Month: August 2015

• Fun Friday: ATC subscriber map

  When I was very young I went a Montessori school here in
  Toronto. If you’re not familiar with Montessori education, it’s basically a
  very open ended and independent form of learning. Students choose
  what they want to do.

  Because of this, many have argued that a Montessori
  education is actually great training to be an entrepreneur. Instead of being
  told what to do, you as a student need to figure it out on your own. See the
  parallel? Both Google founders went to Montessori school.

  When I was there (< grade 4), my absolute favorite thing
  to do was draw maps. I remember them having these large scale maps of the world where you could
  physically remove each country so that you could then trace it and create your
  own maps. I spent a lot of time doing exactly that.

  To this day, I still really love maps. And I remember many
  of my friends in architecture school being the same way. So perhaps it comes
  with the territory.

  In any case, I recently started playing around with a product
  called cartoDB. And one of the things you can easily do with it is connect it
  to Mailchimp (the service that manages the ATC email newsletter) and anonymously
  map the location of each subscriber. I couldn’t resist giving it a try.

  Below is what that looks like. Not surprisingly, the highest
  concentrations of subscribers to this blog are in Canada and the US.

  

  So here’s a zoomed in version:

  

  I’ve been trying to branch out from talking about Toronto
  all the time. And that seems to be working somewhat. But I could still do a better
  job of creating more global content. I’ll try harder.

  2015.08.21

• America really is building very few condominiums

  On my way back from Philadelphia
  this past weekend I wrote a post called, The
  Philadelphia (real estate) story. It was about how opposite the market is
  in Philly compared to Toronto.

  After writing that post and
  because of a discussion in the comment section, I started thinking about condo
  vs. rental apartment development across the US. Because unlike cities such as
  Toronto and Vancouver, it struck me that – outside of maybe New York and Miami
  – most U.S. cities are really not building a lot of for sale condos. And if
  you’re from Toronto or Vancouver, I bet that feels odd to you.

  But what exactly is that number?

  As of the first quarter of 2015, condos as a percentage of all new
  multifamily (apartment) construction in the US was only 5.5%. That’s a tiny number and is down from
  over 50% before the Great Recession, which means most
  cities in the US really are building mostly rental. Last year the US built 264,000
  multifamily units across 11,000 buildings.

  

  So why is that happening?

  There appears to be a number of
  factors, according to a
  recent article in the Wall Street Journal.

  There’s a supply side
  constraint:

  Another obstacle cited by developers: construction loans. Matt
  Allen, chief
  operating officer of the Related Group, a developer based in Miami, said he can
  get a construction loan for roughly 75% of the cost of building an apartment
  complex. But lenders will cover only 50%, on average, of a condo complex’s cost
  because of the greater risk, he said.

  There’s a demand side
  constraint:

  As a result, the Federal Housing Administration, which
  backs mortgages made to low-wealth buyers, tightened its lending standards in a
  series of moves from 2008 to 2012. Under the new rules, in order for the FHA to
  insure mortgages in a given condo complex, at least half of the units must be
  owner-occupied and no more than half can be FHA-insured, among other
  requirements. For condo projects under development, at least 30% of units must
  be under contract for sale before the FHA will start backing mortgages there.
  Mortgage giants Fannie Mae and Freddie Mac tightened
  their standards as well.

  And there are macroeconomic
  factors:

  On the entry-level end, tepid job growth early in the
  recovery and the younger generation’s affinity for flexibility have fueled
  demand for rentals. Apartment rents are up nearly 16% since 2010, according to Reis Inc.

  Notwithstanding
  the above, could this be a post-recession policy pendulum that has swung
  too far in one direction?

  2015.08.20

• Photos of the built environment

  

  One of my absolute favorite things to do is travel to cities, explore, and take lots of pictures. When I’m in a new place, I can’t help but examine everything about the built environment. That’s the architect in me and it’ll never go away.

  When I was in undergrad I had a refurbished digital SLR camera that I used to use. But now I just use my iPhone. As the saying goes: the best camera is the one you have on you.

  Seeing how I was just in Philadelphia, I’ve been posting a lot of new city related photos to my Instagram. And since about 10x more people follow this blog than follow my Instagram, I’m going to plug it here: follow me on Instagram 🙂

  2015.08.19

• The global pyramid of wealth

  Every year the London-based property consultancy Knight Frank publishes something called The Wealth Report. And it’s one of those reports that I could go through for hours. 

