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.

Author: Brandon Donnelly

  • Assortative mating at elite colleges

    When demographers talk about how educated a city or place is, they often refer to the percentage of the population with a 4-year college degree. This may seem crude, but so far it has been found to be one of the best predictors of higher income levels and overall urban prosperity.

    When you add in the fact that people tend to marry people that are similar to themselves – often called assortative mating – you get a driver for income inequality. People with high incomes are marrying other people with high incomes.

    In this recent New York Times article they dive into the sorting that can happen even within colleges, including elite colleges. 

    According to data from the Equality of Opportunity Project, if you were born between 1980 and 1984, went to Princeton, and came from a family with a household income in the top 20%, you had a 56% chance of being married by the time you hit 32-34 years old.

    However, if you came from a family with a household income in the bottom 20%, you only had a 34% of being married by the time you hit the same age bracket. One possible explanation is that if you’re from a lower income family, you simply aren’t privy to the same “clubs”, where people mate, even though you still got into Princeton.

    To reinforce this point even further, the above data suggests that only about 1.3% of Princeton students that come from a poor family will ultimately end up a rich adult. About 72% of Princeton students come from a household in the top 20 percent.

    When I look at the numbers for Penn, my alma mater, the marriage spread isn’t quite as dramatic. The marriage rates are 55% and 48%, respectively, for the top and bottom 20%. Maybe that makes it more egalitarian. Or maybe not.

  • A demand-driven apparel world

    Here is an interesting article from Loose Threads that talks about the profound impact that data and fast fashion are having on apparel brands, transforming them from supply-driven businesses to demand-driven ones. It adds a bit more nuance to the trope that tech is disrupting retail simply because people are choosing to buy online.

    The argument, here, is about a more fundamental shift in commerce. Brands are now forced to move faster than ever before. Product lead times are dropping (see below via LT). Customer feedback loops are almost instantaneous because of social. And the result is that customers are now the driver: Figure out what people want right now and then create that supply as quickly as possible.

    image

    Fast fashion certainly isn’t a new concept, but the data, algorithms and demand planning systems are only becoming more robust. Merchandise buying – historically the work intuitionists trying to predict what customers will want seasons into the future – is now an automated process that optimizes itself following every click, abandoned shopping cart, and social media like. 

  • Toronto is finally ready to permit laneway suites

    Some of you might remember that last summer the city refused my laneway house/suite here in Toronto.

    Well that was last summer and this is this summer.

    On May 2, 2018 – which just so happens to be my birthday – Toronto and East York Community Council will consider a staff report for a City-initiated Official Plan Amendment and Zoning By-law Amendment that would permit laneway suites in the Toronto & East York District.

    Here are a couple of excerpts from the summary section (full report, here):

    This report recommends establishing a planning framework to permit laneway suites on lands within the Toronto and East York District that are designated as Neighbourhoods by amending both the Official Plan and City-wide Zoning By-law.

    A second unit can take many forms but is generally considered to be subordinate to the primary dwelling unit on a lot. Second units are an important part of the City’s rental housing stock. Laneway suites are one form of second unit.

    This report contains a detailed planning rationale for the introduction and regulation of laneway suites within the Toronto and East York area and discusses the policy implications and intent of proposed performance standards and criteria. 

    These performance standards and criteria intend that laneway suites will provide a new form of ground-related, rental and extended family housing that will fit appropriately within the scale of established Neighbourhoods, and limit their impact on the existing physical character, while contributing to the growth of the City’s rental housing stock.

    What a thoughtful birthday gift. Thank you.

  • Writing is thinking

    Steven Sinofsky recently tweeted out this thread where he talks about the virtues of writing in business. His argument: writing is thinking.

    Writing is difficult. It takes a lot of time. I’ve been writing posts – albeit short ones – on this blog every day for almost 5 years and I can tell you that somedays it is downright painful. Somedays I ask myself: Would I be better served spending this time elsewhere?

    It’s much easier to talk, throw down bullet points on a slide, or send out pithy emails. And because, today, we’re all so focused on “agility” and “execution”, it is easy to dismiss writing as being slow and cumbersome. 

    But the act of writing is indeed thinking. To write about something you have to wade into the details and actually understand what you’re talking about. It’s far more nuanced.

    One of Sinofsky’s arguments is that “execution is in a constant state of diverging as more expertise deals with more details that fewer people understand.” Business becomes “I just know.” Writing can fill in those missing parts.

    He goes on to argue that agility is also not mutually exclusive with writing. In fact, when you write, clarify, and collaborate early on, overall execution speeds up because now people get the details and better understand the context.

    I’ve mentioned this before on the blog, but my Grade 4 English teacher used to make us write a daily journal. He would tell us that it didn’t matter what we wrote or how long it was, but we had to write something every day.

