Today was the 2019 Land & Development Conference here in Toronto. I was on a panel in the morning about Proptech. I then sat in on a discussion about construction costs. But after that I had to get back to the office to prepare for a couple of meetings.
Here are my tweet takeaways (from the back of the room) during the construction cost session. You may need to click through to see the full thread.
The construction cost escalations that we have seen over the last 2-3 years have had a significant impact on new construction in this region. Niall Finnegan's view is that we are 85% of the way through this "storm."
From his experience, it takes 18 months or so for hard costs to respond to changes in demand. And so the storm we are currently in is a result of elevated condo sales from 2017-2018.
The general consensus from the panel was that costs should start to moderate sometime soon, though maybe not this year. Nobody really knows when that will happen. But if/when hard costs do adjust, it typically happens quickly.
Today was the 2019 Land & Development Conference here in Toronto. I was on a panel in the morning about Proptech. I then sat in on a discussion about construction costs. But after that I had to get back to the office to prepare for a couple of meetings.
Here are my tweet takeaways (from the back of the room) during the construction cost session. You may need to click through to see the full thread.
The construction cost escalations that we have seen over the last 2-3 years have had a significant impact on new construction in this region. Niall Finnegan's view is that we are 85% of the way through this "storm."
From his experience, it takes 18 months or so for hard costs to respond to changes in demand. And so the storm we are currently in is a result of elevated condo sales from 2017-2018.
The general consensus from the panel was that costs should start to moderate sometime soon, though maybe not this year. Nobody really knows when that will happen. But if/when hard costs do adjust, it typically happens quickly.
One comment that didn't make it into my tweets, but that I found interesting, was about how uncertainty and volatility in the market -- like what we are seeing today with construction costs -- could actually stifle innovation.
Because it creates additional project risks, it limits people's appetite for other kinds of risks -- like trying new things. I can see that.
Real estate development has historically been, and unfortunately still is, a male dominated business. (The story of Florence Casler is, however, a great outlier.) If you want some empirical evidence for this, pay attention to the length of the line for the men's bathroom the next time you're at a real estate conference or event.
Being a sports fan is like having a bipolar disorder. The highs are high. And the lows are low. But right now -- with the Toronto Raptors having clinched their first ever NBA Finals appearance -- we are all on a high. Though the job is far from over, this city has waited 24 seasons for this moment. Turns out, all we were missing was one of the greatest basketball players of all time.
It's pretty amazing to see how far we have come both as a franchise, and as a global city. When Scotiabank Arena was completed in 1999, it, and the surrounding area, looked like this. On Saturday night after the win, it looked like this, a veritable "sports alley." I have long thought that Bremner Boulevard should be placemade into a sports alley connecting Scotiabank Arena (on the east) and the Rogers Centre (on the west).
One comment that didn't make it into my tweets, but that I found interesting, was about how uncertainty and volatility in the market -- like what we are seeing today with construction costs -- could actually stifle innovation.
Because it creates additional project risks, it limits people's appetite for other kinds of risks -- like trying new things. I can see that.
Real estate development has historically been, and unfortunately still is, a male dominated business. (The story of Florence Casler is, however, a great outlier.) If you want some empirical evidence for this, pay attention to the length of the line for the men's bathroom the next time you're at a real estate conference or event.
Being a sports fan is like having a bipolar disorder. The highs are high. And the lows are low. But right now -- with the Toronto Raptors having clinched their first ever NBA Finals appearance -- we are all on a high. Though the job is far from over, this city has waited 24 seasons for this moment. Turns out, all we were missing was one of the greatest basketball players of all time.
It's pretty amazing to see how far we have come both as a franchise, and as a global city. When Scotiabank Arena was completed in 1999, it, and the surrounding area, looked like this. On Saturday night after the win, it looked like this, a veritable "sports alley." I have long thought that Bremner Boulevard should be placemade into a sports alley connecting Scotiabank Arena (on the east) and the Rogers Centre (on the west).
This needs to change. Which is why my good friend Taya Cook (of Urban Capital) has just announced, in partnership with Sherry Larjani (of Spotlight Development), the first all-female development project in Canada. It's called Reina and it's planned for a vacant site at 689 The Queensway, Toronto. Here is an excerpt from a recent RENX article:
“We’re embarking on this project to create more visibility for women in real estate development, and to inspire younger women to see career possibilities,” said Cook, the director of development at Urban Capital, in a release announcing the project. “It’s a huge industry and a massive economic driver for the region. For some reason it has been seriously lagging behind in gender equity.”
Two things are probably important to mention about the team and project.
Firstly, the women developing Reina are all leaders and key decision makers. This is important for the project's broader mission, but also because it will likely remove male biases from the design process. Everything from architecture to construction will be led by women and will incorporate a "female perspective." Secondly -- and this just makes the narrative even better -- the site used to house a strip club.
Congratulations Taya, Sherry, and the rest of the project team on a terrific development and initiative: "Condominiums designed by women. Developed by women. Built for everyone." Follow Reina on Instagram, here.
From now until this Thursday, all is right in the world. Enjoy it Toronto, and Canada. Masai Ujiri made a bet that I think most, if not all, of us would agree has paid off. Had it not, Raptors fans across the country would be criticizing him for trading away our franchise player. But that's par for the course in this bipolar world of sports fandom.
This needs to change. Which is why my good friend Taya Cook (of Urban Capital) has just announced, in partnership with Sherry Larjani (of Spotlight Development), the first all-female development project in Canada. It's called Reina and it's planned for a vacant site at 689 The Queensway, Toronto. Here is an excerpt from a recent RENX article:
“We’re embarking on this project to create more visibility for women in real estate development, and to inspire younger women to see career possibilities,” said Cook, the director of development at Urban Capital, in a release announcing the project. “It’s a huge industry and a massive economic driver for the region. For some reason it has been seriously lagging behind in gender equity.”
Two things are probably important to mention about the team and project.
Firstly, the women developing Reina are all leaders and key decision makers. This is important for the project's broader mission, but also because it will likely remove male biases from the design process. Everything from architecture to construction will be led by women and will incorporate a "female perspective." Secondly -- and this just makes the narrative even better -- the site used to house a strip club.
Congratulations Taya, Sherry, and the rest of the project team on a terrific development and initiative: "Condominiums designed by women. Developed by women. Built for everyone." Follow Reina on Instagram, here.
From now until this Thursday, all is right in the world. Enjoy it Toronto, and Canada. Masai Ujiri made a bet that I think most, if not all, of us would agree has paid off. Had it not, Raptors fans across the country would be criticizing him for trading away our franchise player. But that's par for the course in this bipolar world of sports fandom.
