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Developing a building can often feel like you're trying to solve a rubik's cube. Among other things, you have to manage a myriad of different stakeholders, all of which -- naturally -- operate in their own self-interest. There's the city, community, politicians, various agencies, consultants, tenants, purchasers, lenders, investors, the market at large (of which you really have no control of), and many others. Oftentimes you even have stakeholders whose interests are mutually exclusive. Indeed, the things that they want can sometimes be at odds with each other. Your job is to figure out a solution that satisfies as many of these interests as possible.
To give you an example, let's say that you've been asked to introduce a stepback into your building in order to break up the elevation. From an urban design standpoint, this may make perfect sense. Hello, datum line. But now your construction costs just went up. You have to transfer your mechanical lines, insulate the roof, introduce new bulkheads, and, for the purposes of this example, let's say you now need to introduce a structural transfer. This is big cost item that you hadn't accounted for. And because you just reduced the height of the building to satisfy another stakeholder, you don't have the excess clear height to accommodate the additional depth required by this new structural element. There is, of course, always a solution. But usually something will need to give.
At the same time, this raises some interesting philosophical questions. What's more important in this example? The urban design move or keeping construction costs low so that the building can be delivered more affordably? The cynics will argue that this is a moot point because developers will always profit maximize. But I would encourage you to check out some of my past posts, such as "Cost-plus pricing" and "The impact of inclusionary zoning on development feasibility." This problem solving dynamic is one of the things that makes development so challenging. But it is also one of the things that makes it incredibly rewarding.
Photo by Ivan Bandura on Unsplash
Some of you may want to debate the “center of the world” title (New York may be more deserving), but Laura Parker of National Geographic recently published a great essay describing the tremendous growth that London has seen over the last 30 years thanks to in part the deregulation of the financial services industry. Here is an excerpt:
As the manufacturing industry splintered, the docks of what was once the world’s largest port fell victim to shipping modernization and closed. The death in 1965 of Winston Churchill, the great prime minister, marked “the last time that London would be the capital of the world,” the Observer noted. Population continued a downward slide, bottoming out at 6.7 million in 1988. By then London’s fortunes had changed with deregulation of the financial services industry, known as the Big Bang, along with the shift to electronic trading, which enabled London to rival Tokyo and New York. A new financial district rose on the ruins of the West India Docks on the Isle of Dogs, a marshy nub that juts into the Thames. Canary Wharf, as the district is called, became London’s first modern large-scale regeneration project.
According to National Geographic, London’s population grew by about 1.2 million between 2006 and 2016. That’s a pretty incredible number and is why the city estimates that they need about 66,000 new housing units a year just to keep up the growth. Like many supply constrained big cities, they’re not meeting that target.
For the full essay, click here. It comes packaged with some incredible photographs by Luca Locatelli.
I’ve been hearing a lot about Bird recently. Perhaps it has something to do with the $15 million Series A round they raised last month (February 2018) and the $100 million Series B round they announced earlier today.
A “Bird” is small electric scooters that look like this and can be rented from your phone for short haul trips. They are currently available in Santa Monica, Venice, UCLA, Westwood, and San Diego, and they are intended to be ridden in existing bike lanes.
What may be particularly interesting to this blog audience is the fact that Bird is calling itself a “last-mile electric vehicle sharing company.” The pitch: 40% of car trips (in the US?) are less than 2 miles long. Let’s replace those using electric scooters.
One of the first things that came to my mind is that this feels more accessible than cycling. Cycling to work can be a commitment. You have to think about your attire and the sweat factor, among other things.
Would you agree?
Developing a building can often feel like you're trying to solve a rubik's cube. Among other things, you have to manage a myriad of different stakeholders, all of which -- naturally -- operate in their own self-interest. There's the city, community, politicians, various agencies, consultants, tenants, purchasers, lenders, investors, the market at large (of which you really have no control of), and many others. Oftentimes you even have stakeholders whose interests are mutually exclusive. Indeed, the things that they want can sometimes be at odds with each other. Your job is to figure out a solution that satisfies as many of these interests as possible.
To give you an example, let's say that you've been asked to introduce a stepback into your building in order to break up the elevation. From an urban design standpoint, this may make perfect sense. Hello, datum line. But now your construction costs just went up. You have to transfer your mechanical lines, insulate the roof, introduce new bulkheads, and, for the purposes of this example, let's say you now need to introduce a structural transfer. This is big cost item that you hadn't accounted for. And because you just reduced the height of the building to satisfy another stakeholder, you don't have the excess clear height to accommodate the additional depth required by this new structural element. There is, of course, always a solution. But usually something will need to give.
At the same time, this raises some interesting philosophical questions. What's more important in this example? The urban design move or keeping construction costs low so that the building can be delivered more affordably? The cynics will argue that this is a moot point because developers will always profit maximize. But I would encourage you to check out some of my past posts, such as "Cost-plus pricing" and "The impact of inclusionary zoning on development feasibility." This problem solving dynamic is one of the things that makes development so challenging. But it is also one of the things that makes it incredibly rewarding.
Photo by Ivan Bandura on Unsplash
Some of you may want to debate the “center of the world” title (New York may be more deserving), but Laura Parker of National Geographic recently published a great essay describing the tremendous growth that London has seen over the last 30 years thanks to in part the deregulation of the financial services industry. Here is an excerpt:
As the manufacturing industry splintered, the docks of what was once the world’s largest port fell victim to shipping modernization and closed. The death in 1965 of Winston Churchill, the great prime minister, marked “the last time that London would be the capital of the world,” the Observer noted. Population continued a downward slide, bottoming out at 6.7 million in 1988. By then London’s fortunes had changed with deregulation of the financial services industry, known as the Big Bang, along with the shift to electronic trading, which enabled London to rival Tokyo and New York. A new financial district rose on the ruins of the West India Docks on the Isle of Dogs, a marshy nub that juts into the Thames. Canary Wharf, as the district is called, became London’s first modern large-scale regeneration project.
According to National Geographic, London’s population grew by about 1.2 million between 2006 and 2016. That’s a pretty incredible number and is why the city estimates that they need about 66,000 new housing units a year just to keep up the growth. Like many supply constrained big cities, they’re not meeting that target.
For the full essay, click here. It comes packaged with some incredible photographs by Luca Locatelli.
I’ve been hearing a lot about Bird recently. Perhaps it has something to do with the $15 million Series A round they raised last month (February 2018) and the $100 million Series B round they announced earlier today.
A “Bird” is small electric scooters that look like this and can be rented from your phone for short haul trips. They are currently available in Santa Monica, Venice, UCLA, Westwood, and San Diego, and they are intended to be ridden in existing bike lanes.
What may be particularly interesting to this blog audience is the fact that Bird is calling itself a “last-mile electric vehicle sharing company.” The pitch: 40% of car trips (in the US?) are less than 2 miles long. Let’s replace those using electric scooters.
One of the first things that came to my mind is that this feels more accessible than cycling. Cycling to work can be a commitment. You have to think about your attire and the sweat factor, among other things.
Would you agree?
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