Brandon Donnelly

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.

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Month: January 2021

  • The war on beauty

    A recent essay by The School of Life asks: “Why is the Modern World So Ugly?” Here’s how it opens:

    “One of the great generalisations we can make about the modern world is that it is, to an extraordinary degree, an ugly world. If we were to show an ancestor from 250 years ago around our cities and suburbs, they would be amazed at our technology, impressed by our wealth, stunned by our medical advances – and shocked and disbelieving at the horrors we had managed to build. Societies that are, in most respects, hugely more advanced than those of the past have managed to construct urban environments more dispiriting, chaotic and distasteful than anything humanity has ever known.“

    Naturally, it turns out that this is, at least partially, the fault of greedy and unscrupulous real estate developers:

    “When property developers heard that the artistic avant-garde was now promoting a concept of functionalism, they rejoiced. From the most high brow quarters, the most mean minded motives had been given a seal of approval. No longer would these developers have to spend any money on anything to do with beauty. Out could go the symmetry, the flowers, the nice but slightly more expensive materials. It could all be as quick, ugly and cheap as possible; after all, isn’t that what the great minds of architecture had advised?“

    The author goes on:

    “Yet this nuance was lost on the property developers who came after them. Their constructions weren’t elegantly pared down with grace. They were something far worse: sloppy, mean-minded and ugly. Except that now, because of the words of the modernist masters, there was apparently nothing one could do to charge them with a dereliction of duty. The concept of beauty had been rendered old-fashioned, it smelt elitist and woolly. No one could any more complain that beauty was missing from the world without sounding soft-headed.“

    To be fair, the essay doesn’t entirely blame developers. It, more specifically, outlines six possible reasons for the ugliness of the modern world. And I do agree with some of them.

    Click here for the full essay.

  • The year of the missing middle

    It is starting to feel like 2021 could be a turning point for “missing middle” type buildings here in Toronto. Momentum seems to be growing and there’s increasing interest in finding ways to make this scale of housing more feasible — everything from duplexes to low-rise walkup apartments.

    This week Councillor Bradford published a great op-ed in Spacing Toronto as a kind of call to action: Let’s make this year the year. In it, he provided an update on a pilot project that will be taking place in his ward — Beaches-East York — this year:

    We’ll be setting out this spring to find a city-owned site and the right partners for the project. From there, the work will be to go through every step of the development process, from design to construction. This Pilot is about accomplishing two key tasks. One, building housing that meets the Missing Middle typology while aiming to incorporate the affordability and sustainability elements Toronto needs. Two, through undertaking that development process, to identify the execution issues so we can bring forward the policy corrections that’ll make what we achieve in the Pilot build replicable across the city.

    With the continued run-up in single-family home prices, it really is starting to feel like we’re at a tipping point. Something is going to need to change. People continue to move to Toronto from all over the world. Perhaps this year will be the year. To learn more about the pilot project, take a look at this update report.

  • We are hiring for the Development team

    Slate Asset Management is hiring.

    We are looking to hire an Associate or Director to join the Development team here in our Toronto office. The full set of responsibilities can be found over here on LinkedIn, but at a high level, we are looking for someone who wants to join an entrepreneurial team and lead — fairly independently — a portfolio of urban infill projects.

    Our approach to development really stems from the broader Slate platform. We are bold and thematic investors who work to create long-term value for our investors and partners. From a development perspective, that translates into an unwavering commitment to design & culture, innovation, and disciplined project execution.

    We pride ourselves on working alongside the world’s best architects and designers, and uncovering opportunities that others may be overlooking. We are proactive and hands-on in everything that we do. We also feel an inherent sense of responsibility for the buildings that we create and we want the work that we do to help improve our cities. We stand behind our product.

    If this sounds like a mission that you can get behind, then I would encourage you to learn more about us at slateam.com and submit an application via LinkedIn. Please note that we are also asking candidates to introduce themselves through a short video.

  • Finding an audience (on Facebook)

    Social media can be both fun and useful. Over the weekend, we were exploring a few different design options for an address sign at Mackay Laneway House and so I posted this image on Twitter and storied it on Instagram. I got a bunch of responses, as well as some great suggestions. And we ultimately ended up making a small change to the design. That process was both fun and useful. The final design is now out for pricing and production.

    But as we all know, there is also a dark side to social media. The algorithms that power social media have been optimized to amplify whatever drives the most engagement. Oftentimes that means whatever gets people the most enraged. In this recent NY Times article, Stuart A. Thompson and Charlie Warzel make a compelling argument that Facebook has actually been coaxing many Americans into taking more extreme views on the platform — it made them more popular.

    And we’re not talking about extreme views on home address signs.

  • Tokyo-based BALMUDA delivers one sexy toaster

    Founded in 2003, Tokyo-based BALMUDA refers to itself as a creativity and technology company that creates home appliances and other products designed to deliver “thrilling and wonderful experiences.” Last year they entered the US market with products such as The Kettle and The Toaster. A toaster is perhaps one of those things that isn’t usually described as being thrilling. But BALMUDA The Toaster is one beautiful toaster, and according to Monocle Magazine it has become a sleeper hit around the world. (The company went public last December in Tokyo and its share price is up nearly 80% at the time of writing this.) It has a special steaming technology that keeps bread moist on the inside and crispy on the outside. What you do is add 5 cc of water to the toaster before heating it up and that produces a thin layer of steam within the appliance. I never knew that my bread needed this, but clearly it does. Watching the latest movie from The Minimalists has taught me nothing. I hope these guys start shipping to Canada very soon.

