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: development

  • Out of sight, out of mind

    Henry Grabar has an interesting piece in the March 2016 issue of The Atlantic talking about Paris’s ambitious metro expansion. By 2030, and after $25 billion of investment, the Paris system will gain four new lines, 68 stations, and more than 120 miles (192 kilometers) of track. 

    To put this into perspective, this additional track length is roughly equal to Toronto’s entire subway and streetcar network, including all under construction and approved lines.

    But the real focus of Grabar’s article was on how this transit investment will really stitch Paris back together:

    “Three of the new lines will run north and east of Paris, through Seine-Saint-Denis, the poorest of the 96 departments in France. Among French cities with at least 50,000 people, six of the seven with the highest percentage of foreign-born residents are in Seine-Saint-Denis. Residents of Clichy-sous-Bois, where the riots that swept the region in 2005 began, will for the first time find central Paris within a 45-minute train ride. The town of Saint-Denis, the site of the standoff between police and the terrorists who struck Paris in November, will be home to the project’s largest train station. Designed by the Japanese architect Kengo Kuma, the junction is expected to handle 250,000 passengers a day.”

    Below is a map (from the same article) showing the location of Clichy-sous-Bois to the east of Paris and the area reachable within 45 minutes from this suburb, both today and in 2030 when the new metro lines open.

    Having traveled to Paris in 2006, shortly after the riots took place, I remember some Parisians telling me that this was not a Paris problem. They told me that this was a problem of the banlieues, but not of Paris. Seeing how separate Clichy-sous-Bois is today, that is probably how it felt to some or most. But based on the above, the Paris region is about to be stitched together.

    What I love about Grabar’s article is this idea that transit and connectivity represent a kind of citizenship for urban residents. And that even today, in our hyper connected world, physical access matters a great deal. Because without it, you might be out of sight, out of mind.

    On that note, here is how the article ends:

    Benoît Quessard, an urban planner for the local government, told me that he sees the expansion as not merely “an economic wager but also a social one.” In this sense, it will test an old Parisian belief about the Métro conferring, beyond convenience, a kind of citizenship on its riders. In 1904, four years after the first line opened, the writer Jules Romains predicted that the system would be a “living, fluid cement that will succeed in holding men together.”

  • My approach to blogging

    In yesterday’s post about the city as an egg, I received a comment basically saying that I use this blog to carefully curate my own image and that I would never argue against “dumb Toronto planning” because, after all, I’m a developer. I am going to do what breads my own butter.

    I welcome intelligent debate on this blog. That’s why it is open to anyone who would like to comment. But since I’ve received similar comments in the past, I thought I would use the opportunity to talk broadly about my approach to blogging.

    Firstly, there will always be some level of curation involved. That’s inevitable. We see it all over social media. But I’m a big believer in transparency and I try to do exactly that on this blog. I am keen to push the boundaries in this regard.

    At the same time, part of what makes blogs unique is that they’re often personal. That is the origin of blogging. Some of my favorite blogs to read are the ones that have figured out how to combine a particular niche topic with personal stories. And since ATC is ultimately my personal blog, I am going to continue taking that exact same approach.

    Secondly, I only write about things that I’m passionate about. I get asked all the time to write about and promote specific projects, causes, and events. But almost all of them do not get written about it. Because if I don’t care about it, then I’m not going to write about. It’s as simple as that.

    Thirdly, I believe in positivity over negativity. I believe that optimists, not pessimists, change the world. President Obama won his first term with a message of hope, not despair. To me, that is a stronger motivator.

    I’ve been told before that I’m overly optimistic and that my youthful exuberance will one day wear off. Boy, I sure hope it doesn’t. Because would you rather have a beer with someone who is optimistic or someone who is pessimistic? I will always take the former.

    However, this is not to say that I want to be blind to the realities of the world. Last summer I disagreed with Toronto’s decision to rebuild the elevated Gardiner Expressway East along the waterfront, and I continue to disagree with that decision. 

    When I believe something is a mistake, I am happy to make it public and put it in writing on this blog. But as a developer, I suppose I have certain biases working against me. That’s just the way it is.

    In any event, this is my rough and ever-evolving approach to blogging. As usual, I welcome any and all comments.

  • The value of lifestyle in attracting human capital

    When I was in Revelstoke, BC last year I met a number of people who had made the move out there from Toronto. When I asked if they missed living in a big city, pretty much everyone gave me the same answer: “No, I love it here.”

