Last summer a development application was submitted for a 57 storey mixed-use tower on the south end of Toronto’s historic Distillery District. 

It’s the tower on the right hand side of the picture above. The 2 towers on the left are existing, although they’re quite recent. The development site is currently a parking lot and it abuts a railway corridor to the south.

The reason I bring up this project now is because I recently saw this notice go out from the Gooderham & Worts Neighbourhood Association. It’s an announcement for a public meeting that I believe just happened earlier this week (I think they meant to say 2015 instead of 2014).

After I saw the notice, I decided to share the rendering on social media to see what people thought of the proposal. The general consensus seemed to be that the tower looked a bit cookie cutter (though to be fair it’s hard to tell from renderings like this) and that 57 storeys was simply too tall for the area. I got comments back like “enough is enough.”

Now, I’m not here to say that 57 storeys is exactly the right height for this building and this location (though it might be), but I am saying that I don’t think it’s as important as most people think it is. I think we’ve become over-fixated on height, at the expense of other important design issues.

Part of this has to do with how we communicate projects and how we tell the story. If you look at the city’s website for this project, you’ll see that this is how it’s explained:

The City has received an Official Plan Amendment and Rezoning application for a 57-storey mixed use tower and a 5-storey commercial building containing 496 residential dwellings, 5,048 square metres of retail gross floor area, and 21,243 square metres of office gross floor area. The 5-storey commercial building is within the Distillery District, and the 57 storey tower is immediately south west of the Distillery District.

About the only thing that I think most people (outside of the industry) would understand are the heights of the buildings. Everything else – from the Official Plan Amendment to the number of square metres of gross retail area – is likely lost. 

So it’s actually not surprising that most people just look at one or two renderings and the number of storeys, and then make a judgement call about whether or not it would be a positive thing for the city.

Now, I know why we communicate projects in such a clinical way. It’s to appear impartial. But there are so many other considerations when it comes to great city building. 

How does the building meet the street? What are the first couple of floors like at eye-level? What’s the materiality? What would the experience be like for someone having a coffee on a patio outside of the building? What kind of commercial tenants will there be? Is there a unique leasing/programming strategy? What’s the overall vision for the project?

Again, I’m not saying that height is completely irrelevant. I simply fear that we might be losing sight of the bigger picture. The Distillery District is a magical place in Toronto. It’s hands down one of my favorite places to be. In fact, I’ll be there this weekend for a Winterlicious dinner. But I honestly couldn’t tell you how tall the existing towers are. Are they in the 40s? 

I could, however, tell you exactly what it’s like to walk down the Distillery’s intimate cobblestone streets and sit on a patio with a beer in hand. It’s a beautiful thing.

Note: I have zero affiliation with this project.

Image: City of Toronto

In yesterday’s post about the 3 stages of intensification, I mentioned a project in Vancouver called Union Street EcoHeritage by SHAPE Architecture. I used it as an example for sensitive low-rise intensification.

Since it’s a very cool project (and most of you probably didn’t click through), I thought I would dedicate today’s post to explaining the project.

The picture at the top of this post is what it looks like today (the front elevation). If you were to pass by it, I suspect most of you would just think it was a pair of renovated single family homes. But there’s much more to it. What started out as only 2 dwellings, ended up as a site for 7 dwellings.

Here’s the before shot:

The homes were moved and actually raised up in order to accommodate additional density. Here’s a section that better explains what was done (black is existing; green is new):

The 2 existing homes were raised up so that an additional dwelling unit could be placed beneath each one. At the same time, additional units were added in the rear, both attached to the existing homes and at the back of the site facing the laneway. And so this project is actually one part laneway house.

Here’s a photo of what that rear interior space looks like (it’s stunning):

Not surprisingly, this project won a bunch of awards and has been widely celebrated as an affordable housing solution. It’s exciting to see Vancouver take the lead on low-rise intensification. It’s one of the reasons that I think it’s only a matter of time before Toronto starts to look towards similar solutions.

