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.

Subscribe

  • A walk down memory lane in the St. Lawrence Market

    I recently got lost looking through the Toronto Archives for old photos of my neighborhood. I’ve blogged about what the St. Lawrence Market neighborhood looked like in the 70s, but I wanted to go back even further. I wanted to see what exactly had been demolished and lost over the years.

    But by the end of it, I was just sad. As a lover of cities, it always makes me upset to see great buildings disappear. I think you too will be surprised at what I found.

    The following picture depicts the north side of Front Street East, about 2 blocks east of Yonge Street. I don’t know what year it is, but look at how stunning these buildings are. It looks like Soho, New York meets some glamorous European capital.

    Can you imagine what we could do with these buildings today?

    image

    If there’s any doubt in your mind that this is Toronto or that it’s Front Street East, take a look at the spire in the far left hand side of the picture. It belongs to the Toronto Board of Trade Building, which used to sit at the north east corner of Yonge Street and Front Street. When it was built in the late 1800s, it was considered one of the first “skyscrapers” in Toronto. It was demolished in the 1950s.

    Here’s a picture of the Board of Trade Building so that you can compare. Again, take a look at the spire.

    image

    For those of you who might not be familiar with the area, here’s a map to help you out. The Board of Trade Building is shown on the bottom left hand corner. And the buildings in the first picture are in the triangular land area between Wellington and Front.

    image

    Now, let’s fast forward to the late 1960s. Those same buildings shown in picture number one have been demolished and in their place is the following parking lot. It’s a bit less glamorous looking. There are still heritage buildings on the south side of Front Street, but the balance of the area seems to have been blown out. What a shame.

    image

    Finally, here’s an aerial view of the area. It’s also from the late 1960s or early 1970s. You can see the same triangular land area, with only the Flatiron Building still standing at the very tip of it.

    image

    Obviously the St. Lawrence Market has come a long way since the 70s. That triangular area has since become Berczy Park, which is actually in the midst of being completely revitalized, and all of those parking lots have been filled in. But I still can’t help but wonder what the neighborhood would be like today had we preserved all of those heritage buildings. 

    I think cities work best when you can figure out that delicate balance between preservation and progress. It’s not always the simplest approach, but as most things in life, the right decisions are often the toughest ones to make.

  • How are you being shaped?

    image

    “We shape the cities, and then our cities shape us.” That’s one of my favorite lines from the documentary The Human Scale, featuring Danish architect and urban designer Jan Gehl. I like it because I don’t think many of us think enough about the way in which the built environment – that we create – ultimately goes on to influence the way we live our lives.

    One of the most interesting connections for me is the link between urban form and public health. There’s been a lot of talk over the years about how suburban sprawl is, or might be, making us fat (among other things). We’ve created environments that are only navigable by cars and that has forced many of us into sedentary lifestyles. We sit in our cars, and then we sit in our offices.

    So today I’d like to conduct a bit of a poll. If you’d like to participate, please share the following 3 things in the comment section below: 1) your city, 2) the type of neighborhood you live in (urban, suburban, rural, etc.), and 3) the amount of time you spend walking or doing something active on an average day.

    Here’s me:

    I live downtown Toronto in the St. Lawrence Market neighborhood (urban). I take the subway to work and the station is a 10 minute walk from my place. So as a bare minimum, I spend at least 20 minutes a day walking. But since I also walk to do most of my regular errands, and since my gym is another 10 minute walk from my place, I’d say I average a good 30-45 minutes of walking each day.

    Now it’s your turn 🙂

    This is a pretty crude survey, but with the advent of things like smartwatches and health monitors, I think we’ll soon have lots of great data on the ways in which our cities might shape our health.

    Image: The Economist

  • Rise of rental

    image

    Last month Oxford Properties submitted a site plan application for the redevelopment of the rundown Cumberland Terrace in Toronto’s Yorkville neighborhood. If you’d like to browse the full application (including all the drawings), you can do that here.

    The proposal is a departure from previous plans and now includes 3 buildings: a 4.5 storey building, a 2.5 storey building, and a midblock 54 storey residential tower (the lobby is shown above). There will be both retail and residential uses.

