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.
We’ve been talking about a lot of heavy topics here on Architect This City lately. Everything from the contentious Gardiner Expressway East to minimum population densities to density creep.
So today I thought we could talk about something a bit more fun: architecture.
When I was in New York last weekend, one of the buildings that was on my must-see list was the now under construction West 57th Street by Danish architect Bjarke Ingels. See photo above. (It also happens to be at the exact location where the West Side Highway transitions from elevated to surface boulevard.)
This is supposedly the first North American project for Bjarke Ingels (he also has a project in Vancouver now). And if you’re a regular reader of this blog, you’ll know that I’m a fan of his work. His diagrams and storytelling ability were a big inspiration for me when I was in architecture school.
The concept behind the project was to create a new hybrid building typology, one that is a cross between the typical European perimeter block building and the North American skyscraper. And the result is pretty wild.
Here’s a video in case you aren’t familiar with the project. Click here if you can’t see it below.
In 2007, I spent the summer working in Dublin, Ireland for a boutique real estate consulting firm called Urban Capital. (For those of you who are from Toronto and know the industry, there’s no connection between the Urban Capital in Dublin and the Urban Capital in Toronto.)
At the time, they were working with a number of government agencies on the development of masterplanned communities, as well as on specific development projects. Real estate was booming and everyone wanted to be a part of it – including the band U2.
But as you all know, the following year (2008) wasn’t kind to the real estate industry and, in particular, to Ireland. That year the country fell into recession for the first time since the 1980s and became labeled as one of the “PIGS.”
I really wish I had started this blog by that point because it would be interesting to look back today on my posts from that summer and see how I was thinking about the Dublin real estate market. I remember having many Guinness-fueled discussions about whether the bull market could continue.
In any event, the Irish economy is coming back.
This year GDP is expected to grow by 5.4%, which would make it the fastest growing economy in Europe. National debt is also falling. At the end of 2013 it stood at €215 billion or about 123% of GDP. And at the end of 2014 it had fallen to €203 billion or about 109% of GDP. The national debt is expected to fall below 100% of GDP by 2018.
I’m thinking and reading about all of this today because I was looking through my photo collection this morning and I stumbled upon a folder titled “Dublin 2007.” The photo at the top of this post was the terrace that I had outside of my apartment in the Docklands area. I don’t think I used it once that summer.
And here’s a photo of my bedroom. It must have been the curtains that sold me on the apartment.
I had a great time in Dublin that summer. It’s a fun and young city and I remember being incredibly impressed by the quality of city building that was going on. I’m sure that wasn’t lost in the Great Recession.
This morning I stumbled upon a blog post by a Berlin-based venture capitalist (Ciarán O’Leary) talking about how Lisbon feels like the next Berlin. In other words, it feels like the next great European startup hub.
The tech scene is organic – it happened on its own, came out of nowhere. That is much more fun and sustainable than any kind of political or targeted economic strategy.
There are a ton of constraints (funding, local talent base, etc.) so entrepreneurs need to hustle to make things happen. Hustle is good.
Berlin was an economic void, Portugal had a massive economic crisis and Lisbon sure isn’t letting that crisis go to waste.
Entrepreneurship has the real chance to be a center stage act, not a side gig. It’s everywhere.
The city is very, very cool. You just want to be here.
You can have a great life on a startup salary.
Everyone speaks english; everyone is welcoming and open. That matters a lot when you want to attract international talent and funding.
And while being “very, very cool” may not seem immediately relevant to creating a robust startup environment, it really is. It may be the most important point. It makes the city a magnet for talent.
Just the other day I was trying to explain Berlin to someone and I used a similar lexicon. I said: “It’s an unbelievably cool city. It bleeds hipness. You will love it.”
A controversial design proposal for the tallest building in Europe has been making the rounds online over the past few days. Designed by Morphosis Architects, the 381 meter-tall tower is being proposed in Vals in the Swiss Alps.
And pretty much everyone seems to hate it.
When I first came across the design, I truthfully had to do a double take to see if it was actually a real proposal. But it seems to be. Everyone is writing about it.
Clearly there are some interesting tensions at play here. You have a hyper-urban building typology in a mountain town setting, but with materials that are intended to make it dematerialize into the landscape.
So I thought we could have a discussion about it in the comments.
Is a small mountain town the right place for the tallest building in Europe? Could it work as a one-off tower?
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.
“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.
Yesterday evening I went to the Toronto Christmas Market in the Distillery District. I had actually never been before, but it was something that I had been meaning to check out for a few years now. And it was wonderful. If you’ve never been, I would highly recommend you go. This past weekend was the opening weekend and it runs all throughout Advent until Sunday, December 21st.
