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: cities

  • Clean disruption of energy and transportation

    I just came across the below talk by Tony Seba about the coming “clean disruption” of energy and transportation. The talk follows his book of the same name. Click here if you can’t see it below. It runs about an hour, but I would encourage you to give it a watch. 

    [youtube https://www.youtube.com/watch?v=2b3ttqYDwF0?rel=0&w=560&h=315]

    The first few minutes will be things I’m sure many of you have heard before, such as the failure of Kodak to embrace digital cameras (film business considered too valuable), Moore’s Law, and so on. But he then moves on to cost curves, battery storage, solar power, and autonomous electric vehicles (A-EVs).

    You all know that I am fascinated by these topics, so here’s one piece that stood out for me: 2021 is his prediction for the year in which A-EVs become real and disrupt both internal combustion engine (ICE) vehicles and individual car ownership.

    Obviously this won’t happen overnight, but Tony’s belief is that 2021 will be the year that the economics of A-EVs become so compelling (10x) that it will crush our current business models.

    The argument is that on-demand ride hailing/sharing and A-EVs will converge and that Transportation as a Service (TaaS) will provide our mobility needs at a fraction of today’s costs. We’ve talked about this prediction before on the blog, but never has a timeline been attached to it.

    All of this reinforces two thoughts that I’ve been having over the past few years. One, I will probably never buy another combustion engine vehicle. And two, I should probably avoid buying another vehicle, period, until the next wave of business models becomes clearer. Leasing likely makes more sense at this stage if you need a car.

    In fact, Tony believes that with the collapse of individual car ownership, the resale value of cars could become negative. That is, you’d have to pay people to take a car off of your hands, because everyone will recognize the cost advantage of just using TaaS.

    We are doing everything we can to future proof our development projects so that they are ready for electric vehicles. But if A-EVs and TaaS completely erase individual car ownership within the next 5 years, then all of us in the industry are going to need to do much more to ready our buildings and cities.

  • Smart sewers may soon analyze our poop

    On September 2, 2017, a research project by several MIT laboratories – called Gangnam Poop: Underworlds in Seoul – will debut at the Seoul Biennale of Architecture and Urbanism.

    Here’s an excerpt from the exhibition description:

    A vast reservoir of information on human health and behavior lies in our sewage, and this resource is untapped. We imagine a future in which sewage is mined for information that can inform policy makers, health practitioners, designers, and researchers alike. Such is the idea behind Underworlds: a cross-disciplinary data platform for monitoring urban health patterns, shaping more inclusive public health strategies, and pushing the boundaries of urban epidemiology.

    For this exhibition and “proof of concept”, they analyzed three distinct neighborhoods in Seoul, using an aptly named sewer robot called Luigi. 

    Gangnam-gu (shown above) is an upper-class high-rise residential area. Mapo-gu is an emerging artist and designer enclave. And Seongbuk-bu is a hillside village with detached houses and an older demographic.

    In each case, they mapped out the bacterial populations found beneath each neighborhood. Interestingly enough, the different areas revealed different bacterial occurrences. You can see those diagrams here.

    I often think of healthcare as being very reactive. A future like the one this exhibition is imagining would be far more proactive. And that would be a very good thing.

    Image and project by MIT Senseable City Lab. Gangnam Poop: Underworlds in Seoul. Commissioned by Seoul Biennale of Architecture and Urbanism

  • Is sprawl to blame (at least partially) for the flooding in Houston?

    What’s happening in Houston right now is devastating. Ian Bogost of The Atlantic is calling the flood a “disaster of biblical proportions.” Harvey has unloaded 9 trillion gallons of water.

    It is once again reminding us of the importance of resiliency when it comes to our cities.

    One emerging argument is that this is an almost inevitable outcome for Houston, brought on by the multiplicative effects of climate change, unfettered urban sprawl, and poor design decisions.

    The barriers to development are famously low in Houston, which allows the city to quickly add housing and people. There are many benefits to this. 

    But it also means that there has been, among other things, a dramatic increase in the amount of impervious surface.

    This matters because impervious surface creates runoff.

    According to The Texas Tribune, impervious surface in Harris County (third most populous county in the U.S.) increased by 25% between 1996 and 2011. 

    And it replaced things like the below prairie grass (switchgrass), which are highly absorbent as a result of their deep root system. 

    But much like climate change, not everyone believes this is to be blamed. 

    For more on this, check out The Texas Tribune’s full interactive piece. It’s called “Boomtown, Flood Town” and it’s worth a read.

    Image from The Texas Tribune

  • Network effects for autonomous vehicles

    In my recent post about why I write about tech on this city building blog, I made a pithy comment about autonomous vehicles and why it is “largely a software challenge.” 

    The argument I was trying to make was that the hardware, similar to smartphones today, will likely become a commodity. More of the value will end up flowing to the firms that control the software.

    Benedict Evans has an excellent deep dive into this topic on his blog. The post is called: Winner-takes all effects in autonomous cars.

