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: July 2022

  • A headquarters in the cloud

    Venture firm a16z just announced that it will be “moving its headquarters to the cloud.” At the same time, it announced 3 new offices in Miami Beach, New York, and Santa Monica. These will be in addition to their existing offices in Menlo Park and San Francisco.

    Part of their argument is that hybrid work is weakening the network effects and agglomeration economies associated with being right in Silicon Valley. So they’ve deiced to be virtual, but still have offices where they can “materialize physically” when needed.

    They acknowledge that physical presence is important for developing a company’s culture, building relationships, and helping entrepreneurs (their core business).

    What’s interesting about all of this is that it’s further validation for Miami (Beach). Here is one of the most important venture firms out there saying that when they quickly materialize in real life, they want to be able to do that in Miami Beach.

    It also raises some interesting questions. Because even if the network effects of Silicon Valley are weakening when it comes to tech, this announcement still speaks to the importance of agglomeration economies. These three new office locations were chosen for a reason.

  • Paris vs. New York bike lanes

    It’s one thing to have bike lanes. And it’s another thing to have really generous bike lanes. The above video by Streetfilms does a good job of comparing Paris to New York City, and showing just how far Paris has come in terms of cycling infrastructure. Some of you might remember that in the fall of last year, Paris announced plans to become a “100% cycling city.” This was a follow-on to their plan vélo 2015-2020, which saw a doubling of the city’s bike lanes. The current plan, which covers 2021-2026, includes 130 km of new bike lanes and 52 km of pandemic lanes that have been (or will be) made permanent. But again, it’s one thing to have a lot of bike lanes. And it’s another thing to have a lot of wide bike lanes that look like the ones in this video.

  • A cactus-inspired building in Arizona

    I was on a panel last month with Jamie Miller, director of biomimicry at B+H Architects, and he remined me just how much I am fascinated by the use of biomimicry in architecture and engineering. Nature is pretty impressive and I think there’s a lot that we can learn from her.

    Here is a recently completed example of what I’m talking about.

    The project is the new Pinal County Attorney’s Office in Florence, Arizona (designed by DLR Group). What the team did here was try and emulate the skin of the saguaro cactus. That ultimately translated into vertical self-shading fins on the envelope of the building.

    Here’s what that looks like (via DLR Group):

    Here is some evidence suggesting that the fins are truly helping performance (via Urbanland):

    And here is the explanation for why it works and why nature does this (also via Urbanland):

    Sit in front of a saguaro cactus for an hour and you will see the way it protects itself and thrives in the intense desert heat. Its vertical fins provide continuous self-shading and redistribution of heat. This ability to self-shade breaks sunlight up into smaller areas that shift continually, preventing any one area of the cactus skin from overheating. This adaptation not only makes the saguaro viable, but also gives it a beautiful and distinct character. Creating a 3-D computer-generated model of a saguaro cactus and using a daylighting simulation model confirmed that no part of the plant received more than 15 to 20 minutes of direct sun at any one time, avoiding the possibility of sunburn.

    How cool.

  • The Germania Bank Building at 190 Bowery

    I recently mentioned that it would be nice to be able to buy a five-storey building in Soho (New York) for $70,000. Yes, that was in 1968 dollars. But even in today’s dollars, we’re talking less than $600,000. I would gladly buy a cast-iron five-storey building in Soho for that price today if it were somehow possible.

    In response to this post, a reader sent me this (thank you), which is another great example of an artist buying an old buying in New York for what is clearly an absurdly low price. The artist is photographer Jay Maisel, and the building is The Germania Bank Building at 190 Bowery.

    Jay bought the six-storey building in 1966 for $102,000. He then used it as his residence, a studio, and as a place to collect a hell of a lot of things. Though at one point he also rented out some of the other floors to artists like Roy Lichtenstein.

    It is alleged that most people thought the building was abandoned. But this was obviously not the case. Jay sold the building to RFR Holdings in 2014 for $55 million. And in 2019, streetwear brand Supreme opened up in the bottom.

    Today, I understand that Web3 things are also happening in the building. And who knows, it might be the case that we’ll be reading about some of them, in a similar kind of way, fifty years from now.

  • Mississauga is the only major city in Canada that lost people in the last census

    The Globe and Mail published an interesting article this weekend talking about how Mississauga, a suburb of Toronto, is the only major city in Canada to have lost people in the last census. Here are the population changes for the top 10 largest municipalities in the country:

    There is a simple explanation for this and it is one we have talked about a number of times before on the blog. Many/most of our low-rise single-family neighborhoods are actually losing people. Empty nesters are becoming over-housed and young people aren’t backfilling in quite the same way.

    Mississauga has a lot of these neighborhoods and is heavily geared towards this kind of built form. But they are certainly not alone. The same phenomenon is happening in places like Toronto; there is just enough other growth to offset these negatives so that the headline number still remains positive.

    However, this is slowly changing. Toronto is working to “expand housing options” in its low-rise neighborhoods; it is considering how to better intensify its major streets; and it is re-introducing small–scale retail uses so that people living in a house can easily walk to a corner store for milk.

