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.

  • Last-mile electric scooters — will they work?

    I’ve been hearing a lot about Bird recently. Perhaps it has something to do with the $15 million Series A round they raised last month (February 2018) and the $100 million Series B round they announced earlier today.

    A “Bird” is small electric scooters that look like this and can be rented from your phone for short haul trips. They are currently available in Santa Monica, Venice, UCLA, Westwood, and San Diego, and they are intended to be ridden in existing bike lanes.

    What may be particularly interesting to this blog audience is the fact that Bird is calling itself a “last-mile electric vehicle sharing company.” The pitch: 40% of car trips (in the US?) are less than 2 miles long. Let’s replace those using electric scooters.

    One of the first things that came to my mind is that this feels more accessible than cycling. Cycling to work can be a commitment. You have to think about your attire and the sweat factor, among other things.

    Would you agree?

  • You can now buy a new home, online

    My friend Matthew Slutsky runs a company called BuzzBuzzHome that allows you to search for new construction homes. This week they launched a feature that allows you to put down a deposit on a new home – online – with your credit card. It’s live right now for the Barra on Queen in Kitchener, Ontario.

    I know that Matthew and his team have been working on this for years (I saw earlier demos), and so I wanted to publicly congratulate them on the blog. I’m not sure who their competitors are right now, but this feels to me like one of the first online real estate marketplaces where you can actually just hit “buy now.” Huge accomplishment.

    I am sure many of you will have objections that we will hear about in the comment section below. But I have little doubt that this is the future. People used to say that the masses aren’t going to buy clothes online because of the need to try things on. I own suits that I have purchased online. People will buy real estate online.

    The more important question: When will it go mainstream?

  • Playoff time in the city

    I just finished watching the Raptors beat the Pistons in overtime to clinch a playoff berth. This is, by far, the earliest in the season that they have ever done that. They are also the first team in the NBA to do that this year. And this is after being down 17 tonight.

    The Raptors feel like a different team this year. They have the grit and toughness to come back and squeak out games like they did tonight. Seeing DeRozan run the floor and throw it down with less than 10 seconds left in the game is a powerful display of that. They are finding ways to win.

    As of today, FiveThirtyEight is giving the Raptors a 55% chance of making the finals. That would be a franchise first. And a 17% chance of winning the title. I am really enjoying watching the best Raptors team that this city has ever seen. And I’m looking forward to playoff time in the city. It transforms this place.

  • RioCan REIT announces new residential group

    On Monday, RioCan REIT announced its new residential brand: RioCan Living. This is the group that will now be responsible for redeveloping the 43 properties within their portfolio that they have identified as having intensification potential. Here’s how they are describing the new brand: “RioCan Living delivers best in class purpose-built rental units and condos along Canada’s most prominent public transit lines.”

    It has been interesting watching RioCan over the last 6 months. In the fall they announced that they would be selling off somewhere around $1.5 billion of their portfolio to rebalance toward Canada’s six largest markets, and in particular the Toronto market. And with this recent unveiling it is clear that they are doubling down on transit-oriented mixed-use communities as a way to future-proof their retail portfolio against disruption.

    Major markets. High-density. Transit-oriented. This shouldn’t surprise any of you. Here is a link to their latest investor presentation in case you’re curious.

  • Road pricing for whom?

    New York City is considering a congestion charge for drivers entering Manhattan below 60th street. It is part of Governor Cuomo’s Fix NYC plan. But we all know how difficult these things are to implement.

    Last month, Felix Salmon wrote a piece in Wired where he argued that our cities are dying of traffic congestion and that the cause is ride-hailing services like Uber and Lyft. The solution: A tax on ride-hailing services.

    The article elicited a few reactions, including this one by Charles Komanoff over at Streetblogs and this one by Joe Cortright over at City Observatory. Joe’s message: “The problem isn’t the ride-hailed vehicles, it’s the under-priced street.” 

    Precisely.

    Felix later followed-up with a post on his blog where he clarified that the reason he loves this idea – of taxing ride-hailing companies, not riders – is that it’s far more politically palatable than a blanket tax on all cars. I don’t disagree.

