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February 13, 2014

Disrupting everything

Last year when I started working on Dirt—which was really my first startup—I had a number of people say things to me like: “Wow, that’s quite a change, going from real estate into tech.” But that’s not the way I saw and see it.

I don’t think you can silo industries like that anymore. Technology is touching everything. Some would even go so far as to say that every company in the world is, or will be, a software and technology company.

The way I looked at it was that I was starting a technology-enabled real estate company. I was hoping to leverage the internet to improve the way things are done in an existing industry. Of course, by improve I really mean disrupt—which is arguably the biggest buzzword in the tech community today:

"Disruption is not so much a trend as an especially lucrative world philosophy favored by technophilic entrepreneurs. It’s the only path towards progress. If you’re not disrupting something you might as well go collect kindling and roast raccoon meat in the hills of Cupertino."

A good example of how disruptive innovation is reaching all sectors of the economy, including government, is the New Haven-based startup called SeeClickFix (which I discovered via This Big City). What it does is allow citizens to report non-emergencies (like potholes) to their local government. Governments can then respond and manage these tasks. (Sorry Rob Ford. Now you don’t need to return all those phone calls.)

But moreover, I think it shows that technology is not only going to disrupt business and industry, it’s going to disrupt the way cities function and the way we live. I don’t know what that’s ultimately going to look like, but I can already feel it underway.

Albert Wenger, of venture capital firm Union Square Ventures, recently argued—in a talk at DLD—that we are still in the midst of a transition from the Industrial Age to the Information Age. And I buy that. With every new disruption, we’re one step closer to completely making that transition. But we’re not quite there yet.

The Industrial Age drove people out of cities. It made cities dirty and undesirable. But in the Information Age, cities are damn important and it’s where people want to be. Look at all the people rushing back to urban centers.

So if technology has the power to disrupt business, industry, and cities, I suggest we stop just thinking about technology in isolation and remember the powerful words of Marshall McLuhan: “The medium is the message." Don’t just focus on the obvious or you’ll miss a tidal wave of change happening beneath the surface.

January 3, 2014

Car as prosthetic

I spent a lot of time in the suburbs over the holidays and it got me thinking.

For all the talk about intensification here in Toronto, adapting our car dependent suburbs to become, well, less car dependent is going to be an enormous challenge. Once you’ve built out an area around the car, it’s almost impossible to go back. 

One of the biggest challenges is going to be figuring out how to turn the suburbs from inward to outward. If you think about it, the suburbs are an incredibly inward type of development pattern.

Retail plazas typically have their entrances—not off main streets—but off internal parking lots. And residential areas often have backyards facing the main streets because nobody wants a house fronting on a major thoroughfare. These are the design principles we’ve used to create our suburbs.

But the result is that we’ve created environments that are inhospitable to pedestrians. What enjoyment would you get out of walking along a street where everything has its back turned to you? This is the anthesis of animated street life. And in this case, Margaret Thatcher would probably be right: I would feel like a failure taking the bus.

To compensate for this kind of environment, we’ve made it virtually mandatory to have a car. It’s the only reasonable way to get around. Writer Rebecca Solnit put it best when she said:

“In a sense the car has become a prosthetic, and though prosthetics are usually for injured or missing limbs, the auto-prosthetic is for a conceptually impaired body or a body impaired by the creation of a world that is no longer human in scale.”

And that’s precisely it. We built around the car and not around people. And in doing so, we made ourselves dependent. I don’t know about you, but there’s something liberating about being able to walk to all the things I commonly want—food, money, coffee and so on. But maybe that’s just me.

December 27, 2013

Urbanization in the developing world

A few days ago I asked a reader of this blog if there was anything, in particular, that she’d like to see more of on here. She responded by saying that she’d love to learn more about how other cities—outside of Toronto—are managing urbanization, as well as how we shape cities and cities shape us.

Would love to read how other cities are managing the growth of urbanization, how we change cites and they change us @donnelly_b

— Nancy Phatsaphaphone (@PhatNancy)

December 26, 2013

It’s an interesting and important question because, frankly, the challenges are greater outside of Toronto. One of the stats that often gets cited here in the media is how the Greater Toronto Area gets approximately 100,000 new immigrants every year. This doesn’t include domestic migration though, so I would assume that our total number is even greater.

But if we stick with 100,000 for now, it means the GTA receives about 11.4 new immigrants every hour (100,000 people / 8,765 hours in a year). Lagos, Nigeria, on the other hand, receives between 50-60 new people every hour. In fact, it’s predicted to be 7th fastest growing city in the world between now and 2020. 

If you take a look at the complete list of the world’s fastest growing cities (all estimates, of course), you’ll likely notice that the vast majority of the cities are in the developing world. And that’s really the challenge. The world is rapidly urbanizing and becoming the most urban it’s ever been, but the changes are the greatest outside of developed nations. This poses entirely unique challenges.

Of the kinds of cities I’m talking about, I’m most familiar with Dhaka, Bangladesh. In my last year at Penn, I was part of a studio led by KieranTimberlake Architects that focused on water and housing issues in that city. It was a partnership with the University of Dhaka. We spent roughly 2 weeks there and it was an eye opening experience.

Here’s a telling slide from our final presentation:

What we were trying to do with this chart was compare population and per person land value for our development site according to various city types. In other words, we were essentially asking: If we were to build out our proposed site in the same way, as say, Dallas, Los Angeles, Hong Kong, or what is typical for Dhaka, how many people could we fit and what would be the resulting per person land value?

I don’t remember where we got the land value figures from, but we were trying to be cognizant of the fact that every city requires a unique solution. Using the same per person land values in Dhaka as in Dallas would be unimaginable because Dhaka has over 40,000 people per square kilometre (top right on the diagonal line above) and Dallas has under 1,400 per square kilometre (bottom left on the diagonal line above).

The challenges of urbanization in the developing world are profound, particularly in places like Dhaka where most of the city is subject to severe annual floods. By some estimates, 18% of the city’s land area gets flooded every year—talk about adding another layer of city building complexity.

We didn’t solve all of the problems in that studio and we’re not going to do it here, but I do think it’s important to fully understand the problem. One of my favorite books on cities is called “The Endless City." It examines New York, Shanghai, London, Mexico City, Johannesburg and Berlin, and has a ton of great data and diagrams.

Here are a two that outline densities and land use patterns for the above 6 cities (same order starting on the top left):

If you’re interested in cities, it’s definitely worth having it on your coffee table. And fitting to @PhatNancy’s tweet, ”The Endless City doesn’t just show how cities are changing but also how they are changing us.”

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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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