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.

Category: Construction

  • Mass timber construction next?

    We poured the last section of our level 4 slab at Junction House yesterday. As I was leaving the site, I tweeted this photo out from Watkinson Avenue. What you are seeing is the northwest corner of the building where we have seven two-storey towns that front onto our rear laneway. In response to this tweet, Andrew Williamson asked a most excellent question: “timber next?”

    My response was that we would love to do a mass timber building. We have certainly looked at it in the past, and we will continue to look for opportunities to use more sustainable building materials wherever possible. But there are challenges to overcome and a project like Junction House would have been far more difficult to do in mass timber. I’m not an expert when it comes to wood construction, but I will offer up three items that have come up for us in the past.

    The first is trade familiarity. We are in a highly inflationary hard cost environment right now. Everyone is hyper focused on costs and the market is competitive. So switching to a construction method that is less common comes with some additional risks. But this will almost certainly change over time as the market evolves and more people adopt mass timber.

    The second is water. The Junction area, or at least parts of it, have a relatively high water table. That is certainly the case with our site. One of the things you need to do during construction is dewater, or draw down the water level within your site so that you can actually build. In our case, we built a watertight below-grade parking structure, though that isn’t always the case.

    Dewatering comes at a cost and so generally you want to stop dewatering as soon as it is feasible to do so. But you need to make sure that you have enough weight to counteract the buoyancy forces associated with groundwater returning to the site. Generally this means you need to wait until you’ve finished constructing a certain level in the building so that there’s enough mass. The engineers will say things, “we can shut off the dewatering once we complete our level 4 slab.”

    The thing to consider with all of this is that concrete is heavier than wood, which means that you may need to run your dewatering program for longer (increasing your costs). Or, if your building isn’t all that big, maybe you’ll never have enough weight to offset the below-grade water forces and so you have to look at other methods for keeping your building from floating away. Again, this will increase your costs.

    The last thing I’ll mention is that mass timber buildings generally have higher floor-to-floor heights compared to cast-in-place concrete. What this means is that a 9 storey building in timber is going to be taller, in meters, compared to a 9 storey building in concrete — even if the clear heights within the suites are the same. This is a massive deal when you’re operating in an environment that is highly sensitive to building height.

    In the case of Junction House, we were negotiating our final height in centimeter increments — literally arguing whether it could be 50cm to 1.3m taller than some perceived maximum height. This is, in my mind, absurd, but it became a hill that people were willing to die on. The result is that our laneway towns (pictured above) went from having an entrance that was a few steps up off the lane to having an entrance that is now a few steps down off the lane. That is how we ultimately solved our centimeter problem.

    This wounded me to my core because, at the end of the day, what are people going to remark: The additional meter at the top of the building or the relationship that these towns will now have to the street? It will, of course, be the latter. So please know that our hearts were in the right place. But what this also means is that had we been trying to build in wood, we likely would have lost a floor during this negotiation and that would have killed the entire project.

  • Columns vs. shear walls in residential and office construction

    If I were to make a broad generalization for the way that we typically design the structural systems for residential buildings and office buildings here in Toronto it would be as follows: office buildings tend to have a big structural core with perimeter columns and residential buildings tend to have a smaller core accompanied by both columns and shear walls (long structural walls essentially). There are a myriad of other differences, but for the purposes of this post, I’m going to run with this broad classification.

    When something is typically done a certain way it often means that it is generally what the market wants and it is a cost effective solution. In the case of office buildings, this sort of structural system is essential for maintaining open plans and future flexibility. You can’t have shear walls interrupting your floor plates. And because big office buildings also tend to have a lot of elevators, the structural core is usually what provides lateral stability to the building (or at least this is what the structural engineers tell me).

    But this same imperative for open plans isn’t usually there for residential buildings. In this case, the unit demising is often fairly fixed and the individual resident/tenant spaces tend to be smaller than in office buildings, which makes frequent structural elements a lot more palatable. And since the elevator cores also tend to be smaller (fewer elevators), there is usually a need to introduce other structural elements that can provide the building with lateral stability. (Again, this is what the engineers tell me.) So enter all the shear walls.

    But every now and then, somebody in Toronto will ask: Is this the right way to be building? Other cities don’t build their residential buildings with all of these shear walls and so should we really be limiting the future flexibility of our multi-family housing supply by constructing in this way? These are good questions. The short answer is that it tends to be easier/cheaper to build this way. Our market is used to it. And generally end-users are just fine with it.

    However, this method of building isn’t necessarily a universal truth. The structural system for One Delisle, for example, is far closer to that of an office building than it is to that of a typical residential tower. Much of this was driven by the building’s architecture and its continually changing floor plates. I have also heard of instances where purpose-built rental developers are choosing to go column over shear wall so that there’s greater flexibility in the future. There’s certainly a case to be made for this.