  It includes a ton of really fascinating stats that speak volumes about where in the world wealth is being created and how it’s moving around. And of course there are a lot of connections between wealth, real estate, and city building.

  Below are 3 diagrams that really stood out for me in the 2015 version. 

  The first diagram shows which cities have the most Ultra High Net Worth Individuals (UHNWIs). An UHNWI is defined as an individual with assets exceeding US$30 million, but excluding personal assets and property (such as one’s principal residence). Click here to see the full size image (I know the numbers are small).

  

  Not surprisingly, London (4,364), Tokyo (3,575), Singapore (3,227), New York (3,008), and Hong Kong (2,690) are at the top of the list. But I was a little surprised – albeit happily surprised – to see Toronto (1,216) come in at #2 in North America, beating out Mexico City (1,116), Los Angeles (969), and Chicago (827). 

  The second diagram shows you how many square meters of luxury property (apartment) you can buy for US$1 million in a bunch of different cities around the world. 

  In Monaco (top end), that’ll buy you 17 square meters (183 square feet) and in Cape Town (bottom end), that’ll buy you 208 square meters (2,196 square feet).

  

  The third and last diagram is what they call the global pyramid of wealth. It’s a pyramid of everyone in the world and then the number of millionaires, UHNWIs (see above), centa-millionaires, and billionaires. And if you do the math, the top of this pyramid comes nowhere close to 1% of the global population.

  

  It’s fascinating (and exciting) to see where and how global wealth is concentrating. But it should also make you think about rising income inequality. I know it does for me.

  2015.08.18

• Brian Curtner – 1951 – 2015

  

  The world cannot find a cure for cancer soon enough. Earlier today Quadrangle Architects here in Toronto published the following news release. For those of you not from Toronto, Quadrangle is one of the most important architecture firms in the city.

  It is with great sadness that we share with you that Brian Curtner, our co-founder, colleague and friend, passed away from cancer on August 15, 2015 at the age of 64.

  As an architect, Brian has been widely recognized for exemplary designs that include the award-winning BMW showroom at the foot of the Don Valley Parkway, Corus Entertainment’s state-of-the-art headquarters on Toronto’s waterfront and 130 Bloor Street West in Yorkville – all innovative responses to complex urban challenges. Equally important to his projects was Brian’s unique ability to build long-term working relationships and turn them into friendships that spanned decades.

  Balancing entrepreneurship and commitments to family and friends, Brian was instrumental in creating a highly successful architecture practice, combining business acumen with design excellence, technical expertise and client service which continue to define Quadrangle today.

  Together with his family, we will honour Brian’s life and achievements with a memorial celebration in the near future. We will communicate more details as soon as arrangements have been finalized. In the meantime, Brian’s family welcomes donations to either the Temmy Latner Centre for Palliative Care at Mount Sinai Hospital or Sunnybrook Hospital’s Odette Cancer Centre, in his memory.

  In the coming days, please visit our website for additional information. Details will also be available regarding a website being created in memory of Brian.

  For any inquiries please connect with Elle Fitzpatrick.

  

  Top image from Quadrangle’s Instagram; bottom image from here.

  2015.08.18

• The Philadelphia (real estate) story

  Real estate is a local business. And this weekend in Philadelphia really reminded me of that.

  Here’s what I mean.

  The real estate story in Toronto is condos. We’re buildings lots and lots of condos. When my friend from Chicago recently visited Toronto for the first time, he told me that it feels very similar to Chicago, except that we have modern glass condo towers going up everywhere and they don’t. That’s our story right now.

  Low-rise housing in Toronto is becoming increasingly unaffordable (the average price of a detached home is well north of $1M) and so high-rise condos are now what many people can afford. When young people in Toronto talk about buying their first place, that now usually means a condo.

  But that’s not the story in Philadelphia.

  In Philadelphia, you can buy a 1,600 square foot, 2 storey, 2 bedroom rowhouse in a respectable neighborhood for sub US$400,000. And in speaking with my friends in Philly this weekend, that’s what young people are buying.

  This doesn’t mean that Philadelphia isn’t building new high-rise condos and apartments. It is. Obviously nowhere near as many as Toronto. But it is building. Far more than when I lived there before the Great Recession.

  However, the condo market is typically more upmarket. The target market isn’t so much first time buyers and the mass market; it’s more people who want full floor apartments in Rittenhouse Square. (I’m exaggerating only slightly.)

  Philadelphia is also building more rental towers than condo towers. (Rental has only recently become fashionable again in Toronto.)

