This Philadelphia Inquirer article is behind a paywall, but I can tell you that it speaks to the city's increasing use of modular construction for infill apartment buildings:
Building modularly can save 20% on total construction costs, he said. Projects can be constructed in half the time, and rental revenue comes in sooner. Workers build apartments in pieces in a factory as others lay the foundation. Factory work doesn’t have to pause for inclement weather.
Alterra Property Group has found that modular construction is cost- and time-effective when it builds between 100 and 500 units and between four and six stories. Under that, building on-site is more efficient, Addimando said. Above that, builders can run up against building code restrictions.
Consider this recently completed project, called LVL North:
This Philadelphia Inquirer article is behind a paywall, but I can tell you that it speaks to the city's increasing use of modular construction for infill apartment buildings:
Building modularly can save 20% on total construction costs, he said. Projects can be constructed in half the time, and rental revenue comes in sooner. Workers build apartments in pieces in a factory as others lay the foundation. Factory work doesn’t have to pause for inclement weather.
Alterra Property Group has found that modular construction is cost- and time-effective when it builds between 100 and 500 units and between four and six stories. Under that, building on-site is more efficient, Addimando said. Above that, builders can run up against building code restrictions.
Consider this recently completed project, called LVL North:
1.5 acre site
Site acquired in February 2020
Construction commenced in June 2020 (was it already entitled?)
Over 500,000 square feet
7 storeys
410 market-rate apartments
Two levels of commercial spaces
Over 300 parking spaces in a two-level below-grade parking structure
Construction completed in 24 months (it's currently being leased up)
I am impressed by how quickly this was erected. Here in Toronto, it would likely take more than 24 months just to get through the rezoning process. Granted, a site this big in a central location next to transit would also likely beget multiple tall buildings.
But this form and scale of housing seems to be working for Philly. It is allowing the city to both build quickly and to experiment with emerging construction methods.
Bullpen Consulting just released its latest land insights reports for the Greater Toronto Area. For the period of Q2-2022, Ben Myers and the team identified 46 high-density residential land transactions with an average price of $95 per buildable square foot. This is down from $112 pbsf in Q1.
In the core of the city (former City of Toronto), the average price for Q2-2022 was $135 pbsf. In North York it was $103 pbsf. And in Scarborough it was $50 pbsf. Overall land prices are down about 15% from last quarter (though it's important to note that quarterly transactions can represent a relatively small sample size).
We have spoken before about how land prices tend to be fairly sticky in the face of changing cost structures. But what we are seeing right now is a bit of a perfect storm:
Hard costs have seen double digit increases (with some inputs increasing by 30-40%)
Inclusionary zoning is on the horizon and will add another additional cost to new housing
And rising interest rates are both increasing project costs (higher interest charges) and slowing the macro economy
All of this is naturally causing developers to be more cautious when it comes buying new land. And we are seeing that in the above pricing. But at the same time, this dip in pricing is not going to be enough to absorb all of the additional costs that new housing projects now face in today's market.
If you'd like to download a full copy of Bullpen's report, click here.
I had a friend -- who I know from architecture school -- visiting from Detroit for the weekend, so we did a little building tour on Sunday morning.
This is the elevated (and half-finished) CIBC Square Park that spans over the rail lines leading into Union Station. The benches are beautiful. On the right side of the second photo are also fire pits that are in the process of being setup.
Construction commenced in June 2020 (was it already entitled?)
Over 500,000 square feet
7 storeys
410 market-rate apartments
Two levels of commercial spaces
Over 300 parking spaces in a two-level below-grade parking structure
Construction completed in 24 months (it's currently being leased up)
I am impressed by how quickly this was erected. Here in Toronto, it would likely take more than 24 months just to get through the rezoning process. Granted, a site this big in a central location next to transit would also likely beget multiple tall buildings.
But this form and scale of housing seems to be working for Philly. It is allowing the city to both build quickly and to experiment with emerging construction methods.
