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.
“…the pandemic and its aftermath have also created a rare openness to doing things differently. Seizing this opportunity won’t be easy, or a short-term affair. But if we can be certain of anything, it’s that cities will adapt and evolve, and that they have the potential to come back stronger.”
– Kearney 2020 Global Cities Report
The Kearney 2020 Global Cities Report is out and it incorporates two main rankings: their Global Cities Index (GCI) and their Global Cities Outlook (GCO).
The former is intended to be a snapshot of where things stand today and the latter is intended to be a forecast of where things might be heading.
Here’s their GCI:
And here’s their GCO:
Note: The big mover in their GCO is Toronto, jumping nine spots to take second place behind London.
I get that real estate developers don’t always have the best of reputations. We build buildings that cast shadows. We invest in (or gentrify) neighborhoods. And yes, like every other for-profit business, the goal is to make a bit of money along the way.
But believe it or not, there are developers out there who care deeply about the work that they do. They care about their craft. And they want to do the right thing.
Perhaps the best way for me to start to explain what I’m getting at here is to quote the late Steve Jobs. An obsessive perfectionist, Jobs was known for focusing on every little detail in the projects that he worked on. Here’s an excerpt from an interview he did for Playboy back in 1985:
“We just wanted to build the best thing we could build. When you’re a carpenter making a beautiful chest of drawers, you’re not going to use a piece of plywood on the back, even though it faces the wall and nobody will ever see it. You’ll know it’s there, so you’re going to use a beautiful piece of wood on the back. For you to sleep well at night, the aesthetic, the quality, has to be carried all the way through.“
As a developer and a fake architect, this paragraph really resonates with me. But here’s the thing. One of the differences between making a beautiful chest of drawers (or a computer) and making a beautiful building, is that buildings have an inordinate amount of rules that tell you what you can build where and then how you need to build.
Some of these rules, of course, make a lot of sense. Life safety is no joke. But some of these rules also make no sense. And sometimes these rules — that don’t make sense — prevent you from putting what I would metaphorically consider to be that beautiful piece of wood on the back.
The beautiful piece of wood isn’t about money. In fact, it’s going to cost you more compared to just using a piece of plywood. It’s about giving a shit and caring about your craft, even if nobody else does. It’s so you can sleep well at night.
With laneway suites permitted as-of-right across the entirety of Toronto, the City is now looking to other forms of accessory dwelling units and other ways to increase the supply of rental housing. The next frontier is likely to be something that the City is broadly referring to as garden suites. And the timing is likely to be as early as next summer. Here’s how they’re defining it (taken from this recent report):
Garden Suites are sometimes referred to by other names, such as “coach houses”, “tiny homes”, and even “granny flats”. However they are all effectively the same idea – a detached accessory dwelling unit generally located in the rear yard of a detached house, semi-detached house, townhouse, or other low-rise dwelling. It is generally smaller in scale, functioning as a separate rental housing unit. Garden Suites are similar in form and function to Laneway Suites, which are currently permitted across the City in all low-rise residential zones in the city-wide Zoning By-law, 569-2013. To avoid any confusion between these terms, the City is considering all types of detached-accessory dwelling-unit to be a Garden Suite, for the purpose of this review, with the exception of a Laneway Suite, which is already permitted and defined within the Zoning By-law.
The above report will be going to Planning and Housing Committee on December 8, 2020. The goals are to kickstart the public consultation process and to come up with the necessary recommendations to permit garden suites by the second quarter of 2021. Like laneway suites, they are expected to be as-of-right. That means straight to building permit. No variances (and contentious Committee of Adjustment meetings) required.
This is great news and I’m looking forward to seeing garden suites become a reality in 2021. For more information about what’s happening on December 8th, click here.
Art Basel Miami Beach was cancelled this year for obvious reasons. It had originally been scheduled to kick off on December 3rd. But Design Miami is still hosting some physical exhibitions and naturally a lot of online programming. They also partnered up with Dezeen (and others) to host a series of online talks as part of the festival. Here is one about Latin American architecture and its symbiotic relationship with Miami. For some, Miami is known as “the capital of Latin America.” This talk explores that idea, but also how the relationship really runs both ways. It’s with architects Tatiana Bilbao and Carlos Zapata, and developer Joseph Schwarzkopf.
I love the contrast in this villa between the more private spaces, which are housed in a brutalist concrete structure, and the more public spaces, which sit on top and are housed in minimalist glass box that is reminiscent of the Farnsworth House.
All of this was done in order to maximize views of the surrounding mountains from this upper floor. But it also creates a certain lightness within the next landscape. And I’m sure that the views out are that much better after emerging from such a contrasting space below.
Located to the southwest of Madrid, the villa was designed by Spanish architect Alberto Campo Baeza in 2000. It’s called the Casa de Blas and it’s currently on the market for €850,000. Listing information over here.
