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Good morning, and welcome back to work and school.
I remember a moment very early on in my development career when I was sitting in a boardroom with dozens of "gray hairs" and the topic of Toronto's Union Station revitalization came up. Specifically, the proposed plan to dig out a new basement and add significant retail throughout the station. This was before construction had started in 2010 and it was considered a rather novel move.
At the time, Union Station was essentially a transit hub with a few ancillary retail offerings like Jugo Juice and Cinnabon (for the good smells). My comment was along the lines of "Finally, more retail, what a great idea," but everyone looked at me like I had three heads. The consensus in the room was, "It'll never work, Brandon." And what was implied was that I just didn't have enough real estate experience to get that.
But what I didn't understand was their reaction. Union Station is the busiest mobility hub in the country. Hundreds of thousands of people pass through it each day. Today, I think the number is somewhere around 300,000 people. This is like the entire population of Markham or Vaughan passing through one building every single day. It's hard to imagine a better anchor than rail. Surely, if you put retail in front of this foot traffic, you'll be able to monetize it!
Fast forward to today.
Over the weekend, Bianca and I took the subway to a Raptors game. As we walked through the concourse, the first thing I said to her was, "I really love what they have done here. Union finally feels like a station fit for a global city like Toronto." It feels grand, there are global retailers like Uniqlo, Shake Shack, Arabica, and many others, and the wayfinding seems to only be getting better. The pathway to Scotiabank Arena felt deliberate — finally.
I have no firsthand experience with the revitalization program or the leasing at Union Station. So I couldn't tell you quantitatively how the stores and restaurants are performing. I also recognize that construction was massively delayed and ran over budget. But anecdotally, I can say that you do have to wait a long time for a burger from Shake Shack, even late at night. The place is always busy.
Union Station seems well on its way to being a commercial success, and it seems to be establishing itself not only as a mixed-use rail hub, but as a destination in downtown Toronto. If any of you have firsthand experience, please drop a comment below.
Cover photo from Toronto Union
Good morning, and welcome back to work and school.
I remember a moment very early on in my development career when I was sitting in a boardroom with dozens of "gray hairs" and the topic of Toronto's Union Station revitalization came up. Specifically, the proposed plan to dig out a new basement and add significant retail throughout the station. This was before construction had started in 2010 and it was considered a rather novel move.
At the time, Union Station was essentially a transit hub with a few ancillary retail offerings like Jugo Juice and Cinnabon (for the good smells). My comment was along the lines of "Finally, more retail, what a great idea," but everyone looked at me like I had three heads. The consensus in the room was, "It'll never work, Brandon." And what was implied was that I just didn't have enough real estate experience to get that.
But what I didn't understand was their reaction. Union Station is the busiest mobility hub in the country. Hundreds of thousands of people pass through it each day. Today, I think the number is somewhere around 300,000 people. This is like the entire population of Markham or Vaughan passing through one building every single day. It's hard to imagine a better anchor than rail. Surely, if you put retail in front of this foot traffic, you'll be able to monetize it!
Fast forward to today.
Over the weekend, Bianca and I took the subway to a Raptors game. As we walked through the concourse, the first thing I said to her was, "I really love what they have done here. Union finally feels like a station fit for a global city like Toronto." It feels grand, there are global retailers like Uniqlo, Shake Shack, Arabica, and many others, and the wayfinding seems to only be getting better. The pathway to Scotiabank Arena felt deliberate — finally.
I have no firsthand experience with the revitalization program or the leasing at Union Station. So I couldn't tell you quantitatively how the stores and restaurants are performing. I also recognize that construction was massively delayed and ran over budget. But anecdotally, I can say that you do have to wait a long time for a burger from Shake Shack, even late at night. The place is always busy.
Union Station seems well on its way to being a commercial success, and it seems to be establishing itself not only as a mixed-use rail hub, but as a destination in downtown Toronto. If any of you have firsthand experience, please drop a comment below.
Cover photo from Toronto Union
But given that it is Labor Day weekend, here are two things to think about.
The first is a Financial Times article by Lawrence Summers where he argues that America needs unions more than ever and that, indeed, the central issue of American politics today is the “economic security of the middle class.”
Here is an excerpt that speaks to declining bargaining power on the part of labor:
“But I suspect the most important factor explaining what is happening is that the bargaining power of employers has increased and that of workers has decreased. Bargaining power depends on alternative options. Technology has given employers more scope for replacing Americans with foreign workers, or with technology, or by drawing on the gig economy. So their leverage to hold down wages has increased.”
It’s also worth mentioning that only about 6.4% of private sector workers in the U.S. are in a union today. This is a decline of almost two-thirds since the 1970s and is a good segue into the second thought of this post.
Two years ago Fred Wilson wrote a post on his blog (which he reblogged today) where he argued that “labor needs a mechanism to obtain market power as a counterbalance to the excesses of markets and capitalism.”
But, that this mechanism needs a refresh. He calls it Union 2.0.
“However, like all bureaucratic institutions, the “Union” mechanism appears anachronistic sitting here in the second decade of the 21st century. We are witnessing the sustained unwinding of 19th and 20th century institutions that were built at a time when transaction and communications costs were high and the overhead of bureaucracy and institutional inertia were costs that were unavoidable.”
This makes perfect sense to me.
At the same time, we can’t forget – and this is how Summers ends his article – that, today, “the most valuable companies are the Apples and the Amazons rather than the General Motors and the General Electrics.”
That tells me that what may have worked in the past will likely not work in the future.
Photo by Jonas Viljoen on Unsplash
But given that it is Labor Day weekend, here are two things to think about.
The first is a Financial Times article by Lawrence Summers where he argues that America needs unions more than ever and that, indeed, the central issue of American politics today is the “economic security of the middle class.”
Here is an excerpt that speaks to declining bargaining power on the part of labor:
“But I suspect the most important factor explaining what is happening is that the bargaining power of employers has increased and that of workers has decreased. Bargaining power depends on alternative options. Technology has given employers more scope for replacing Americans with foreign workers, or with technology, or by drawing on the gig economy. So their leverage to hold down wages has increased.”
It’s also worth mentioning that only about 6.4% of private sector workers in the U.S. are in a union today. This is a decline of almost two-thirds since the 1970s and is a good segue into the second thought of this post.
Two years ago Fred Wilson wrote a post on his blog (which he reblogged today) where he argued that “labor needs a mechanism to obtain market power as a counterbalance to the excesses of markets and capitalism.”
But, that this mechanism needs a refresh. He calls it Union 2.0.
“However, like all bureaucratic institutions, the “Union” mechanism appears anachronistic sitting here in the second decade of the 21st century. We are witnessing the sustained unwinding of 19th and 20th century institutions that were built at a time when transaction and communications costs were high and the overhead of bureaucracy and institutional inertia were costs that were unavoidable.”
This makes perfect sense to me.
At the same time, we can’t forget – and this is how Summers ends his article – that, today, “the most valuable companies are the Apples and the Amazons rather than the General Motors and the General Electrics.”
That tells me that what may have worked in the past will likely not work in the future.
Photo by Jonas Viljoen on Unsplash
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