Bullpen Consulting just released its latest land insights reports for the Greater Toronto Area. For the period of Q2-2022, Ben Myers and the team identified 46 high-density residential land transactions with an average price of $95 per buildable square foot. This is down from $112 pbsf in Q1.
In the core of the city (former City of Toronto), the average price for Q2-2022 was $135 pbsf. In North York it was $103 pbsf. And in Scarborough it was $50 pbsf. Overall land prices are down about 15% from last quarter (though it's important to note that quarterly transactions can represent a relatively small sample size).
We have spoken before about how land prices tend to be fairly sticky in the face of changing cost structures. But what we are seeing right now is a bit of a perfect storm:
Hard costs have seen double digit increases (with some inputs increasing by 30-40%)
Inclusionary zoning is on the horizon and will add another additional cost to new housing
And rising interest rates are both increasing project costs (higher interest charges) and slowing the macro economy
All of this is naturally causing developers to be more cautious when it comes buying new land. And we are seeing that in the above pricing. But at the same time, this dip in pricing is not going to be enough to absorb all of the additional costs that new housing projects now face in today's market.
If you'd like to download a full copy of Bullpen's report, click here.
I had a friend -- who I know from architecture school -- visiting from Detroit for the weekend, so we did a little building tour on Sunday morning.
This is the elevated (and half-finished) CIBC Square Park that spans over the rail lines leading into Union Station. The benches are beautiful. On the right side of the second photo are also fire pits that are in the process of being setup.
And this is the view looking down Bay Street from the stairs that lead up to the park. We tried to snoop around inside a little but a security guard asked us to leave.
This is T3 Bayside -- a new timber office building going up on the waterfront. Apparently it is the tallest of its kind in North America at the moment. I am also embarrassed to say that I just learned that T3 stands for timber, transit, and technology, and that it is part of a broader office development strategy that Hines is rolling out.
This is Tridel's Aquavista. I'm looking forward to the ground floor spaces getting leased up in this area. All of the ingredients seem to be here for a vibrant waterfront community.
This is the next Aqua-something project. We all assumed that there must be strict umbrella rules in place.
This is Monde by Moshe Safdie & BDP Quadrangle (architects) and Great Gulf (developer). It kind of reminds me of 56 Leonard Street (New York) from this elevation. I guess I'm not used to seeing it from the south side.
Finally, this is Sherbourne Common, which is both a park and an important piece of stormwater infrastructure. It treats stormwater before it gets discharged into Lake Ontario and it also helps to reduce poop from flowing into Lake Ontario as a result of combined sewer overflows.
It's fun being a tourist in your own city. We should all do it more often. It makes you appreciate what you have.
And this is the view looking down Bay Street from the stairs that lead up to the park. We tried to snoop around inside a little but a security guard asked us to leave.
This is T3 Bayside -- a new timber office building going up on the waterfront. Apparently it is the tallest of its kind in North America at the moment. I am also embarrassed to say that I just learned that T3 stands for timber, transit, and technology, and that it is part of a broader office development strategy that Hines is rolling out.
This is Tridel's Aquavista. I'm looking forward to the ground floor spaces getting leased up in this area. All of the ingredients seem to be here for a vibrant waterfront community.
This is the next Aqua-something project. We all assumed that there must be strict umbrella rules in place.
This is Monde by Moshe Safdie & BDP Quadrangle (architects) and Great Gulf (developer). It kind of reminds me of 56 Leonard Street (New York) from this elevation. I guess I'm not used to seeing it from the south side.
Finally, this is Sherbourne Common, which is both a park and an important piece of stormwater infrastructure. It treats stormwater before it gets discharged into Lake Ontario and it also helps to reduce poop from flowing into Lake Ontario as a result of combined sewer overflows.
It's fun being a tourist in your own city. We should all do it more often. It makes you appreciate what you have.
