included multiple terms with Trans-Northern Pipelines, St. Michael’s Hospital, Kenaidan Contracting, and, most recently, two terms with Orlando Corporation during 2020.

Currently he is working on-site at the Milton South Development, and his role includes assisting the project managers and site superintendents with project related tasks. Pasquale is grateful to be a part of the Orlando Corporation family and looks forward to building a career in which he can take pride in.
RETIREMENTS
Jim Turner 
Start Date: October 1st 1985
Jim as been a dedicated and tee-riffic employee of Orlando for 36 years. Orlando has grown and become stronger thanks to Jim and his many years of service and commitment.  We wish nothing but happiness, health and many wonderful years of golf and travel ahead. We hope your retirement is a wonderful journey of un-fore-gettable adventures!
Tom Hunter
Start Date: September 28th 1987
Tom has been an integral part of Orlando for the last 34 years. His incredible contributions will always be valued and remembered. We will miss seeing him around the office with a big cheerful smile. We wish him many wonderful years of retirement with his family and friends.
INFORMATION TECHNOLOGY NEWS
Since the late spring and throughout the summer, the I.T. team has helped facilitate Orlando’s return to the office through the process of getting workstations ready and providing/configuring technology equipment for returning employees.  For many head office employees, this has included the conversion of laptops originally provided to connect to their office computers remotely to “permanent” laptops, in replacement of these desktop computers or virtual machines that they were using pre-pandemic. This initiative, together with the upgrade of our Wi-Fi network discussed in the spring edition of the newsletter, should help enable greater work efficiencies at Orlando going forward, allowing employees to stay connected to the network wirelessly while in meetings or otherwise away from their workstations.

The I.T. group would also like to take this opportunity to thank all of the employees who provided feedback on their experience using technology at Orlando, either by participating in meetings facilitated by our external consulting partners (PwC) or by completing their technology survey. Significant insights were derived from the comments received, which have been very helpful in formulating our technology strategy going forward.
Orlando has a long history of supporting our community, and we are very happy to share that this tradition continues. With thanks to all of you, whose hard work and diligence makes this possible, we’d like to share some details about two very exciting gifts.
MACKENZIE HEALTH
Commitment Amount: $5,000,000

Orlando has issued a matching challenge to Mackenzie Health for up to $5M to support the new Orlando Corporation Ambulatory Surgical & Procedures Centre at Mackenzie Richmond Hill Hospital.

This Centre is necessary to support both Mackenzie Richmond Hill Hospital and Cortellucci Vaughan Hospital. Day surgery patients, outpatients and inpatients who require endoscopies, cystoscopies, gynecology, urology, ENT, gastrointestinal procedures or minor surgeries will be cared for in this new Centre.

In addition to refurbishing the Centre and increasing its size by 25%, this gift will help to purchase essential equipment and technology, including:
  • HD Video Cystoscopes
  • Ultrasound Machines
  • Bladder Scanners
  • Surgical Instruments
  • Adult and paediatric colonoscopes
  • Gastroscopes
  • Crash cart and defibrillator

As of the end of September, Mackenzie Health has raised $3.1M from the community and are well on their way to raising the full $5M by the end of next year.
THE DARLING HOME FOR KIDS
Commitment Amount: $3,500,000

In 2019 Orlando issued a $3.5M matching challenge to support the Darling Home for Kids’ capital campaign to build a bigger and better home-away-from-home for children with complex medical needs and their families.

As Canada’s only paediatric organization providing respite, residential and hospice services, The Darling Home for Kids is a unique home-like environment nested on 77 acres in the Niagara Escarpment, with many medical amenities found in a hospital. The organization focuses its service provision on children who require intensive nursing support on a daily basis for survival, with a healthcare team that includes nurses, personal support workers, social workers and physicians.

The Capital Campaign will finance the expansion of the home by 10,000 sq.ft. as well as the following projects: three new bedrooms with two adjoining bathrooms, larger medication room, multi-functional spaces, larger multi-sensory Snoezelen room, dedicated playroom, private kitchen and accommodation in palliative wing, dedicated staff and volunteer spaces, second story addition, driveway extension and larger parking lot, and garage addition.

As of August 2021, The Darling Home has secured $3,364,053.52 in gifts from the community, leaving them with only $135,946.48 to go!

Click here to view a short video tour of the home and their renovation plans.
Even though life has been very different these last 18 months, the needs in the healthcare system are constant. The FDC Foundation has been busy meeting with various charitable partners over the past 6 months and have made commitments totaling just over $27,000,000.

These gifts have supported capital re-development and equipment, medical research, medical student support and CNIB Guide dogs.

Here is a brief re-cap of FDC Foundation’s new commitments:

CAPITAL RE-DEVELOPMENT AND EQUIPMENT 
FDC Foundation has made gift commitments to six institutions to help with their re-development and equipment needs:
  • Michael Garron Hospital
  • Holland Bloorview Kids Rehabilitation Hospital
  • SickKids
  • Toronto General Hospital
  • William Osler Health System
  • Health Sciences North
Total Commitments: $21,550,000

MEDICAL RESEARCH
FDC Foundation has made five gift commitments to support medical research:
  • Holland Bloorview Kids Rehabilitation Hospital to support Brain-Computer Interfacing Clinical Research
  • St. Michael’s Hospital to support the International Centre for Surgical Safety
  • Sunnybrook Health Sciences Centre for Alzheimer’s Disease Research
  • Two gifts to the Princess Margaret Cancer Centre for projects in early detection: 1) Early detection of Familial Cancer Syndromes using circulating tumour DNA and 2) Utilization of DNA methylation profiling for early detection, screening, and personalized treatment of patients with central nervous system tumours.
Total Commitments: $5,120,000

OTHER
Finally, FDC Foundation has supported medical students at the Northern Ontario School of Medicine and sponsored the care and training of guide dogs at CNIB.
Total Commitments: $600,000