    Which is why I think my idea is something which is eminently politically possible, in contrast to congestion pricing, which has been implemented exactly nowhere in the USA.

    Americans love their cars, and they love the freedom that cars represent, and they hate the idea that they should be taxed for driving their cars. Tolls on roads and bridges are bad enough, but a fee just to drive in to a city?

    That said, I’m with Charles and Joe. 

    Last year, it was reported that roughly 25% of all Uber trips in New York City were UberPool trips. I’m not sure what the number is today, but these are people who are car pooling to get around. That’s generally considered to be a positive thing.

    Are these really the trips we want to be discouraging (and singling out) with a charge simply because we don’t have the moxie to do what is right and makes rational sense?

    Photo by Austin Scherbarth on Unsplash

  • Those wretched rear houses!

    Chris Bateman does some terrific sleuthing in the Globe and Mail this week to determine that the girl pictured in the below photo, dated May 15, 1913, is Dora (Dorothy) Cooperman – daughter of Morris Cooperman, a clothing presser.

    image

    Dora is standing in front of 3 wood-framed “rear houses” located behind 21 Elizabeth Street in an area known then as St. John’s Ward, or simply, The Ward. Behind her is City Hall, which we refer to today as Old City Hall. 

    If you’re familiar with Toronto, it shouldn’t take you long to figure out that she is standing in what is today the middle of Nathan Phillips Square in front of (new) City Hall. 

    The Ward no longer exists today, but as far as neighborhoods go its history is one of the most interesting. It was a high-density and mixed-use precinct that served as an important landing ground for successive waves of immigrants until it was deemed a slum and ultimately cleared. I wonder what it would look like today had it remained. Perhaps a bit like Kensington Market.

    It housed the Irish fleeing the Great Famine in the 19th century and was the center of Toronto’s Jewish community until the 1920s. The Cooperman family came from Kiev and identified as Jewish.

    There are so many interesting aspects to the above photograph. Everything from Dora’s pose to the juxtaposition between her surroundings and the grand (old) City Hall in the background. (Sidebar: I would like to try and recreate this same perspective. Would anyone like to model?)

    I also wonder why the city required a report to wake them up to the squalor that was living out in the Ward when they could have, presumably, just looked out their west facing windows.

    In 1911, Charles Hastings and Arthur Goss published what Batemen describes as a “landmark report that stunned civic officials, who had long ignored the poverty on their doorstep.” Hastings was the city’s medical officer of health, and Goss was the’s city first official photographer and author of Dora’s above portrait.

    One of the interesting things that Bateman explains about this report – and this is really the point of today’s post – is that it supposedly called out one particular housing typology as being highly problematic: rear houses. 

    These were houses that existed off the main street and could only be accessed via a laneway, like the one Dora is standing in. Today we would call them laneway houses. And so this report is evidence of over a century of anxiety around this particular housing type.

    It is obvious why overcrowding would have been deemed a serious problem at the start of the 20th century, but now one has to wonder how influential this report may have been in establishing the tone around these “rear houses.”

    Whatever the case may be, Dora’s story is an example of the role that this typology has played in housing people of modest means throughout this city’s history. It is also interesting, but perhaps not a coincidence, that affordability continues to be a part of the pitch around laneway housing and laneway suites. 

    Dora lived in a laneway house.

  • Hmm…architecture and basic income

    Albert Wenger recently published a post on his blog about architecture and basic income. Albert is a venture capitalist and is currently working on a book called World After Capital, which I have mentioned before on this blog. He is also an advocate of basic income as a solution to the growing inequality that the modern economy seems to be producing.

    In this latest post he wades into the world of architecture with two assertions that I would like to respond to today. The first is that with basic income the current trend of everyone piling up in large cities will end. We will decentralize in search of cheaper land on the outskirts of cities. And the second is that affordable housing could perhaps be produced with a more open source approach to architectural drawings and new construction.

    In terms of his first point, I’m not entirely clear why someone earning a basic income would suddenly decentralize. In the comments there is some discussion about how retirees, on a fixed income, often move outward in search of more affordable housing. I understand that phenomenon, but I am not convinced in this scenario. 

