I recently connected with one of the principals of a Toronto-based construction management firm called Ripple Projects, which focuses primarily on contemporary custom homes (credit to 52 Pick-up for the introduction).

They’ve only been in business for a few years, but the founders spent many years prior to this doing similar projects at similar companies, such as Wilson Project Management.

Since they don’t yet have a lot up on their website, I asked if he could share one of his recent projects with me. He was happy to do that and so, with his permission, I’d now like to share it with all of you.

It’s a renovation and expansion of a semi-detached house at 109 Hazelton Avenue in Toronto’s upscale Yorkville neighborhood. The end result is roughly 3,000 square feet with 3+1 bedrooms and 5 bathrooms. If I remember correctly, it sold for close to $3 million.

Here are a few before pictures. It wasn’t in bad shape – just a bit dated.

And here are a few after photos.

I personally would have gone with something even more modern, but that’s just me and I wasn’t the client. It’s still a phenomenal project. So if you’re in the market for a new custom home, I would encourage you to give Ripple Projects a call. I was really impressed by our conversation.

Note: I have zero affiliation to the company. I just believe that good people deserve exposure.

This morning I woke up to a fascinating post by designer Tobias van Schneider called: The agency is dead. Long live the agency.

What he’s talking about is the phenomenon of design agencies being gobbled up or “acqui-hired” by product firms such as Facebook and Google. The latest of which is (or was) Toronto-based design agency Teehan+Lax. The partners have closed up shop and are in the process of moving to San Francisco to join Facebook Design.

But what he’s really talking about is the pull from services to products.

When you’re a services firm, you do work for outside clients and they pay you for that work. But there are only so many hours in the day, which is why the marginal cost of taking on new clients is relatively high – to scale up you generally need lots more people.

On the other hand, when you’re a software company creating products, the marginal cost of serving additional customers is almost nothing. Sure, there are some variable costs, but the impact to your cost structure is not nearly as significant as when you’re a services firm. That’s how a company like Instagram can be bought for $1 billion with 30 million users and only 13 employees.

So products are a bit of a holy grail in some circles. You can achieve greater scale. You can focus on fewer projects as opposed to jumping around from client to client. And you can make a lot of money.

But it’s often easier said than done. Back in 2012, Teehan+Lax wrote a great post where they talked about the allure of products and the challenges they faced in trying to build their own:

37Signals* was the worst thing to happen to services businesses trying to make products. They fucked it up for all of us, because they made it. For those of us old enough to remember, 37Signals was a services company like Teehan+Lax. They had clients and did work for hire. Of course, 37signals isn’t a services company anymore. They make amazing digital products and their success is enviable. (*37Signals became Basecamp)

So why is it so hard to transition from services to products?

Clayton Christensen, the father of disruptive innovation, says, “you can’t start a disruptive business from inside an incumbent one.” The incumbent business will always take the resources from the disruptive one. He argues that if you want to create a disruptive business you need to isolate it from the incumbent business. The disruptive business needs its own values, processes and resources to be successful.

Regardless of whether you’re trying to build something disruptive or not, amazing products are hard to build. They take focus.

But what’s also interesting about services and products is that there’s a parallel in the world of architecture and real estate development. As an architect, you’re basically a service provider. You have clients and they pay you for the work that you do. However, as a real estate developer, you offer a product: physical space. The cost structures are not nearly as beneficial as with software, but it’s a product nonetheless.

And similarly, we’re already starting to see some developers bring architecture in-house. Will we see more of this in the future? Will there be a similar pull from services, to products?

Image: Flickr

One of the projects that I’m most excited about here in Toronto is the renovation and addition to One Spadina Crescent. The building sits in the middle of a roundabout along Spadina Avenue and occupies what is easily one of the most ceremonial positions in the city.

But for as long as I can remember, the building hasn’t been living up to its full potential. So much so that in the 1960s it was going to be demolished in order to make way for the proposed Spadina Expressway. That would have been an absolute tragedy. Thankfully, our friend Jane Jacobs stopped that one.

Today, exciting things are happening at One Spadina Crescent. The Daniels Faculty of Architecture, Landscape, and Design at the University of Toronto is in the midst of renovating and expanding the building, and will eventually relocate there from its current location on College Street.

When it’s all said and done, One Spadina Crescent will look something like this (via Daniels).

From the south:

From the west:

From the north:

What’s most exciting to me about this project are the following 3 things:

First, it’s an opportunity to connect One Spadina Crescent to the surrounding urban fabric. Today, it feels very much like an island in the middle of the street. 

Second, it’s a wonderful example of the new layering on top of the old, which is something that I believe we should aspire to do in our cities. The University of Toronto has become quite good at doing that on campus.

And finally, the intent is for this building and site to include a number of research centers and public facing functions devoted to architecture, design, and city building. And so One Spadina could become quite the hub in the city. That’s exciting.

If you’d like to take a look inside the building (pre-renovation), check out these great photos by Peter MacCallum. The picture at the top of this post is his.