  I’m guessing that a lot of this has to do with the fact that Philadelphia draws in a lot of transient students and academics each year. In fact, the most noticeably changed area from when I lived in Philly was University City. That’s the area that houses the University of Pennsylvania and Drexel University.

  So there seems to be strong demand for new rental housing in the city. I’m told vacancies are very low. But when it comes time to buy, young people don’t look to condos like they do in Toronto. They are looking mostly to rowhouses.

  This is interesting to me because it’s the exact opposite of Toronto. In Toronto, low-rise is expensive and so lots more people are buying high-rise. In Philadelphia, high-rise is expensive and so people are buying low-rise.

  I guess that’s why they say real estate is a local business. What works in one city may not work in another.

  2015.08.17

• A culture of beer gardens

  

  It’s great to be back in Philly. I have a real sense of nostalgia around this city.

  Last night my friends took me to a popup beer garden on South Street put on by the Pennsylvania Horticultural Society. Before the popup garden, it was just an abandoned lot.

  There seems to be a real culture of beer gardens in Philly, which is something I don’t think we have in Toronto. Why is that?

  Part of the reason, I think, is that there’s a greater spread between desirable and undesirable neighborhoods in Philly than in Toronto. And in the undesirable ones, urbanists have to work really hard to figure out ways to activate them.

  So really these popup beer gardens are a lean urbanist intervention. It’s a way to draw people to an area and create awareness. And I’m told that often these popup gardens end up becoming development sites.

  Because of this, these popup gardens are sometimes controversial within communities. They’re seen as a catalyst and precursor to gentrification. But that’s a whole other debate.

  What I find interesting is this grassroots approach to city building. Great spaces don’t have to be expensive. Sometimes seating, lighting, and beer are all you need to bring people together.

  2015.08.15

• 10 reasons to visit Philadelphia right now

  

  Today’s ATC post – which happens to be a guest post – is coming to you live from on board the UP Express train that runs from Union Station in downtown Toronto to Pearson Airport. (Everywhere should have free wifi.)

  I’m on my way to Philadelphia and I’ve been wanting to try this train since it opened earlier this summer. It feels great to finally ride it. It’s everything I could have hoped for. It even has that new car smell 🙂

  Last month I wrote a post called, 10 reasons to visit Toronto right now. It was in honor of my good friend Alex Feldman’s visit. Well now it’s my turn to visit Philadelphia and he has decided to return the favor and do a Philly version of that same post. 

  Alex is to Philadelphia what I am to Toronto. He grew up in Philly. He was educated in Philly (we went to Penn together). And he’s super passionate about the future of Philly. And I think that’s how everyone should be about their city.

  So I hope you enjoy his list of 10 reasons to visit Philadelphia right now. It’s basically my to-do list for this weekend.

  ———————————————

  10. World Heritage City: Philadelphia is on track to become the first World Heritage City in the United States. This UNESCO designation will underscore the city’s historic importance as the birthplace of American Democracy as well as the historic urban fabric which gives the city it’s walkable, urbane character.

  9. Shopping: Philadelphia has come a long way as a shopping destination. Conde Nast Traveler recently ranked the city as number 2 out of the best shopping destinations in the world. 3rd Street in Old City has become a hotbed for independent boutiques while Rittenhouse Square has attracted new chains such as Uniqlo, Theory, and Vince. More is on the way with a complete re-make of the Gallery shopping mall slated to start soon and the new East Market complex under construction. 

  8. The Pope is Coming:  In case you haven’t heard, Pope Francis will make his first visit to the United States – with a 3 day visit to Philadelphia in late September. The visit will coincide with the World Meeting of Families gathering. A crazy number of visitors (2 million?) are expected to descend on the city – causing Philadelphians to panic, complain, and attempt to rent their houses for ridiculous amounts of money. But this important visit will help raise the profile of the city on the international stage.

  7. Building Boom: There is probably more development happening in Philadelphia right now then any other time in recent history. The skyline is growing with additions by Norman Foster, Cesar Pelli , and Kohn Pedersen Fox. New apartment buildings, condos, and rowhouses are under construction across the city (rental vacancy rates are less than 2%). In addition the Barnes Foundation and the new Singh Center for Nanotechnology mark impressive additions to the city’s architectural landscape.

  6. Public Spaces: Philly’s public realm has seen massive investment over the last several years. A complete remake of the landscape outside of City Hall has become the new Dilworth Park. The designers of NYC’s highline have added two public spaces to the city (Race Street Pier and the new Central Green in the Navy Yard). And Schulkill Banks recently added a new boardwalk which the New York Times raved about when they ranked Philly as the number 3 city to visit in 2015. More is on the way with the first phase of the Reading Viaduct Rail Park expected to start soon.

