Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Category: Urbanism

  • Urban families

    We are getting ready for first occupancies at Junction House and it is exciting to see how many young families — with children — are looking forward to moving into the building’s larger 2-storey suites. (These are the suites that gave the project its name — Junction House.)

    From the outset, this was always a part of our development thesis. You can’t, or at least it’s very difficult, to pre-sell an entire building of larger suites in Toronto. But we figured that in a submarket like the Junction, which is very popular with young families, that there had to be some buyers who would want a house-like residence.

    Meaning, two floors of living spaces, upstairs bedrooms (better acoustic separation), larger living spaces, and a terrace for BBQing and gardening, among other things.

    We are now seeing this play out with the wonderful people coming in for their pre-delivery inspections, and it’s a really nice thing to see. Not only as a developer, but as a dedicated urbanite and lover of Toronto. I am not suggesting that it’s for everyone. But clearly there is a segment of the market that wants this.

    For a list of available homes at Junction House, including floor plans and pricing, click here.

  • People tend to prefer independent restaurants over chains

    I just came across the above chart from City Observatory showing the percentage of restaurants in each city that are part of a chain. (The data is taken from Yelp.) On the top is New York City, where only about 13% of restaurants in the city are a chain. And on the other end is Louisville, where more than 35% belong to a chain.

    The article also observes that there appears to be a correlation between restaurants per capita and the percentage of independents. In other words, the more restaurants you have, the higher the likelihood that more of them will be independents. New York City is once again at the top with 22 restaurants per 10,000 people.

    What is perhaps most interesting about this data is that Yelp ratings show a pretty clear preference for independent restaurants. Meaning that, on average, independent restaurants receive a higher rating compared to chain restaurants. At the same time, this spread seems to be widening. Here’s data from 2012 to 2017:

    This is maybe obvious; but it’s worth reiterating. As city builders, it’s good practice to encourage independent and small businesses. They are a competitive advantage. People, at least based on this Yelp data, seem to clearly like them more. So I guess Jane Jacobs was right: “The greatest asset a city can have is something that is different from every other place.”

    Charts: City Observatory

  • Thoughts on Dupont Street in Toronto

    This morning I spoke to the Globe and Mail about the evolving nature of Dupont Street here in Toronto. The impetus for the discussion was this: Dupont Street is now seeing a lot of residential intensification, but the street itself remains a bit of a crosstown highway. It’s not yet a “complete street.” And since Junction House is effectively on the west end of this midtown artery, John Lorinc asked to get my thoughts.

    The point I tried to make is that, in my opinion, this is first and foremost a zoning issue. Dupont Street is seeing intensification, but it is largely happening on the north side of the street, abutting the rail corridor (purple and red in the above Official Plan map). The south side of the street is, for the most part, a low-rise neighborhood (yellow in the above map).

    This kind of edge condition is somewhat unique in the city: low-rise on one side of the street; higher density housing, retail, and office on the other. But it is particularly problematic if you’re trying to create a great main street, because single-sided retail streets generally don’t work very well.

    We could certainly have a discussion about sidewalk widths, bike lanes, and other streetscape improvements; but in my mind, there is nothing inherently bad about the cross section of this street. The right-of-way width is 20 meters, meaning there are generally two lanes going in each direction. This is a dimension you’ll find all over the city, including on beloved streets like Queen Street.

    The problem here is what is abutting the street, and it is something that is systemic across the city: we have too many arterial roads that only allow for low-rise housing. So if you were to ask me what to do next, and I was asked this morning, the first thing I would do is up-zone the south side of Dupont and allow for non-residential uses at grade.

    And once this is done, I am certain it will snowball many other positive improvements.

  • Geography of activity centers

    We need more “activity centers”. That is my takeaway from this report by Brookings.

    Activity centers are exactly what they sound like. But to be more specific, the definition used in the report is based on five categories of assets: community, tourism, consumption, institutional, and economic. And what the authors did was look at the relative concentration of each across the 110 metropolitan statistical areas (MSAs) in the US with at least 500,000 residents.

    They then came up with 3 different kinds of activity centers. Monocenters (blue in the above map), secondary centers (yellow), and primary centers (orange). Monocenters have, as you’d probably expect, a lot of one kind of asset. Secondary centers, on the other hand, have “some of at least two kinds of assets.” And primary centers have “a lot of at least two kinds of assets.”

    Looking at the above map, it is pretty clear — and not at all surprising — that Manhattan is, for the most part, one giant activity center. There is a lot going on. But this is not the typical condition. In the 110 metro areas looked at in the study, activity centers only occupy about 3% of land on average. The remaining 97% of land is, based on the above definition, a non-activity center.

    Why this matters is that activity centers punch above their weight. Despite representing a small land area, activity centers are home to 40% of all private sector jobs in the US. Supposedly, they also increase productivity (by an additional ~$1,723 per worker), yield higher property values (+26%), increase inclusivity, and reduce vehicle miles travelled.

    So yeah, more activity centers sounds like a good thing for our cities. Though as we have learned in recent years, we need to be careful with monocenters.

    Map: Brookings

  • Phase one of Montreal’s REM is now open

    The first phase of Montreal’s new Réseau express métropolitain (or REM) just opened it up. It is a 17 km light-rail line that includes five stations running from Brossard in the south (A1 above) to Gare Centrale in downtown Montreal. Eventually this network — which is distinct from but connected to the city’s existing metro network operated by STM — will span 67 kilometers and have a total of 26 stations. To put this into perspective, Montreal’s current metro totals 69.2 kms. So this is a near doubling.