    There has been lots of talk about the demise of cities because of new technologies and other factors. But agglomeration economies have proved, again and again, to be a powerful centralizing force. Let’s also not forget about the environmental impacts of large scale decentralization, which would only be partially mitigated by the widespread adoption of electric vehicles. 

    Secondly, you can build a house without an architect. The issue isn’t that good bathroom details are hard to come by. Some of the bigger issues are likely the availability of land (decentralization, I guess, is supposed to solve this); construction costs (it’s a highly inefficient process that generates copious amounts of waste); and the immense regulatory burdens imposed on new construction (process, time, and costs).

    All of this stemmed from a visit that Albert did with a group of architecture students who are researching the relationship between architecture and basic income. I would be very curious to see what they produce.

    What are your thoughts?

    Photo by Mathyas Kurmann on Unsplash

  • The 2018 Henley Passport Index

    image

    I still have every passport that I have ever owned. The older ones are far more interesting because I was younger and always looking for creative ways to travel around the world. The older I get the less interesting my passports get. Now I find it difficult to travel away from my desk at lunch.

    Passports are highly symbolic to me. It equals a particular kind of freedom. But I suppose that’s because I have a pretty good passport. 

    According to the 2018 Henley Passport Index, the Canadian passport is tied for 5th – along with Switzerland, Ireland, and the United States – in terms of the number of countries you can access without a visa. 176 countries in total.

    The highest ranking countries this year are Japan and Singapore. With those passports you have visa-free access to 180 countries. The last place country, at 105th, is Afghanistan. You get 24 countries.

    Switching to design – because that matters – I think you would be hard-pressed to find better looking ones than the new Norwegian passport (pictured above and set to be put into circulation later this year) and the Swiss passport. The Swiss passport is allegedly the first to be professionally designed.

    How does your passport fare on the Passport Index?

    Image: Dezeen

  • Don’t touch the walls

    The Smith House by Richard Meier turned 50 years old last year. In celebration of that, photographer Mike Schwartz took these photographs. And just recently they were published in Surface Magazine along with an interview of both Meier and Chuck Smith. Smith’s mother commissioned the house (completed in 1967) and he was 8 years old when the family moved in.

    My favorite comment in the article is this one by Smith:

    “Don’t throw balls in the house, and don’t touch the walls.” I must have heard “don’t touch the walls” three or four times a day. That said, there’s a crack in one of the windows where I shot it with a BB gun. We got away with some things.

    Modern architecture was supposed to be a perfectly engineered machine for living. But I guess living didn’t include touching the walls or shooting BB guns in the house.

    My favorite photos – both from Mike Schwartz – are these two:

    imageimage

    They feel like inversions of each other. The first one (day shot) is all about the views outward. Meier also talks about how the white on white helps to enhance this experience. The second one (night shot) turns the house inward on itself. Smith talks about how at night the view disappears and all you’re left with is your own reflection.

    I also like how the paint is flaking on the fireplace, which by the way, is perfectly on axis with the home’s entry. It makes you work a little bit for the view. Apparently keeping the paint on was a problem since day one. But it gives the house – which is otherwise seemingly perfect – a bit of a patina. 

    However, I’m guessing that Meier would prefer the paint stay on.

  • InsurEye acquires the Dirt

    Back in 2013, my friend Mike Lerner and I designed, developed, and launched a condo review platform called the Dirt (thedirt.co). It’s hard to believe that it’s already been five years.

    Our mission was to empower real estate consumers through greater transparency in the marketplace. And we did this by crowdsourcing condo building reviews, as well as pricing comps.

    Today we are excited to announce that InsurEye Inc. has acquired the Dirt. InsurEye began as a moderated insurance review platform for home, auto, and life insurance, but it has since grown to include condo reviews.

    The team at InsurEye shares a very similar goal of creating greater transparency in the marketplace, and so we are thrilled that they will be picking up where we left off.

    Press release, here.

    P.S. The Dirt is the reason why I started the daily blog that you are reading right now. I started writing for the company and fell in love with it as a discipline and practice. Life is lived forwards, but understood backwards.