    As developers, it is impossible to know all there is to know about any one discipline. You need the right team in place for that. But we do have to look at the bigger picture, weigh all of the constraints, and then hopefully make a reasonably good decision. This is one example of that.

    Image: Bay-Adelaide Centre North, Toronto

  • Weekend link roundup — Ukraine and gas supply to Warren Buffet and Canadian housing supply

    I spent much of this morning reading about and listening to discussions about what’s happening in Ukraine and so, instead of a typical post this morning, I’m just going to share a mélange of links.

    • Monocle 24 Foreign Desk episode talking about Russia’s invasion of Ukraine. Speakers are Ukrainian MP Lesia Vasylenko, former NATO chief Richard Shirreff, Russian journalist Ekaterina Kotrikadze, and Russia expert Mark Galeotti. I found this helpful in better understanding some of the dynamics at play here and what might happen going forward — though, of course, who knows. All of this is both deeply sad and frustrating. [Link]
    • Discussion in Bloomberg Green about the feasibility of the EU shutting off Russian gas right now, as opposed to through a protracted transition. Currently, the EU satisfies about 20% of its total energy needs through gas and about 40% of it comes from Russia. [Link] Also, a chart showing Russian natural gas exports, by destination. [Link]
    • Warren Buffet published his widely read annual letter to Berkshire Hathaway shareholders this weekend. He likes to deliver news like this on a Saturday so that people have time to digest it before the markets reopen on Monday. The overall message was one that we have heard before: BH has a lot of cash (~$144 billion to be exact) and they’re not finding very many compelling opportunities in which to deploy it. [Link]
    • To add to the above, here is a longish Q&A session with Buffet’s partner, Charlie Munger. He continues to be worried about excess money in the system and high inflation. [Link]
    • Construction has been recently completed on a Mies van der Rohe design from 1952 that had been forgotten and buried in some archives. Originally commissioned to be a fraternity house at Indiana University, the building is now the Eskenazi School of Art, Architecture + Design. This is a supremely cool story, particularly for an architecture school. [Link]
    • Yet another simple example by Bobby Fijan on how highly restrictive zoning codes and design guidelines don’t always produce the end results that we might want. Different times and different contexts in this example. But it’s interesting to think about how best to promote design excellence in our cites. Is more creative market freedom the answer? [Link]
    • My friend Randy Gladman, who is senior vice-president of development advisory at Colliers here in Toronto, published an opinion piece in the Financial Post last week about the hidden costs of inclusionary zoning. It is consistent with the ad nauseam discussions that we have been having on this blog for the past few years, but it of course remains an important read. [Link]
    • Steve Pomeroy of Focus Consulting makes an argument in the Globe and Mail that elevated home prices in Canada isn’t primarily the result of a supply deficit. Using recent census data that allegedly shows that housing supply in Vancouver actually kept pace with demand (over how long of a period?), Pomeroy instead points to the other typical culprits: strong demand, low interest rates, unused homes owned by non-residents, and so on. This one likely deserves a dedicated post at some point. [Link]

    Ironically, the post turned out to be wordier than my usual ones.

  • A world with less concrete

    Some people like to refer to concrete as cement. But that is technically incorrect. Cement is just one of the main ingredients in concrete, along with water and aggregates. So it’s a bit like referring to a beer as a bottle of yeast.

    That said, cement is pretty integral to concrete and it’s largely the reason why the embodied carbon is so high in this widely-used building material. According to Brian Potter, cement production is responsible for somewhere between 5-10% of global CO2 emissions.

    This is coming from the roughly 4.25 billion metric tons of cement that is produced annually and the 30 billion tons of concrete that it ends up in. The world likes concrete. And in particular, China likes concrete.

    China alone is now producing about half of the world’s cement. And since consumption generally tracks production, and the consumption of cement generally translates into concrete, China is using, by far, the most concrete.

    I don’t know what the right answer is to this particular carbon problem, but Brian Potter’s latest construction physics post is perhaps a good place to start thinking about it. In it, he covers who is producing it, where it is being used, and how we might get to a world with less concrete.

  • An exciting new proposal for Toronto

    I love change.

    In fact, a big part of what I do for a living is imagining what things could be in the future. However, the bias that humans have toward the status quo has been well documented by people like Seth Godin, as well as many others. It is easier to defend that which already exists. Here’s how Seth puts it:

    All one has to do is take the thing we have now as a given (ignoring its real costs) and then challenge the defects and question the benefits of the new thing, while also maximizing the potential risk.

    So as I was reading this recent blogTO article about the work of Stephen Velasco, I wasn’t surprised to see some of the responses. Stephen has built an outstanding 3D model of all the towers that are currently planned or under construction in Toronto. Here’s what that looks like:

    For some of you, this is exciting. And for others, this may look like too much density. In both cases, we might think we are being fair and reasonable in our assessment, but the reality is that it’s actually quite difficult to be a neutral judge. We are all guilty of poor logic and too much emotion.