  5. Waterfront: Philadelphia’s Delaware River waterfront has long been cut off from the city by interstate 95. Things have started to change recently, with new trails and pier parks recently added to the working waterfront. Even Penn’s Landing, the city’s much maligned waterfront attraction is seeing improvements – including the tremendously popular Spruce Street Harbor Park – a pop-up park featuring floating beer barges, shipping container food stands, and tons of hammocks.

  4. Food: Philly is one of the best food cities in the United States. So much is happening right now in the city’s dining scene, it’s hard to keep track of the latest restaurant openings. Neighborhoods such as Fishtown and East Passyunk have emerged as hot dining districts with BYOB chef driven restaurants. More can be gleaned from the Washington Post which recently summarized the dining scene better than I can.

  3. Pop-up Gardens: One of the best reasons to visit Philly in the summer is the opening of the Pennsylvania Horticultural Society Pop-Up gardens. The wildly popular beer gardens, began several years ago as an initiative to remake underused or vacant lots into useful public spaces. This summer, 2 gardens – one on 15th and South and one at 9th and Wharton have been transformed into vibrant spaces for eating, drinking, and hanging out.

  2. Le Bok Fin: Speaking of temporary uses, the most recent addition to Philly’s pop-up (or iterative placemaking) scene is a rooftop bar called Le Bok Fin. Situated on the 8th floor of an old vocational high school in South Philly (and named after the school’s restaurant – which in turn is a play on one of Philly’s most famous French restaurants). This is the first iteration of development at what is planned to become an amazing new center for creatives inside the old school – being led by Lindsey Scannapieco and her team at Scout LTD. Check out Le Bok Fin for incredible views of the city skyline (especially at sunset).

  1. Bike Share: While a little late to the party, Philly recently launched it’s own bike share program – which is proving to be a huge success. Dubbed Indego, the new bike share is easy to use, has 60 stations, more than 600 bikes and is becoming one of the best ways to hop around town. Check one out and go explore Philly!

  Image: Alex Feldman

  2015.08.14

• Taller and skinnier

  Tall buildings will sway in the wind. And when they get taller and skinnier, the swaying becomes more pronounced.

  In seismically active cities, such as Tokyo and Taipei, “tuned mass dampeners” are often used near the top of tall buildings to offset the swaying caused by an earthquake.

  But tuned mass dampeners are also found in cities like New York, so that developers can build even taller and skinnier.

  Below is a diagram from the New York Times showing what one looks like and how it works. The example tower is 111 West 57th Street.

  

  Basically the masses are tuned to oscillate at a different frequency than the rest of the tower. So when the wind blows and the tower is moving one way, the weights are moving in the opposite direction and forcing the tower back towards some sort of equilibrium. 

  Neat. Structures was one of my favorite classes in architecture school.

  2015.08.13

• The impact of laneway housing in Vancouver

  In 2009, Vancouver created policy and legalized laneway homes. (If you’re not up on laneway housing, click here. I’ve written too much about this topic.)

  Since then, the number of laneway homes built in Vancouver has steadily increased to the point where roughly 350 new homes are built every year. 

  Here’s a chart I found showing the number of laneway home building permits issued in Vancouver since 2009 (the year to date number for 2015 is up to and including June):

  

  This is pretty interesting in its own right.

  But as soon as I saw this chart I started wondering how these numbers fit into the overall new home construction landscape. So I decided to dig up the City of Vancouver’s Statement of Building Permits Issued for June 2015.

  As the chart above shows, the number of laneway dwelling units built (well, permits issued) was 221 as of June 2015. But what’s really fascinating is that this numbers exceeds the number of building permits issued for single family dwellings, which was only 192!

  Also super interesting is the significant spread in building permit value. 

  For single family dwellings, the total value was $156,086,861 (or $812,952 per dwelling unit). On the other hand, for laneway dwellings the total value was $36,478,785 (or $165,062 per unit).

  Now to be fair, if you add single family dwellings with a secondary suite into the mix, you get a total count of 608 new dwelling units (as of June 2015). But at 221 new units, laneway dwellings still make up a meaningful portion of the new construction market.

  So while laneway houses might seem fringe for Toronto and other cities right now, they’re really not that fringe. In fact the numbers above start to show that they can be a viable source of new and relatively affordable single family housing.

  Eventually other cities will realize this too.

  2015.08.12