Brandon Donnelly

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.

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  • Quietly booming tech town

    We have all seen these headlines before, so it’s not so under the radar for us. But the New York Times just published this article about Toronto calling it a “quietly booming tech town.” Depending on how you want to measure things, Toronto is now the third largest tech hub in North America after Silicon Valley and New York City (or at least that’s what the NY Times is telling me). The article touches on some of the ingredients for this success, but let me be a bit more explicit in this post because I think it is particularly relevant right now.

    Canada is a “Western” country. What does that mean? It means that we’re a democracy, we have the rule of law, we respect individuals (including private property), and we allow for pluralism of opinion, along with many other freedoms. These are all wonderful and magical things that are sometimes taken for granted. But I couldn’t imagine living in a place that doesn’t allow for such freedoms, nor would I want to.

    On top of this foundation, we have two other important ingredients: extraordinary universities, like the ones mentioned in the article (University of Toronto and University of Waterloo), and some of the most liberal immigration policies in the world. Our borders are open for the smartest and most ambitious. With just these handful of things — freedom, rules, education, and talent — we can screw up a lot of other stuff and still accomplish some pretty great things. I may be oversimplifying, but probably not by much.

    Humans are wonderfully talented. Let people be and they’ll show you. Because history has shown us time and time again that the above recipe works remarkably well. (Related post: Do the best cities have a lot of immigrants?)

  • Project Profile: Social housing in Vienna by trans_city architecture

    I stumbled upon this multi-unit housing project in Vienna because I thought it looked beautiful and I started thinking about the solid wall-to-window ratio on its facades. But it turns out that this project is far more than just a pretty face.

    It’s actually a social housing project on the outskirts of Vienna, where the city transitions into the countryside. And it incorporates a number of interesting design features:

    • The complex is heated using groundwater heat pumps (geothermal) and domestic hot water is provided with the help of rooftop solar panels.
    • The structural system consists of concrete slabs and columns (no shear walls) and was all poured in place. But the envelope consists of “prefabricated thermo-brick walls” which were craned into place (see below image). The curving balconies also look to be prefabricated elements.
    • The suites have been designed with a saw tooth pattern and the circulation mirrors this through a zig zagging pattern. The result is units that are akin to what you will find at King Toronto (Bjarke Ingels), though on average the suites here look to be bigger than what we typically design in Toronto.
    • The zig zagging corridors also incorporate skylights that let light down into the middle of the building. I think these run through multiple floors as well, and not just through the top floor of the building.

    This certainly looks like a nice place to live.

    Sources: Architecture by trans_city (Christian Aulinger, Mark Gilbert). Photography by Daniel Hawelka and David Schreyer. Both via ArchDaily.

  • Toronto should light the underside of the elevated Gardiner Expressway

    Back when Toronto was debating the future of the eastern portion of the elevated Gardiner Expressway, I was an annoying and vocal supporter of tearing it down and replacing it with an at-grade boulevard. I was blogging about it ad nauseam. I participated in Jane’s Walks where I spoke about the merits of removal. And I even created a petition that went to City Council the day the decision was being made.

    But throughout all of this, I felt like I was in the minority. Most people said I was crazy (though former mayor John Sewell agreed with me). How will people and services get to downtown Toronto? This is critical infrastructure, they said. And indeed, Toronto voted not to remove it.

    Whatever you feel was the right decision at the time, that ship has sailed. We tore down a leg of the Gardiner east of the Don River, at that was positive; but the rest of it is either staying intact or being relocated. In both cases, it will be elevated.

