Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Month: January 2016

  • Bringing public transit into the 21st century

    New York Subway by Lok Yiu Cheung on 500px.com

    https://500px.com/embed.js

    I think we’ve hit peak millennial.

    Last Friday the Governor of New York, Andrew Cuomo, and the Metropolitan Transit Authority, announced that 30 subway stations will be redesigned and that “millennial-friendly amenities” would be added throughout the system

    As you might guess, this includes adding phone chargers in train cars and buses and wifi throughout all the stations (by the end 2016). They will also be replacing the MetroCard with an all digital fare system that will include mobile payments.

    But the reality is that this isn’t about being millennial-friendly. This is about joining the 21st century.

    Here in Toronto, we finally have our PRESTO card working on all streetcars and in almost 40% of the city’s subway stations. This is a huge improvement over our laughable and antiquated token system, but it’s not enough. I really hope the next rollout is a mobile app that will allow everyone to pay with just their phone.

    We also have wifi in about 30% of our subway stations, but again this is not enough. By the time you get authenticated (do you need to have Twitter now?), your train is usually arriving and then you enter a tunnel where no wifi exists. We need to be looking at the entire tunnel network. (Related topic: LinkNYC

    I say all this because I am a big supporter of public transit. Despite all the positive things I write about Uber, ridesharing, and driverless cars, I do not believe that they will eradicate the need for a strong transit backbone. This is fundamental to our city building efforts. 

    So let’s do our best to delight people when they take transit.

  • The search for perfection

    Two of my favorite things are snowboarding and cities. 

    So the 4K GoPro video below, called Japan Snow – The Search for Perfection, really does it for me. 

    The video is the journey of two GoPro athletes as they go from Tokyo to Hakuba (a village near Nagano, host of the 1998 Winter Olympics) to the northern island of Hokkaido in search of untracked powder. If you’re a snowboarder or skier, you’ll of course appreciate that journey.

    For you urbanists, the city shots are incredible. I also love how they describe Tokyo as a “sophisticated web of innovation and tradition.” I often describe Tokyo in a similar way, but I like their wording better.

    Make sure you full screen this video and turn on your sound. It’s about 14 minutes short. Enjoy.

    [youtube https://www.youtube.com/watch?v=tXpXHoDKL64?rel=0&w=560&h=315]

  • Urban infill case study: 1234 Howard Street in San Francisco

    Urban infill developments can be tough. The sites are often small and/or narrow and that creates a lot of design challenges. Access to light is a common problem.

    But constraints can also be beautiful, because they have a way of forcing creativity. 

    When I was in architecture school, I used to find it easier to work when I was given constraints and challenges. It gave me something to latch onto, as opposed to just starting with a blank canvas. A big part of design, at least for me, is about solving problems. So give me a problem to solve!

    One of the ways that architects and designers often deal with the access to light problem is by carving out lightwells or courtyards to bring light down into the building. This can be used when you have a deep site or when you’re building right up against the property line and you can’t have any windows.

    One project that I’ve always liked for this reason – as well as the fact that it’s beautifully designed – is 1234 Howard Street in San Francisco. It looks like this from above:

    image

    The site is 50′ x 165′ and it spans an entire block. 

    In order to get lots of light into all of the units, the architects (Stanley Saitowitz | Natoma Architects) split the site up into 3 “bars”, each of which would be somewhere around 16′ x 165′. The middle “bar” was then dedicated to a courtyard that cuts through the entire building.

    image

    The two flanking bars were then further subdivided into 2 units per bar, which translates into 4 units per floor x 4 floors. The ground floor is just common areas and parking.

    The advantage of this design strategy is that the apartments now have windows running the length of the courtyard, where as typically on narrow deep lots you would end up with “bowling alley” units and windows just on one end.

    The disadvantage of this design strategy is that you’re now just over 16′ away from seeing what your neighbor is eating for dinner, among other things. 

    But with the right window coverings, I’m sure we’d all survive in these apartments with their Bulthaup kitchens and Miele appliances.

    image

    I love seeing creative solutions to tight urban sites. And one of the things that I worry about, with things like the Mid-Rise Performance Standards here in Toronto, is that we’re reducing or even eliminating the possibility for these kinds of creative solutions.

    I recognize that 1234 Howard is not the same as an avenue mid-rise site in Toronto with low-rise residential behind it. But the thought still crossed my mind as I was writing this piece.

    All photos via Stanley Saitowitz | Natoma Architects Inc.

  • Education and economic prosperity

    One of the things that I would like to do a bit more of in 2016 is coding. I used to a bit of it in high school and university, and I’ve taken some online classes since then, but I really feel like I should know more. I like making things and tech is clearly an important part of the world today.

    I mention this because I have signed myself up for an intro to web development class this evening at Brainstation. My plan is to do a few introductory web and mobile development courses and then figure out where and what I want to dive into further. I don’t plan on being a software developer – I’m happy being a developer of the real estate varietal – but I want to improve my literacy.

