Tag: cbre

• My Focals by North fitting

  Over the weekend I went by the new North store on Ossington for the fitting of my new Focals by North glasses. According to Retail Insider, this is the first retail space in Canada that is entirely dedicated to wearable tech (shout-out to Hullmark and CBRE). Full disclosure: I am not being paid by North, but I was asked if I would accept a pair of Focals and provide my thoughts. So I will be doing that over the coming months on the blog.

  Previously known as Thalmic Labs, North is a Waterloo-based company that first attracted attention with the launch of a gesture-control armband known as Myo. What that product did was make digital interactions completely hands-free. It had strong use cases across medicine, music, and business. However, this past October the company announced that it would be moving on from Myo. Enter Focals by North. 

  Focals are custom-built eyewear with an integrated display that only the wearer can see. It is similar to, for example, BMW’s heads up display, and the idea is that it is a way for you to quickly get the information you want, without pulling out your phone and disengaging from the world. The ambition is human-centric technology that integrates seamlessly.

  Here is an example of what that display looks like (it is much better and cooler in person):

  

  To control the display you use both your voice (the glasses have a microphone) and a 4-directional joystick called a Loop, which sits on your index finger like a ring and that you thumb. You can receive and send texts (voice to text), you can get turn-by-turn directions, you can view your appointments and the weather, and you can ask Alexa things.

  The first step in the ordering process is a fitting. And that’s what I did over the weekend. The glasses are all custom made and so they start by doing a full 3D scan of your head in a room that feels like the future. Once that’s done, you pick what frame you want, the color, and your sun clips (an essential accessory for day drinking in Trinity Bellwoods). Total cost: CAD 1,299.

  While exceptionally cool, it is premature for me to really comment on the tech at this point. I’m expecting my Focals in 8-10 weeks. But is it interesting to opine on the current state of eyewear tech.

  Most people believe that the problem with Google Glass was the fact that you had to be a Silicon Valley nerd in order to want to wear them out in public. They looked and continue to look ridiculous, which is why Snap went fashion first with their Spectacles. I have always found this product really intriguing. I want to use it. But I’ve stopped using Snapchat entirely and I don’t really have a strong use case for them.

  Snap’s Spectacles are about capture and content creation, whereas Focals are about discreetly feeding you information that you would otherwise have to pull out your phone (or watch) to view. There’s no camera on Focals. That’s not what they are about. But they are obviously fashion first.

  The question for me is whether the experience will truly be seamless and integrated, or if I’ll still be disengaged – gazing off into my glasses (space) while I ask Alexa to UberEats me a chicken shawarma wrap. I’ll let you know in about 8-10 weeks. If you’re looking for more on Focals by North, check out their website and this CNBC piece. Go Canadian tech.

  2018.12.09

• Tech and the North American office market

  CBRE recently published this report looking at the impact of the “high-tech software/services industry” on the North American office market. 

  Here are a few highlights:

  – Since 2010, tech has created ~1.1 million jobs in the US at an annual growth rate that is 3x the national average.

  – Seattle currently has the fastest tech job growth in North America. This is the first time in 7 years that San Francisco hasn’t been at the top of their list.

  

  – Silicon Valley, Toronto, New York, and Los Angeles all added more than 10,000 tech jobs from 2016 to 2017.

  – The biggest “momentum markets”, relying on 2016 and 2017 data, are Montreal, St. Louis, and Seattle.

  – Over the past two years (Q2-2016 to Q2-2018), Atlanta, Los Angeles, Orange County, Seattle, and Portland have all seen double-digit rent growth.

  One figure that also stood out for me was this one here showing the relationship between US venture capital investment and the average asking rent for office space in San Francisco.

  

  If you’d like to download the full report, click here. You’ll need to sign up for an account with CBRE, but it’s free to do that.

  2018.11.06

• Online shopping and “last mile” real estate

  

  The Globe and Mail recently published an excellent article on “how e-commerce is driving a real estate revolution.” This is a topic that I’m very interested in: how online manifests itself offline.

  Not surprisingly, the article talks a lot about Amazon, including their 4th warehouse in the Greater Toronto Area, which is an 850,000 square foot facility in Brampton equipped with 350-pound robots (8050 Heritage Road).

  The first thing I did after reading the article was figure out the location of all of Amazon’s fulfillment centers in the GTA. Amazon doesn’t seem to publish this. But according to TaxJar, they are here (I mapped out the addresses):

  

  There are two in Brampton at the precise location where Hwy 407 (toll route) and Hwy 401 meet. The other three are distributed along Hwy 401 in Milton and in Mississauga.

  Now let’s get back to that Globe and Mail article:

  – In 6 years, Amazon has leased over 2 million square feet of warehouse space in Canada.

  – Toronto is the third largest warehouse market in North America. It represents 43% of Canada’s total inventory.