    But I believe in looking forward, not backwards. And so with that, I think we should be doing everything we can urbanistically to make the Gardiner as nice as it can be. It is for this reason that I think The Bentway is an extraordinarily important project. And it is for this reason that I wish we would light the underside of the Gardiner so that when you’re driving on Lake Shore it makes you feel happy.

    https://twitter.com/donnelly_b/status/1505154810898747393?s=20&t=usv80T-GppjpvEfCVgQUTQ

    A good example of this in action is the Yan’an Elevated Highway in Shanghai (greenery, of course, also helps):

    https://www.instagram.com/p/BzvTmo3nN2J/?utm_source=ig_web_copy_link

    Relevant scene from Skyfall (James Bond):

    But let me be clear before my inbox lights on fire: I am not suggesting that this is an approach to urbanism that is in any way desirable or worth emulating. I am not advocating for elevated highways running through the middle of dense downtowns and walkable city centers. All I am saying is that if we are stuck with something as dreary and as utilitarian as the Gardiner Expressway, the least we can do is make it kind of cool. And lighting can be a relatively cost effective way of doing that.

  • Kaunas — European Capital of Culture

    So each year Europe runs a program called the European Capitals of Culture. The objective is to celebrate the richness of European culture and presumably drive throngs of tourists to its various locales. They do this by choosing a set of cities, designating them “capitals of culture”, and then running events and programming all throughout the calendar year in those places.

    When the program was created in 1985, it was originally called the European City of Culture, as there was only one city being chosen at a time. In the first year that city was Athens. But the program has since evolved and now multiple cities are chosen each year. For 2022, the European Capitals of Culture are Esch-sur-Alzette (Luxembourg), Kaunas (Lithuania), and Novi Sad (Serbia).

    I was reading about Kaunas in FT this morning and I was fascinated to learn that this city of approximately 300,000 people has some 6,000 modernist buildings. Some are apparently in disrepair, but many remain in good form and, as part of the festival, visitors can book stays in some of the restored ones.

    There is, of course, an interesting story behind these buildings.

    This collection of modernist buildings is the result of a relatively narrow window of time and a specific set of circumstances. Lithuania gained independence from the former Russian Empire in 1918, following WWI and while Russia was busy fighting with itself. But at the time, its capital city Vilnius, which remains the capital today, was mostly occupied by Poland.

    So Kaunas became its temporary capital city from 1920 to 1939, the latter date being when Vilnius was returned to Lithuania. This temporary designation created a tremendous need for new buildings, both public and private, and it just so happened to line up with the flourishing of European modernist architecture.

    Kaunas didn’t get any modernist “icons” from architects such as Le Corbusier, but there’s absolutely nothing wrong with that. Kaunas instead created its own varietal of modernism, one that incorporated elements of Art Deco and one that you could argue is now deeply symbolic of a very important moment in its history: A peaceful period of interwar freedom and optimism.

    Image: Kaunas 2022

  • Sustainable living means living in a city

    The UN’s Intergovernmental Panel on Climate Change (IPCC) has just published its latest climate change report. Available here. As a follow-up to this report, Dezeen spoke with Hélène Chartier of the sustainable urbanism network C40 Cities. And she makes some very good points about the importance of cities in combatting climate change.

    In fact, she goes so far as to say that sustainable living is only really possible, at scale, in cities. Because to live a more sustainable lifestyle, you need the right kind of infrastructure in place. And to have the right kind of infrastructure in place, you need density.

    This crucial point is often forgotten (though never on this blog). If you are truly concerned about climate change, then you should be for urban density. And if you are out there fighting against urban density, then your actions are undermining this global imperative.

    Chartier rightly points out that “architects have a huge responsibility” when it comes to addressing climate change. And this is entirely true. Their job is the built environment. But with all due respect to architects, the problems that need solving are ultimately much broader. Architects can only do so much if they’re hamstrung by dumb land use policies and angry neighbors, among other things.

    This needs to be a coordinated effort. We all have a huge responsibility.

    Photo by Kaspars Upmanis on Unsplash

  • High-rise urban families in Toronto’s CityPlace

    The narrative in this fairly recent FastCompany article about Toronto’s CityPlace neighborhood is that the area was initially planned and built for young professionals who wanted to be close to work and party. But that it has since evolved to become a more mixed residential community. Over time, the young professionals started having children and now the area is filled with a surprising number of urban families. “Hundreds” according to FastCompany. In response to this shifting demographic, the Canoe Landing Campus was recently completed, containing a community center, two public schools, a public park, and childcare facilities. And apparently it was long overdue.