    But here’s a good mental exercise, put forward by Seth, to test your logic: flip the story and then see if you still feel the same way.

    In this particular case, imagine that all of the above proposed buildings are already built. This is the city that we all live, work, and play in. This is the status quo. Now consider an exciting new proposal being put forward to demolish many/most of these buildings, create more surface parking lots in the core, industrialize our waterfront, and reduce our overall population density.

    Photo from the 1940s:

    Photo from the 1960s:

    Is this a better proposal?

  • The world’s first 3D-printed home, kind of

    Habitat for Humanity recently announced that they have completed, in partnership with additive construction company Alquist, the first 3D-printed owner-occupied house in the world. I’m pretty sure that I’ve seen other 3D-printed homes kicking around, but this is still a big deal and one of the first of such homes for Habitat for Humanity. (It also 3D-printed a house in Arizona this year, but I guess that one wasn’t owner-occupied.)

    The 1,200 square foot three-bedroom home is located at 129 Forest Heights Road in Williamsburg, Virginia. And it was “printed” in just 22 hours, which Habitat and Alquist are claiming reduced their construction schedule by approximately weeks compared to a traditionally framed house. Overall, this translated into an estimated savings of 15% on the total construction costs. (Again, according to Habitat and Alquist.)

    These kind of savings are particularly important in many rural communities where it is not uncommon for homes to sell below their replacement cost. Not surprisingly, when you have a market dynamic like this, there’s zero incentivize to build new. I mean, why would you when you can just buy something that already exists for less money, and with less risk.

    Alquist uses a patented concrete to print its homes. The concrete can be left exposed, or it can be finished with traditional building materials. For any load-bearing or structural walls, I understand that they print two walls with a cavity and then use typical reinforcing bars. I would imagine that this approach is particularly helpful when lumber costs are high, but there’s an obvious question around embodied carbon (concrete in lieu of wood).

    Still, it’s hard not to believe that we will be seeing more, rather than less, 3D-printed homes in the future.

  • Container shipping rates are still scary

    The cost of container shipping continues to come to the forefront in this current environment. Today I was reviewing prices from a number of our suppliers and the rates for a FEU (forty-foot equivalent container) now seem to range anywhere from $8k to almost $18k (both CAD), depending on the origin.

    This is up from a few thousand at the beginning of the year, and from far less prior to that. To help illustrate this point, above is a chart I found over at Statista showing an aggregated global container freight rate index from July 2019 to November 2021. This chart, which is in USDs, suggests that container rates may have peaked and be now tapering off, but who knows really.

    This is a challenge for our suppliers and partners to manage through and it is a challenge for us to manage through. In some cases these additional costs will necessarily trickle down to the end consumers of the spaces that we and others are building. But in other cases that is not possible.

  • A figure-ground map of Paris by building period

    This is a great tweet and link:

    The link is to a figure-ground map of Paris that allows you to filter its buildings by period of construction. Here’s what all of the periods and all of the buildings look like:

    Once you play around with the map, it will become obvious that the second half of the 19th century and the early 20th century was a prolific building period for Paris (1231 hectares of area). This is what Samuel was getting at in his tweet.

    I would love to see a map like this for every city in the world.

  • Retaining earth in the mountains

    As many of you know, I am working on a new build in Park City, Utah. One of the things that I have had to get up to speed on are earth retention systems. Building in the mountains is challenging. Here are a couple of photos from this morning of a new single-family home under construction near the lot that I am working on.

    It looks to be a combination of cast-in-place concrete and precast blocks (right side). We are looking at a similar strategy. To give you a sense of the magnitude, some of the concrete blocks we are looking at are 1,800 lbs each. As is the case with many construction projects, a lot of the costs here end up going towards things that most people won’t ever see or think about.

  • Construction starting at One Delisle

    Two quick project announcements today.

    One, the sales gallery for One Delisle has now officially closed in preparation for demolition and construction (above is a photo from moving day). None of us expected it to close so quickly after only having launched sales in May, but of course this is a good problem to have. We are now just waiting on our demolition permits to arrive, which we expect will happen sometime between the next few days and several weeks. The official groundbreaking ceremony will happen early in the new year once we have a clean/flat site to work with. Shoring and excavation works after that.

    Two, we just announced a partnership with Technogym for Junction House. Our team was all in the office one day and I asked a question about who makes the best performing and most design-forward gym equipment. Technogym was immediately mentioned and so we reached out. They’ll now be equipping the entire fitness center at Junction House and the plan is to make it a longer-term relationship. If you aren’t familiar with Technogym, you can check them out here. They were the official supplier for the recent Olympic Games in Tokyo, as well as 7 other Olympics, which I suppose is something.