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.
I love mid-rise buildings. I think they are an incredibly livable scale of housing, which is why I am looking forward to moving into Junction House
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.
I love mid-rise buildings. I think they are an incredibly livable scale of housing, which is why I am looking forward to moving into Junction House
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
Here are two excerpts from a recent Globe and Mail article -- titled "Toronto's mix of planning rules limits growth of mid-rise housing" -- that speaks to this dynamic:
For well over two decades, Toronto’s official plan has called for transit-oriented intensification along the “Avenues,” much of it expected in the form of mid-rise apartments that can be approved “as of right” – meaning without zoning or official plan appeals. Such buildings are often seen as more livable and human scale than 50- or 60-storey towers.
Yet, ironically, the highly prescriptive Mid-Rise Guidelines – combined with skyrocketing land, labour and building costs, as well as timelines that can run to six years for a mid-sized building – have turned these projects into pyramid-shaped unicorns, often filled with deep, dark and narrow units dubbed “bowling alleys.”
“The economics are so frail,” says architect Dermot Sweeny, founding principal of Sweeny & Co., who describes the angular plane requirements as “a massive cost” because they make the structure more complicated and expensive while reducing the amount of leasable or saleable floor space.
The critiques extend beyond the industry. Professor of architecture Richard Sommer, former dean of the John H. Daniels Faculty of Landscape, Architecture and Design at the University of Toronto, describes the controls in the guidelines as “very crude.” “They’re built around a mindset of deference to low-rise communities.”
My opinion is that, at a minimum, we need to revisit the "guidelines" that govern these kinds of projects and we need to make this scale of development "as-of-right." In the same way that laneway suites work, where you simply apply for a building permit, we need to make it just as easy for mid-rise housing. There just too many barriers and too many opportunities for something to come up that could hold up the entire project for months or years.
Building at a variety of scales is important for the fabric and vitality of our cities. Unfortunately, I have all but made up my mind that small doesn't work unless it's as-of-right. I would love to build another laneway house and I fully expect that to happen at some point in the near future. But I just can't seem to get my head around another mid-rise building right now. I wish that wasn't the case. And it's certainly not because of a lack of effort.
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
Here are two excerpts from a recent Globe and Mail article -- titled "Toronto's mix of planning rules limits growth of mid-rise housing" -- that speaks to this dynamic:
For well over two decades, Toronto’s official plan has called for transit-oriented intensification along the “Avenues,” much of it expected in the form of mid-rise apartments that can be approved “as of right” – meaning without zoning or official plan appeals. Such buildings are often seen as more livable and human scale than 50- or 60-storey towers.
Yet, ironically, the highly prescriptive Mid-Rise Guidelines – combined with skyrocketing land, labour and building costs, as well as timelines that can run to six years for a mid-sized building – have turned these projects into pyramid-shaped unicorns, often filled with deep, dark and narrow units dubbed “bowling alleys.”
“The economics are so frail,” says architect Dermot Sweeny, founding principal of Sweeny & Co., who describes the angular plane requirements as “a massive cost” because they make the structure more complicated and expensive while reducing the amount of leasable or saleable floor space.
The critiques extend beyond the industry. Professor of architecture Richard Sommer, former dean of the John H. Daniels Faculty of Landscape, Architecture and Design at the University of Toronto, describes the controls in the guidelines as “very crude.” “They’re built around a mindset of deference to low-rise communities.”
My opinion is that, at a minimum, we need to revisit the "guidelines" that govern these kinds of projects and we need to make this scale of development "as-of-right." In the same way that laneway suites work, where you simply apply for a building permit, we need to make it just as easy for mid-rise housing. There just too many barriers and too many opportunities for something to come up that could hold up the entire project for months or years.
Building at a variety of scales is important for the fabric and vitality of our cities. Unfortunately, I have all but made up my mind that small doesn't work unless it's as-of-right. I would love to build another laneway house and I fully expect that to happen at some point in the near future. But I just can't seem to get my head around another mid-rise building right now. I wish that wasn't the case. And it's certainly not because of a lack of effort.
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog
