Brandon Donnelly
Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.
Brandon Donnelly
Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.

My super scientific Twitter balcony survey has revealed that most people seem to like balconies and terraces. Out of the 257 people that voted (not a huge number), 77.4% said that if they were in the market to buy or rent a new place, they would probably want a balcony or terrace. I realize now that my wording could have been more precise. Either way, the results seem to suggest a clear preference.
But there are all sorts of reasons for why you might want to avoid building balconies: energy performance, upfront costs, long-term maintenance, usability at high elevations, overall aesthetics, and so on. In fact, I once had an architect turn down a job because they don't typically work on residential buildings and, when they do, they refuse to work on ones that have balconies. He told me that they don't want the liability.
But then what inevitably happens is that the sales and marketing team joins the design meeting and says, "yeah, we hear what you're saying, but people like outdoor spaces." And then the great debate starts. Okay, so what percentage of the suites should have an outdoor space? What about a sliding glass well? I think so-and-so is doing it on their project. Yeah, but they're real expensive and they leak air.
The reality is that there are many buildings without private outdoor spaces and there are many cities where it is common not to build them. Moreover, my Twitter survey doesn't really tell you exactly how people might behave when they're about to make a purchasing decision. What you really want are data points and things like A/B tests.
Let's take for example two typical/identical 600 square foot suites, with the only difference being that one has a balcony and the other doesn't. Now let's say that the one with a balcony is selling for $1,400 psf or $840,000 and the one without a balcony is selling for $1,350 psf or $810,000. Will some of the 77.4% that voted balcony/terrace possibly buy the $810,000 suite? Of course. Because it's less expensive.
So how does one go about making the right decision when it comes to designing for outdoor spaces? Well, in some cases, you won't have a choice. We have had instances where the City has asked us (okay, forced us) to remove all of the balconies on a particular elevation because they didn't fit with the urban design aesthetic that they wanted for the streetscape. That always pisses me off.
That aside, my view -- and this is just my opinion -- is that you can't generalize when trying to make this decision. You need to carefully consider who your customer is or will be. I've written before about the divide between investor demand and end-user demand in residential buildings. It impacts design, and outdoor spaces are no different.
If you take for example Junction House, it is a predominately end-user building. That's who we thought would be buying and that is who bought. When the team was designing the two-storey House Collection, the intent was to create a kind of substitute for low-rise housing. And so these homes had to have outdoor spaces (they have terraces). This was never a question or a debate.
Similarly, one of the reasons why One Delisle looks the way that it does is because the team set out to create unique terraces, as well as varying outdoor spaces, all throughout the tower. The thinking was, "people like terraces in mid-rise buildings, like Junction House, so let's figure out how to do that in a high-rise building typology."
At the same time, we have suites with Juliet balconies at Junction House and it is certainly true that the above recipes may not be suitable for every project. Again, there are lots of buildings without private outdoor spaces, including ones that have sold during this pandemic. One of the things that I have also discovered is that common area outdoor spaces and nearby green spaces can have an impact on whether or not people feel they need private outdoor space.
All of this to say that one size does not fit all. Which is probably why this topic remains such a great debate.
Note: I am making a distinction between balconies and terraces. Balconies typically cantilever out from a building and are not insulated. Terraces, on the other hand, are typically a roof condition in that they sit above a conditioned space. This usually means that the concrete slab will need to get "built up" with insulation and paving. A drainage system will also be required.
Image: Junction House
A few days ago it was announced that Blackstone has entered the multi-family space in Canada through a JV with Starlight Investments. They are buying 6 undisclosed multi-family buildings. 5 in Toronto. And 1 in Montréal. The total is 746 units.
The message in the press release is that apartment buildings in Canada are difficult to find and buy at meaningful scale. Most are held by small private investors and those owners are reluctant to sell.
At the same time, places like Toronto and Montréal have built relatively little purpose-built rental over the past few decades. Supply is restricted.
This is an interesting stat from the announcement: The Canadian rental market is about 2 million housing units. Dallas, alone, is 500,000 units. But this must only be purpose-built, investment grade, and/or some other subset of units. Because there are over 14 million private households and over 4.4 million rented households in Canada (2016 data).
They also hint at a longer-term relationship between Blackstone and Starlight. Perhaps that will translate into some purpose-built rental development in the future.
On a related note, I recently picked up the book, King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone. It was published in 2012, so it’s not new. But as soon as I stumbled upon it, I picked it up. It was new to me.
Once I’m finished it maybe I’ll report back here on the blog.
Photo by Warren Wong on Unsplash

Here are the results from my primitive multi-unit building amenities survey:

Gym is number 1. No surprise there. 46% of respondents said it was in their top 3.
Rooftop outdoor space at number 2 was perhaps a bit surprising. But then again, who doesn’t love a good rooftop patio?
As for concierge service, I tend to think this was driven by package delivery. That’s certainly the biggest value add for me.
One standout near the top, for me at least, is co-working space. Andrew LeFleur made mention of this on Twitter and I think he’s right: The changing nature of work is making these spaces more valuable in multi-family dwellings.
And now some color on the above results.
436 amenity selections were made as part of this survey.
About half of the respondents were from the Greater Toronto Area, followed by Calgary, San Francisco, Ottawa, Boston, New York City, Denver, Los Angeles, Paris, Miami, and many other cities. Shoutout to whoever responded from Kuala Lumpur and Porto Alegre.
In terms of “Other” amenities, there were suggestions for a band rehearsal space, a vending machine, a grassy area for sports, and programming the helps you meet your neighbors.
In terms of this one last, it can be tricky for condo buildings. Developers only provide the space. It’s then up to management. But I’ve seen it done very well in rental buildings.
Are you surprised by any of the results from this survey?

