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

  • The 0.1%

    City Observatory recently published a post called, The 0.1 percent solution: Inclusionary zoning’s fatal scale problem

    I recognize the political attractiveness of this land use policy, but I’ve always been skeptical about its effectiveness. 

    Here’s an excerpt from the post:

    “While inclusionary zoning gets top mention as a preferred policy by many affordable housing advocates, there’s precious little evidence that its ever had more than a token effect on the size of the housing affordability problem in any city. In addition, because inclusionary zoning requirements essentially shift the cost of housing subsidies onto new development, they raise its cost, and likely reduce the number of units that get built–which tends to aggravate housing shortages and further accelerate prices.”

    Sadly, I think that many housing policies tend to be more about optics, than about impact. There’s rarely such thing as a free lunch.

  • Building a city from the internet up

    There has been a lot of exciting tech + urbanism news this week in Toronto. Uber announced that it’s building a new artificial intelligence team in the city and it came out that Sidewalk Labs (Alphabet company) had responded to an RFP put out by Waterfront Toronto. 

    The RFP, which closed at the end of last month, was to find an “innovation and funding partner” for the 12-acre Quayside precinct shown above in purple. It’s the first parcel of the “eastern waterfront.” (Click here if you’d like to download a copy of the actual Request for Proposal.)

    These days, it’s easy to be cynical about these sorts of announcements. Every day you hear about some new innovation center or tech hub. But what’s perhaps unique about this one is that Sidewalk Labs is thinking crazier than most and they have the financial backing that crazy sometimes needs.

    If you’re not at all familiar with Sidewalk Labs, I suggest you read this post about how the company wants to build cities “from the internet up.” It’s by their CEO, Daniel L. Doctoroff. 

    Not surprisingly, they are thinking about everything from automated trash systems and autonomous vehicles (including their impact on built form, cost of living, productivity, etc.) to exchange-based thermal grids and more cost effective construction methods. And it’s not just about the technology. It’s about marrying tech + urbanism.

    Also interesting is their model of setting up a “hyper-focused labs”, which are each run by entrepreneurs-in-residence. These internal labs are focused on things like housing affordability, the health challenges faced by low-income city residents, and so on. 

    It’s all very exciting. So let’s ensure this moves forward and let’s hope Sidewalk Labs keeps thinking crazy. Toronto is ready to lead and show the world how a city built from the internet up should perform.

  • We’re working with superkül

    Today I am excited to announce that we are working with superkül architects on a new mid-rise condo project here in Toronto. Details about the site and project to follow.

    I am excited about this for a few reasons.

    It should go without saying that I love their work. Check out Compass House, SHIFT Cottage, Harbord Towns, and Oben Flats Queen East.

    You may also notice that they work at a variety of different scales and have a lot of single-family / custom home work. This was important to us because one of our goals for this project is to create really great homes within a boutique building. Emphasis on home.

    The other exciting piece is that one of the founding principals of superkül – Meg Graham – was one of my professors in architecture school. So there’s a sense of coming full circle.

    This matters to me because when I became a developer I told myself that I was going to be the kind of developer that gave a shit about design and actively worked to improve the built environment.

    I guess what I’m saying is that there’s a feeling of continuity. I haven’t forgotten where I came from, which was the world of architecture.

    Image: Blok Design

  • Powerhouse: A case study in neighborhood infill

    Dezeen recently featured the above project in Philadelphia by Interface Studio Architects. It’s called Powerhouse and the goal was to provide a variety of different housing typologies and tenures within a dense infill project that, at the same time, remains in keeping with its context.

    The full block complex contains 31 residential units, which are a mixture of apartments, duplexes (stacked towns), live/work units, and single-family townhouses. There’s also a corner retail space. 10 of the units are rental and the balance are for sale. The development also incorporates 3 existing rowhouses on the block. (Were these the holdouts?)

    Here is a diagram from ISA to give you a sense of how these different housing types come together:

    The project feels germane to Philly’s urban fabric and it is certainly interesting in its own right. But for those of us from Toronto, it’s perhaps even more interesting because it’s a scale of infill development that we don’t see very often in this city: low-rise intensification. (Also commonly referred to as “The Missing Middle”.)

    Recently I’ve been speaking with a number of people about whether or not Toronto should be thinking differently about its low-rise neighborhoods. Because as it stands today, even this sort of gentle density can cause quite a stir

    Two thoughts immediately come to mind – one of which will not surprise anyone who reads this blog. Firstly, I see laneway housing as an elegant way to intensify low-rise neighborhoods without changing their character. That’s why I’m proposing this house.

    Secondly, I have long felt that we should rethink how we treat arterial roads that are not designated as “Avenues.” That is, we should encourage greater densities. An “Avenue” designation signals mid-rise. But absent this, our policies are frankly retrograde, given the way some of these arterial streets have evolved over the years.

