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June 21, 2014

Stuck in condoland?

Toronto Life recently published an interesting article called Stuck in Condoland. A lot of people have mentioned it to me, so there seems to be a lot of interest in the topic. It basically profiles the lives of a few young families who live downtown and are trying to raise young children in relatively small condos (think 700 square feet).

I thought it was interesting because I like the idea of small and efficient living. The average post-war bungalow in Toronto was probably less than 1,000 square feet. And so this modern notion that you need a big house in order to properly raise a family is a relatively recent phenomenon. Although we’re a richer city today and that’s what happens when people become wealthier: they consume more.

But the article also makes it seem that developers only want to build small condos and that larger condos and single-family homes just aren’t profitable enough. Thus the reason all these families are being forced to into tiny shoeboxes in the sky. But that’s not really true.

Look, just like every other for-profit business on the planet, developers are concerned with making money. And so they will always look for ways to increase efficiency, drive down costs, and so on. But there are certain realities of the market that developers don’t have control over.

First, developers aren’t building new single family homes in the city (at any sort of meaningful scale) because there’s no land to do so. And because the land use policies in place and the current thinking around how we can more sustainably build our cities for the future dictate that we should be building more intensely. In other words, building up. So it’s not a question of developers not wanting to build single family homes; it’s a question of not being able to.

Second, trust me when I say that if the market wanted large 3 bedroom family units, developers would build them. Mandating them is a useless exercise if people don’t want them or are unable to afford them.

The challenge we face is that a reinforced concrete condo tower is more expensive to build than a wood-framed single family house. So until land values get to a point where single family homes become the more expensive option (compared to condos), I don’t think we’ll see a huge rush towards 3+ bedroom suites.

This is my hypothesis at least. Because when you buy house, you’re really buying two things: the house itself and the land. If the house itself (wood) is cheaper to build on a per square foot basis than a condo (concrete), then the variable that will make a difference is the land. And as people like to say: “buy land, they ain’t making any more of it.”

So what I’m saying is that I just don’t think the situation is as simple as: “developers are bad, all they want to do is build tiny condos and make lots of money.” It’s more complicated than that. But I do believe the question of how families are going to live in the city is an important one.

June 17, 2014

What the hell does gesamtkunstwerk mean?

I’m a big fan of Canadian developer Ian Gillespie and his firm Westbank. They are the developers behind projects like the Shangri-La Vancouver, the Shangri-La Toronto, the mixed-use Woodward’s complex, and the upcoming Vancouver House (shown above) designed by Danish architect Bjarke Ingels (who just so happens to be one of my favorite architects). I would easily count them as one of the preeminent city builders in the country today.

In support of their commitment to city building (and as a way to offer the public a peek of Vancouver House), they recently staged an exhibition called Gesamtkunstwerk. I think this is great on so many levels. Not only was it probably a great sales tool, but it’s also introducing the public to a largely obscure and academic term, and showing off a deep commitment to design. Unless you studied art, architecture, or something like the philosophy of aesthetics, you probably haven’t come across this term before.

Gesamtkunstwerk is a German word, which literally translates into a “total work of art.” It was introduced in the 19th century by an opera composer by the name of Richard Wagner, who felt that opera represented a total, or complete work of art. Later, the term was picked up by architects. Some interpreted it to mean that architects should be responsible for everything from the building itself to the furniture and everything else that goes inside of it. Everything was art.

Westbank now wants to introduce the idea of gesamtkunstwerk into the real estate development business. They want to use it as a guiding philosophy for all of their projects. And what that means is that the building itself and its relationship to the greater city should be thought of as a “total work of art.” They seem to be reintroducing the term with an inherent city building tinge–one that I don’t think was ever there before. 

What a great philosophy.

Image: Westbank

June 13, 2014

Telling Toronto's story

If you’re a regular reader of ATC, you’ll know that I often talk about cities in the same way that many people talk about products and services. (See: The business of cities.) And I do that because cities are our new economic unit and so I find it helpful to think of them as businesses fighting to attract and retain the best talent and win over customers (i.e. residents and businesses).

Which is why I’m intrigued by Jason Logan’s pitch to invent the position of Creative Director at the City of Toronto. Here’s his pitch:

“This is an open challenge to the all the mayoral candidates. In the past 10 years, Toronto has undergone a cultural, artistic, and technological renaissance: The ROM, the AGO, and OCAD U all underwent architectural makeovers; TIFF rose to prominence as one of the most prestigious film festivals in the world; Nuit Blanche was unleashed in 2006, and Luminato in 2007, both to huge acclaim; the high-tech industry has created 30,000 new jobs; and The New York Times admitted that Toronto’s culinary scene is more ethnically diverse than the five boroughs. But here’s the thing: The story we tell ourselves and the world about our remarkable city needs an overhaul. Toronto Needs a Creative Director is a campaign committed to building a better story by better mobilizing the arts, culture, and technology sectors to enhance civic engagement. The CDTO (the office of Creative Direction for the City of Toronto) would function as a lab for incubating ideas where art, culture, politics, science, and technology intersect.”

Truthfully, I’m not yet sure if a Creative Director is the ideal approach. I haven’t had a chance to give it enough thought. But I am certain that Toronto would benefit from a bunch of smart people who were focused on telling our story to the world, crafting our brand and identity, and honing the experience of living or visiting this great city.

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Brandon Donnelly

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Brandon Donnelly

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

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