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.

  • How honest do buildings really need to be?

    What is the right way to do heritage preservation? How should you approach an addition to an existing building? I was reminded of this topic this week, which then reminded me of a post I wrote last summer when this issued flared up in Ottawa because of the “Chateau Laurier battle.” The takeaway from last year’s post was this: “We cannot recreate the past, only parody it.” Indeed, the Province of Ontario maintains that “legibility” is an important principle in the conservation of built heritage properties. People should be able to distinguish the new from the old. Don’t blur the distinction.

    I will also say that in architecture school they instil in you the ideas that buildings should be honest, they should reflect the current milieu, and that materials should be truthful. What this loosely means is that you want to use materials where they are most appropriate and you want to reveal their true nature. Don’t pretend that things are something they are not. i.e. Don’t be fake. At the same time, I very early on learned that most people don’t give a shit about the kind of nuanced and theoretical discussions that happen within architecture schools. They like what they like.

    And there’s a big segment of the market that wants buildings to look as they did a long time ago. They want tradition. They want historic. Or they at least want some sort of “transitional” style that sits somewhere between old and kind of new. They want architects like Robert A.M. Stern and Richard Wengle, both of which are extremely popular and talented. So really, who am I to judge? As most of you will know, I’m a modernist. I am more interested in the future than I am in the past. But I recognize that the past is important and should not be forgotten. How best to do that is up for debate.

  • Views from the Junction

    Shot on DJI Mavic Mini

  • The value of Champagne

    Westmount Gaurantee hosted a Champagne tasting event for its clients this evening. Obviously it took place over Zoom. It was a great event and I learned a few things about Champagne. As most of you will know, sparkling wine cannot be called Champagne unless it’s from Champagne, France — a region that, as of 2008, included about 76,000 acres of vineyards and 319 villages. But as I started thinking about this acreage, the developer in me couldn’t help but wonder: “How was the boundary for the Champagne region established? Is it based on unique soil conditions that can’t be found anywhere else in France and the world, or is this a way to artificially control the supply of Champagne and fix prices?”

    As you might imagine, the answer is complicated. (See the Champagne Riots of 1910-1911.) The viticultural boundaries of Champagne were legally defined in 1927. And the entire area is compromised of five wine-producing districts. But there have been revisions to this boundary. In 2008, the production zone was increased from 319 communes to 357. (I’m sure this was highly controversial.) And since the value of land is dependent on what you can do with it, this would have had a dramatic and overnight impact on land values. Yesterday you couldn’t apply a Champagne label, but today you can. According to this article from 2008, we are talking €5,000 a hectare to €1 million per hectare because of a simple boundary change. That is the value of “Champagne.”

    Photo by Lomig on Unsplash

  • Australia 108

    One of my favorite YouTube channels is the B1M. Apparently it is the most subscribed-to channel focused on construction. If you don’t already subscribe, you can do that over here.

    Below is a recent video about Australia 108 in Melbourne. It’s still under construction, but it is topped out and it is now the tallest building in the country at over 300m. That makes it a “supertall.”

    When you’re building this tall, it can make a lot of sense to segment and occupy portions of the building before construction is fully complete. Among other things, it helps to manage risk. And that’s exactly what they’ve done here.

    The contractor building Australia 108 is Multiplex. They also happen to be our construction management partner on Junction House. Except our project is a bit more boutique than Australia 108.

  • Zoomed out

    https://twitter.com/donnelly_b/status/1265740083447173120?s=20

    Joining a Zoom (or other video) meeting is as frictionless as opening up the calendar invite and clicking the link. No need to login or do much else, except maybe fiddle with the audio for a bit. “Can you hear me now?” The benefits to this are obvious. But if you’re Zoom (or another video conferencing company) there could be a slight problem: I don’t really care where that link is taking me, as long as it’s taking me to the meeting I was supposed to join 4 minutes ago. In other words, there aren’t really any network effects. The service doesn’t get any better for me as more people use it, because anybody can join the link that I send them. Benedict Evans recently made this argument, here, and he goes on to posit that video calls, like voice calls, are destined to become a commodity. All that will matter is how you package them up. Makes sense.

  • Airbnb’s predictive abilities

    I recently discovered and subscribed to Packy McCormick’s “Not Boring” newsletter. So far it’s quite good, and so here I am mentioning it to you all on the blog. In his latest newsletter, he makes the case for why Airbnb and Zillow — the two largest residential real estate tech companies — should merge. Naturally this new company would be called Zillbnb. You can read all about why he thinks this is a good idea over here, but I would like to point out one thing that I found interesting.

    Packy makes the argument that “easiest-to-book, shortest duration reservations” are a leading indicator for changes in demand. In other words, platforms like Airbnb can start to tell you where people might want to live and platforms like Breather can start to tell you where people might want to work.

    To support this argument he uses the example of his Airbnb rental outside of New York City. Sure, demand initially fell off a cliff at the beginning of lockdown, but then it started to surge as New Yorkers sought refuge outside of the city. And while I think that this particular change in demand will likely end up being short-term in nature, a similar trend is being reported around in the world. Did we hear it first on Airbnb?

  • Shoppable AR

    I don’t think Snapchat is on a lot of people’s radars these days. (Though it did recently become worth more than Twitter.) But every time I hear about what they’re building I can’t help but think, “Wow, that’s really cleaver and creative. I see a longer-term vision at work here. And if it all works out, this could be something very special.”

    This past week it was announced that the company is going long on something they call shoppable AR (augmented reality). Already, more than 170 million of its users engage with its AR features on a daily basis. Shoppable AR is an extension of that and will allow people to do things like try on clothes, similar to the way people currently apply selfie filters. Obviously this could be a boon to online shopping.

    They’re also continuing to develop something called “Scan,” which allows people to scan a logo or barcode and trigger a specific AR experience related to a product they may be thinking about buying. It doesn’t take much to think about how some of this functionality could be applied to specific industries, such as real estate.

    But will all of this fuel growth for the company? Or will Facebook simply steal the idea if or when it catches on?

  • Making giant ships

    This is an interesting New York Times photo essay about “how giant ships are built.” I wasn’t aware of some of these statistics, and maybe the same goes for you:

    • 90% of all traded goods are carried on ships
    • 90% of global shipbuilding happens in just three countries: China, South Korea, and Japan
    • There are 124 remaining and active shipyards in the United States, all supported by federal government contracts and the Jones Act, which requires that people and goods moving between American ports is done on ships that are owned/operated by US citizens and that were built domestically
    • US shipyards are believed to contribute about $37 billion in annual economic output and to support about 400,000 jobs
    • 88% of all food in the state of Hawaii is shipped in by boat — it is disproportionately reliant on trade (makes sense)
  • Drinking in the park

    There has been no shortage of prognostications about the demise of cities, offices, and a bunch of other things, as a result of this pandemic. And by now, a lot of you probably know that I think most of this is overblown. I worked in the office today, did things on my three-screen setup, and had a burrito for lunch. It was lovely. But here are a few things that I do believe will happen: Canada will continue to relax its alcohol laws in the wake of this pandemic, most if not all of these relaxations will stick after we get through this, and city life, believe it or not, will be just fine.

    Earlier this month, the City of North Vancouver council voted 6-1 in favor of allowing alcohol consumption in some parks and some public spaces this summer. The mayor believes that they are the first city in BC to pass such a bylaw and I reckon that they are among the first in Canada (Quebec is generally the most chill). One of the justifications for this change is that about 80% of residents in North Vancouver live in a multi-family dwelling. And so this is a way for people, who don’t have backyards, to have a civilized drink on some grass.

    Will our puritanical province follow suit? My bet is yes.

  • Driving, walking, and taking transit during coronavirus

    The above chart from Bloomberg City Lab shows driving, walking, and transit mobility for 12 cities during this pandemic. The data source is Apple’s mobility index, which is based on travel queries within its app. So this isn’t going to capture how everyone is moving about, but presumably it is somewhat indicative. Although I couldn’t tell you the last time I used an app to tell me where to walk. Maybe that’s just me though.

    A few things are worth point out. As we have seen before on this blog, Seattleites (do people actually use this demonym?) stopped using transit at a faster rate than most other cities in the US. And according to the above chart, they have also been slower to return to it. This has me continuing to wonder, “why is Seattle such an outlier?” Generally though, these graphs do seem to suggest that people are shying away from transit.

    Taipei looks to have fared the best out of this subset of cities, which is consistent with what has been publicly reported about its handling of the pandemic. Taipei has turned out to be an exemplar city during all of this. This probably has a lot to do with the fact that it remembers SARS and knew what to do — the least of which was to simply take it seriously at the outset.

    Image: Bloomberg City Lab