A growth industry

Drones are filling a growing number of roles in a variety of industries, from conducting airstrikes on enemy positions to delivering small packages for online retailers, but they also carry some intriguing implications for owners and managers of commercial and industrial properties.

"As a friend of mine says, anything that's dull, dirty or dangerous," said Jeff Donohoe, a real estate consultant in Massachusetts who is advising a unique project in Grand Forks, N.D., an industrial park catering to the drone industry.

Roof inspections, video and photography for marketing, infrared photography to check for heat-related issues such as damaged power lines or energy efficiency, aerial surveys and inspections of tall structures:the possibilities are many.

Trevor Bergman, CEO of AeroVision Canada, based in Beechville, N.S., pointed to increasing use in pre-development phases, such as surveying for property lines or analyzing terrain to better integrate developments into the property's natural features.

"Once construction begins, drones are being used again as a way for project managers and developers to manage logistics, monitor progress and reduce errors or catch errors earlier in the build phase, and more importantly, improve site safety," he said.

Dan Barnes, partner in Calgary-based Peak Aerials, said while regulations remain tricky, drones can help commercial property owners in a number of ways.

"I don't think we've seen everything these things can do," Barnes said. "I think it's definitely a growth industry."

The limiting factors today are regulations that restrict where drones can fly. Barnes said the industry is working with Transport Canada on new regulations expected in 2018 that should address many of the flight restrictions.

"We've done everything from wind-turbine blades, where we can get right up close to the turbines and see any deficiencies on the blades. We've mounted forward-looking infrared cameras and done power-line inspections, looking for hotspots on the conductors from damage to the line."

Bergman said new regulations must play a role in managing expectations, of the public and of drone users.

"The main issue seems to be government regulations, the public's expectation of privacy, confusion over airspace rights and the definition of private property," he said. "There is not a simple answer to many of these issues, but it's safe to say the limitations are less with the physical hardware — the drones — and more with the paperwork and legal side of the industry."

Donohoe said compared to the cost of aircraft for aerial photography, drones open up all kinds of real estate projects to first-rate aerial photography and stunning videography to help sell projects.

"For the right kind of project, you might send up an airplane, but now, when you can get a drone to do it for about US$100 per hour, almost any development can afford that," he said.

Barnes said that's certainly true for some projects, but in Canada, any commercial operator — whether a contractor such as himself or a building owner flying a drone personally — requires a Special Flight Operations Certificate from Transport Canada. Those certificates mandate a minimum lateral separation of 100 feet from other property or roadways.

That separation means any property smaller than 200 feet across might be ineligible for drone use.

A large development or an office space in the open? "Yeah, for sure. Have at it."

Barnes said he's hopeful the new regulations for drone use will relax some of the restrictions on where drones can fly by tightening requirements for operator certification and registration of drones and setting minimum standards for equipment, both of which he said will make drone use safer than today.

"In drone technology, there isn't a lot of redundancy. In some of the Prosumer drones, you have one battery. If it fails, the drone drops out of the sky. On quadcopters, if you lose one engine, it won't fly."

Barnes said drone costs vary depending on the drone and the assigned task, ranging from $75 to $400 an hour, which pays for the equipment and the operator.

By comparison, helicopters range from $500 to $1,000 an hour. Yet a chopper can be cheaper, depending on the project, he said. Peak Aerials also uses conventional aircraft as needed.

"If we have a number of properties to photograph, we can do four or five in an hour with a helicopter, but it can take considerably longer if we have to set up and tear down drone equipment for each one," he said. "So sometimes, the more expensive option is cheaper."

Often cited as a concern is privacy, particularly with the ability to fly — often undetected — close to high windows and balconies, where occupants might have a reasonable expectation of privacy even with blinds or drapes open.

Donohoe said he doesn't believe that expectation has been tested in court, nor does he buy it.

"If a plane or helicopter can fly over your house or apartment building, with long telephoto lenses, I'm not convinced privacy is an issue with drones."

Still, several American states have developed or are developing laws to govern privacy issues raised by drone use. While a landlord using a drone to survey his own property may not be violating anyone's privacy, it's worth considering adding tenant consent to tenancy agreements in the future.

Barnes said he also hopes the new regulations in Canada will help counter concerns about privacy.

"For commercial operators, we're not interested in spying on people. We're just interested in completing the task," he said.

Some of the expected regulations do make sense, he said, including those that will mandate licensing of drone operators, registration of aircraft and improved communication between the drone industry and NAV Canada, which operates air traffic control in Canada.

Transport Canada recently released new regulations regarding recreational users of drones, limiting those drones to a maximum 90 metres of altitude and restricting airspace within 75 metres of buildings.

While those regulations are not for commercial operators, they are worth mentioning as there have been reports of commercial users masquerading as recreational.

Barnes said any drone used for commercial purposes — photography for sale, surveying properties, etc. — are governed by rules for commercial drones.

Source: A growth industry