    For those of you familiar with the mall, it should go without saying that Cumberland Terrace is in desperate need of redevelopment. So I’m not going to talk about that today. Instead, I’d like to mention 2 other points that stood out to me about the application.

    The first is the 2 midblock connections on either side of the tower, running from Cumberland Street to Mayfair Mews in the rear (see below). Yorkville has a history of intimate laneways, and so it’s nice to see some of this being carried through in a new development. It also opens up the opportunity for an improved Mayfair Mews.

    image

    Secondly, it’s somewhat surprising to see that the 54 storey residential tower is being proposed as rental. Toronto doesn’t build a lot of purpose-built rental apartment buildings. There are some (from the likes of Morguard and Concert Properties), but we haven’t done it at scale for decades. And that’s largely because the demand for condos has been so great.

    But recently I’ve been noticing a renewed interest from the real estate community in multi-family rental assets. Cadillac Fairview also proposed a 65 storey rental building at the north west corner of Yonge Street & Queen Street last year – though they later withdrew their application.

    image

    In the US, rental apartments as a share of all new housing is also at record highs – over 30%. And that’s partly because credit remains tight (certainly compared to pre-2008) and economic growth has been tepid. But also because of demographic changes. People are having fewer children, later in life, and so many are putting off buying.

    So I think we’re going to see even more rental apartments being built in Toronto in the coming years.

  • The demand for character office space

    Last Friday the Toronto Star published an article talking about the growing demand for character office buildings in submarkets outside of Toronto’s core. Specifically, it was talking about the Downtown West and Liberty Village submarkets (citing a report from CBRE).

    I’m sure this isn’t news to most of you. Cool loft spaces have been popular for years. But it’s interesting to look at how rents and vacancy rates have changed for these submarkets and product types over time.

    Since 2002, average (net) asking rents for brick-and-beam buildings in the west end have gone from $16.12 to $22.23 per square foot. Almost a 38% increase. By comparison, office space in the core has gone from $28.40 to $32.38 per square foot. A 14% increase.

    And if you look at vacancy rates since 2007, you’ll see that the character office market has really tightened up over the past 4 years or so. There’s growing demand for a limited amount of supply.

    With the growth that the downtown core is seeing and with the rise of Toronto as a creative startup hub, I’m sure we’ll continue to see strong demand for this type of space. But there’s only so much of it to go around. So I think we’ll also end up seeing greater interest in the east side of downtown and also more interesting new builds.

    Images/Charts: CBRE

  • Should you own or rent your home?

    image

    I was at a good friend’s wedding last night (congratulations again to Adrien + Rachel!), and one of the topics that came up at our table was whether it is better to own or rent your home. Now, in North America, conventional wisdom would suggest – almost mandate – that you have to own your place. If you’re still a renter, well then you’re “throwing away your money” my friend.

    But are you really? 

    A big part of the value of owning your home is that it’s forced savings. Every month when you make those principal and interest payments, you’re paying down your mortgage and socking away money for the future. And this can be a great thing for a lot of people, particularly if you’re not disciplined enough to save otherwise.

    But when you own a home, you’re also spending time and money on maintaining that home, and you’re also tying up capital that could be used elsewhere. So consider this: what if, instead of putting your savings towards a downpayment, you simply continued to rent and created an investment portfolio that you then contributed to on a regular basis just as you would a home?

    Depending on your assumptions, renting could turn out to put you further ahead financially. Here’s an example of that scenario from the Globe and Mail.

    Similarly, I remember being told in business school that companies that own their own real estate tend to under perform those that do not. And the rationale is that owning lots of real estate ties up capital that could otherwise be reinvested in the core business. In other words, if your core business is making widgets, then invest your money in making better widgets, not in real estate.

    But this is not to say that everybody should rent. Obviously I’m a big believer in real estate. And for a lot of people, owning may make sense. This post was really just to say that the owning vs. renting decision may not be as black and white as you might think.

    Image: Flickr

  • Seattle’s first protected bike lane makes a quick adjustment

    Seattle recently installed its first protected downtown bike lane on Second Avenue. Here’s a short video of it in action (pay attention to the signalling setup and the pedestrians that walk into the bike lanes). Click here if you can’t see the video below.

    [youtube https://www.youtube.com/watch?v=x2iQCCHlR0s?rel=0]

    Shortly after it opened, they quickly discovered that the left green arrow and solid green circle (shown above) were confusing drivers. The intent was for the left green arrow to signal that you could turn and for the solid circle to signal that you could drive straight ahead.

    But even with the accompanying sign, drivers kept getting confused and thought a green circle meant you could go wherever you want.

    So the Seattle Department of Transportation quickly adjusted and changed the green circle to a north arrow. And it seems to have fixed the problem. I think it goes to show how important the details can be with these things. 

  • Fun Friday: Skateboarding city tours (Brisbane & Porto Alegre)

    Some of you told me that yesterday’s post on careers was actually quite sad. That it came across as if I were advocating for people, not to do what they love, but to instead do what makes them the most money. But that was not my intention. 

    There were a lot of reasons why I got into real estate development, and perhaps I oversimplified yesterday. But a lot of it actually came down to the fact that I’m passionate about building great cities (hence this blog).

    And I thought it was ultimately unfair that some investment-banker-turned-developer, who doesn’t really care about cities, might end up having more say over the built environment than me, the architect. 

    So I decided to sacrifice designing individual buildings in the hope that I’d one day be able to give back to cities on a much larger scale. And I still hope to be able to do that.

    In any case, to end the week on a more fun note, I thought I would do a post called Fun Friday and link to 2 city tours: one of Brisbane, Australia, and one of Porto Alegre, Brazil. 

    But these aren’t just any city tours. They are by local skateboarders showing you their city. I posted one for Toronto about 8 months ago, so some of you might be familiar with the series.

    I love how differently skateboarders look at the urban environment. I hope you can appreciate it as well. 

    Brisbane, Australia:

    [youtube https://www.youtube.com/watch?v=KEFQLjnhKT4?rel=0]

    Porto Alegre, Brazil:

    [youtube https://www.youtube.com/watch?v=taF71igPZY0?rel=0]

  • Why I didn’t go work for my favorite architect

    As a result of writing Architect This City, I’m fortunate enough to receive a lot of emails from random people. But I’m always open to meeting new people, and so I enjoy this very much.

    One of the most common questions I get is from architects, and students of architecture, who want to know about transitioning over to real estate development. (Posts related to this topic also happen to be some of my most popular.)

    So today I thought I would share a story with all of you about the one decision that ultimately lead me into real estate development.

    When I started graduate architecture school, I already had inklings that I was going to get into development. That’s one of the main reasons why I went to Penn. I knew that I could concentrate in real estate and I knew that I could take courses over at the business school. And that’s exactly what I wanted to do.

    But during my first year, I still wasn’t exactly sure how I was going to reconcile this dual interest. In fact, I remember feeling really conflicted. I loved architecture and design, but I also really enjoyed business and entrepreneurship. I was also interested in making money, and architecture isn’t often the best place to do that.

    So for my first summer internship, I decided to apply to both architecture firms and to real estate developers. I was fortunate enough to be offered jobs in both. And on the architecture side, I actually got my top choice, which was the Bjarke Ingels Group in Copenhagen. To this day, Bjarke remains one of my favorite practicing architects.

    But when I looked at the numbers, I quickly realized that real estate developers were prepared to pay me about 3x more than any architect would and that, if I were going to take an architecture job, I was going to end up going more in debt just to live throughout the summer.

    While internships are often career loss leaders, I took this as a sign of things to come. This was a 10 or 20 year decision in my mind. And even though I loved architecture, I figured I would quickly fall out of love with it if I couldn’t pay my bills or live the lifestyle that I wanted.

    So I accepted a real estate job and I moved to Dublin, Ireland for the summer to work for a small consultancy called Urban Capital (no relationship to the Toronto firm of the same name). And I haven’t looked back since.

    This may not have been the right decision for some of you, but it was for me. So if you’re at a crossroads, my advice is always to think about where you’d ideally like to be in 10 or 20 years. Because once you establish that, it’ll become much easier to make that decision today.

  • Trying out the Oculus Rift virtual reality headset

    image

    This week on Architect This City is turning out to have a big focus on technology. And it’s not going to stop today, because this evening I had the chance to try the Oculus Rift virtual reality headset for the first time (many thanks to Dave Payne of Invent Dev for the demo). As a reminder, Oculus is the company that Facebook recently acquired for $2 billion.

    Now virtual reality certainly isn’t a new idea and lots of people have been promising – for a long time – that it was going to revolutionize the world. Which may be why I had somewhat low expectations going into this. But I have to say that I was blown away. Despite being a bit choppy (to get good visuals it ran at around 15 frames per second), I was shocked at how immersive the experience was.

    Here’s a picture of Rick exploring the (virtual) space behind him:

    image

    It was actually really strange watching somebody move around as they explored another world. The demo that Dave showed us was of an apartment suite. You could walk around the living room. Turn around and see the front door. Walk up to the window and admire the view outside. It was incredible, but somewhat scary at the same time.

    Obviously there are ton of potential use cases for this. I’m imagining a buyer touring a condo suite and picking their finishes before it’s even built. I’m imagining an architect designing a building in 1:1 scale by waving their hands around in a virtual world. I’m imagining “traveling” to a beach to treat seasonal affective disorder. And the list goes on.

    This isn’t going to happen overnight. I actually got a bit nauseous because of how choppy the video got at times. But I can certainly see the potential. Virtual reality is coming. It’s clearly the future of gaming. And I’m sure it’ll get applied to many other areas of the economy. I guess that’s why Facebook bought these guys for $2 billion.

    If you have an interest or need in the 3D visualization space, I would encourage you to reach out to Dave at Invent Dev. He’s super passionate about the work that he’s doing and is looking to collaborate with more people in the design and real estate spaces. Thanks again Dave.

  • How smartwatches will augment location

    image

    So the rumors were right. Apple released a watch today. There will be 3 different “collections”, but lots of flexibility in terms of how each can be customized. There’s a big emphasis on health and fitness monitoring. Prices start at $350. And you’ll need an iPhone. Though you won’t be able to get one on your wrist until next year.

    Who knows whether or not it’ll catch on in the same way that iPod and iPhone did, but I think it has a damn good shot (more on this below). They’ve clearly put a lot of thought into both usability and the whole fashion side of the equation, which obviously needed to be done. Given that most people today use their phone for the time, the watch market strikes me as being heavily about style.

    In case you were wondering, here’s the watch market size as of 2013 (courtesy of Benedict Evans):

    image

    A lot of you might be skeptical about the need for a computer on your wrist (remember those watch calculators from the 80s?). But I think this time is different. Consider the number of people that now walk around with their phone in their hand and/or immediately pull it out whenever they have a free moment. We’ve become reliant (okay, addicted), to notifications and information.

    But in many of those cases, the smartphone isn’t the most efficient medium to be delivering those messages. Just like it’s not ideal to have to reach into your pocket to figure out what time it is, I think the watch could emerge as a new and better medium for a bunch of other pieces of information. And the big one could be location-aware or contextually-aware notifications.

    Here’s a tweet from Dennis Crowley – founder of Foursquare (Swarm) – talking about that exact thing:

    So what does this even mean?

    It means walking into a restaurant and having a tip pop up on your watch telling you what the best dish is (as shown in the tweet above). It’s driving down the street and having your watch notify you that there’s an open house 3 blocks away (and then giving you directions). It’s walking into a condo building and having your watch tell you that one of your friends is having a party on the 23rd floor. And so on.

    All of these notifications are currently already possible on your phone, but it’s not the ideal place for many of them. Which is why we’re all walking through life looking down at our phones. So while a computer strapped to your wrist may feel like we’re going further down that rabbit hole, it may actually free up more of our hands and our attention.

    And I’m sure there are many other possibilities that nobody has even thought of yet. Location just feels like a big one to me.

    //platform.twitter.com/widgets.js