But I would also encourage you to check out some of the firm’s other work. It’s absolutely magical. One of my favourites is the House of the Infinite, which was designed in 2014 and, in my mind, shares some similarities with the above villa.
In both the Blas House and the House of the Infinite, the rooftop spaces feel like everything. In some ways, they have been privileged over almost everything else. And so instead of wanting to be inside the houses, the architecture seems to pull you toward wanting to be on top of them.
Though best known as a pioneer of e-commerce (he was previously CEO of Zappos) and for his brilliant/wacky management ideas, Tony was also a city builder, particularly in Las Vegas.
In Las Vegas, Mr. Hsieh became beloved locally for investing $350 million into revitalizing part of the city’s downtown including real estate, restaurants, retail and a tech startup fund starting in 2012. His vision included the development Container Park, a quirky shopping and entertainment center where retailers operate in converted shipping containers. Visitors are greeted by a giant sculpture of a praying mantis that shoots fire.
But perhaps more importantly, everything I have read this weekend about Tony describes him as a good human being with a great sense of humor and a commitment to “delivering happiness.”
Here’s another excerpt from the same article:
After Zappos had a rash of late deliveries, he sent an apology note to customers and provided a phone number for use by anyone who suffered “undue hardship.” As for those who were merely annoyed, he said, they were welcome to call Zappos and “ask whoever answers the phone to do something weird and embarrassing, like sing ‘I’m a Little Teacup.’”
Happiness. I can’t think of anything better to be delivering to people in the world right now.
Improving this would be good. And it is the same gripe that I had with architecture school when I was there. Why is it taboo to talk about money and the market? Why must design exist, in many instances, within a vacuum?
I can appreciate the value in not always constraining yourself with the status quo. To innovate, you have to stretch. And sometimes, or perhaps oftentimes, the best ideas initially seem dumb. It’s important to have room to experiment and tinker.
But eventually, reality does matter. Plans that look good on paper, may not be suitable for the market. Constraints are a big part of what makes the city building industry so rewarding. Planning is hard. Building is hard. Getting consensus is hard. It’s all incredibly difficult and you have to be creative.
The really elegant solutions usually need to weave across and through many different objectives and stakeholders. And so in my view, the more you can empathize with those other constraints, the more elegant your solution will be. Knowing more is good.
This is an excellent article by Alex Bozikovic, Joe Castaldo and Danielle Webb about the 15-minute city. In it, they do a block-by-block analysis of how many Canadians actually live in what they are calling an “amenity dense” neighborhood.
Their definition of amenity dense:
Grocery store, pharmacy, and public transit stop within one kilometer
Childcare facility, primary school, and a library within 1.5 kilometers
Healthcare facility within three kilometers
Place of employment within 10 kilometers
Once you apply this filter to Canadian cities, it turns out that only about 23.3% of city dwellers live in this kind of amenity dense neighborhood. It’s really only our three largest cities. For the most part, we have built environments that want you to have a car.
When it comes Toronto, and also Montreal, it is a tale of two almost equally divided cities. If you live in a central neighborhood, you’re probably dense with amenities. But in the inner suburbs, it becomes pretty spotty. And though it can be done, this is not an easy change.
The full article has many more of these city maps and so I would encourage you to check it out. It’s a great piece of journalism.
Not surprisingly, their business as a travel company has been heavily impacted by COVID-19. Last year, the platform saw 326.9 million nights and experiences booked, with 251.1 million being booked in the first nine months of 2019. This year, nights and experiences are down to 146.9 million for this same nine month period. Revenue is correspondingly down from $3.7 billion for the first nine months of 2019, to $2.5 billion for the first nine months of this year.
But what is also clear from their data is that people still really want to travel and have new experiences. As soon as April passed and the Northern Hemisphere entered the normally busy Q3 travel season, domestic travel began to quickly ramp back up. For many, this likely took the place of international travel. See above chart.
Of greater concern might be all of the regulation that now surrounds short-term rentals. As of October 2019, about 70% of the platform’s top 200 cities (by revenue) had some form of regulation impacting short-term rentals. But at the same time, no one city accounts for more than 2.5% of the platform’s revenue. So there’s strong geographic diversification.
If you’d like to take a look at the company’s S-1, you can do that over here. And for those of you who might be curious, these are Airbnb’s top 10 cities based on revenue:
What the CommonPass does is allow people and travelers to verify their health status via a digital certificate on their phone. Right now it can confirm that you’ve tested negative for COVID-19 and eventually it will confirm if you’ve received a valid vaccination.
The framework also asks countries to publish their travel entry criteria in a standard format, so that it’s easy to update and it can be globally understood.
Of course, much like all of the exposure alert apps that are out there, this is only really useful if people and companies actually start using it. But the travel industry knows that for customer confidence to return, people are going to need to feel safe again. And a digital health pass is one way to help with that.
Here is a short video explaining how the CommonPass works. If you can’t see it below, click here.