    I did it and I enjoyed keeping those journals, but at the time I didn’t really appreciate was he was trying to get us to do. I do now.

  • Studio Gang’s first project in Los Angeles

    This past week Studio Gang unveiled its first project in Los Angeles, a curvaceous apartment (300 rental units) and hotel (149 rooms) tower in Chinatown.

    The developer is Paris-based Compagnie de Phalsbourg and the hotel component is expected to be operated by the European brand, MOB Hotel.

    Above is the only rendering I could find. If you would like to read a bit more about the project, check out Curbed LA.

    Image: Studio Gang

  • New, mini, electric skateboard

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    Boosted — which is a California-based company that makes electric skateboards — has just released a new smaller and more affordable version called the Mini S.

    Casey Neistat — who helped popularize the original models through his wildly successful YouTube channel — recently vlogged about it and it ended up crashing their website. That’s how things work these days.

    Now, this new version is still USD 750 (so CAD 1,000), but it is significantly less than their other, bigger, models.

    The Mini S goes up to 18 mph and lasts for about 7 miles (optional extended range battery available). So it’s perfect for short jaunts around the city and as a solution to that pesky last mile problem. 

    I am seriously considering getting one for my short commute to the office. That way I’m not breaking a sweat in my suit. But $1,000 remains an awful lot for a skateboard.

    What do you think?

    Image: Casey Neistat via Boosted

  • The challenges of the metropolis beyond Habitat III

    This morning I woke up to an email from the Urban Ecology Agency of Barcelona. They are a public consortium dedicated to urban sustainability and made up of the City Council of Barcelona, the Municipal Council and Metropolitan Area of Barcelona, and the Barcelona Provincial Council. The email was about this upcoming “urban congress” taking place in Barcelona from May 22-24:

    Sadly, I have no plans to be in Barcelona next month. But if any of you are based or traveling there, the conference is all about the future challenges that cities will face and about contributing to the new urban agenda. The main topics are: sustainability, city planning, social cohesion, and competitiveness. 

    Habitat III – which is in the title of the conference – was a United Nations conference on housing and sustainable urbanization. It took place in Quito, Ecuador in October 2016. However, it forms part of a much larger framework around sustainable global development. More info here.

    Barcelona is also one of my favorite cities, so I am happy to share this one with all of you. If you’d like to register for Post-Habitat III, head over here.

  • Tim Hortons is moving its HQ to downtown Toronto

    Yesterday it was announced that Tim Hortons would be moving its corporate headquarters from Oakville, Ontario to downtown Toronto. 

    They’ll be taking 6,000 square meters of space in the PATH-connected Exchange Tower and moving all 400 employees by the end of this year.

    I’m more of a Starbucks coffee drinker, but I am interested in this move. Here’s what their president, Alex Macedo, had to say about it (quote from the Financial Post):

    “Consumer trends are changing very fast. We want to remain an innovative company,” he says. “We want to be able to react to guest changing behaviours so we thought being positioned in Toronto would allow us to do that.”

    This is a good follow-up to a post I wrote back in April 2015, which talked about the trend of companies moving from the suburbs to downtown Toronto. I guess that is still happening.

  • Likely to liquefy in an earthquake

    Today’s post is going to be a short add-on to yesterday’s post about the sinking Millennium Tower in San Francisco. Today, the New York Times published the below map showing the areas of the city likely to “liquefy in an earthquake.” It goes on to note that “at least 100 buildings taller than 240 feet were built in areas that have a “very high” chance of liquefaction.”

    The article might leave you with the feeling that current building codes are inadequate for the pending “Big One” in San Francisco. So I thought I would reblog this post from last fall which talks, in more detail, about how one of the best structural engineering firms in the world designed the tallest building in San Francisco.

    Image: New York Times

  • Sinking tower solution

    Many of you are probably aware of the 58-storey Millennium Tower in San Francisco which is estimated to have sunk about 17 inches and to have tilted about 14 inches to the west since it was built.

    Well today it was announced that they may have a fix. Here is what is apparently being proposed as a retrofit (image from SFGate):

    image

    The tower was originally built on top of a 10 foot thick raft or mat foundation, which was then supported by concrete piles that went down 60-90 feet into soft clay. Notably, the piles didn’t reach bedrock.

    The proposed solution involves drilling 275-300 new micropiles into the bedrock below. But here’s where things get really interesting: The plan is to stabilize the west side of the building first and allow the east side of the building to continue sinking. In theory, this will give the building an opportunity to level out before they fully stabilize it. 

    According to SFGate, the entire retrofit is expected to take anywhere from 2 to 5 years, and cost somewhere in the range of $200 to $500 million. The original tower cost $350 million to build. (I’m assuming that’s just the hard cost number.)