    Image: BALMUDA

  • A few thoughts on working from home/anywhere

    One of the big questions for this year is about whether or not work from home (WFH) and work from anywhere (WFA) policies are going to stick following this pandemic. It’s something that I mentioned in my 2021 predictions at the beginning of this year because it is something that would obviously have a massive ripple effect. So today I thought that it would be interesting to look back on data and articles that were published prior to 2020, before everyone really started prognosticating about the rise of fully distributed workforces.

    What is clear, at least from census data, is that working from home was on the rise before COVID-19, but that it still only represented a relatively small percentage of the overall workforce. The numbers are significantly higher if you consider people who maybe occasionally worked from home, but for those who were 100% remote, it was estimated to be only about 5.2% of the US workforce in 2017 (~8 million people), about 5% in 2016, and about 3.3% in 2000. But the question still remains: Now that many/most people have had a taste of the increased flexibility, to what extent will it stick?

    There’s a ton of research out there about the impacts of working remotely — covering everything from productivity to morale. But one takeaway that makes intuitive sense to me is that WFH/WFA flexibility is perhaps best when two things are present: 1) the employees already know how to do their job really well and 2) the work that these employees are doing is fairly independent.

    The corollary to this is that remote work is probably not the best environment for newer and younger employees who would benefit from being around other more experienced people, and for situations where collaboration among coworkers and outside humans is essential for the job. When I think of the job of a real estate developer, I would place it high on the collaboration scale. Building a building involves a full orchestra of people that all need to be playing in sync. Personally, I find that easier to do when you’re sitting across a table.

    My belief continues to be that we are are greatly exaggerating the extent to which work is going to disperse in the short-term. I recognize the trend line that existed prior to this pandemic and I recognize that some jobs are perhaps well suited to decentralization. But I think we will continue to see real limits on how much of this sticks as we move past this moment in time and into 2022.

  • New Wellness Toilet by Toto will analyze your poop

    Toto announced a new product this month at the Consumer Electronics Show (CES) called the Wellness Toilet. It won’t be available to consumers for at least several years, but the plan is for it to do two key things to improve overall health and wellness. It will scan your body when you sit on it and it will analyze your poop. (Not urine?) It will then make recommendations via your smartphone about how you might start to make better life decisions. Presumably this will include being more active and eating better. This, to me, feels like an obvious way to innovate around the toilet. If it were available today and it actually worked, I would likely be an early adopter. Either way, I look forward to hopefully including this in future development projects.

    Here’s more about the product from Toto’s press release:

    The WELLNESS TOILET uses multiple cutting-edge sensing technologies to support consumers’ wellness by tracking and analyzing their mental and physical status. Each time the individual sits on the WELLNESS TOILET, it scans their body and its key outputs, then provides recommendations to improve their wellness. There is no additional action needed, so people can easily check their wellness throughout their daily routine, every time they take a bathroom break. They will see their current wellness status and receive wellness-improvement recommendations on a dashboard in an app on their smartphones.

    The residential bathroom is the perfect place to support people’s wellness for a variety of reasons. First, although there are a number of other products that track individuals’ wellness (e.g., wearable devices), it is more convenient to monitor and analyze the body as a part of the everyday routine act of using the WELLNESS TOILET, to which individuals are accustomed. Second, toilets and people have two unique touchpoints that cannot be found elsewhere – the skin and human waste. The WELLNESS TOILET is in direct contact with individuals’ skin when they are sitting on it, and it analyzes the waste they deposit — a wealth of wellness data can be collected from fecal matter.

    Image: Toto

  • Design makes everything better — architecture as product

    https://dmeb.castos.com/episodes/interview-with-david-wex

    My friend David Wex of Urban Capital Property Group — who I featured in my “BARED” blog series back in 2016 — was recently interviewed by architect Vincent Van den Brink (of Breakhouse) for the firm’s podcast called, Design Makes Everything Better. It’s a great listen and I particularly like the bit around branded vs. opportunistic real estate development. In the case of Urban Capital, David would describe his firm as being a branded developer. They build a specific product and it doesn’t really change when they build across Toronto and in other markets. Expect exposed concrete ceilings and exposed ducts, among other things. If you can’t see the embedded podcast above, you can have a listen over here.

  • Project Titan

    Apple’s self-driving system and/or car project has been in the news again recently. Last month, Bloomberg reported that the company was hoping to start production by as early as 2024. But this week, projections were revised and we’re probably looking at least 5 years. The details are pretty limited at this stage, as is typical of Apple (although Hyundai has been saying things). It’s also not clear whether the company is set on developing both an electric vehicle and a self-driving system, or just the latter. But the company has been hiring lots of engineers to work on the project, including a bunch of ex-Tesla employees. Supposedly, Apple now has “several hundred engineers” working on this initiative, most of whom are focused on the self-driving system part. Who really knows how and when this all unfolds, but I would bet that software is going to continue eating the world.

  • Carleton University’s Certificate of Real Estate Development

    Next Tuesday, January 19, I am helping to teach the introductory class of a Certificate of Real Estate Development program that is jointly offered by Carleton University’s Sprott School of Business and Azrieli School of Architecture & Urbanism. Here is a full list of the instructors and key note speakers that will be participating in the program. Obviously it is all being done online this time around.

    One of the great things about this program is that it’s a partnership between their school of architecture and their school of business. As you might expect given my background, I am biased in my view that this is a great way to teach real estate development. And it’s one of the reasons why I enjoyed my time so much at the University of Pennsylvania. I was free to take classes at whatever “school” I wanted to.

    When I later went on to study at the Rotman School, I actually tried to advocate for a better real estate development curriculum and for increased collaboration across the business and architecture schools (both alma maters). The response I got, at least back then, was that Rotman already had a real estate major and that it was fine just the way it was. Cool.

    For more information or to register for Carleton’s Certificate of Real Estate Development program, click here. I think there are only a few spots remaining.