    This is interesting for a few reasons. CityPlace has long been criticized for its planning. Local Toronto lore has been that the area was destined to become a slum. But is that actually playing out? Anecdotally, it would seem that families are sticking around (and being attracted to the area) and that it’s settling in nicely as an urban residential community. In fact, I wonder if CityPlace might be emerging as one of the areas in the city with the highest concentration of high-rise urban families. I quickly tried to find some data on this but couldn’t.

    Something else worth pointing out: One of the objections that you’ll often here when it comes to new development is that there isn’t the infrastructure in place to support it. Where are the schools? Where are the community centers? And where are the hipster coffee shops? Because without these invaluable things, development should be stopped immediately. Now I’m not suggesting that these things aren’t important. But the CityPlace example is yet another reminder that cities and neighborhoods evolve — often in fortuitous ways. The best city building is nimble and entrepreneurial.

  • San Francisco now has autonomous vehicle taxis

    These are two short videos of autonomous Cruise vehicles driving around San Francisco. Cruise, which is owned by General Motors, received a permit from the state of California to operate autonomous vehicles — without a safety driver — in September of last year. In November 2021, one of the cofounders of Cruise took the first ever driverless taxi ride in the company’s history. And on February 1, 2022, Cruise announced that it was opening up to the public.

    If you read the comments on Twitter you’ll see that some people have found these vehicles to be hyper reactive to traffic lights and to do oddly long pauses at stop signs. So I guess they’re not perfect. But oddly long pauses are certainly better than not stopping at all. Either way, this is a big deal. I’m not sure if these are the first unsupervised autonomous vehicles out in the wild, but they are easily some of the first.

    There has been a lot of discussion over the last few years about autonomy being a hugely tricky technical problem to solve. One that is perhaps more difficult than a lot of people thought it would be at the outset. I’m assuming that this is at least one of the reasons why ridesharing companies like Uber and Lyft ended up selling off their AV divisions while searching for profitability.

    But the market never gave up and it’s pretty exciting to see this coming to fruition. Oliver Cameron is VP, Product at Cruise and the former CEO of Voyage (which was acquired by Cruise last year). If his tweets (above) are any indication, San Francisco is going to be seeing many more autonomous vehicles in the coming months.

    This is going to have a profound impact on the unit economics for ride sharing companies like Uber, but more importantly it is likely to have a profound impact on our cities. Mobility innovations have a way of doing that. Some of the impacts might be negative, but I believe that many of the impacts can and will be positive.

    As most of you will know, I am a believer in dense and walkable cities. I do not believe in planning cities around cars. And so that is not what I am advocating for here. My view is simply that I think autonomy grants us the ability to rethink our definition of a “vehicle.” And maybe it becomes something that more closely resembles public transit. That could be a positive thing for our cities and something that draws people away from private vehicle ownership.

    So I remain both optimistic and excited about what’s to come.

    Have any of you had a chance to ride in an autonomous vehicle? If so, leave a comment below or on Twitter.

  • Where US students want to live after college

    Axios and Generation Lab have something new called the Next Cities Index. The goal is to track US work and culture trends through people’s geographic preferences. For their first cities index, they asked over 2,100 students in the US, on two separate occasions, the following question: “Considering all factors that matter to you, where would you most like to live after college?”

    The aggregate answer to this question is shown above. But they also collected people’s incomes (anticipated since they’re students?), political affiliations, and gender. The list of cities changes slightly when you sort based on these different factors, but not by much. Seattle, New York, and Los Angeles remain top cities — at least in people’s minds.

    It is, however, interesting to note that about 45% of respondents had different answers to where they want to live and where they think they will live. For a number of reasons, the city of people’s dreams isn’t often a practical or realistic choice it would seem. Still, wanting a particular place still tells you certain things I suppose.

    Given all the chatter over this pandemic, I would have thought that Miami would have appeared higher up on this want list.