    This past week when I was in Park City, Utah, I similarly met a number of people who had made the move from New York and other large cities. And when I asked them the same question, I heard statements like: “I used to live in New York, but then I got a life and moved out here." 

    In these two examples, the obvious draw is the mountains. But it’s not like everyone just moved and became a ski bum. In fact, Inc Magazine recently published an article talking about Park City’s robust startup scene. People are figuring out how to combine hard work with the lifestyle they want.

    What I find interesting about this is that it runs counter to the trend of young people preferring big cities. Here’s a quote from NPR:

    “But affordable real estate and waterfront views don’t have millennials biting. They continue "a multigenerational pattern of young adults preferring more expensive urban areas over lower-cost rural ones because the lifestyles and opportunities in such places make the extra burden of cost worth it,” says Robert Lang, professor of urban growth and population dynamics at the University of Nevada, Las Vegas.”

    However, some small towns clearly have a unique lifestyle advantage: mountains. And that seems to be a strong enough draw that some people are simply figuring out how to create the economic opportunities for themselves.

    For me, this is yet another reminder that if you’re trying to attract the best human capital to your city or town, you need to think about lifestyle. And since young adults aged 18-34 are far more likely to move around than any other generation, you should also be thinking specifically about what this generation wants.

    Here’s a chart from CityLab that shows how precipitously migration falls off (in the U.S.) once people finish school and get settled in a job:

    image

    Obviously, not every town or small city is blessed with mountains. But there are many lifestyle advantages that can be created. It’s for this reason that I keep talking about nightlife and Toronto’s laughable 2AM last call. Those are lifestyle things and we can do better.

  • Maximize your space with square foot hours

    I am more than happy to trade-off living space (that I don’t really need) for a better location. It means I get the benefit of driving less and enjoying the city more.

    But as more of us move to urban centers, we are finding ourselves having to do more with less space. Often this means creating flexible and multi-purpose spaces.

    One strategy for this that I really like – which I just learned about through 5 Kids 1 Condo – is the idea of square foot hours. Here’s how it works:

    “The concept behind ft2hours (square-foot hours) is to add a time-based measurement to how we assess and use our space. So if your 10′ x 12′ bedroom is used only eight hours a day (i.e., when you’re sleeping), your actual usage is 120 ft2 divided by three (one-third of the day), which is just 40 ft2hours of used space.”

    In many ways, this happens intuitively. If you really want to maximize a space, you figure out how to use it more often throughout the day. But I like the idea of applying some math to it.

    Of course, this runs counter to the notion that some spaces should be reserved for specific uses. In the case of a bedroom, it’s sleeping and sex. This is so that your mind doesn’t start associating it with things like work, which might start to disrupt your quality of sleep. But perhaps that’s about to become an anachronism in the modern city.

    Without having the above formula in mind, I have thought along similar lines for my own apartment.

    When I think about where I spend most of my waking hours, it’s bouncing between the kitchen and the living room. And yet my kitchen isn’t up against the windows; it’s recessed towards the back. Instead, my bedroom – where the blinds are almost always drawn – got the windows. (Access to light is a code requirement.)

    If it were up to me, I would have flipped my bedroom and the kitchen. But typically in the real estate world, “recessed bedrooms” are considered less desirable. 

    I don’t think I’ve heard many people complain about a recessed kitchen, but maybe that will change once we start thinking more about things like square foot hours.

  • To connect rather than isolate

    When I was
    a kid growing up in the suburbs of Toronto, I never played in the backyard. I
    played in the streets. That’s where all the kids came together.

    We would
    play baseball in somebody’s driveway, using one of the garage door “squares” as
    the strike zone. We would play football on corner lots, where it was tackle on
    the grass and “two-hand touch” on the street. And we would wax our curbs so
    that we could skateboard them.

    None of these
    spaces were ever really intended for baseball, football, or skateboarding, but
    we kids repurposed them.

    As people,
    including families, continue to move into urban centers around the world, I
    have no doubt that the next generation of children will once again repurpose
    spaces for play. But that doesn’t mean that we don’t have work to do when it
    comes to properly preparing our communities for people of all shapes and sizes.

    One of the
    most interesting design challenges facing us today has to do with our towers.

    Architects
    have long been obsessed with the idea of vertical villages. Le Corbusier’s Unité
    d’habitation
    in Marseille had two shopping streets embedded within the tower
    that were intended to act as public spines. I don’t know how well they did, but
    it was a highly progressive idea for the time.

    Following
    on this idea, I was recently watching a
    TED talk with architect Ole Scheeren
    (thanks Mariane) and I was fascinated
    by his obsession with breaking down the raw verticality of towers.

    His belief
    was that, yes, cities are and will continue to become more dense through tall
    buildings, but that most towers isolate rather than connect people. His work strives to do the opposite.

    And this
    one of the big trends that I think we will see more of in our cites. We will see
    new forms of urban connectedness and a blurring of private, public, and
    semi-public spaces. Screw Euclidean zoning.

    On that
    note, I am reminded that I owe the ATC community a post on my predictions for
    2016. I hope to get that out shortly.

    Diagram via Büro Ole Scheeren

  • Share your big idea for Canada’s #Capital2067

    Parliament Hill by Maryus Bio on 500px.com

    https://500px.com/embed.js

    On Thursday night I spoke at an Urbanism Lab event in Ottawa put on by the National Capital Commission.

    The event was all about the interconnection between the online world of blogging and social media, and the offline world of tangible city building.

    More specifically, one of the goals was to help inspire institutions, such as the National Capital Commission, to better leverage these new channels in order to get their message out.

    Social media and blogging may be ubiquitous, but lots of organizations are still getting their heads around it.

    So today I thought I would do my part and share something with all of you that, truthfully, I didn’t know was underway until I visited Ottawa.

    But first, how many of you (Canadians) are exactly aware of what the National Capital Commission does?

    The NCC is a federal Crown corporation that is focused on 3 specific mandates:

    1. They are the long-term urban planner of federal lands in Canada’s Capital Region. They are also the largest landowner in the region.
    2. They are the principal steward of nationally significant public spaces and buildings, including the Capital’s six “official residences.” Residences such as 24 Sussex Drive.
    3. And they are a “creative partner” on initiatives that tie into both development and conservation.

    To this end, the NCC is now working on a Plan for Canada’s Capital, 2017-2067. This is a 50-year plan that will outline what they do with federal lands, buildings, parks and other symbolic spaces in the Capital. And it will identity which projects would best craft and represent our national identity, as well as strengthen Canada’s influence in the world.

    This is all pretty important and interesting stuff. But unfortunately I didn’t know it was underway. And I also didn’t know what they were looking for “big ideas” from Canadians. These are ideas that will directly shape the 50-year plan.

    So if you have an idea – big or small – for the National Capital Commission, I would encourage you to click here and share it with them. Not only is this city building in the Capital, it’s also nation building.

    Please also feel free to copy and paste your idea(s) in the comment section of this post. These ideas definitely deserve a fulsome discussion. I will post mine once I write it.

  • Additional thoughts on land prices

    Daniel Hertz over at City Observatory just published a post talking about why land costs are so important when it comes to home prices. More specifically though, his post is intended to refute a claim that multifamily housing is always going to be more expensive than single family housing.

    The key concept here – which is critical to understanding urban real estate economics – is that home values are essentially made up of two things: the land and the improvements (i.e. the building). 

    When home prices rapidly appreciate, as has been the case in cities like Vancouver (see below) and Toronto, it’s not the building, but the land that’s really driving the price up. 

    And as you can see from the chart below (which Daniel shared in his post), it is possible for multifamily housing to be less expensive than single family housing. 

    image

    So why was someone arguing that multifamily housing is more expensive?

    Well if you look at just construction costs, then this is generally true. Single family housing is typically wood frame construction, whereas multifamily housing is usually reinforced concrete or some other material that allows you to build up. In these latter cases, the price per square foot to build is going to be higher.

    But Daniel’s argument is that when you build multifamily housing, you also begin to amortize the cost of the land over more housing units. So you begin to use land more efficiently and that offsets the higher construction costs.

    However, two thoughts come to mind.

    First, the value of a piece of land is entirely dependent on what you can build on it. And the more you can build on it, the more the land is worth. So as densities increase, so do land prices.

    Second, a big part of why condominiums are so much more affordable is that they’re smaller. In 2014, the average condo size in Metro Vancouver was estimated to be 840 square feet. I couldn’t find the average size of a detached house in the city, but let’s assume for a second that it’s 2,500 sf. 

    If that were the case, then a detached house, despite being more expensive overall, would still be cheaper on a per square foot basis. You would be paying less for every square foot of livable space. True that doesn’t make the house more affordable, but I think it’s a bit unfair to compare apples (small condo) to oranges (large house).

    So what I would really like to see is a graph of all-in low-rise and high-rise per square foot prices over time and for various cities. Because I would be curious to see at what point – if ever – they intersect.

  • Urbanism Online: #capital

    image

    For those
    of you from Ottawa, I’m going to be in town this Thursday evening talking
    at an event put on by the National Capital Commission called Urbanism
    Online
    . It’s all about how blogging, social media, and online discussions can
    and are contributing to the betterment of cities.

    The other
    bloggers include:

    – Marc-André Carignan, Montreal, Kollectif.net

    – Jillian Glover, Vancouver, This City Life

    – Robert Smythe, Ottawa, UrbSite

    The event is
    now full, but email them or tweet me if you’d really like to come
    and I’ll certainly ask about space availability. I’m sure it’s going to be a great discussion.

    I have a bit of a soft spot for Ottawa. I used to spend a lot of time there when I was working on an office building at 150 Elgin Street. (Key tenants include The Canada Council for the Arts, KPMG, and Shopify.)

    I haven’t been back since the building was completed, so I’m excited to see how it turned out.

    Update: The event will also be streamed on Periscope, here.

  • Urban infill case study: 1234 Howard Street in San Francisco

    Urban infill developments can be tough. The sites are often small and/or narrow and that creates a lot of design challenges. Access to light is a common problem.

    But constraints can also be beautiful, because they have a way of forcing creativity. 

    When I was in architecture school, I used to find it easier to work when I was given constraints and challenges. It gave me something to latch onto, as opposed to just starting with a blank canvas. A big part of design, at least for me, is about solving problems. So give me a problem to solve!

    One of the ways that architects and designers often deal with the access to light problem is by carving out lightwells or courtyards to bring light down into the building. This can be used when you have a deep site or when you’re building right up against the property line and you can’t have any windows.

    One project that I’ve always liked for this reason – as well as the fact that it’s beautifully designed – is 1234 Howard Street in San Francisco. It looks like this from above:

    image

    The site is 50′ x 165′ and it spans an entire block. 

    In order to get lots of light into all of the units, the architects (Stanley Saitowitz | Natoma Architects) split the site up into 3 “bars”, each of which would be somewhere around 16′ x 165′. The middle “bar” was then dedicated to a courtyard that cuts through the entire building.

    image

    The two flanking bars were then further subdivided into 2 units per bar, which translates into 4 units per floor x 4 floors. The ground floor is just common areas and parking.

    The advantage of this design strategy is that the apartments now have windows running the length of the courtyard, where as typically on narrow deep lots you would end up with “bowling alley” units and windows just on one end.

    The disadvantage of this design strategy is that you’re now just over 16′ away from seeing what your neighbor is eating for dinner, among other things. 

    But with the right window coverings, I’m sure we’d all survive in these apartments with their Bulthaup kitchens and Miele appliances.

    image

    I love seeing creative solutions to tight urban sites. And one of the things that I worry about, with things like the Mid-Rise Performance Standards here in Toronto, is that we’re reducing or even eliminating the possibility for these kinds of creative solutions.

    I recognize that 1234 Howard is not the same as an avenue mid-rise site in Toronto with low-rise residential behind it. But the thought still crossed my mind as I was writing this piece.

    All photos via Stanley Saitowitz | Natoma Architects Inc.

  • What do you think of parking stackers?

    One of the things that’s becoming a lot more common in Toronto is parking stackers. For small infill sites there’s simply no other way to fit in the parking. You can’t lay out a traditional parking garage.

    But while it’s still relatively new for Toronto, I think many of you would be surprised by how many projects there are in the pipeline right now that plan to use parking stackers. In the next 5 to 10 years, they are going to be quite common.

    Some of you might be wondering how they work. There are a bunch of different solutions, from stackers to elevators and palettes, but here’s an example of a triple car stacker:

    In this case, there’s a below grade pit and an open space that goes up into the second floor. This way each car remains accessible without having to move any of the others. If you want the car on the top shelf, just lower the other 2 into the pit. If you want want the car on the bottom shelf, just raise the other 2 into the second floor space (which is what’s shown above).

    But here’s what I’m really curious about: How do you feel about parking stackers? Would you live an apartment or condo where that was how you had to park your car? Or would it be a deal breaker? Please let us know in the comment section below.