For those of who might not be aware, the Christmas Market festivity is a longstanding tradition that originated primarily in German-speaking Europe. Accounts of a “December market” were found as early as the end of the 13th century. The Toronto Christmas Market is a slightly more recent tradition (it’s only about 5 years old), but it was already selected as one of the world’s best.
But Christmas carollers and hot toddies aside, the Market is also a fantastic opportunity to see the Distillery District in all its glory. Every time I visit the Distillery, I can’t help but feel how lucky we are to have a district like this in the city. The architecture and scale of the place is incredible and – alongside the Toronto Islands and Kensington Market, sometimes – it’s pretty much the only car free zone we have.
However as someone who lived near the Distillery District in its early days, I remember how much of an “island” it was when it first opened. It felt disconnected from the rest of the city and the only way to get people there was to hold a special event. The retailers and galleries struggled and many didn’t last.
With all the condos that have been built, literally on top of the neighborhood, that has changed dramatically. Today the area has become much more balanced as a mixed-use community. But the real tipping point, I think, will come next year when Toronto hosts the Pan Am Games and the West Don Lands neighborhood starts to come online just to the east of Cherry Street.
Now all of a sudden the Distillery District won’t feel like the edge of downtown anymore, it will feel more like the middle of it. As my friend Alex Bozikovic of the Globe and Mail pointed out to me this weekend, the Pan Am Games are going to put the east side of downtown on people’s radars. And I would completely agree. Once that happens, the Distillery District will finally start to reach its maximum potential.
Early this morning, before the sun even came up here in Toronto, I had a video conference call with a sharp and talented entrepreneur in Luxembourg. His name is Fräntz Miccoli and he’s working on an interesting startup called KonnectR.
The idea is to create a platform to connect with new people at any point in time and wherever you might happen to be. It may sound like a “hook-up” app, but that’s not the intent. He came about the idea while traveling and looking for other smart and engaging people to hang out with.
When we started the video conference call this morning, I showed him my window so that he could see the sun just starting to rise. He then showed me his coworking space, which made it seem like he is working out of an old industrial steel mill. Turns out, he is.
The area of Luxembourg he’s working out of is called Belval, which is a neighborhood in the west end of the country’s second largest city, Esch-sur-Alzette. The neighborhood used to consist of the largest steelworks in the country. But with the decline of steel production in Luxembourg, the area fell into decline. Today, it’s being reborn as a 21st century mixed-use community.
The developer behind the project is called Agora. And the site – equal to about 120 soccer fields – will house everything from residences and offices to shopping and cultural institutions. The University of Luxembourg has also centralized their campus in the new neighborhood. Having institutions “anchor” a community is becoming quite common for urban renewal programs. Here in Toronto, we did a similar thing with George Brown College along the waterfront.
To give you a better sense of the transformation taking place in Belval, here’s a streetview photo from 2009:
Here’s another one from the same intersection in 2013 (notice the same tower in the background):
I’m always fascinated by urban renewal projects of this scale because it so clearly speaks to the evolutionary nature of cities. Industries die. Businesses disappear. And new uses need to be found. In this case, the area has gone from steel production to tech startups. That’s not surprising.
But at the same time, I think it’s important that we don’t completely erase the past. Here, I think it’s great that they’re preserving some of the blast furnaces and other industrial structures. It gives the area character and a sense of place – which is oftentimes hard to manufacture and always better when it’s authentic.
This change has been in the works for a number of years. And it’s already allowed in most of Europe and in other places in Canada, such as British Columbia. So it’s nice to see this finally happen here in Toronto.
The reason this is a big deal, and worthy of a blog post, is that it changes the cost structure for mid-rise buildings. Simply put, wood frame buildings are cheaper to construct compared to reinforced concrete and other buildings materials.
Some people think this just means developers will make greater returns. But I don’t think that’s the case (see microeconomics). The real opportunity here is to spur mid-rise development on sites that – before this change – would have been previously un-developable. That is, you just couldn’t make the numbers work.
As much as mid-rise buildings make a lot of sense from an urban design standpoint, it’s not always easy to find good mid-rise development sites. Mid-rise buildings are generally less efficient to build compared to towers and you have a lot of fixed costs that don’t scale down just because you’re doing a smaller project.
So what this change in cost structure will, hopefully, do is allow more product to enter the market. And since many big urban centers operate with perpetual supply deficits – precisely because it’s often so hard to build – this should actually help with affordability.
After yesterday’s post about Toronto, I had a friend ask me on Facebook what it is exactly that I think happened to make this city so much cooler. Was it because of one iconic building like Toronto’s new City Hall? Was it because of our recent condo boom? Or was it something else? What changed exactly?
My response was that it’s a generational thing. Let me explain.
Toronto used to have the reputation of being a boring and staid city, and that’s because it was a boring and staid city. In the immediate post-war years, Toronto was overwhelmingly Protestant and the immigration policies at the time were specifically designed to exclude anyone who wasn’t white and from Western Europe or America. If you were Asian, Southern or Eastern Europe (especially Jewish), then you were at the bottom of the entry list.
Prime Minister Mackenzie King reflected the national mood when he observed that “the people of Canada do not wish to make a fundamental alteration in the character of their population through mass immigration.” Discrimination and ethnic selectivity in immigration would remain. “Canada is perfectly within her rights in selecting the persons whom we regard as desirable future citizens. It is not a ‘fundamental human right’ of any alien to enter Canada. It is a privilege. It is a matter of domestic policy.”
In the 1950s and 1960s, Canada started to slowly open up, but only because it needed to. It was in need of labour to fuel its robust post-war economy. Reluctantly, Canada began to look for workers in places like Italy. Initially, Canada had hoped to attract more northern and Germanic-like Italians, but with the European economy picking up, it was the southern Italians who came in the greatest number. In the 1950s, Canada’s Italian population jumped from around 150,000 to 450,000.
But this influx of espresso drinking Catholics was hard for Toronto to adapt to at first. They were so alien compared to Toronto’s population at the time. They wanted to do weird things like eat outside on patios, and that just wasn’t the way we did things here in Protestant and conservative Toronto. We ate inside. That’s where food belonged.
My best friend’s father – who’s also in the real estate development business – once told me that when he first moved to Toronto in the 1970s the real estate business was virtually run by two groups of people: Italians and Jews. In other words, the people building our city were the people that we were once afraid to let come here in the first place.
But in their quest for wealth and a better life (I have so much respect for people who are able to build something from nothing), these new Canadians also reshaped Toronto both physically (through building) and socially (by doing crazy things like eat outside on patios). They were not only building new lives for themselves, they were also rebuilding Toronto. They helped us grow up and not be so stuffy. And I absolutely believe that we’re a better city because of it.
However, I think the true impact of their efforts is happening right now through the next generation – their children. Millennials and Generation Xs (at least the younger ones) don’t remember when Italians were considered aliens. They remember growing up with martini bars on College Street (which is the original Little Italy for those of you unfamiliar with Toronto). They know a different and cooler version of this city.
But most importantly, those subsequent generations are now old enough (and have a lot more generational wealth behind them) to reshape this city even further. And with much deeper roots here, they have the passion to do just that. When I went to graduate school in the US, my parents were afraid I would never come back. That’s what they told me. But the more I traveled and the more I lived outside of Toronto, the more I wanted to come back.
Just like those early wave of pioneering aliens who got us to dine al fresco and taught us that if we shop on Sundays we’re not going to go straight to hell, I feel like I too want to shape this city. I want to make it even better. No city is perfect, but if there’s something you don’t like about Toronto, then here’s my advice to you: Go change it. I can tell you it’s possible, because new immigrants with no money managed to do it.
The first person who can tell me (in the comments below) which restaurant the patio shown above belongs to will get a free Architect This City t-shirt. If you’re from Toronto, this should be an easy one.
I’ve spoken about global cities, such as New York and London, many times before on Architect This City. I’ve also talked about the rise of consumer cities. That is, cities with a high “urban amenity premium”, which could be great outdoor amenities or great restaurants, theatre and so on. These are places of consumption.
Sometimes global cities and consumer cities are one and the same. But there are also cities–such as Vancouver–where I view the urban amenity premium as outweighing their status as a global city. Vancouver, quite simply, is an awesome place to live and enjoy life. I almost went to UBC for grad school because of Whistler Blackcomb and the city itself.
Today, I’d like to introduce another type of city into the discussion mix: the necessary city. I heard about it here and, although it seems somewhat intuitive, I think it’s an important reminder that, even though a city may not be an alpha global city, it may be fulfilling a specific function for a particular industry or aspect of the global economy. It may still be a necessary city for your corporate headquarters.
For example, Houston is the city for energy companies. If that’s your business, you likely need a presence there. For fashion and luxury, it’s Paris. And if you’re in the auto industry:
The major global equipment manufacturers are widely dispersed, but when you look at leading global parts suppliers, they virtually all have their North American headquarters in Detroit – including the German, Japanese and Korean ones. Among them are companies like Robert Bosch, Denso, Yazaki and Hyundai Mobis. If you’re in the auto industry in America, you have to deal with Detroit. Unsurprisingly, Detroit boasts several nonstop flights to key Asian destinations.
In essence, we’re talking about cities making themselves necessary by becoming niche experts. And what I think is interesting about this concept is that it’s likely much more attainable for a lot of cities. Most cities will never become New York. And most cities will never be able to transform themselves into the next Silicon Valley.
But maybe those are the wrong economic development goals. It’s not about becoming the next, whatever; it’s about finding and owning a particular niche and making yourself absolutely necessary to the global economy.
