I was having a conversation this week with a few friends in the industry about the future of parking. We were specifically talking about Toronto, but I would imagine that much of this holds true for many other cities around the world.
Here in Toronto, it's not uncommon to see new parking spaces in central locations selling for upwards of $200k. For those that are not in the industry and not seeing the work and immense costs that go into building parking, this often comes as a surprise.
But as I have said many times before on the blog, parking is often a significant loss leader for new developments. Even at relatively high prices, most developers aren't covering their costs. So developers naturally aren't racing out to build more of it. They're trying to build just what is absolutely necessary for the market.
Given the strong incentives to build less parking, it's no surprise that parking ratios continue to decline. But consider some of the other parking headwinds:
Push toward watertight undergrounds across the city (higher costs)
Tipping fees for disposing of contaminated soil (higher costs)
Increasing development charges / levies (higher costs)
Introduction of inclusionary zoning (higher costs)
Inflationary construction cost environment (again, higher costs)
There is a lag between changing cost structures and what the end consumer sees and feels. Junction House, for example, is fully tendered from a construction standpoint and so we are building with a kind of historic cost structure that would be impossible to replicate today. When the next project comes around, they'll have higher costs and will have to price their homes accordingly.
As rising costs and new policies (like the ones I mention above) begin to work their way through the system, I think it's fairly obvious that parking ratios will continue to be one of the first things that gets looked at and ultimately chopped down. This will make parking even more scarce in the city and surely far more expensive.
(Back in 2018, Hong Kong had the record for the most expensive parking spot in the world. I wouldn't be surprised if it still holds this title.)
But as I have argued before, I am of the opinion that building around the car is not the way to build big and well-functioning global cities. Many of us recognize that we need to focus on alternative forms of transport -- everything from public transit to new micro-mobility solutions. And given where costs are going, I don't think we'll have much choice.
Photo by Sven Mieke on Unsplash
Hedge fund manager Bill Ackman is a pretty wealthy guy and so it is fairly safe to assume that he could choose to live almost anywhere. For some people the ideal might be a low-rise house with a backyard in the suburbs.
But since 2018, Ackman has chosen a kind of penthouse apartment on the roof of a 1920's co-op building in Manhattan's Upper West Side. It was formerly the home of author Nancy Friday and Ackman supposedly purchased it for $22.5 million.
He is now looking to demolish the penthouse and build a new two-storey residence designed by architect Norman Foster. The design looks like this, which kind of reminds me of Philip Johnson's The Glass House:
A few of us are in Ireland right now visiting with the suppliers who will be providing the windows, sliding doors, louvers, and glass for One Delisle. Thank you for the hospitality Flynn, Duggan Systems, and Carey Glass.
Below is a video showing a weather test that was done this morning. If any of you have been to the One Delisle Sales Gallery, you will probably recognize these sliding doors. They are fantastic.
https://videopress.com/v/MSqkI5vJ?resizeToParent=true&cover=true&preloadContent=metadata
Many of us probably don’t think about the supply chain that exists behind the products and services that we consume. But it is there and there are lots of smart people working "behind the scenes" to make everything happen.
FYI, the doors passed.
I was having a conversation this week with a few friends in the industry about the future of parking. We were specifically talking about Toronto, but I would imagine that much of this holds true for many other cities around the world.
Here in Toronto, it's not uncommon to see new parking spaces in central locations selling for upwards of $200k. For those that are not in the industry and not seeing the work and immense costs that go into building parking, this often comes as a surprise.
But as I have said many times before on the blog, parking is often a significant loss leader for new developments. Even at relatively high prices, most developers aren't covering their costs. So developers naturally aren't racing out to build more of it. They're trying to build just what is absolutely necessary for the market.
Given the strong incentives to build less parking, it's no surprise that parking ratios continue to decline. But consider some of the other parking headwinds:
Push toward watertight undergrounds across the city (higher costs)
Tipping fees for disposing of contaminated soil (higher costs)
Increasing development charges / levies (higher costs)
Introduction of inclusionary zoning (higher costs)
Inflationary construction cost environment (again, higher costs)
There is a lag between changing cost structures and what the end consumer sees and feels. Junction House, for example, is fully tendered from a construction standpoint and so we are building with a kind of historic cost structure that would be impossible to replicate today. When the next project comes around, they'll have higher costs and will have to price their homes accordingly.
As rising costs and new policies (like the ones I mention above) begin to work their way through the system, I think it's fairly obvious that parking ratios will continue to be one of the first things that gets looked at and ultimately chopped down. This will make parking even more scarce in the city and surely far more expensive.
(Back in 2018, Hong Kong had the record for the most expensive parking spot in the world. I wouldn't be surprised if it still holds this title.)
But as I have argued before, I am of the opinion that building around the car is not the way to build big and well-functioning global cities. Many of us recognize that we need to focus on alternative forms of transport -- everything from public transit to new micro-mobility solutions. And given where costs are going, I don't think we'll have much choice.
Photo by Sven Mieke on Unsplash
Hedge fund manager Bill Ackman is a pretty wealthy guy and so it is fairly safe to assume that he could choose to live almost anywhere. For some people the ideal might be a low-rise house with a backyard in the suburbs.
But since 2018, Ackman has chosen a kind of penthouse apartment on the roof of a 1920's co-op building in Manhattan's Upper West Side. It was formerly the home of author Nancy Friday and Ackman supposedly purchased it for $22.5 million.
He is now looking to demolish the penthouse and build a new two-storey residence designed by architect Norman Foster. The design looks like this, which kind of reminds me of Philip Johnson's The Glass House:
A few of us are in Ireland right now visiting with the suppliers who will be providing the windows, sliding doors, louvers, and glass for One Delisle. Thank you for the hospitality Flynn, Duggan Systems, and Carey Glass.
Below is a video showing a weather test that was done this morning. If any of you have been to the One Delisle Sales Gallery, you will probably recognize these sliding doors. They are fantastic.
https://videopress.com/v/MSqkI5vJ?resizeToParent=true&cover=true&preloadContent=metadata
Many of us probably don’t think about the supply chain that exists behind the products and services that we consume. But it is there and there are lots of smart people working "behind the scenes" to make everything happen.
FYI, the doors passed.
Today it was in the news that Ackman has been having a fun time trying to convince his co-op board that a new set of glass boxes on the roof their building is a good idea. FT reported that the project has created "an atmosphere of fear and distrust among residents in the building."
I'm not exactly sure what it is about this proposal that is causing fear and distrust but Ackman is on record saying that he thinks this isn't about heritage preservation or architectural integrity; it's about people not wanting the disruption that comes along with construction. Fair.
One way to test this, I suppose, is to propose something more traditional or similar to what's already there. But I suspect that the other dynamic at play here is simply that he is a rich guy with a starchitect trying to build something cool.
Building things is tough.
Today it was in the news that Ackman has been having a fun time trying to convince his co-op board that a new set of glass boxes on the roof their building is a good idea. FT reported that the project has created "an atmosphere of fear and distrust among residents in the building."
I'm not exactly sure what it is about this proposal that is causing fear and distrust but Ackman is on record saying that he thinks this isn't about heritage preservation or architectural integrity; it's about people not wanting the disruption that comes along with construction. Fair.
One way to test this, I suppose, is to propose something more traditional or similar to what's already there. But I suspect that the other dynamic at play here is simply that he is a rich guy with a starchitect trying to build something cool.
Building things is tough.
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