Images: SHAPE Architecture Inc.

A few weeks ago I received the following comment from a reader:

Really enjoyed reading this post about being a real estate developer. I was just wondering if you could do a write up on the various jobs and functions in a typical real estate development company so that people like me, who intend to work for a developer can roughly know what kind of skills are required or demanded in order to work there.

It’s a great question and so I will try and answer it today. The first thing I should say though is that real estate developers are typically very lean on people. I’ve worked for big publicly traded real estate companies and small boutique ones, and the development teams are always fairly small.

It’s that way because development projects can be messy and intermittent. The industry itself is also prone to regular market cycles and so the strategy is generally to remain fairly lean and outsource a lot of the work. You ramp up consultants and suppliers on a per project basis – as you need them.

With that said, let’s talk about the typical development process and some of the key skill sets required. A simplified process might look like this:

1. Buy development site (Acquisitions)

2. Design a project (Consultant Coordination)

3. Make sure project is feasible (Finance)

4. Obtain approvals for said project (Planning & Approvals)

5. Sell/lease space (Sales, Leasing & Marketing)

6. Build project (Construction)

7. Make money (The goal)

Depending on the size of the firm, one person may be responsible for managing many if not all of these steps, or they may be split up into different departments. So you could end up with a department list like this:

1. Acquisitions

2. Development/Project Management

3. Finance

4. Sales, Leasing & Marketing

5. Construction

From my experience as a developer, you’re going to be involved in all aspects. And that’s part of what makes development so exciting. But let’s talk about some of the key areas:

Planning & Approvals

After tying up a winning development site, securing your approvals (commonly referred to as “entitlements” in the US) is usually the first major step. The reason this step exists is because oftentimes what you want or hope to build isn’t what you’re actually allowed to build as-of-right.

So you have to go through a process to make that happen. It can take years depending on where you might be doing business, but there’s typically a significant amount of value creation at this stage. Some developers only focus on this stage and don't actually build.

City planning is a good background for this function. You need to understand the local planning policies and frameworks.

Consultant Coordination

As I mentioned before, development teams are often small. And that’s because all developers rely on outside consultants to make a project happen (architects, engineers, and so on). So a big part of being a strong developer is just being a strong project manager. The expression often thrown around the industry is that development is like herding cats.

Having some sort of a technical background helps for this function. You end up dealing with a lot of technical details (which I find super interesting), and so it helps to have a bit of a background or an interest. If you’re not inclined in this way, you might find this area boring.

Financial Modeling

Building project pro formas and managing budgets is obviously a key component of the development process. From the moment you first look at a site up until project completion, you’ll be building financial models and constantly refining them as you get more information. The first version might be on the back of a napkin and the last version might be a complex Excel spreadsheet.

Banking and finance is obviously a good background for this function. But you also need to understand the real estate business. Models are only as good as the information you feed it, so your assumptions have to be sound. 

Sales, Leasing & Marketing

I cannot over emphasize the importance of this function. If you are not selling units or leasing space, then you do not have a project. So no matter how amazing you might be at all the other functions (even fundraising from investors), if your firm is not bringing in money from your customers (purchasers or tenants), then you are dead.

When I was at Penn, a lot of the real estate professors used to tell us that leasing is the best way to get started in the industry. And I don’t disagree with that – even though I didn’t start there. This is often handled by a separate department and/or outside team, but you’ll need to be intimately involved.

Construction

If you’re at this stage, that’s usually a good sign. It usually means you’ve managed to sell a bunch of units and/or lease a bunch of space. Some developers (with enough scale) will have a construction team in-house, but many others will just outsource it to a 3rd party. Regardless of the setup, it once again helps to have a technical background.

If I missed anything or you want to add more detail, please let me know in the comment section below. I’m always happy to receive questions and post ideas, so feel free to tweet or email me. Tweets will almost always get a faster response.

Image: Flickr