  – Average net rents have increased 9.7% over the past year and vacancy rates have dropped to 2.7% (CBRE data). In Vancouver, those same numbers are 5.1% and 3%, respectively.

  – Online shopping is thought to account for about 6.5% of all retail sales in Canada. But in Toronto, 23% of all industrial space is already e-commerce-related (CBRE data, again).

  – CBRE believes that every $1 billion in new online sales per year requires an additional 1.25 million square feet of warehouse space. 

  – Based on online sales projections, Canada needs another 27.5 million square feet of industrial space over the next 5 years. We don’t have that much space in the pipeline.

  – Clear heights are increasing for stacking purposes. Amazon’s new Brampton facility is 45 feet tall / 4 floors. 10 years ago new warehouses were 26 feet tall.

  – Average sale price of warehouses in the GTA has gone from $119.35 psf to $142.19 psf over the last year.

  Perhaps the most interesting takeaway from the article is the discussion around “last mile” distribution hubs. These are fulfillment centers located closer to the city, which are used to offer shorter delivery times: 

  “…instead of having inventory stored for days or months, these fulfilment centres will turn over their inventory in one day, sometimes twice a day.”

  This is something that I addressed in my recent presentation about the “mall of the future” at B+H’s retail design charrette. Where do these physical distribution centers want to be as online sales continue to grow and delivery times continue to compress? Where’s the future growth?

  According to this article, it’s going to be in “last mile” fulfillment real estate – relatively smaller spaces that are located very close or directly in the city center.

  Photo by Samuel Zeller on Unsplash

  2017.07.23

• Global street artist paints 8-storey mural in midtown Toronto

  This morning

  (Friday, July 8th)

  at 11AM eastern time, the global street artist Phlegm will start work on a giant 8-storey mural at the corner of Yonge + St. Clair in midtown Toronto. It’s going up on the west elevation of 1 St. Clair West.

  Here’s what it will look like when it’s complete:

  

  The piece is intended to be experienced at two different scales. From afar, you read it as a human figure embracing itself. (See it?) Once you get closer, you are then drawn into an intricate interpretation of the Toronto landscape – both built and natural.

  Embedded within are depictions of the Royal Ontario Museum (including Daniel Libeskind’s Crystal), the SkyDome (yes, the SkyDome), the St. Lawrence Market (my hood), the CN Tower (obligatory), as well as other landmarks in the city. It’s going to be awesome.

  The project is a STEPS Initiative and it is being supported by the City of Toronto, Slate Asset Management, CBRE, CIBC, and a few others. They have also setup a great website with a live webcam, so that you can follow along as the artist works.

  At the time of writing this post, nothing yet has happened. But by the time it reaches you (email subscribers) it should be well underway. The hashtag for all of this is #PHLEGMPAINTS. 

  Big things are starting to happen at Yonge + St. Clair.

  2016.07.08

• How are you attracting and retaining top talent?

  Yesterday I received a comment on my post about service and product companies with a suggestion to check out an interesting Fast Company article talking about the future of work (thank you Amy). The article was based on a research report – commissioned by CBRE and a real estate developer in China (Genesis) – called Fast Forward 2030: The Future of Work and the Workplace.

  This is a topic that’s getting a lot airtime right now because Millennials are starting to impact work in a big way. But what’s interesting about it is how broad these impacts will be. Changes in how we work will affect the way we design our cities; the way architects and developers build and lease space; the type of people and roles companies will need to hire and create; and so on.

  Here’s a snippet from the report:

  “Providers of commercial buildings and places to work will need to develop new, sometimes counter intuitive, business models and work with partners who understand service and experience in order to compete with emerging workplace competitors. Successful providers will work with tenants to unlock ‘win win’ solutions that reduce occupier costs, increase flexibility, and simultaneously provide enhanced levels of community, amenity and user wellbeing. Cities will have a role to lead and nurture changes that will support the changing landscape of work.”

  I plan to go through the report in more detail this weekend, but I did want to point out one thing. When business leaders from around the world were asked what their biggest competitive advantage would be by the year 2030, the top choice was: the ability to attract and retain top talent. This topped organizational vision and even the ability to innovate.

  This might not come as a surprise to some of you, but it’s worth repeating. And in many ways, it’s a chain that begins first with cities. 

  If you’ve ever watched The Startup Kids documentary, you’ll know that when Alexander Ljung (CEO of Soundcloud.com) was about to found his company, he actually started by first traveling around Europe looking for the coolest city in which to base his company. The last city on his trip was Berlin and that just so happened to be the team’s favorite. So that’s where Soundcloud was founded.

  My point with that story is simply that the “workplace” of today – forget the future – means so much more than just your rentable area. Yes, that’s important. But there’s a lot more to consider when trying to get the best people. Cities play a huge role.

  2015.01.22

• 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

  2014.09.15