The essence of the stock market is speculation

Dutch architecture firm OMA (Office for Metropolitan Architecture) has a subtle way of being incredibly subversive in their architecture.

The recently completed 1.9 million square foot Shenzhen Stock Exchange (SZSE) building is presently making the rounds online and I personally find it incredibly striking. It has the same timelessness about it that makes me love Mies’ Toronto Dominion Centre.

But it wasn’t until I read the description on OMA’s website that I decided to blog about it. Here’s the first paragraph:

"For millennia, the solid building stands on a solid base; it is an image that has survived modernity. Typically, the base anchors a structure and connects it emphatically to the ground. The essence of the stock market is speculation: it is based on capital, not gravity.

All of these factors suggest an architectural invention: our project is a building with a floating base. As if it is lifted by the same speculative euphoria that drives the market, the former base has crept up the tower to become a raised podium.”

It’s a powerful, yet potentially controversial, symbol, as one could argue that efficient markets should, at least in theory, operate not on ramped speculation but upon fundamental values. However, if markets are an expectations game, perhaps you could simply argue that the building symbolizes a perceived bright future.

Either way, very interesting.

Tech is now the second largest job sector in New York City

According to a recent report called Building a Digital City, which I found via Fred Wilson’s blog, tech is now the second largest job sector in New York City behind financial services (which includes real estate). There are an estimated 262,000 tech workers in the city earning wages in excess of $30 billion.

This is a really interesting stat that speaks to the diversity of New York’s economy and the ability for it to continually reinvent itself. But what I found particularly interesting, was the following comment by Fred Wilson:

“And the reason tech is growing so fast in NYC is that it is embedding itself in all of these other industries. It’s not entirely clear to me whether Gilt is a tech company or a fashion/retail company, it is not clear to me whether ZocDoc is a tech company or a health care company, it is not clear to me whether Codecademy is a tech company or an education company.”

This is very much the way I think about so called tech companies today. I recently had a Rotman colleague say to me that he felt the startup world was becoming saturated. Everyone is now seemingly working on some new app.

But I like to think of it slightly differently. As Fred’s comment above suggests, a lot of startups today aren’t purely tech companies. They’re just out to solve a problem and it just so happens that technology and the internet are creating all sorts of opportunities for new solutions.

I also read a blog called Platform Connected and the author put it like this:

“In the future, every company will be a tech company. We already see this change around us as companies move to restructure their business models in a way that uses data to create value. We are moving from linear to networked business models, from dumb pipes to intelligent platforms. All businesses will need to move to this new model at some point, or risk being disrupted by platforms that do.”

So there you have it. Software really is eating the world.

Mjölk

I first heard about Mjölk a few years ago. Located in the Junction, it’s a gorgeous gallery & store dedicated to Scandinavian and Japanese craftsmanship. It has everything from furniture to hand crafts. It’s well worth a visit if you’re into clean lines and the “pure aesthetic of the north.”

Started by a husband and wife duo, the couple also own the building and live above the store. They recently renovated their home and it was just awarded a 2013 Toronto Urban Design Award. You can see all the photos here. I particularly like the third floor inner courtyard:

If you’re curious as to what brought them to the Junction, check out this response from a Dwell interview dated 2011:

“Downtown became so expensive, and that pushed people either east or west. In the past five years, this area has really become a destination. A lot of young, independent businesses have popped up, starting with reclamation stores Smash and Post and Beam. There’s also Crema Coffee Co., Pandemonium Books & Discs, Junction Fromagerie (a Quebecois cheese shop), and Bunner’s gluten-free vegan bakery, to name a few.”

I like to think of residential properties as a leading indicator for gentrification. Sometimes it’s easy to miss the change taking place behind closed doors though.

Brandon Donnelly

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

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