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.
Marc Andreessen’s recent essay, called “It’s time to build,” is destined to ruffle feathers. In it, he not only sings the virtues of building in its broadest sense — everything from healthcare and housing to education and manufacturing — but he calls out the western world for smug complacency with the status quo. We are no longer choosing to build. And a good example of that is how we have been managing (and mismanaging) this current pandemic.
Here’s an excerpt:
In fact, I think building is how we reboot the American dream. The things we build in huge quantities, like computers and TVs, drop rapidly in price. The things we don’t, like housing, schools, and hospitals, skyrocket in price. What’s the American dream? The opportunity to have a home of your own, and a family you can provide for. We need to break the rapidly escalating price curves for housing, education, and healthcare, to make sure that every American can realize the dream, and the only way to do that is to build.
Marc has also included a suggested reading list if you click through on the above tweet. By the time you do that, I am sure there will also be a lot of discussion around his essay.
I am sure many of you are getting tired of the news. I know I am. But it turns out that when you’re in a global pandemic and you spend the entirety of your day looking at Zoom — while fidgeting your leg, I might add — there’s only so much else you can talk and write about.
One of the more interesting things you could read is Howard Marks’ memos. Howard is the co-founder of Oaktree Capital Management and, from what I can tell, he’s been writing since 1990. Some years it’s an annual memo and some years — like this year — he writes a bunch more. His most recent is regarding, “Knowledge of the Future.”
If I had to summarize it: The future is unknowable and none of us can say with any certainty what the next quarter or the next year is going to look like. In Howard’s words: “These days everyone has the same data regarding the present and the same ignorance regarding the future.”
Most of the time, he explains, we simply extrapolate from the past and then apply our own biases to come up with a prediction. Howard describes himself as more of a worrier, whereas I would describe myself as more of an optimist. I believe, to a certain extent, in creating self-fulfilling prophecies.
Notwithstanding our inability to predict the future (which isn’t a new phenomenon), I think it’s important to have opinions and take positions. Any decision is better than no decision, right?
For a full archive of Howard Marks’ memos, click here.
This week it was reported that a South American family has bought and closed on ~$27 million worth of residential condos at Waterline Square in Manhattan. Apparently they went into contract (after the online showings) and closed on the same day, which I suppose you can do when it’s an all-cash deal like this was. The agent, Maria Velazquez, didn’t disclose who the family was, but apparently they’re from Peru and they wanted a safe place to park their money during this pandemic. Uncertain times usually create buying opportunities, and it sounds like the family did get a bit of a bulk discount here. But it’s also interesting to see where capital is flowing right now and what is perceived as a safe haven. Residential real estate in one of the world’s preeminent global cities probably won’t come as a surprise to any of you.
For years, French photographer Ludwig Favre has been doing a series on the swimming pools of Paris. The first one he photographed (and the first photo below) was the Piscine Pontoise. Designed in 1933 by architect Lucien Pollet, Pontoise was one of four pools that he completed for the Piscines de France at that time. Another one of his designs was the Piscine Molitor (second picture below), which is the most famous of the bunch for a few reasons. It was the place to be seen in Paris when it first opened. It was where the world’s first bikini was apparently unveiled. And it was also abandoned and almost demolished, during which time it got filled with street art. If you aren’t familiar with the work of Ludwig, I would encourage you to check out his portfolio. He does an incredible job showcasing these pools, as well as many other aspects of our cityscapes.
I came across this video the other night. (If you can’t see it embedded above, click here.) It is a tour of the UK and Ireland’s different accents by Andrew Jack. It is an extraordinary demonstration of his skill.
Above is a chart from Moovit showing usage from January 15, 2020 to April 12, 2020, for a collection of US cities including San Francisco, Chicago, New York, Philadelphia, Seattle, and others. Early March is when usage started to really fall off, with most of the cities now sitting somewhere around 70-75% below January levels.
For the most part, the cities included in this chart have followed a similar trajectory. But there are a couple of outliers. Philadelphia doesn’t seem to have fallen quite as much as other major US cities (-55.7% as of April 12, 2020). I’m not sure why. San Francisco looks to have “corrected” a lot faster. Perhaps because of an easier/quicker shift to working from home? And then there’s Seattle.
The first confirmed US case of COVID-19 occurred in the Seattle area on January 21, 2020. Looking at the above chart (and implying causation), that single case appears to have had an immediate impact on transit usage. Over the subsequent three days, ridership dropped to -4%, -8.3% and then to -9.1%. Usage then remained consistently lower relative to all of the other cities in this index.
Was that it? Did Seattleite’s behaviors really change that quickly? (And yes, I did have to look up the demonym for the fine people of Seattle.)
I am a huge fan of Malcolm Gladwell (and not just because he is Canadian and also went to the University of Toronto). Last week he kicked off a new Munk Dialogues series focused on the world after COVID19. (The next Munk Dialogue will be with Fareed Zakaria on Wednesday, April 15 from 8 PM to 9PM Toronto time.)
In case you’re not familiar with the Munk Debates, they are normally a biannual event held here in Toronto. Their mission is to help people rediscover the “art of public debate” and they do that by convening some of the world’s brightest and most creative thinkers. Right now they are doing that online.
In this Q&A with Gladwell, they touch on a lot of the topics that we are all debating right now on Zoom calls with our colleagues and friends. When will we get back to “normal?” What will change forever? Is working from home the new normal? Will people still want to go for Mandarin buffet? I won’t spoil it for all of you, but I did want to mention three points that I found myself agreeing with (I guess that is partially spoiling it).
The first is his analogy to weak link sports such as soccer. Here you’re only as good as your weakest player. This is in contrast to strong link sports such as basketball. In this case, you’re only as good as your best player. If you want to win a championship, you get someone like Kawhi Leonard. Gladwell argues that this pandemic has further exposed us as a complex weak link society. We don’t even have the basic PPE and testing in place to fight this virus.
The second is about whether this will create a more permanent shift to working from home. I have said before on the blog that I think it’s easy to overreach at a time like this. We might think that everything will change, but we also have short memories. Gladwell takes it a step further and argues that the exact opposite will happen. This pandemic will actually set working from home back a generation. We are going to be so sick of isolating that we will race back to what we had before.
Finally, I like the point that right now is an opportunity for experimentation. This is true of all crises. It’s a lot easier to question the status quo when the status quo has already been disrupted. And we are seeing this happen at all scales, from people experimenting and learning new things at home to new companies being formed. Hopefully there will also be lasting benefits to our public health systems.
Anyway, I would encourage to watch the video. If you can’t see it embedded at the top of this post, click here.
One of Alphabet’s moonshot projects is an autonomous delivery drone service called Wing. As far as I can tell, they’re only company offering this kind of service to the general public in North America — though they are only operating in a few test locations in Virginia, Finland, and Australia.
Specifically:
Canberra, Australia
Logan, Australia
Helsinki, Finland
Christiansburg, United States
Not surprisingly, demand for Wing deliveries has surged during this pandemic. According to the Verge, the company made over 1,000 deliveries in the past two weeks, which represents a doubling of deliveries in the US and Australia. The most popular items seem to be essentials like toilet paper and coffee.
This is perhaps a good example of the argument that COVID-19 isn’t going to change things per se, it will simply accelerate the adoption of things that were already in the process of happening. I was and am of the opinion that drones will become an integral part of delivery logistics. (Full disclosure: I own a bit of Alphabet and Drone Delivery Canada stock.)
There is still a lot that will need to happen. Alphabet/Wing is also working on an autonomous traffic management platform, because you obviously need something robust if you’re going to scale this up. How you make this work in dense urban environments is also a whole other kettle of fish, though already people are starting to reconsider how rooftops are used.
Venture capitalist Albert Wenger wrote on his blog today that the road back from COVID-19 could start — as early as May — provided we’re able to get our act together around three essential things: masks, tests, and tracing for everyone. We have all been talking about the importance of these things over the last few weeks, but I think it’s worth mentioning just how quickly some of this is starting to happen.
Both Apple and Google have announced that they are building a voluntary contact-tracing network. By May, they hope to release a set of APIs that other software developers will be able to build on top of. Bluetooth will be what is used to detect when humans are in close proximity to each other. Eventually, both companies plan to integrate contact tracing right into their operating systems.
Here’s how it might work:
Of course, we are also seeing new startups emerge, like this one here called Coronatrace.
Similar to what Apple and Google have in mind, the app will be a voluntary contact-tracing network. By using it, your phone will begin to log how you move about, something that is already happening today with many of the apps we already use. Should someone test positive for COVID-19 (they would need to update their health status within the app), it would then immediately notify the network and anyone who might have crossed paths with them.
Obviously it would be far better to simply have a vaccine. But the experts are saying that will take some time — 12 to 18 months? And in the interim, we’re going to need to get the global economy back up and running. Seeing solutions like these being developed makes me hopeful we’ll be able to do that sooner rather than later.
This week it was announced that Foursquare and Factual are planning to merge. Both use location data to improve advertising and overall business intelligence. But unlike Foursquare, Factual doesn’t have a consumer-facing app. So most of us probably haven’t heard of them before. But they are some of the data and tech behind many of the companies that we do all know, including Starbucks.
I have long been fascinated by location-based startups — like Foursquare — because they are inherently spatial. And how we move about our cities and spaces is rich with information. Companies want this data because, among other things, it is a register of intent. Me going somewhere signals certain things, including where else my kind might want to go.
But location data can also be used for many other things beyond advertising and retail analytics. Foursquare has started sharing aggregated and anonymized foot traffic data with local governments and public health officials in the fight against COVID-19. That data is currently powering http://www.visitdata.org. Foursquare is also publishing a regular insights report.
Here is a chart from them showing casino visits in Clark County since March 1:
In many ways this chart is fairly obvious. In fact, it actually mirrors my own journey into isolation. After the NBA shutdown on Wednesday, March 11, things started to feel pretty real and on Friday I was working from home. But there’s a lot more that can be done with location data and there’s a lot more that will be done going forward. I am confident that will help not only business, but also society more broadly.
