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.

  • Skateboarding to debut at the Summer Olympics in Tokyo

    The 2020 Summer Olympics, which will be held in Tokyo, have added 5 new sports, one of which is skateboarding. As someone who grew up skateboarding as a teenager, and is all too familiar with being chased out of public spaces, this lends a great deal of legitimacy to the sport.

    It’s hard to think of a sport that is more closely connected with architecture and, more specifically, public architecture. Curbed’s recent long-form article about “the public spaces that shaped skateboarding” is a good reminder of that. Here is an excerpt (EMB refers to Embarcadero Plaza in San Francisco, which was previously known as Justin Herman Plaza):

    When skateboarding debuts at the Tokyo Olympics next summer, some three decades after the first polyurethane wheels hit the bricks at EMB, it will have completed the long, improbable trip from criminal act to social and institutional acceptance. But even as an Olympic sport, skateboarding will remain a direct physical response to the varied terrain of American public architecture.

    Interestingly enough, one could go on to argue that the history of skateboarding is really steeped in the adoption of public spaces that had, in many cases, failed to serve their intended purpose. In other words, skateboarders were often the only people using these urban spaces:

    “What made Justin Herman Plaza attractive to skateboarders and work for skateboarders was its inappropriateness to the traditional city scale and function,” King says. “You had all these planners and architects in the 1950s and ’60s saying cities need these grand, celebratory spaces—and they really didn’t.” But apparently skaters did.

    Welcome skateboarding to the 2020 Summer Olympics in Tokyo.

    Photo by Frans on Unsplash


  • OMA’s first ground-up project in Manhattan finishes construction

    121 East 22nd — which is OMA’s first ground-up project in Manhattan — recently finished up construction at the corner of E 23rd St and Lexington Ave (the site continues through to E 22nd St, where there is basically a 2nd building). I wrote about the project over two years ago, here.

    Below is a photo by Laurian Ghinitoiu, via Dezeen, of it completed:

    The defining feature is its “prismatic corner”, which, I understand from this interview with David Von Spreckelsen (President of Toll Brothers City Living), was largely an outcome of the site’s restrictive zoning. There was a requirement to have constant street walls. That minimized what could be done architecturally on the project’s main elevations.

    The solution is two contextual street walls — the punched windows are designed to match the rhythm of their adjoining buildings — coming together and creating dramatic visual interest only at the point where they intersect. Below is a rolled out elevation from OMA. Note the gradient created by the windows as they converge toward the corner (center in the drawing below).

    The other interesting thing about this project is that it reminded me just how different the built form of Manhattan can be compared to Toronto. In the case of 121 East 22nd, the streetwalls rise 150 feet without any stepbacks. There is then a 10 foot stepback before the building rises another 60 feet — similarly without any additional breaks.

    I love the grandeur.

  • “We” is the language of leadership

    Kawhi Leonard doesn’t say very much, but when he does, he tends to focus the discussion less on himself and more on the achievements of the Toronto Raptors as a whole. He has said many times before in interviews that he doesn’t aspire to be the best player on the team; he aspires to win championships. It’s not about him. It’s about the team. And it’s hard not to respect that kind of humility.

    One the things that I try to be aware of in business and in life is how I use first-person singular pronouns (such as “I”) and first-person plural pronouns (such as “we”). The subtleties of language are important and there’s lots of research out there on this topic. Some have even tracked Jeff Bezos’ use of “I” and “we” in Amazon’s annual shareholder letters over time.

    Harvard Business Review also argued a few years ago that “we” is the language of leadership because it tells you where someone is focusing their attention. Studies suggest that when people are self-aware or insecure they naturally tend to use more first-person singular pronouns — they turn inward. Conversely, using pronouns such as “we”, “us”, or “you” suggest an outward focus or a focus on other people’s thoughts, opinions, and contributions.

    Of course, when you write a personal blog like this one, you naturally end up with a lot of “I.” But when I write about broader topics, such as city building or the housing market, I do try and shift the focus. These are our cities. These are our buildings, streets, and public spaces. We’re in this together. And I aspire to get even better at “we.”

    Oh, and go Raptors!

  • Saves the dates: The House Beer Garden

    We are reasonably confident that summer will eventually arrive in Toronto this year, and so we (Junction House) have partnered with Indie Alehouse to host a public and outdoor beer garden from June through to August, right in the Junction.

    We are calling it The House Beer Garden because we both have “House” in our name and that’s as clever as we get.

    Here are the details:

    There will be four editions of The House Beer Garden and each will host a different local food vendor. For the first one, we will be welcoming Chau Toronto and their modern Asian bites.

    The timing of the first Beer Garden also happens to line up with the Annual Summer Solstice Festival in the Junction (that was deliberate). So Dundas Street West will be closed to cars and it’s going to be a lot of fun.

    No need to RSVP. Just show up at 2720 Dundas Street West, Junction. See you in two weeks.

  • Air Canada partners with drone delivery provider

    Today, Drone Delivery Canada (TSXV: FLT) — a company that I have written about before on the blog — announced that it has entered into an exclusive 10-year agreement with Air Canada. Press release, here. Globe and Mail article, here. BNN Bloomberg article, here.

    As part of the agreement, Air Canada Cargo will market, sell, and promote DDC’s drone delivery services across the country using its sales and marketing platforms. It will be positioned as premium offering, and Air Canada has agreed not to engage any other drone delivery service during the term of the agreement.

    This is a pretty big deal for DDC because it gives them distribution and legitimacy (they’re a pre-revenue company). And for Air Canada, it is an opportunity to be a part of “Canada’s first national drone cargo solution.” The promise is a more cost-effective solution for servicing remote communities.

