A reader recently suggested that I do a post explaining why we aren’t seeing more midrise buildings going up in Toronto. Specifically, why are midrise buildings considered to be “too risky” for developers and what could be done to improve the situation? So today I’d like to focus on that topic.

But first, let me say that I think Toronto is already in the midst of its midrise development era. The push for intensification first brought about towers, but we’ve come to realize that the tower isn’t necessarily going to serve everybody’s needs.

Here’s what John Bentley Mays recently wrote in the Globe and Mail regarding midrise developments:

With Duke, SQ, Nest and similar structures, we may be seeing the start of a promising design trend in Toronto’s multifamily housing market.

And given that our Chief Planner, Jennifer Keesmaat, has been a vocal supporter of midrise, I think there’s no question that we’ll only see more and more of this type of development. Nonetheless, there are challenges. Here are a few that come to mind.

1. Fragmented sites

Because midrise developments typically target established main streets with smaller lot sizes, developers often have to contend with fragmented ownership in order to assemble a site. So instead of talking to one owner (say the owner of a large parking lot downtown), a developer may have to contend with a dozen owners who all need to get on board for the development to happen.

2. Scale is too small

Developers have a lot of fixed costs that don’t materially change whether you’re putting up a 50 storey tower or an 8 storey midrise building. Some costs are certainly variable, but there are overall economies to scale to having more units in which to distribute costs over.

3. Community opposition

The whole point of midrise intensification is to increase the housing supply in established neighborhoods. But along with this comes greater risk for community opposition. You may have a neighbor who’s been living for 30 years adjacent to where you want to build. And when you come along and try and build a 10 storey midrise building, they can get grouchy.

4. Strict guidelines 

To try and counteract community opposition (and promote good urbanism), the city has developed a number of design guidelines for midrise buildings. And while they’re well intentioned, they can be onerous for developers and designers. For example, the requirement to terrace down towards adjacent residential neighborhoods produces a lot of inefficiencies (though it does create spectacular terraces). Oftentimes you’ll end up with more unit types than you would in a large tower.

All this said, I’m a big believer in the midrise building typology. At TAS, I’m involved in two such projects–DUKE and Kingston&Co. Both are exciting projects and both, I think, are at the forefront of a new development era for Toronto. Vancouver pioneered the podium + point tower typology. Toronto is about to do the same with midrise buildings.

Over the long weekend I wrote a post called “On medium density development.” My argument was that Toronto has gotten exceptional at building infill towers, but not so great at midrise and other medium density infill solutions. Though to be fair, we are starting to see more and more of that today.

Well it turns out that Chicago is in a similar, if not worse, position. According to Aaron Renn of the Urbanophile blog, most of the city (outside of the city center) only allows for single family homes. Though in some cases you may be allowed a duplex or triplex.

Here’s a map:

The red is where you’re only allowed to build single family homes. The yellow represents non-residential uses (parks, industry and so on). And the remaining black is where you’d see high density development. Note how it runs all along Lake Michigan. Both Toronto and Chicago are developing in a similar “T” formation.

Now, some of you may be saying to yourself: So what? But it’s important to remember that this type of zoning effectively creates a supply constraint in the market, which, as I’ve argued before, will drive up prices. Chicago may as well be surrounded by mountains, because that red area seems almost untouchable from a development standpoint.

With so many people rushing back to cities today, a lot of them are struggling to create the same market environment that our parents enjoyed. You know the one where you finish school, get a job, and then you’re able to buy a house. But I think it’s because many of our cities are at a turning point, and yet are clinging to outdated principles of city building, such as single-use zoning.

But I’m certainly no expert on Chicago, so if you are, please speak up in the comment section below.

The Globe and Mail lands in Toronto, located between Front Street and Wellington Street, west of Spadina Avenue, have been in play for quite some time. But since the Globe and Mail confirmed last year that it would be moving its headquarters to a new First Gulf office building on King Street East, the lands opened up as a prime redevelopment opportunity.

Earlier this week I discovered the plans. It’s a new mixed-use neighborhood called The Well. And it’s a partnership between Allied Properties REIT, RioCan and Diamond Corp, with the master plan design being prepared by Hariri Pontarini Architects.

Here are a few photos.

Wellington Street looking east:

Wellington Street looking west:

Laneway looking south into the development site:

And here are some high level stats:

• 7.7 acre site (Globe and Mail lands)

• Encompasses Draper Street, which is a heritage designated street

• Approximately 500,000 square feet of retail space

• More than 1,000,000 square feet of commercial office space

• More than 1,000,000 square feet of residential space

From the early renderings, the project looks incredibly promising. Wellington Street East is a great street, but the south side of it is currently a mess. With a new lining of well designed midrise buildings on it, the street could be spectacular.

I like that there seems to be a focus on creating a fine grain network of streets and laneways. And it’s making me think that this stretch of Wellington could work really well as pedestrian only. Both ends of the street terminate in a park (Victoria Park on the west and Clarence Square on the east), which would make it a really beautiful (dumbbell shaped) urban space.

This is something Toronto doesn’t have today. This could be our opportunity.