Brandon Donnelly

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.

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  • A location intelligence company

    I have written about Foursquare a number of times over the years (here and here) and I continue to be a regular user. I am intrigued by all of the location-based data that they collect through their apps. 

    Below is a recent Recode Decode (podcast) with Dennis Crowley (co-founder) and Jeff Glueck (CEO) of Foursquare. They are talking about what’s next for the company. If you can’t see it below, click here.

    https://art19.com/shows/recode-decode/episodes/aa400a60-ebc1-49bb-96b1-0d7aac7ca9e8/embed?theme=black

    Here’s a content sample from Recode:

    Today, Foursquare makes most of its money from selling that data to big companies, calling itself a “location intelligence company.” But as co-founder Dennis Crowley and CEO Jeff Glueck explained on the latest episode of Recode Decode, hosted by Kara Swisher, they haven’t stopped thinking about everyday users.

    “Imagine a friend is walking alongside you,” Crowley said. “Can we make a personality like that, that talks to you in that sense? It’s not 30 years out. We’re going to be playing with this stuff a year from now.”

    “I want to make that Scarlett Johansson that whispers in your ear, but it’s all about local places and local discovery,” he added. “I want to replicate the experience of walking through the city with a friend that knows the city inside and out, and I want to make that for millions of people.”

    I thought some of you might find this interesting.

  • Place is dead anyway

    Aaron Renn has a few observations up on his blog from a recent trip to San Francisco. Number 2 is as follows:

    “A curiously low energy city.  It’s tough to judge any American city’s street energy after living in New York, but San Francisco felt basically dead. Tourist areas around Union Square and the Embarcadero were crowded, and the Mission on a Friday night was hopping, but otherwise the city was very quiet. Haight-Ashbury was nearly deserted and many neighborhoods had the feel of a ghost town. It’s very strange to be walking around a city with such a dense built fabric but so few people.”

    I feel this way every, single, time, I visit San Francisco. I love San Francisco, but outside the main draws, the city feels eerily quiet. I have never understood why that is the case.

    This is something that I am sensitive to because I find it even impacts my own energy levels. For instance, Sundays in Toronto often feel too quiet for me. Fewer pedestrians. Slower drivers. Our collective metabolic rate slows down.

    I love the hustle of a busy city.

  • Crazy home prices

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    This afternoon I walked the High Line with a friend of mine who seemed to know everything there is to know about new residential development in Manhattan. 

    She recently purchased a place and so she had done her homework. She was pointing out every building and telling me the price per square foot range; whether the floor plans were well designed (or if they had misproportioned rooms and awkwardly placed columns); and who the architect was. 

    Takeaway: To be competitive in the luxury segment in New York, you really need to have a name brand architect on the project. That seems to be the price of entry.

    As she was telling me about the “competitively priced” building in the low $2,000′s psf and the expensive penthouse that recently sold for $7,000+ psf, I started to wonder about historical pricing in New York. How has it trended? 

    I also told her that you could buy a really great condo in Toronto for $700 psf. She laughed at how affordable that was. It’s all about your point of reference.

    In any case, I found a research report from 2004 called: Why is Manhattan So Expensive? The story is one that you’ve heard before. It’s about the impact of land use restrictions on home prices. But it does also include some historical data on average condo prices.

    In 1984, the median price per square for a condo in Manhattan was $359 psf. It peaked in 1987 at $505 psf and then dropped back down to the $300′s in the early 90′s. That was not a great time for real estate. However, by 2002, the median price had rebounded to $606 psf. All USD figures.

    From 2002 onwards, Manhattan saw a dramatic increase in home prices. Below are two charts from Corcoran (Q3 2016 data) and Castle Avenue, respectively:

    imageimage

    Toronto is obviously not New York, but’s interesting to consider that the average price of a downtown Toronto condo, today, is probably in the low $600′s psf. That’s in Canadian dollars and that’s pricing that New York saw decades ago. 