    Chart: Axios/Generation Lab

  • 6-unit missing middle site for sale in Toronto

    Marty over at Laneway Housing Advisors published this listing in his newsletter today. It’s for an entitled lot at 78 Gladstone Avenue in Toronto that has been approved (by way of a minor variance) for 6 units. Five units in the front where a house currently sits and one unit at the back in a standalone laneway suite. Though it also happens to be a corner lot and so the laneway suite isn’t really “in the back”.

    It’s listed for $2.5M. And according to the description, you can build about 5,500 square feet (4,200 sf in the front with a 1,300 sf laneway suite). This ask translates into a land cost that is just over $450 per buildable square foot, which is far more than what high-density land typically trades for in the city right now. This is usually the case for smaller low-rise sites.

    To help put this figure into some kind of context, Bullpen Consulting published in their latest insights report that the average high-density land price in Q4-2021 was $135 per buildable square foot in Toronto (416 area code only). Of course, averages only tell you so much. To truly evaluate the feasibility of a site like this, you’d need to create your own pro forma and do your own residual land value calculation. The value of development land depends on what you can build on it.

    If you were to do that, I suspect that you would discover at least two things: 1) you would find it challenging to make the numbers work, particularly for rental housing, and 2) you would quickly realize that this sort of “missing middle” housing isn’t, in its current form, some undiscovered bastion of housing affordability.

    Part of the problem is that these 6 units are not being delivered on an as-of-right basis. Somebody had to go out and entitle the land in order to secure these permissions. That means that time and money were spent and that the current owner is now rightly seeking a margin for their efforts. But if we collectively believe that this is an appropriate and sensible form of housing, then this should not be a necessary step in the whole process. Especially for only 6 units.

    All of this being said, we know that Toronto and many other cities around the world are taking a hard look at this issue. And that there is a groundswell of interest in allowing more housing in our low-rise communities. It’s going to be a battle — just look at how Toronto’s new garden suite policies have now been appealed by various resident’s groups. But I’m certain that we’ll get there, just like we are getting there with laneway housing and other types of ADUs.

  • Who cares if there’s an NFT bubble?

    The Financial Times recently reported on “the great NFT sell-off” here in this article. Daily trading volumes on OpenSea, which is the largest NFT marketplace, are down 80% ($50M) from their high in February ($248M). Bored Ape Yacht Club, which is the most expensive NFT collection out there, has seen its average daily price come down by about a third (see above). Of course, they still remain extremely valuable NFTs. And a recent CryptoPunks auction was just pulled from Sotheby’s so that the owner could “HODL” until things recover.

    I don’t think any of this should surprise both NFT holders and the naysayers. This is a high-risk space and it is all very speculative. You can’t run a discounted cash flow (DCF) model on a Bored Ape and most other NFTs (though some might actually produce cash flow through, for example, secondary sale royalties). The more important point of all of this is that we are living through what many people believe is the creation of a new kind of internet. Cryptocurrencies are what underpin these new digital economies, but we are still figuring out how they will function and what their long-term business models will be.

    For me, this is an exciting thing to be a part of. I’m not a venture capitalist, but buying NFTs and doing other crypto things feels a bit like I am an amateur one. Holding ETH or SOL is similar to holding Canadian or US dollars (currencies that underpin economies). So what I am doing is using these currencies to put money into ventures (NFTs) that seem interesting. And to do that, you look at the art, the team behind the project, the roadmap, and how well they appear to be executing against that plan. Indeed, many of the most successful NFT projects are naturally run by teams who are constantly building and shipping.

    At the same time, I mentally write off every NFT I buy to $0 as soon as I purchase it. I am also limiting my total crypto allocation to between 5-10% of my non-real estate investments and buying with a scheduled dollar-cost averaging approach. So if this whole web3 thing went to zero tomorrow (which I firmly do not believe will be the case), my life would still go on. None of this is, of course, investment advice. Please do your own research and make your own decisions. But I can tell you that it is a lot of fun following and learning about what smart, creative, and entrepreneurial people are doing in this emerging space.

    If you’re interested in NFT photography, check out my global citizen collection on Foundation.

    Chart: Financial Times