    I also mention this because I think it’s important to be reminded just how critical education is to urban economic success. Here’s an excerpt from Ed Glaeser’s book, Triumph of the City:

    “Human capital, far more than physical infrastructure, explains which cities succeed. Typically in the United States, the share of the population with a college degree is used to estimate the skill level of a place … Despite its coarseness, no other measure does better in explaining recent urban prosperity. A 10 percent increase in the percentage of an area’s adult population with a BA in 1980 predicts 6 percent more income growth between 1980 and 2000.”

    And if you plot education (people with four-year degrees) vs. per capita income levels for the major US metropolitan areas, which City Observatory did, you’ll see that nothing matters more. Here’s how City Observatory described it:

    “This chart is the first, most important thing to remember about urban economic development in the 21st century: if you want high incomes, you need to have a high level of skills. Cities with poorly educated populations will find it difficult to raise living standards in a world where productivity and pay depend increasingly on knowledge.”

    This, of course, isn’t new information. I’m sure I’ve written about it before. But it doesn’t hurt to be reminded.

  • The year of the laneway

    Earlier this week, Metro News published an article saying that it’s going to be a big year for laneways in Toronto:

    “2016 is going to be the year where the evolution of our laneways lands at the forefront of our public realm strategy,” said Downtown Yonge BIA chair Mark Garner, who’s heading up the revitalization of O’Keefe Lane near Ryerson University.

    In addition to the Downtown Yonge BIA, much of this is being spearheaded by the non-profit group, The Laneway Project. This year they are expected to unveil plans for the revitalization of 3 laneways in the city – one of which is right in my backyard.

    I have a lot of respect for what The Laneway Project, the Downtown Yonge BIA, and others are doing in support of rethinking our laneways. And so today I just wanted to publicly thank them for their efforts. Thank you 🙂

  • What do you think of parking stackers?

    One of the things that’s becoming a lot more common in Toronto is parking stackers. For small infill sites there’s simply no other way to fit in the parking. You can’t lay out a traditional parking garage.

    But while it’s still relatively new for Toronto, I think many of you would be surprised by how many projects there are in the pipeline right now that plan to use parking stackers. In the next 5 to 10 years, they are going to be quite common.

    Some of you might be wondering how they work. There are a bunch of different solutions, from stackers to elevators and palettes, but here’s an example of a triple car stacker:

    In this case, there’s a below grade pit and an open space that goes up into the second floor. This way each car remains accessible without having to move any of the others. If you want the car on the top shelf, just lower the other 2 into the pit. If you want want the car on the bottom shelf, just raise the other 2 into the second floor space (which is what’s shown above).

    But here’s what I’m really curious about: How do you feel about parking stackers? Would you live an apartment or condo where that was how you had to park your car? Or would it be a deal breaker? Please let us know in the comment section below.

  • Should you buy a car or just take Uber?

    Urban dawn by Raymond  on 500px.com

    https://500px.com/embed.js

    My friend Evgeny published a great blog post today called, On Car Ownership And The Future Of Transportation

    And in it he made the argument that instead of buying a car and an expensive downtown Toronto parking spot (average price: $40,000 – 60,000), most of us urbanites would be better of just taking a taxi or Uber.

    This got me thinking: At what point does it really make sense to completely forgo owning a car? (Full disclosure: I own both a car and a downtown parking spot.) So I decided to dig into the numbers a bit more and compare 4 mobility options:

    • Owning a car ($25,000 upfront) + downtown parking spot ($40,000 upfront) and driving yourself everywhere
    • Taking a regular taxi exclusively ($3.25 base + $1.75 per km)
    • Taking an UberX exclusively ($2.50 base + $1 per km)
    • Or, taking a futuristic driverless car everywhere (here I assumed $1.50 base + $0.25 per km)

    With the above numbers, I then assumed 15,000 km traveled per year and an average trip length of 15 km (so 1,000 trips per year). The trip length and number of trips per year matter because of the “base fare” that is charged when you take a taxi or Uber.

    I also assumed that the cost of owning a car is $0.60 per km (estimated from this Globe and Mail article) and that there is an opportunity cost to NOT renting out your downtown parking spot ($200/month). That is, every month that you spend driving yourself around and parking your car, you are forfeiting parking revenue.

    Finally, I looked at a 10 year time horizon and then “discounted” all the costs back to today’s dollars so that I could compare each mobility option.

    So what did I find?

    image

    What this says is that if you’re driving 15,000 km per year (average trip length 15km), then you’re better off taking UberX everywhere, as opposed to going out, buying a car and parking spot, and driving yourself around.

    But does this hold true at different travel distances?

    Based on my model, once you hit around 18,000 km per year, then you’re better of with option 1 (owning a car). That’s because the per km savings associated with driving yourself around are enough to offset the upfront costs of the car and parking spot.

    On the flip side, when you drop below 7,500 km traveled per year, even a regular taxi starts to make sense. That’s because you’re simply not traveling enough to reap the benefits of owning a car/parking spot. Again, high upfront costs; lower per km operating costs.