    Here’s an excerpt about hardware:

    To begin with, it seems pretty clear that the hardware and sensors for autonomy – and, probably, for electric – will be commodities. There is plenty of science and engineering in these (and a lot more work to do), just as there is in, say, LCD screens, but there is no reason why you have to use one rather than another just because everyone else is. There are strong manufacturing scale effects, but no network effect. [My link, not his.]

    And here’s his conclusion:

    So, the network effects – the winner-takes-all effects – are in data: in driving data and in maps.

    That said, it is still early days for autonomous vehicles. Who knows if these network effects will end up being highly defensible or weak. There are still lots of assumptions and questions at this stage.

    From a city building perspective, one of the major concerns with autonomous vehicles is that they could tempt us back to car-centric city planning. That would be a shame.

    Photo by Zachary Staines on Unsplash

  • Why I write about tech on my city building blog

    I had a friend ask me this week about how I decide what to write on this blog. His comment was that I tend to write about a variety of different topics. He wondered: Isn’t it better to focus on one particular niche?

    The simple answer is that I write about what interests me. And secondary to that is any concern around what will get the most clicks. In fact, I try not to fall into the trap of worrying about the latter. Sometimes it can be paralyzing to fixate on what will appeal most to the tens of thousands of people who read this blog on a regular basis.

    The reality is that my interests are much broader than, say, just design and real estate; though these two topics are clearly central. 

    I learned a long time ago while studying architecture and art history that what we make as a society is generally a product of the cultural milieu at the time. In other words, the built environment doesn’t happen in a vacuum. It is the physical manifestation of what we believe to be true at a particular moment.

    Today, it’s pretty hard to ignore the importance of tech. Think of some of the most valuable companies in the world right now: Apple, Google, Amazon, Facebook, and so on. Now, technology has always shaped our cities, but what makes this moment different is the decisive shift toward software.

    It’s arguably no longer about who can build the best mousetrap. It’s about who can build the best software layer on top of that mousetrap.

    In 2011, venture capitalist Marc Andreessen (previously the co-founder of Netscape) published a widely shared essay called, “Why Software Is Eating the World.” And over the past 6 years he has been proven to be very right.

    The 3 main points he aimed to make with that essay are as follows:

    1. Every product or service that can become software will become software.
    2. Every company will have to become a software company.
    3. The winning companies will be the best software companies.

    Depending on your industry, this may sound ludicrous to you. Certainly in 2011 it probably seemed that way. 

    But a perfect example of this phenomenon is the iPhone. The phone itself is manufactured in China, albeit where a lot of great hardware innovation is taking place. 

    But at this point, phones have become fairly commoditized. The profits that Apple makes from the iPhone disproportionately come from the software layer and the app ecosystem it has developed.

    You could make a similar argument with Tesla. Autonomous navigation – which most of us can agree will have a profound impact on cities – is largely a software challenge. 

    And so if you believe that autonomous vehicles will be a fundamental part of the future of mobility, then it’s not that hard to believe in point number three: the winning car company will also have to be the best car software company.

    Some industries have been less touched by tech and software – real estate being one of them. But if Andreessen is right and it’s not a question of if, but a question of when, then it behooves all of us to think about the potential impacts.

    I love how Andreessen ends this podcast discussion with Barry Ritholtz of Bloomberg and so I’m going to repeat it here to close out this post. He says: “There are no bad ideas. There are only early ideas.” 

    And that’s why I write about tech on my city building blog.

    Photo by Michal Pechardo on Unsplash

  • One hour drive

    I’m taking next week off so that I can respond to emails from various places in Ontario and Quebec instead of from my desk. The out of office messages really fly at this time of year, so it’s usually a pretty good time to try for a recharge.

    Because of that, this post feels appropriate. 

    Sahil Chinoy of the Washington Post recently looked at anonymous cell phone and vehicle data (from Here Technologies) to see how far you could drive in one hour if you were trying to escape the downtown of various U.S. cities on a Friday afternoon in the summer.

    This exercise was done for 3 departure times on July 28, 2017: 4pm, 7pm and 10pm. The mappings all leverage 3 years of historical speed data.

    Here is a first set of maps showing a few cities in the northeast and in the mid-atlantic. Every city is shown at the same scale so that they can be easily compared.

    image

    And here is a second set of maps showing a few, more car-oriented, cities.

    image

    Not surprisingly, older transit-oriented cities like New York don’t do well in this contest. No matter what time you leave, it’s hard to make it past 30 miles. Whereas in the case of Vegas, it doesn’t really matter what time you leave. You should be able to clear 50 miles.

    That’s the other interesting thing to note about these maps – the spread between distances at the various times.

    I’m sharing these because I’m a sucker for diagrams, but I don’t think they tell the whole story. The modal splits and the population and employment densities are all very different across these cities. New York’s core competency is in moving lots of people in trains, not in cars.

    Although, perhaps the ironic thing about these diagrams is that a tighter drive radius might actually say something about how efficiently land is being used.

  • Seattle vs. Vancouver

    A reader recently shared an article with me called: Why Seattle builds apartments, but Vancouver, BC, builds condos. Thanks for that.