    DDC plans to build out and operate up to 150,000 drone delivery routes across Canada as a result of this partnership. But, of course, it remains to be seen just how profitable these routes will be when they begin servicing their low-density communities.

    Full disclosure: I am long $FLT because I think that what they are trying to build is very interesting and I think that better connectivity will be a positive thing for remote communities within Canada.

    Photo by Ethan McArthur on Unsplash

  • More than 1 in 4 Americans now live alone

    The percentage of single-person households in the US has been steadily increasing since the 1960’s (though the rate of increase has moderated in recent decades). As of last year (2018), 28% of Americans lived alone, according to the US Census Bureau. So about 1 in 4 households. This is in comparison to 13.1% of households in 1960.

    Here is a chart from a recent WSJ article on the topic:

    Not surprisingly, this is changing how marketers target households. Affluent, single-person households in urban areas have proven to be a boon to product makers because they tend to spend more per person and they tend to value time > money. Of course, this phenomenon also has implications for those of us who work as city builders.

    For more historical household tables from the US Census Bureau, click here.

  • Public perception of drone delivery

    Back in 2016, the United States Postal Service published a report on the public perception of drone delivery in the US. This was nearly 3 years after Jeff Bezos announced on 60 Minutes that Amazon was working on a drone delivery service and that it would arrive within the next 5 years (so by 2019). I think USPS was trying to figure out how to be, or appear, more innovative.

    Not surprisingly, the report found that Millennials were significantly more supportive of drone delivery (65%) compared to Baby Boomers (24%), who strongly dislike the idea. Generally, the report indicates that the percentage of people who think it’s a good idea declines with every preceding or older generation. Again, I don’t find this at all surprising.

    But what I did find interesting was that, irrespective of age, respondents were primarily concerned with some sort of “malfunction.” This was at the top of the list. Next in line were concerns around “intentional misuse,” such as drones being used to transport illicit goods or to spy on people and/or property.

    Closer to the bottom of the list was a concern that drone delivery “might make the sky less pleasant to look at.” My own view is that visual clutter and noise pollution are critical problems to address here. There’s talk of “drone highways in the sky”, but how do you really manage the sheer volume of drones that would be needed to service a dense urban environment?

    Photo by Goh Rhy Yan on Unsplash

  • The investment case for mid-rise condos

    Shane Dingman’s recent Globe and Mail article about “the investment case for mid-rise condos” is a good summary of why this housing type has become so popular in Toronto.

    Mid-rise buildings tend to attract more end-users because of their boutique scale. That is, they attract people who plan to move into the building once it is built, as opposed to buyers who plan to rent out their unit. We are certainly seeing this with purchasers at Junction House.

    Because of their generally smaller scale and because they are often built in mature neighborhoods with few opportunities for new construction, supply of new mid-rise housing also tends to be limited. That bodes well for future price appreciation.

    Here’s a quote from Shaun Hildebrand (President of Urbanation), taken from the above Globe article. (Sorry, it’s behind a paywall.)

    “Price growth between the two building types [mid-rise and high-rise] began to converge in 2018, and in Q1-2019, buildings under 12 storeys saw average resale prices per square foot grow 10 per cent year-over-year, compared to 6.5 per cent for buildings of 12 or more storeys,” Mr. Hildebrand said. “We may be now entering back into a period of outperformance of mid-rise buildings as the market is shifting.”

  • The scale and scope of urban tech

    “Cities have become the basic platforms for global innovation and economic growth, supplanting the corporation as the fundamental organizing unit of the contemporary economy.” -Richard Florida

    Richard Florida and Patrick Adler of the Martin Prosperity Institute here in Toronto have been doing some research on what they are calling “urban tech.” They define it as encompassing the following industry sectors: co-living and co-working; mobility; delivery; smart cities; construction tech; and real estate tech.

    Here are the largest urban tech startups based on the amount of VC investment they have received:

    Below is how the space breaks down by sector. Mobility / ride hailing is the behemoth, receiving 61% of all VC investment. Food delivery is next. And “proptech” is at the bottom.

    Finally, here are the top “urban tech” cities. Beijing is right up there with San Francisco.

    For more information on the study, click here.

    Tables: CityLab

  • Homeschooling is one of the fastest growing trends in education

    Earlier this week, Union Square Ventures announced that it was leading a Series A investment in an online education marketplace targeted at K-12 students. The platform is called Outschool, and you can think of it as a form of homeschooling.

    Today, there about 55 million K-12 students in the US, with around 9% enrolled in private schools. Charter schooling is on the rise (somewhere around 3 million students), but so is homeschooling (similarly around 2.5 million students). Data here.

    Homeschooling, at least in the US, largely started within religious groups. But that is starting to change and it is becoming more widely adopted. USV has made a bet that this trend will continue.

    If you look at Outschool’s model, you’ll see that it shares a lot of similarities with other successful internet marketplaces. It is direct-to-consumer (the internet has a way of getting rid of intermediaries). The courses are significantly cheaper than traditional classroom schooling ($10-15 per course). And the supply-side of the marketplace (the teachers) is far more open and accessible to non-traditional participants.

    USV gives the example of a human rights lawyer who is teaching on the platform and now earning more than $10,000 per month in additional income. I’ve never enjoyed online classes, but now that we have reliable video chat, maybe that starts to change.

    In any event, where my mind goes with all of this is the impact on our built environment. We are heading toward more flexible spaces and we are doing a lot more from home.