    What are your thoughts about this scale of infill?

    Images: ISA

  • A sneak peek of One Spadina Crescent

    Earlier this week I got a sneak peek of One Spadina Crescent – the new building for the Daniels Faculty of Architecture, Landscape, and Design at the University of Toronto. 

    The renovation and addition was designed by the Boston-based firm NADAAA. And let me tell you, it’s absolutely spectacular.

    I was in a rush at the time and I didn’t have my real camera on me, but I managed to quickly grab this snap:

    It’s of the third floor. 

    What you see in the middle are steps leading down to an “open bleacher space” that functions as a crit space and as an oculus that brings light into the core of the building. In the middle of the building is a large flex space.

    Because the building effectively sits in the middle of Spadina Avenue, the windows on the right side (above) look directly up the street, as if you were standing in the middle of it. I wish I had betters photos to share with you all.

    When you’re an architecture student, you spend almost all of your waking time in studio. I can certainly think of worse buildings to be cooped up in. I’m excited to see it in full swing come September.

    Click here if you’d like to see renderings of the building.

  • Introducing lanewaylove.com — my laneway house is back!

    One of the most widely read posts on this blog is this one here, called: Why it’s next to impossible to get a laneway house built in Toronto. Clearly, there’s a tremendous amount of interest in this housing type both here in the city and elsewhere.

    Since I wrote that past over 2 years ago, I have been bombarded with emails from people asking me the status of the project and if I could help them achieve something similar on their properties. And my response was always the same: sorry, the project is on hold.

    But over the last few years, things have changed. Home prices have risen dramatically in this city. At the beginning of 2017, the average price of a detached house reached almost $1.6 million – representing a year-over-year increase of nearly 30%!

    In part because of this, laneway housing has also entered mainstream consciousness thanks to groups and initiatives such as The Laneway Project, Lanescape, Evergreen, the University of Toronto, and so on. There are now Councillors advocating for them within City Hall, which was not the case even a few years ago.

    Given all of these changes, I decided that it was time to dust off my laneway house design and make a serious go at it. So I called up my architect friend Gabriel Fain and asked him if he would help me pioneer this new housing typology. He immediately said yes.

    Last week a revised version of Mackay Laneway House was submitted to the city, kick-starting the approvals process. Here’s a rendering showing the north elevation (view from existing house):

    image

    The next step will be a trip to the Committee of Adjustment to obtain the necessary variances. But even with all of the momentum building in the city right now around more affordable housing solutions, this will not be a slam dunk. 

    So in parallel to all of this, we have also launched a new website called lanewaylove.com. Here you will find general information about laneway housing, as well as floor plans of the proposal. But most importantly, we hope it will serve as a tool to generate support for this and other laneway houses in Toronto.

    At the bottom of the site is a link that will allow you to support Mackay Laneway House by submitting your name, email, and postal code. The reason it also asks for your postal code is so that we can anonymously match supporters with specific areas of the city. We think this will be valuable information going forward.

    If you believe that Toronto would be well-served by more affordable and sustainable housing solutions, I would encourage you to sign your name at lanewaylove.com and share this post with your network. We would greatly appreciate your support.

    Here we go!

  • Technology and the city

    Embedded at the bottom of this post is a great rapid-fire talk by Edward Glaeser about technology and the city. 

    Technology has always been a fundamental driver of change within our cities and I like how Glaeser starts by referring to these forces as either centripetal and centrifugal. The car was an example of the latter. It spread us out.

    At the same time, Glaeser points out that the car was really the first time that urban mobility patterns shifted from hub-and-spoke to point-to-point. Transit systems rely on hubs and some walking, which in a world of cars has led to something we call the last mile problem.

    Also worth noting is the fact that Glaeser is terrified about what autonomous vehicles will do to our cities. His point is that the fundamental law of highway traffic has shown that vehicle miles traveled increases basically 1:1 with highway miles built.

    So if all of a sudden AVs are able to decrease the cost of mobility, provide capacity benefits, and increase rider enjoyment (because you’re no longer a driver), vehicle miles traveled are going to go through the roof. This makes a strong case for some form of road pricing.

    But it also means that unlike traditional cars, which were a centrifugal force, AVs could in fact turn out to be a force that further centralizes us within dense urban centers.

    When you listen to Glaeser’s talk, you will quickly understand why so much attention (this blog included) is being paid to autonomous vehicles. They are one of – if not the – next great technology bound to reshape our cities.

    If you can’t see the video below, click here.

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

  • 5 decades of condo development in Toronto

    Jeff Gray and John Sopinski just published a terrific set of maps in the Globe and Mail outlining 5 decades of condo growth in Toronto.

    Ontario first introduced the Condominium Act in 1968. The first condo project was supposedly built by Bert Winberg – founder of Rockport Group – between 1968-1969. He saw what developers were doing in California and Florida and he brought it to Toronto.