    It reminds me that “crazy pricing” can oftentimes be a psychological reaction to a pricing anchor that we previously set in our minds. It feels crazy. But is it?

    Image: Me

  • Pause button

    Councillor Kristyn Wong-Tam recently put forward a request for a report on the implementation of a 1-year moratorium (let’s ”hit the pause button”) on new tall building rezoning applications in the downtown core of Toronto. You can read the full letter here.

    Not surprisingly, the building industry doesn’t like this.

    But besides that obvious point, I did want to draw attention to the following comment made by Quadrangle Architects partner, Richard Witt (taken from this BuzzBuzzNews article):

    “The city has, for years, used the development charges that should have been used to upgrade infrastructure to artificially lower property taxes by putting the development charges into general revenue,” he says.

    The intent of development charges is that they fund the infrastructure required as a result of new development – everything from transit to water. In the US, they are (I think) more commonly called impact fees. In this case the name makes the intent quite clear.

    I am curious to what extent we are relying on development growth to fund the status quo. Because growth may not always be there. History has shown us that.

  • Total work of art

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    I toured 56 Leonard Street in New York today. The only picture I have on my phone is the above photo of the lobby. The rest of the photos are on my Fuji and so they’ll make their way to my Instagram over the coming days. 

    There’s lots that has already been said about the architecture of 56 Leonard, but one thing I wanted to point out was this idea of a “total work of art.” The German word for this: Gesamtkunstwerk. I’ve written about this before, here.

    With many/most development projects, there will be a separate architect and a separate interiors firm. There’s absolutely nothing wrong with this approach, but it could lead to a disconnect between the exterior and interior. Or at least, some architects will tell you that.

    In the case of 56 Leonard, the architect (Herzog & de Meuron) also designed all of the interiors – right down to the kitchens, the sinks and tubs, the light fixtures, and likely a few other things. Hence the “total work of art.”

    It’s incredible to see what happens when you have one design sensibility brought to an entire project. 56 Leonard is beautiful. For the rest of the photos, make sure to follow me on Instagram.

    In case you’re wondering, the condo prices in the building run between $3,500 and $5,000 psf. One of the penthouses recently sold for USD$47 million.

  • Uberpooling your way to cheap rides

    This morning on my way into the office I ran into a friend who lives in my building (downtown). She works in midtown and so I asked her how she gets into the office. She told me that she either takes the subway or an Uber, but that increasingly she has been taking Uber, particularly on the way home.

    We then started talking costs and she told me that what she does is carpool with a friend from work using UberPOOL. They live nearby and so what they do is leave from the same place at night (the office) and then select a midpoint location between their homes for the drop-off. After splitting their portion of the fare, the ride costs her about $3.25.

    As she was telling me this, I couldn’t help but think to myself: Wow, this is massively disruptive to transit. That is the same cost as taking the subway. So why take transit? With the subway, there may be a speed argument in certain instances, but that certainly wouldn’t be the case with some of Toronto’s streetcar lines (such as the King line). It’s faster to walk.

    However, there are obviously geographic limits to how far you can go in an UberPOOL before your costs greatly exceed taking transit. But as Uber and other similar services continue to bring down the price of a ride (eventually the labor cost component will disappear), how big does that area get?

    All of this – including my own mobility patterns – has got me thinking yet again about the role of transit in the city of tomorrow. 

    One segment that continues to be underserved is the regional scale. Here in the Greater Toronto Area, we are working on that by transforming our commuter rail service into a two-way all-day Regional Express Rail service. Today that strikes me as being hugely valuable. And unless driverless vehicles somehow solve our traffic problem, it will likely remain that way.

    I would love to get your thoughts in the comments below.

  • The yellowbelt

    We talk a lot about the greenbelt here in Toronto. Some argue that it’s squeezing the housing market and driving up prices.

    But what about the yellowbelt? (Credit to Gil Meslin for the term.)

    Here is a land use map of Toronto:

    The yellow areas are “neighborhoods.” They, along with parks, ravines, watercourses, and valleys, make up ¾ of the city’s land area. The Official Plan describes these areas as being “stable” – meaning they will see little physical change. Supply cannot adjust to demand.

    I get why this is the way it is and I understand how difficult it would be change something like this. But let’s not ignore the impact that this land use constraint has and will continue to have on the housing market. 

    It’s the yellowbelt. Thank you Gil for letting me to steal the name.

  • Morning routines

    I often get asked: How the hell do you find time to write every day?

    The trick, for me at least, is to do it first thing in the morning. I get up early, prepare a bowl of cereal with fruit, make a single cup of coffee, and then sit down at my desk and read until something hits me. I like to do this before touching my inbox. It’s too easy to get sucked in once you start opening emails.

    I am not naturally a morning person, but I find this approach works best for me. When I did my MBA a few years ago, I did it part-time through 7am to 9am classes. I really enjoyed that ritual of morning education before the office and so I try and replicate that experience with my blogging routine.

    Some people like to workout in the morning, but I have never been great at that. I have more energy and I lift more when I work out in the afternoon or evening. I just wish I could find a gym that wasn’t so busy in the evenings.

    What’s your morning routine?

    Image: Snapped at Quantum Coffee last week

  • 3 word addresses

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    When I was in undergrad, I spent a summer in Taipei. One of the things I remember about that summer was how difficult it was to locate building addresses. Sure, there was the whole language barrier thing, but I swear that some of those alleys (which I loved) didn’t follow a consistent numerical logic.

    It turns out that a lot of the world is actually poorly addressed. Think about the favelas in Brazil. How are they addressed? (Not actually a rhetorical question; I’ve never been.)

    A company out of the UK called what3words is trying to solve this problem. What they have done is created a 3m x 3m grid of the entire world and assigned a 3 word address to each square. Apparently that translates into about 57 trillion squares.

    This is similar to long / lat coordinates, except that 3 words are far more user friendly than a string of numbers. They are more easily remembered and more easily communicated to other people. The front door of the Starbucks in my neighborhood looks to be migrate.stunner.racing.

    One service that has built upon the what3words platform is a bike taxi service in Delhi that offers female drivers for female customers. It’s called Bikxie Pink and the 3 word addresses aim to solve the safety problem of inefficient pick-ups and drop-offs.

    Even in places where addressing isn’t generally a problem, I could see what3words helping. Interesting platform.

    Images: what3words

  • Some thoughts on how we plan cities

    I came across this discussion on Twitter yesterday about how so many of the spaces we love in cities would not conform to today’s modern city planning practices:

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    This is a topic I’ve been thinking about lately and so it’s a timely discussion. In fact, I’ll often come across spaces in Toronto where I’ll think to myself: This is a really great space. But it’s highly unlikely that it could be built this way today. Naturally the question then becomes: What does this say about modern city planning?

    City planning is obviously important. But at the same time, we are almost certainly making mistakes and doing things that we will later regret. I say this not because I’m particularly critical of planning today, but because cities are enormously complex entities and it’s difficult to believe that we’ve figured everything out at this point.

    One thing I wonder about is if we aren’t over-planning and being too prescriptive about our cities. Some of you will probably argue the exact opposite. But hear me out.

    Vancouver is a city that has long been considered to be the gold standard in modern city planning. We talk about its podium + tower building typology. We talk about its “gentle density.” And we talk about its great public and recreational spaces, among many other things.

    But when I was there last month having dinner with a friend of mine, she said something to me that stood out. She said: “Brandon, Vancouver is a boring city. If it weren’t for my family being here, I would happily move to Toronto, New York, or somewhere else.”

    Cities are amazing places because they unleash human ingenuity. They allow new and unforeseen things to emerge. The challenge, I think, is to not sterilize that away when we plan and build. And all of us involved in the building of cities are probably guilty of doing that to an extent.