    It’s a good summary of the differences between these two markets and why over the last five years less than 4% of all new residential units built in Seattle have been condos. The story is obviously very different in Vancouver.

    It’s also a good reminder that incentives matter. Capital has a funny way of flowing to where the returns are greatest.

    Chart: Sightline Institute

  • A story about Toronto

    Marcus Gee of the Globe and Mail recently published “a made-up story about Toronto that never appeared, but should.”

    It goes like this:

    Toronto city hall is pressing a prominent developer to put up a taller building.

    Mayor John Tory is telling Big City Condo Corp. that the condominium it has planned for the downtown corner of Maple and Oak streets is simply too small. The proposal calls for a 25-storey residential tower. Mr. Tory said it could easily rise to 40 or even 50 storeys.

    He dismissed complaints from locals who said the tower would overshadow the neighbourhood and put too many more cars on the street. The intersection is well served by public transit, with two lines crossing there. The mayor called it a golden opportunity to create urban density.

    He insisted the city must build up instead of out if it wants to avoid more sprawl. “We love tall buildings,” he said. “We need more of them. We can’t keep spreading out and out and out. We need to grow up, and I mean that quite literally.”

    Again, this is made-up. And if you’re from Toronto, you knew that. 

    We are still grappling with the urban intensity that should come along with being an important global city.

    Photo by Redd Angelo on Unsplash

  • Why dynamic road pricing is inevitable

    The Economist recently published an article called: How and why road-pricing will happen. If you’re a regular reader, you’ll know that there’s been lots of talk and support

    over the years

    on this blog for dynamic road pricing.

    It’s politically unpopular, but it’s an incredibly rationale way to deal with traffic congestion. 

    In Singapore – home of the world’s first congestion charge zone (1975) – they constantly monitor traffic congestion. As soon as average speeds drop over a three-month period, they simply raise the charge. Congestion gone.

    We know this works, but for many reasons road pricing is highly divisive. According to The Economist, there are a few reasons why this is going to become a bit more politically palatable.

    For one, the take from gas taxes and vehicle duties has been declining in Britain over the past couple of years. Electric vehicles will only exacerbate this trend. So governments are going to be forced to look elsewhere for money.

    Secondly, traditional tolls and congestion charges are becoming increasingly ineffective. Today in central London, private-hire vehicles are said to make up about 38% of all car traffic – almost double the share of traditional black taxis. 

    These are cars circling around the city, picking up passengers. Blunt charges based on suburbanites entering the city in the morning and leaving in the afternoon is simply not capturing the way that many of us move around our cities today.

    In other words, urban mobility is undergoing dramatic changes and the revenue and congestion management tools are going to need to adapt. If you’re interested in this topic, check out the full article here.

    Photo by chuttersnap on Unsplash

  • The Hong Kong window ledge

    image

    My friends at the architecture practice Valente Rodgers told me something fascinating about the Hong Kong real estate market last night. Both partners worked as architects in Hong Kong for a number of years.

    In Hong Kong, you’re allowed to deduct certain projecting windows from your calculation of Gross Floor Area

    This is provided they’re a certain height above the finished floor level, they don’t project beyond certain distances from the outer face of the building’s structural elements, and so on. The precise measurements seem to vary depending on things like the building’s use.

    Since space is such a precious commodity in Hong Kong, it shouldn’t surprise you that lots of developers and architects take advantage of this. The result being a proliferation of these projecting window ledges all across the city. 

    It’s a phenomenon that happens in many cities when a perfectly legal loophole is found in the land use policies.

    In Toronto it used to be solariums. You could also deduct these from your overall GFA, which means a lot of them them got built in condos and apartments of a certain vintage.

    In New Orleans it was the camelback house. These were houses with a single storey toward the street and a second storey toward the rear of the property. This was done because property taxes were assessed based on the height of the house as it met the street. Pushing the density toward the rear of the lot meant homeowners weren’t taxed more. 

    I find these outcomes fascinating because they have absolutely nothing to do with architectural intent and everything to do with trying to optimize within a given framework.

    But what’s even more interesting about the Hong Kong example are some of the downstream externalities.

    Firstly, it sounds to me like these projecting windows have become a normal part of underwriting projects in Hong Kong. Meaning, if you don’t factor in these projections, you’re effectively giving up free GFA. (Can anyone familiar with the HK market confirm this?)

    However, building these projections also means you can’t do unmodulated and clean floor-to-ceiling windows. And if that’s the desired aesthetic, somebody has got to be willing to pay for that “luxury.” So arguably there’s a socioeconomic dimension to having and not having this ledge.

    Secondly, because space comes at such a premium, these ledges are fully taken advantage of and furniture makers have responded by designing pieces that can dovetail with them.

    Below is a photo of a bedroom in Hong Kong that I found on bohemia.life:

    image

    This may be a custom bed and I don’t know how deep that window projection is, but it begins to show you how valuable these ledges can be from a space perspective.

    I think we should try and come up with a name to describe these sorts of built form phenomena. If you have any ideas, please drop them in the comments below. And if any of you are familiar with the HK market, let me know if I’m off the mark with any of the above.

    Photo by Jason Wong on Unsplash