    Of course, there are a number of things I didn’t consider in my model. For one, most people finance their car and parking spot (it is bundled into their home mortgage). So I’m sure there are ways that you could change the above outcomes using leverage.

    At the same time, I didn’t account for the fact that when you’re being driven around (as opposed to driving around) you have the flexibility of doing work, responding to emails, and so on. If you want to attach a value to your time, then the scale would tip back in favor of taxis and Uber.

    But all of this was really just to make one point: look how cheap it could be to ride around in a driverless car. When that becomes the reality in our cities, which it will, it’s going to completely transform our current beliefs around cars, parking, and many other things.

    I guess that’s why General Motors just invested $500 million in the peer-to-peer ridesharing company, Lyft. They know the shit is coming.

  • Tweet of the Week: The Creation of Manchester

    I may never do another “Tweet of the Week” on ATC, but I couldn’t resist sharing this one of New Year’s Eve on Well Street in Manchester’s city centre.

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    The photo was taken by Joel Goodman and first appeared in this online picture gallery.

    But then Roland Hughes of the BBC remarked that its composition was similar to a Renaissance painting and that the guy in blue laying in the middle of the street, reaching for his beer, could be thought of as a parody of the reaching God in Michelangelo’s The Creation of Adam. So he tweeted it out. Since then it has gone viral.

    For those of us who weren’t in Manchester on New Year’s Eve, we clearly missed one epic party.

  • Art is the new steel — a photo essay of Hamilton, Ontario

    Today, myself and a few others spent the afternoon urban exploring Hamilton, Ontario with Thomas Allen of the blog, Rebuild Hamilton. If you don’t read his blog, you should. Since he started writing about 3 years ago, he has really emerged as the online voice of Hamilton’s urban resurgence.

    If you’re from Toronto, you’ve probably been hearing rumblings about good things happening west of the city. Rumblings about people leaving overpriced Toronto for greener and more affordable pastures in Hamilton, and even that it was destined to become the Brooklyn of Toronto. That basically means Millennials, trendy coffee shops, and beards. (For the record, Thomas’s beard is very nice.)

    With all this talk of affordable housing and beards, I decided that it was time to make a pilgrimage. Below is a short photo essay of what we saw.

    We started the day east of Hamilton where we found this beauty along the waterfront. I don’t know who designed it, but it’s called the Cube House and it was construction managed by Toms + McNally Design. You’re going to want to click through to their website to see the interior photos. 

    image

    We then made our way downtown to Jackson Square. Jackson Square is one of two downtown malls (the other is the post-modern City Centre Mall). It has seen a lot of investment in recent years and I was impressed to find a thriving grocery store. 

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    Then came a taco and craft beer pit stop at The Mule. I would definitely recommend this spot if you happen to find yourself in the area.

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    Following this, we walked James Street North, which we were told has only really come up in the past 5 years or so. And alongside with this resurgence has come the slogan: Art is the new steel. This, of course, is responding to the fact that Hamilton is the steel capital of Canada, but that the industry is facing many challenges. I think it’s a neat slogan.

    imageimage

    On James Street we stopped in at Saint James Espresso Bar & Eatery, and it was everything we had hoped for and more. It was more because not only was it a cool space with great coffee, but they had some fancy thing called steam punk coffee.

    imageimage

    After James Street, we then drove around checking out some of the other areas in the city such as Kirkendall and neighboring Dundas.

    All in all, this afternoon was a great reminder that we are truly living in an urban century. It’s not just the Toronto’s, Berlin’s and Shanghai’s of the of the world that are laying down bike lanes, investing in art and culture, and generally reimagining their city centers. It’s also happening in smaller and mid-sized cities such as Hamilton. And that’s really exciting.

  • 5 random charts related to cities and real estate

    I was reading through PwC and ULI’s 2016 Emerging Trends in Real Estate report this evening and a handful of charts stood out to me. They’re not all related to each other, which is why this blog post is called what it is. But I think you’ll find them relevant to many of the things we talk about on this blog.

    1. Average home size by country

    With all the interest today in “small urban spaces” it’s interesting to see that the average home size for half the countries on this list is somewhere between 500 and ~1100 sf. It’s also amazing to see Hong Kong hovering just below 500 sf.

    2) The decline in homeownership in the US

    I like to follow home ownership rates because there’s a lot of debate around whether or not this obsession with homeownership – which has been so central to the ethos of countries like the US and Canada – is at all falling out of a favor. This chart shows some pretty significant drops from previous highs.

    3) Average home prices and the price to income ratio in major Canadian cities

    Not surprisingly, Vancouver and Toronto are the top of this list with the highest average home prices and the highest price to income ratios (i.e. the worst affordability).

    4) Drivers as a percentage of all commuters in the US

    This chart is similar to what you would see if you looked at vehicle miles traveled. I’ve heard some people say that driving is now once again on the rise, but for the past decade and a half it’s been on a slow and steady decline.

    5) Countries buying US real estate

    Canada is a big buyer of US real estate. But with the dollar where it is today, I am sure that number is headed downwards.