    Since then, here is what condo supply has looked like across the Greater Toronto Area:

    • 1970s – 11,697 units
    • 1980s – 30,881 units
    • 1990s – 49,503 units
    • 2000s – 103,683 units
    • 2010s – 109,497 units (up to September 2016)

    And here’s the map for the 2010s:

    We are now a condo city. For the full set of maps, click through here.

  • The post-Wall techno music of Berlin

    image

    I’ve written about Berlin many times before on this blog. It’s such a fascinating case study for me because of its history, its urban development patterns, and its famous techno scene.

    Last month, Nick Paumgarten wrote a piece in the New Yorker, called Berlin Nights, where he dives into the city’s club culture and its reputation as the cradle of techno music. 

    But in doing that, he is necessarily forced to talk about the once divided city and its unique “post-Wall” condition. When the Wall came down, the East became – as a result of its under-utilized built form – a breeding ground for the pent up energy and creativity of the West.

    Here is an excerpt that speaks to the importance of those empty spaces and sparsely populated neighborhoods:

    The post-Wall abundance of derelict building and excess housing was decisive. “Empty spaces allowed there to be a club culture,” Robert Henke said. “With no empty space, you get a closed-at-2 a.m., restrictive-alcohol culture.” At first, the reclamation seemed slapdash, improvisational, anarchic, as squatters took over buildings and neighborhoods and set off a period of cultural ferment. But the powers that be had been dreaming up developments for years before the Wall came down, and now—amid a boom in real-estate speculation and investment (everyone spoke of the Swedes)—empty space, and the sense of wildness that comes with it, has become harder to come by. “Flats are getting more expensive,” Hegemann said. “But we still have many free spaces. This is the secret for why Berlin is still alive.”

    And here is the story of one such building:

    Some empty spaces have completed their life cycles. One afternoon, I visited the old Reichsbahnbunker, a five-story fortress of reinforced concrete built by the Nazis in 1942 as an air-raid shelter. The Soviets turned it into a jail for P.O.W.s. Then it was used to store bananas and other tropical fruit. It was abandoned. In the nineties, it became an infamous techno night club, the Bunker. No ventilation, no fire exits. The government eventually shut it down. In 2003, an advertising executive and his wife bought the building and converted it into a museum to house their collection of contemporary art. They also built a glass-and-steel penthouse on the roof, to house themselves. Now the collection is open to the public, by appointment only. I joined a tour one afternoon. The guide, a young art student with a sweet monotone, took us into a cell-like space featuring giant manipulated photographs of the night sky, by Thomas Ruff, and explained that it had been the original dark room of Berlin. “It was very extreme,” she said. “It was hot, damp, loud, and dark. It was said to be the hardest club in the world. I’m sure you can imagine the things.” She gave a coy smile.

    If you’re interested in cities and/or electronic music, the essay is well worth a read.

  • Toronto real estate is out of control

    You can’t have an Easter dinner in Toronto right now without somebody bringing up the topic of our “crazy” real estate market. 

    Below is a chart from Bloomberg showing the year-over-year change in home prices in the Greater Toronto Area since 1990. It also shows the historical average (in blue) and how in March 2017 we hit 4 standard deviations above that. Home prices rose 33% in March compared to a year earlier.

    If I were a realtor, I’d probably tell you that the market is hot hot hot. Now is the time to sell because you’ll get some absurd number above your asking price and now is the time to buy because prices are going nowhere but up. Don’t miss out. 

    I would like to try and be a bit more nuanced than that. Here are 3 thoughts:

    1)

    There’s no question that low rates / cheap money is one of the root causes of the real estate valuations we are seeing today. But frankly I have no idea when or if that will change. There is an interesting argument out there that capital is no longer scarce. Our economy is going through a fundamental shift, which is why real estate is not the only asset class seeing these sorts of valuations and growth figures.

    2)

    There are a number of global factors which are helping to cement Toronto’s position as an alpha global city and destination for human capital. Think Trump, Brexit, and so on. I agree with Richard Florida’s argument that our real estate market will see more – not less – pressure going forward. Here is a snippet from a recent interview with Florida in Toronto Life:

    I think Toronto is going to get an even bigger influx of the creative class. With the rise of Trumpism, more and more people who might otherwise have gone to the United States are going to come to Canada. We’re going to see American tech companies invest more and more in Toronto. And if we think the housing affordability and economic divide we see today is bad, it’s going to grow ever more gaping. 

    3)

    I believe that there are always opportunities in the real estate space, but that you have to be disciplined, focused on fundamentals, and willing to do things that others won’t. What bothers me is when I hear people say things like: “Real estate only goes up. You can never go wrong.” I started my career pre-2008 and lived in both the United States and Ireland. I saw what down looks like.