    As with most big city building projects, Montreal’s REM is being and will continue to be criticized. Back in 2016, the project had an estimated total project cost of $5.9 billion. By 2021, this number had increased to $6.9 billion. Today, who knows what the number will be. But it will be more. The reality is that everything went up, by a lot, over the last five years. During the pandemic, we were seeing 30-40% cost increases on some of our construction line items.

    What’s perhaps most noteworthy about this project is its delivery model. It is being delivered through a partnership with the the Caisse de dépôt et placement du Québec (CDPQ):

    Under the pact, the Caisse’s infrastructure arm is assuming $3.5-billion of the project’s $6.9-billion construction cost while Quebec is committing $1.28-billion and the Canada Infrastructure Bank is providing a $1.28-billion loan. The balance consists of a $295-million payment from Hydro-Québec for the line’s electrification, while the Autorité régionale de transport métropolitain, the transit authority for the Montreal region, is pledging $512-million.

    Provincial and local governments will provide continuing operating subsidies for the REM to make sure the Caisse earns its required return on the project, currently pegged at 8 to 9 per cent. The pension fund manager will get 72 cents for each passenger-kilometre travelled on the light rail system. Without such a subsidy, fares would climb to a level few passengers could afford.

    It’ll be interesting to see how this approach stands the test of time. As I understand it, CDPQ wants to continue building and operating transit in other cities around the world. I don’t know any of the specifics other than what I have read online. But from the outside, things seem to be working. The first phase of the REM broke ground in April 2018, and the opening ceremony was held this month (July 2023). That’s basically warp speed in transit timelines.

    Map: Montreal REM

  • Junction House by Air Norm

    If you work in the development industry in Toronto, then you know, or know of, Norm Li. He runs one of the top visual content studios in the city and the country. But he (and the company) also do a bunch of other things like DJ at industry events and fly around in a helicopter taking incredible photos of the city from above. He invited me to join him in 2018 and I captured photos like these.

    This past week he sent me a text with the below photos of Junction House and a message saying, “new lock screen.” I, of course, immediately blasted them around to the team and then asked if I could post them online. I love how these turned out. And every time I see our placemaking sign, I am happy that we fought for what we all believed would end up looking pretty cool.

    Thanks for the photos, Norm.

  • Lyft might sell its bikeshare business

    So apparently Lyft is the largest bikeshare operator in North America. They operate around 68,000 bikes and scooters, which equaled some 52 million rides last year. Ridership also continues to grow. Since 2020, ridership has grown in cities like New York (+56%), Chicago (+79%), Boston (82%), and Denver (+170%).

    However, this part of Lyft’s business was in the news this week because the company announced that they are entertaining proposals to sell it, as well as “strategic partnerships.” The company has said that it remains committed to offering bikes through the Lyft app, but clearly it is trying to shore up its balance sheet.

    This raises some interesting questions. Can bikeshare be a profitable and sustainable for-profit business? Or do we now need to be thinking of it as an important public service that is deserving of subsidies — similar to how public transit and cars/roads work in most cities? My own view is that these networks are here to stay regardless of how profitable or unprofitable they might be.

    For additional stats on Lyft’s bikeshare business, click here. One of the figures that I found interesting, but not surprising, was that 71% of riders use bikeshare for “fun.” This is by far the most popular use case. The next most popular use is “errands” at 39%.

  • Line 1 to dinner

    On most days, I walk to the office. That is going to be changing later this summer, but what I’m about to say will still apply.

    Because I walk more often than I drive, whenever I have to go somewhere that necessitates a car and that obligates me to leave during the evening rush, the first thing I usually think to myself is “shit, it’s going to really suck getting out of downtown.”

    I have very little patience when it comes to sitting in traffic. So when I’m faced with this kind of situation, my mind immediately goes to: “okay Brandon, what are your other options here?”

    And this is exactly what happened this past Friday. I had a dinner up in Vaughan after work and I opted to take the subway to VMC station (the northern terminus of one of Toronto’s lines).

    It was actually my first time riding this new line extension and it was cool to see the area around the station. It’s not yet a 15-minute community, but I believe it can get there with some narrow streets and the right kind of ground floors.

    The entire trip took about 45 minutes, and I can tell you that on more than one occasion I thought to myself, “this is way better than sitting in traffic.”

  • Canada is a suburban nation

    Dr. David L. A. Gordon leads a research project at Queen’s University that is focused on determining the proportion of the Canadian population that lives in a suburb. Why this is interesting is because the data isn’t normally looked at in this way. As I understand it, the way Statistics Canada thinks about things is that you’re either rural or you’re urban, living in a major population center.

    But this isn’t exactly right. Obviously there’s a difference between living in a dense transit-oriented community and living in a car-centric one. The former is actually “urban” and the latter is not.

    So what the research team set out to do was more accurately classify Canadian cities. And after doing that, they ended up with four categories within each census metropolitan area: (1) active core, (2) transit suburb, (3) auto suburb, and (4) exurban. See above example. What they then discovered is that about 66% of Canadians live in a suburb. And in our largest cities — Toronto, Montreal, and Vancouver — the figure is over 80%.

    Canada is often referred to as one of the most urbanized nations in the world. But as we can see here, that’s not exactly true. Canada is more accurately a suburban nation.

    Image: Canadian Suburbs

  • America’s most affluent cities

    This is an interesting chart from Bloomberg showing the most affluent metropolitan areas in the US in 1949. As you can see, at the top of this list is Detroit, followed by mostly older industrial centers.

    Now here’s the list today:

    It’s largely a different list; but importantly, it’s not an entirely new list. San Francisco was a wealthy city in 1949 and it remains one of the wealthiest today. But could that be changing? Given the city’s current challenges, some are questioning whether it might end up as another Detroit.

    I don’t see that happening. And for what it’s worth, here’s evidence of nearly 75 years of resiliency.

    Images: Bloomberg