My super scientific Twitter balcony survey has revealed that most people seem to like balconies and terraces. Out of the 257 people that voted (not a huge number), 77.4% said that if they were in the market to buy or rent a new place, they would probably want a balcony or terrace. I realize now that my wording could have been more precise. Either way, the results seem to suggest a clear preference.
But there are all sorts of reasons for why you might want to avoid building balconies: energy performance, upfront costs, long-term maintenance, usability at high elevations, overall aesthetics, and so on. In fact, I once had an architect turn down a job because they don't typically work on residential buildings and, when they do, they refuse to work on ones that have balconies. He told me that they don't want the liability.
But then what inevitably happens is that the sales and marketing team joins the design meeting and says, "yeah, we hear what you're saying, but people like outdoor spaces." And then the great debate starts. Okay, so what percentage of the suites should have an outdoor space? What about a sliding glass well? I think so-and-so is doing it on their project. Yeah, but they're real expensive and they leak air.
The reality is that there are many buildings without private outdoor spaces and there are many cities where it is common not to build them. Moreover, my Twitter survey doesn't really tell you exactly how people might behave when they're about to make a purchasing decision. What you really want are data points and things like A/B tests.
Let's take for example two typical/identical 600 square foot suites, with the only difference being that one has a balcony and the other doesn't. Now let's say that the one with a balcony is selling for $1,400 psf or $840,000 and the one without a balcony is selling for $1,350 psf or $810,000. Will some of the 77.4% that voted balcony/terrace possibly buy the $810,000 suite? Of course. Because it's less expensive.
So how does one go about making the right decision when it comes to designing for outdoor spaces? Well, in some cases, you won't have a choice. We have had instances where the City has asked us (okay, forced us) to remove all of the balconies on a particular elevation because they didn't fit with the urban design aesthetic that they wanted for the streetscape. That always pisses me off.
That aside, my view -- and this is just my opinion -- is that you can't generalize when trying to make this decision. You need to carefully consider who your customer is or will be. I've written before about the divide between investor demand and end-user demand in residential buildings. It impacts design, and outdoor spaces are no different.
If you take for example Junction House, it is a predominately end-user building. That's who we thought would be buying and that is who bought. When the team was designing the two-storey House Collection, the intent was to create a kind of substitute for low-rise housing. And so these homes had to have outdoor spaces (they have terraces). This was never a question or a debate.
Similarly, one of the reasons why One Delisle looks the way that it does is because the team set out to create unique terraces, as well as varying outdoor spaces, all throughout the tower. The thinking was, "people like terraces in mid-rise buildings, like Junction House, so let's figure out how to do that in a high-rise building typology."
At the same time, we have suites with Juliet balconies at Junction House and it is certainly true that the above recipes may not be suitable for every project. Again, there are lots of buildings without private outdoor spaces, including ones that have sold during this pandemic. One of the things that I have also discovered is that common area outdoor spaces and nearby green spaces can have an impact on whether or not people feel they need private outdoor space.
All of this to say that one size does not fit all. Which is probably why this topic remains such a great debate.
Note: I am making a distinction between balconies and terraces. Balconies typically cantilever out from a building and are not insulated. Terraces, on the other hand, are typically a roof condition in that they sit above a conditioned space. This usually means that the concrete slab will need to get "built up" with insulation and paving. A drainage system will also be required.
Image: Junction House
A few days ago it was announced that Blackstone has entered the multi-family space in Canada through a JV with Starlight Investments. They are buying 6 undisclosed multi-family buildings. 5 in Toronto. And 1 in Montréal. The total is 746 units.
The message in the press release is that apartment buildings in Canada are difficult to find and buy at meaningful scale. Most are held by small private investors and those owners are reluctant to sell.
At the same time, places like Toronto and Montréal have built relatively little purpose-built rental over the past few decades. Supply is restricted.
This is an interesting stat from the announcement: The Canadian rental market is about 2 million housing units. Dallas, alone, is 500,000 units. But this must only be purpose-built, investment grade, and/or some other subset of units. Because there are over 14 million private households and over 4.4 million rented households in Canada (2016 data).
They also hint at a longer-term relationship between Blackstone and Starlight. Perhaps that will translate into some purpose-built rental development in the future.
On a related note, I recently picked up the book, King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone. It was published in 2012, so it’s not new. But as soon as I stumbled upon it, I picked it up. It was new to me.
Once I’m finished it maybe I’ll report back here on the blog.
Photo by Warren Wong on Unsplash

Here are the results from my primitive multi-unit building amenities survey:

Gym is number 1. No surprise there. 46% of respondents said it was in their top 3.
Rooftop outdoor space at number 2 was perhaps a bit surprising. But then again, who doesn’t love a good rooftop patio?
As for concierge service, I tend to think this was driven by package delivery. That’s certainly the biggest value add for me.
One standout near the top, for me at least, is co-working space. Andrew LeFleur made mention of this on Twitter and I think he’s right: The changing nature of work is making these spaces more valuable in multi-family dwellings.
And now some color on the above results.
436 amenity selections were made as part of this survey.
About half of the respondents were from the Greater Toronto Area, followed by Calgary, San Francisco, Ottawa, Boston, New York City, Denver, Los Angeles, Paris, Miami, and many other cities. Shoutout to whoever responded from Kuala Lumpur and Porto Alegre.
In terms of “Other” amenities, there were suggestions for a band rehearsal space, a vending machine, a grassy area for sports, and programming the helps you meet your neighbors.
In terms of this one last, it can be tricky for condo buildings. Developers only provide the space. It’s then up to management. But I’ve seen it done very well in rental buildings.
Are you surprised by any of the results from this survey?
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog