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.

Tag: athiscity

  • The local vs. global city

    Blogger and Senior Fellow at the Manhattan Institute for Policy Research, Aaron M. Renn, recently published an interesting long-form article called, Rethinking America’s Cities’ Success Strategy.

    One of the central themes is the idea that globalization has caused a kind of bifurcation in cities – a disconnect between the local and the global. In an effort to compete with other global cities around the world, we have begun to turn our back on local concerns. At the same time, not every city has the market power of, say, New York or London.

    So what does this mean for cities? Here’s a quote from the article that I think does a good job explaining the mental model:

    At the end of the article, Aaron makes a number of recommendations for how to better think about local entrepreneurship and economic growth. The first one is as follows:

    “Local civic priorities should favor building a successful and inclusive local economy, including entrepreneurship, over global concerns and real estate development.”

    Despite this being seemingly contradictory to do what I do for a living, I think it’s important to note that on a fundamental level, architects and developers simply create space. 

    It might be a beautiful space. A space that improves well-being, creates value, and enables certain activities. But at the end of the day, there needs to be demand for that space. And a robust local economy is paramount to that equation. So I agree that we shouldn’t forget about local and expect that “if we build it, they will come.”

    If you have the time, the full article is worth a read. It’s also part of a broader series on entrepreneurship and cities, so there are a bunch of other related articles on the same page.

  • The advantages of disadvantages in business and entrepreneurship

    This morning I stumbled upon an interesting book by Claudia Kalb called Andy Warhol Was a Hoarder: Inside the Minds of History’s Great Personalities

    I obviously haven’t read it yet, but I like the premise. The book examines 12 famous figures and makes the argument that each of them had some sort of mental health condition that aided them in their success. 

    Here is an excerpt from a recent Harvard Business Review interview with the author:

    “The most common one may be narcissism. Frank Lloyd Wright is a good example. He had classic narcissistic qualities — a sense of grandiosity, superiority, a huge and complete belief in his aesthetic sensibility, and disregard for architecture that did not live up to his standard. Narcissists also have an ability to be charming, and to lure people into their orbit. That’s obviously useful for an entrepreneur. The issue is that while these qualities may make you a good leader, they may not make you a winning boss. Employees often feel that narcissistic bosses are ruthless or lacking in empathy. Also, unlike people with depression or anxiety disorders, narcissists don’t suffer as much personally from their condition — but the way they behave can be much harder on the people around them.”

    Related to this topic is an emergent body of research that, more specifically, looks at the relationship between mental illness and entrepreneurship. And according to work done by professor Michael A. Freeman of UC-San Francisco and professor Sheri Johnson of Berkeley, there’s a significant relationship. 

    Below are two excerpts from a Washington Post article published last year.

    “Forty-nine percent of entrepreneurs surveyed reported at least one mental health condition. Nearly a third reported having two or more mental health issues, such as ADHD, bipolar disorder, depression, anxiety or substance use conditions. And half of the entrepreneurs who reported no mental-health conditions identified themselves as coming from families with a history of mental illness.”

    Why would these conditions be of any benefit to entrepreneurs?

    “For all of its ills, depression also brings empathy and creativity. Martin Luther King Jr. and Mahatma Gandhi attempted suicide as teenagers. Uncommon levels of empathy can allow a businessman to better understand a customer’s need. And a creative mind won’t be satisfied on the corporate ladder, but instead in a fast-moving start-up where he or she can unfurl ideas and dreams.

    Individuals with ADHD naturally make decisions faster, are comfortable working independently and are more creative, necessary skills at a start-up. They’re likely to be bored working for someone else.”

    From a city building standpoint, all of this is quite relevant. Because for all of the focus on promoting innovation and entrepreneurship, we don’t seem to be talking about healthcare and mental health systems. And there’s clearly an argument to be made that the two are connected.

  • What’s next for Walmart?

    Today I was surprised to learn from Charlie Gardner’s blog that groceries now represent 56% of Walmart’s sales. This is a huge number that I frankly wouldn’t have expected. 

    Groceries have relatively low online penetration, which makes them great for brick-and-mortar retailers. I’ve written about this topic before in the context of big box stores and online shopping. But I clearly didn’t realize that it had become such a big segment for Walmart. 

    What’s also noteworthy about grocery shopping though, is that customers appear to be less likely to travel far distances for it, even for lower prices. This means that the radial impact of Walmart the supermarket is less significant and far tighter (~2 miles) than Walmart the discount store. Click here for that study.

    This is important because a big catchment area has been central to the Walmart model. They consume cheap land on the outskirts of cities and then offload the transportation costs (indirect costs) to consumers in exchange for everyday low prices (direct costs). Studies show that we, consumers, typically undervalue indirect costs.

    Charlie argues in his post that this does not mean that we should write off big box retailing. And I would agree. The Walmart Express concept may have failed, but they are clearly looking for ways to rethink their model. Urban stores will need to form part of that.

  • Towards a cashless society

    I increasingly never carry cash on me. I just never think to take out money and, when I do, I hate paying for things and getting change back. That change just ends up in a “change jar” in my apartment and then never comes out ever again. I keep telling myself that I need to buy coin rolls but that never seems to happen.

    Lucky for me, it’s pretty clear that many cities and countries are quickly headed towards a cashless society. It’s pretty easy to get by in most cities today without cash. Here in Toronto, I use Uber and my PRESTO card to get around. I can use my phone for many purchases like coffee. And I can use my credit/debit cards for everything else. I never really thought about it until recently, but I have unintentionally gone almost completely cashless.

    But of course it’s not just cash that is going to disappear; it’s also our physical wallets. Just this week Fred Wilson wrote a post on his blog about how he forgot his wallet at home and how Apple Pay came to the rescue at Whole Foods. I can’t wait until more banks roll this out in Canada. It’s also encouraging to see that under “coming soon” on the Apple Pay website, the Toronto Transit Commission is listed. I guess that means it will be integrated with PRESTO.

    However, this transition is not happening in the same way everywhere. There are many countries that still prefer cash. According to CNN (November 2015), only about 10% of people in Indonesia and the Philippines would prefer to pay with a credit card. And it’s for this reason that Uber now accepts cash in a number of countries. It’s what those customers wanted. I find this interesting though, because not having to carry cash is one of the main reasons I use Uber.

    Of course, there’s also the question of what happens to people who are currently not connected in anyway to electronic forms of money. I get asked by people on the street for change at least every day when I walk around Toronto. But there is actually no way for me to transmit the money I have to them. I don’t carry cash and I certainly don’t carry change.

    I would be curious how many of you have gone or are close to going cashless. And if you are operating cashless, did you even notice the transition happening?

  • Ziggurats and gondolas

    Yesterday was an exciting day for Toronto city building announcements. 

    Firstly, Alex Bozikovic of the Globe and Mail published an exclusive preview of architect Bjarke Ingel’s plan for King Street West. Here’s a photo of the architectural model (it’s by Landon Speers):

    My favorite quote from the article is this one from Bjarke:

    “It would be sad if the most diverse city in the world had the most homogenous real estate.”

    It’s true.

    For those of you who emailed me about the details of his talk next week (there were a lot of you!), I believe I emailed you all back. But in case I missed some of you, you can click here for the event details. I should have included it in my original post about BIG, but I thought the event was already oversubscribed.

    Secondly, a private company called Bullwheel International Cable Car Corp. has just proposed to build a $20 to $25 million gondola running from Danforth Avenue (near Broadview subway station) to the Evergreen Brickworks. The total length would be almost 1 km and it, allegedly, wouldn’t require any public money. Here is their website.

    The timing of this proposal feels a bit serendipitous to me. When I was in Park City, Utah a few weeks ago, snowboarding right into the town and then taking their “town lifts” back up to traverse the mountain, I remember thinking to myself: what a wonderful form of transportation this is.

    Of course, Park City has giant mountains and Toronto, unfortunately, does not. But we do have spectacular ravines and a spectacular institution known as the Evergreen Brickworks.

    But one of the challenges with our ravines is that they can be a bit hidden – particularly for visitors to the city. Part of this is because we are trying to figure out the right balance between natural preservation and active use. But that’s one of the things that makes this proposal so intriguing. It’s a way to celebrate our ravines and natural landscape, without physically encroaching it.

    Here’s a map of the proposed gondola path:

    What do you think about these announcements?

  • For Sale: Breuer House II

    image

    Breuer House II is currently on the market in New Canaan, Connecticut for $5.85 million. The house has 4 bedrooms, 4 full bathrooms, and 2 half bathrooms. It is 4,777 square feet and sits on 3.11 acres of land.

    Originally built in 1951, the house was designed by the Hungarian-born, Bauhaus-trained, and Harvard-teaching modernist architect, Marcel Breuer. It served as their family home until 1975, after which time it was sold and almost demolished. Thankfully it was instead purchased, restored, and expanded (by another Harvard architect).

    Marcel Breuer was a member of what is known as the Harvard Five. They were a group of five architects who either taught at or went to the Harvard Graduate School of Design and who had moved out to New Canaan to build experimental modern homes starting in the 1940s. Homes like Philip Johnson’s Glass House.

    Seeing the Breuer House II listed for sale this morning reminded me of how cool it must have been at the time for a bunch of radical architects to move out to a sleepy New England town and start building modernist boxes. I’m sure it pissed off more than a few people.

    Does anyone know of anything similar to this happening today? 🙂

    Image from Modern Homes Survey

  • A look at net migration by age group in Vancouver

    I’ve written quite a few posts about family formation and, more specifically, about where Millennials will move once they start having kids

    Many seem to believe that – despite the current Millennial love affair with urban centers – much of this cohort is destined to repeat the pattern of the previous generation. Meaning, once the kids come along, they’re headed to the suburbs in search of bigger and more affordable housing.

    If you look at the data, there’s a lot to support this prediction. Below is an interesting chart from Nathanael Lauster (Professor in Sociology at the University of British Columbia) that looks at net migration by age group for the City of Vancouver and the metro area.

    image

    What this chart shows is a flood of people in their late teens and early 20s migrating into the city (many of which are likely students), but then a fairly dramatic net loss of people leaving the city as they enter their 30s. The metro area, however, continues to grow – almost certainly because of people looking for more suitable family housing.

    But this data is from 2006-2011. We don’t yet have the 2016 census data. And I suspect that we will start to see an increase in the number of people opting to remain in the city across many different urban centers. 

    There are some very real economic pressures that successful cities today have to contend with. But I believe that the desire to remain in the city is there for a lot of young people.

  • Mr. Robinson — Architect as Developer

    I first learned about the work of Jonathan Segal back when I was in architecture school. And he was somebody I immediately admired. 

    At the time, I was struggling to figure out where I wanted to position myself between architecture and real estate development, and he was somebody who had seemingly figured it all out: he simply merged the two.

    For those of you who are unfamiliar with Jonathan Segal, he has made a name for himself by being a pioneer of the “Architect as Developer” business model. That is, he acts as both the architect and the developer/client.

    This business model isn’t going to suit everyone, but I suspect that we’ll see more of it in the future.

    Of course, it doesn’t just have to be an architect acting as a developer. It could also be an architect and a developer joining forces or some other permutation. Whatever the case may be, design and innovation are central to business today and that’s why I think this model will only become more relevant.

    Below is a short 3 ½ minute video about Segal’s latest project, called Mr. Robinson. It is located in San Diego. If you can’t see the video below, click here.

    [vimeo 155403927 w=500 h=211]

    If you’d like to see the typical floor plans or rent one of the apartments (they start at $2,400/month), click here.

    Now I’d be curious to hear your thoughts. Do you like the project?

  • Toronto’s rapid transit network by 2031

    Starting today and running until the end of March, the City of Toronto, the Toronto Transit Commission, and Metrolinx will be hosting several public meetings as they work towards planning out this city and region’s rapid transit network.

    Below are a few of the key maps from their presentation.

    Here is what Toronto’s rapid transit network looks like today (the hollow lines represent projects in construction):

    image

    Here is what will be built within the next 6 years:

    image

    And here is what they are recommending should be built within the next 15 years:

    image

    It’s hard not to get excited when you see maps like this. Of course, it’s a lot easier to draw lines on a map then it is to fund and execute on projects like this.

    But I think it all starts with us acknowledging that these initiatives are critical to both our economic competitiveness as a city region and our quality of life as citizens of it. Because if this is something we really want, then we can absolutely make it happen.

    Click here if you’d like to see the full presentation and also the public meeting dates/times.

  • Hot to cold

    Architect Bjarke Ingels will be in Toronto next week to talk about how architecture can create communities and about a new project that he is working on with developers Westbank and Allied REIT here in the city.

    The last time I heard Bjarke speak was when I was in undergrad and he had recently started a firm called PLOT with Julien De Smedt. That was over 10 years ago. So I am looking forward to this talk. If you’re also going to be attending, tweet me and let’s try and connect at the event.

    In anticipation of that, I thought I would share a book that his firm published about a year ago called, BIG, HOT TO COLD: An Odyssey of Architectural Adaptation

    What’s interesting about the book is that all of the projects are organized according to climatic location – literally hot to cold. That’s why the pages themselves start as red and end up in dark blue.

    It’s a direct response to the fact that modern architecture and modern building systems largely did away with regional and climatic variations. Buildings were designed, no matter their location, to look exactly the same. 

    To a certain extent, globalization makes this somewhat inevitable. But climate is climate. And I believe that architecture is stronger when it responds to local context.

    If you were in Toronto this past weekend – perhaps for the NBA All Star Game – you’re probably well aware that Toronto sometimes gets cold. So it will be interesting to see what kind of strategies they employ for their upcoming project.

    If you want to hear Bjarke talk about this book and some of their projects, check out this video from the Architectural Association in London.