    It is a shift in mindset. But I believe that this trend will only continue, and eventually it will make its way to the suburbs.

    Images: The Globe and Mail

  • Toronto-Montréal should be a 2 hour high-speed train ride

    The Quebec City-Windsor corridor is the most densely populated region in Canada. The last time I checked Wikipedia, it was reported to house about 18 million people, or about half of Canada’s entire population.

    So it is not surprising that there have been numerous high-speed rail studies for this corridor over the decades, as well as studies for other important links in Alberta (Edmonton-Calgary) and other parts of the country.

    And yet, Canada remains the only G7 country without any high-speed rail. Though to be fair, the US doesn’t have all that much either; certainly with respect to the size of its population.

    However, there is some good news. In March of this year, the Government of Canada announced a Request for Expression of Interest related to high frequency rail service between Quebec City and Toronto. More information, over here.

    But from what I have read, it’ll be a faster upgraded service (~200 km/h), but not true high-speed rail (~250-300 km/h). I took the TGV from Marseille to Paris last summer, and this is how fast we were going:

    If we’re going to do this, let’s be the absolute best in the world and not settle for mediocrity.

  • 1970s New York, through the lens of a taxi driver

    Even if you never experienced it yourself, we have all heard the lore of 1970s New York City. It was a raw, dangerous, and unpolished city that was simultaneously teetering on the edge of bankruptcy and providing fertile ground for artists and many other forms of expression (some suspect and some not).

    Jane Jacobs is famous for saying that “new ideas often require old buildings.” And the New York of this era was exactly that kind of city. Artist Donald Judd (a favorite of mine) bought his five-storey cast-iron building in Soho (on Spring Street) around this time (1968). He paid just under $70,000.

    So it is perhaps easy to romanticize this more accessible (and equitable?) version of New York. But there were many other things going on the city at this time beyond minimalist art in Soho loft buildings.

    This photo essay by Joseph Rodriguez does a great job at telling some of those other stories in a decidedly humanistic way. Joseph was a New York cab driver from 1977 to 1985. And his final years, he had taken up photography and had started documenting the people and the city through his windows.

    His incredible photos are also available in this book called, TAXI: Journey Through My Windows 1977-1987.

    Photo: Joseph Rodriguez

  • Toronto is the densest urban area in North America

    Some of you are probably shocked by this headline. But it is true. Here’s the chart to prove it:

    Toronto is number one. Los Angeles is number two. And New York sits just behind Winnipeg and Calgary. Huh?

    The reason this is likely surprising to you is that when most people think of urban density they think of the urban core. And you are correct in thinking that the urban core of New York City is denser than the urban core of Winnipeg.

    The difference here is that we are talking about “urban area” (or “population centre” in Canada). This is the continuously built up area around each major city. Think of it as the lit up area that you might see on a nighttime aerial photo.

    Urban areas don’t care about municipal or other jurisdictional boundaries. And they don’t factor rural areas. Urban areas are a measure of continuous urbanization.

    So even if you have the densest downtown on the planet, if you have a sprawling low-density urban area surrounding it, you can still end up with a relatively low overall population density. And this is precisely what is happening here with New York.

    This is also why there’s only so much that you can glean from a blended average like this. Because you can have very different urban forms and very different mobility splits (think New York City vs. Winnipeg), and still end up with somewhat comparable averages.

    Chart: New Geography

  • Which is the most important when it comes to new housing?

    If you can’t see the Twitter poll below, click here:

    At the time of writing this post, affordability was number one, followed by design and beauty, and then sustainability.

    Some of you were right to point out that these options are not always mutually exclusive. Affordability and sustainability, for instance, can be mutually reinforcing.

    Building in walkable and transit-rich neighborhoods where parking is not needed is both good for overall affordability (parking is usually a loss leader) and better for the environment.

    But in other cases, sustainability costs more. Triple-glazed windows might perform better than conventional double-glazed, but they’re also more expensive.

    Now, as a general rule, I believe in working hard to find the mutually reinforcing opportunities. How can we check all of the boxes and not have to compromise?

    But sometimes there’s no other option. So it is interesting to see how people answer the above question. Not surprisingly, affordability is top of mind.

    Which would you pick?

  • Mid-year consumer trends update

    The New Consumer has just published its 2022 mid-year update. Some of you might remember that I wrote about their inaugural consumer trends report at the end of last year.

    It’s interesting, but not surprising, to see a lot of things returning to their means. Spending on home furnishings, for example, is coming down, whereas luggage and bag sales are up. Home fitness has also come way down as people return to gyms. It’s time to leave home.

    At the same time, it has become a lot more expensive to leave home, assuming you need to drive. Motor fuel increased 49% year-over-year as of May 2022. It’s the CPI category with the biggest change. But even with this, transit ridership has yet to fully rebound. NYC is sitting at around 60%.

    To download a free copy of the full presentation, click here.