The Frank Gehry-designed Grand LA is a prominent mixed-use development in downtown Los Angeles that sits across from the celebrated Walt Disney Concert Hall (which was also designed by Gehry). Developed by Related, the project occupies an entire city block and contains a 305-room hotel by Hilton, 347 luxury rental apartments, 89 affordable apartments, and over 164,000 sf of retail space.
According to Bloomberg, most of the project is doing quite well. The hotel occupancy rate is at 69%, the hotel restaurant is busy, and the residential is more than 95% leased. The problem is the retail.
Since the project opened in 2022, most of it has gone unleased. Though two new anchors were just announced: an AI museum called Dataland and a permanent home for the University of Michigan's Ross School of Business, which runs an executive MBA program in LA.
But these aren't traditional retail tenants. And it's almost certainly not what was being modeled when the project broke ground in 2019. Back then, everyone was still going into the nearby offices. And those humans would have brought foot traffic. This is one of the tricky things about development — you end up building through different macro environments.
But even in the best of times, it's generally hard to say with exact precision what will be successful. That's development. If there's comparable product, then you can comp against that (less risk). But if there isn't (more risk), you're faced with the question: Does comparable product not exist because there's no market for it, or does it not exist simply because nobody has done it yet?
If you're developing, it's because you believe the latter.
I continue to be amazed that cities, like Paris, can make small housing projects, like this one at 18 rue Pradier, work.
The site is approximately 277 m2:
Tunnels can be used for all sorts of fun purposes. You could, for example, build one under a major urban highway in an attempt to relieve traffic congestion.
Alternatively, you could build a tunnel for bicycles; one that stitches together two disconnected parts of a city and creates a new modern parking facility for 1,240 bicycles. And on May 22, Zurich unveiled exactly this.
Here's a video (I have no idea what the guy is saying but hopefully it's positive).
The Frank Gehry-designed Grand LA is a prominent mixed-use development in downtown Los Angeles that sits across from the celebrated Walt Disney Concert Hall (which was also designed by Gehry). Developed by Related, the project occupies an entire city block and contains a 305-room hotel by Hilton, 347 luxury rental apartments, 89 affordable apartments, and over 164,000 sf of retail space.
According to Bloomberg, most of the project is doing quite well. The hotel occupancy rate is at 69%, the hotel restaurant is busy, and the residential is more than 95% leased. The problem is the retail.
Since the project opened in 2022, most of it has gone unleased. Though two new anchors were just announced: an AI museum called Dataland and a permanent home for the University of Michigan's Ross School of Business, which runs an executive MBA program in LA.
But these aren't traditional retail tenants. And it's almost certainly not what was being modeled when the project broke ground in 2019. Back then, everyone was still going into the nearby offices. And those humans would have brought foot traffic. This is one of the tricky things about development — you end up building through different macro environments.
But even in the best of times, it's generally hard to say with exact precision what will be successful. That's development. If there's comparable product, then you can comp against that (less risk). But if there isn't (more risk), you're faced with the question: Does comparable product not exist because there's no market for it, or does it not exist simply because nobody has done it yet?
If you're developing, it's because you believe the latter.
I continue to be amazed that cities, like Paris, can make small housing projects, like this one at 18 rue Pradier, work.
The site is approximately 277 m2:
Tunnels can be used for all sorts of fun purposes. You could, for example, build one under a major urban highway in an attempt to relieve traffic congestion.
Alternatively, you could build a tunnel for bicycles; one that stitches together two disconnected parts of a city and creates a new modern parking facility for 1,240 bicycles. And on May 22, Zurich unveiled exactly this.
Here's a video (I have no idea what the guy is saying but hopefully it's positive).
And yet, social housing developer Seqens built 8 floors, 15 apartments, and even used a stone facade with built-in sun shades on the windows.
The total building area is approximately 1,030 m2 (~11,086 ft2). That's an average of 1,385 ft2 per floor, which would be unthinkable here in Toronto with our two required means of egress.
So let's consider some of the math.
My internet sleuthing tells me that this site last sold on December 6, 2018 for €3,950,000. That works out to ~€263k per door or €356 per buildable square foot. This is a wild land basis!
So is it that construction costs are that much lower or that the project received heavy subsidies? Maybe it's both. I shall continue sleuthing.
Project photography by Cyrille Lallement via ArchDaily; building section from Mobile Architectural Office
The new tunnel — called the Stadttunnell — is only 440 meters long. But it runs under Zurich's main train station and connects District 4 and 5. Previously, this was a more awkward and dangerous connection given the train station.
What's also interesting about this tunnel is that it was started in the 1980s as part of a planned urban highway. But when that was scrapped, the tunnel sat dormant. Now it's back and it shows a massive commitment to sustainable mobility. The project cost 38.6 million Swiss francs.
I'd love to check in a year from now to see how well used it is, and how many people park their bikes here. Thankfully, there's a bike counter.
Cover photo from Stadt Zürich
And yet, social housing developer Seqens built 8 floors, 15 apartments, and even used a stone facade with built-in sun shades on the windows.
The total building area is approximately 1,030 m2 (~11,086 ft2). That's an average of 1,385 ft2 per floor, which would be unthinkable here in Toronto with our two required means of egress.
So let's consider some of the math.
My internet sleuthing tells me that this site last sold on December 6, 2018 for €3,950,000. That works out to ~€263k per door or €356 per buildable square foot. This is a wild land basis!
So is it that construction costs are that much lower or that the project received heavy subsidies? Maybe it's both. I shall continue sleuthing.
Project photography by Cyrille Lallement via ArchDaily; building section from Mobile Architectural Office
The new tunnel — called the Stadttunnell — is only 440 meters long. But it runs under Zurich's main train station and connects District 4 and 5. Previously, this was a more awkward and dangerous connection given the train station.
What's also interesting about this tunnel is that it was started in the 1980s as part of a planned urban highway. But when that was scrapped, the tunnel sat dormant. Now it's back and it shows a massive commitment to sustainable mobility. The project cost 38.6 million Swiss francs.
I'd love to check in a year from now to see how well used it is, and how many people park their bikes here. Thankfully, there's a bike counter.
Cover photo from Stadt Zürich
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