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: jennifer keesmaat

  • New rental supply needs to double in Toronto

    This week, RBC Economics published a study on Canada’s rental market where they argued that the pace of new supply needs to at least double in markets like Toronto in order to meet future housing demand and balance the market. Similar things, I’m sure, could be said about many other housing markets around the world.

    The report pegs the current rental housing deficit in Toronto at about 9,100 units:

    And because they believe that the cost of ownership is pushing more people into rentals, the number of renter households is expected to grow at an average rate of 22,200 units per year in Toronto.

    If you take 22,200 units per year over the next two years, and add in the current deficit of 9,100 rental units, you get to a total count of 53,500 rental units. This is what RBC Economics believes must be delivered to the market in order to restore equilibrium, and decrease the upward pressure on rents.

    Rental units are, of course, delivered to the market in two main ways. There’s purpose-built rentals and there are for-sale units that end up as rental housing. But even if you amalgamate both of these tenures, we are not building enough housing.

    Against this backdrop, I find it curious that developers are so often vilified. Earlier this week, I saw Jennifer Keesmaat tweet out that — as we ready for this fall’s federal election — any sensible housing plan must move away from our current for profit housing delivery model.

    Who, then, will build these 53,500 rental units? That part wasn’t clear to me.

  • City-states and superstar cities

    During the recent election here in Toronto, mayoral candidate Jennifer Keesmaat raised the idea of this city region, maybe, becoming its own province. It wasn’t the first time this idea has been floated, but it once again didn’t stick.

    Earlier this week, Richard Florida spoke at the Urban Land Institute’s Toronto symposium and he brought up a similar issue: Toronto is a ‘city state’ and needs to start acting like it. Here is an excerpt from a recent Star article about his talk:

    He also noted that in terms of total economic output, the GTA [Greater Toronto Area] — he included the Golden Horseshoe — is responsible for about “$700 billion” (U.S) in economic output.

    “Which means our … region is equivalent to that of Sweden. So we are a city state, a mega region.”

    He later added: “we are a powerful global city with lots of assets to build on,” he said.

    But he went on to say that despite all of these successes there’s a “sense that something is amiss, something is wrong.”

    I have long supported the notion that city regions need to see and think of themselves as one united and contiguous economic landscape. In our case, it is not about, for instance, Hamilton vs. Toronto. This is about our entire region vs. New York or Singapore (a city-state) or the Pearl River Delta megalopolis.

    The headlines coming out of Amazon’s recent announcement are clear: In Superstar Cities, the Rich Get Richer, and They Get Amazon. This is winner-take-all urbanism where you need to be a “superstar” in order to compete. 

  • How should mid-sized cities really compete?

    Jennifer Keesmaat – the former chief planner of Toronto – recently published an article in Maclean’s called: Toronto’s unaffordable. Why can’t Halifax or Saskatoon take advantage? Her argument: 

    “The hard truth is that many mid-sized cities won’t win the future because they are stuck on a suburban growth model. If the future is green and walkable, they will be left behind.”

    The model city that is held up is Portland – a terrific mid-sized city of only 640,000 people that has used progressive land use policies to build a livable and dense urban center. (In all fairness, the Portland MSA has over 2.4 million people.)

    Now, if you’re a regular reader of this blog you’ll know that I have a penchant for dense urban centers. I live and I work downtown. And I would happily trade square footage for a more sensible commute and lower transportation costs.

    But after I read the article, I couldn’t help but think that progressive land use policies, alone, aren’t enough. Cities, like social networks, experience network effects. That’s why there’s so much talk these days of winner-take-all urbanism.

    All of this is not to say that progressive urban policies are a bad thing. Quite the opposite. I just think there are many other factors at play if we’re talking about taming the hegemony of our global cities.

  • A year in review — 2015 on Architect This City

    Thanks to this blog, it’s pretty easy for me to go back and look at what I was doing and thinking throughout the year. That’s one of the benefits of writing a daily blog/journal. And as is usually the case, 2015 was a year of ups and downs.

    For my annual ski and snowboard trip with the guys, we went to Banff (Alberta) and Revelstoke (BC). But we got stuck with unseasonably warm weather in the west (the opposite of what’s happening this winter) and I got injured on day 3. That put me in the emergency room and knocked me out of snowboarding for the rest of the season – as well as from the gym for a number of months.

    Shortly after that I also got struck with some family health issues. That was pretty scary for a good solid month, but in the end, everything seems to have worked out. What a relief.

    Towards the end of March, I did a brand partnership between Architect This City and Porter Escapes, which brought me to Quebec City for a weekend. That was a lot of fun and gave me the opportunity to be a real flâneur in one of the most interesting cities in Canada.

    In April, I left my real estate development job at TAS and shortly after I joined CAPREIT (TSE: CAR.UN) to help build out their (real estate) development platform. Previously their/our focus had just been on acquiring existing rental assets. But now it is time to build.

    Later this month I also participated in the Toronto filming of a documentary called Waterfront Cities of the World. That was a lot of fun. But come to think of it, I don’t think I ever watched the final video.

    In May, I started lobbying hard for the removal/replacement of the eastern portion of the Gardiner Expressway East here in Toronto. If you’ve been reading this blog since the summer, I am sure you remember this period. With the help of a colleague of mine, I even started a petition that ended up getting presented at City Council.

    But in June, Toronto City Council voted to demolish and then rebuild the elevated expressway along our waterfront. I am still surprised by that. What a shame.

    In July, we (CAPREIT) announced our first joint venture development project. A mixed-use project – 506 rental apartments on top of about 160,000 square feet of retail – in Toronto’s Liberty Village. 

    In August, I went back to Philly to relive my Penn days. I do that every couple of years just to make sure that Bob and Barbara’s is still offering up “The Special.” The Special is a can of PBR and a shot of Jim Bean for $3. It’s famous in Philly, but it always sounds like a far better idea the night before, as opposed to the morning after.

    In this same month I also hit the 2 year mark here on Architect This City. That’s 2 years of getting up every single day and staring at a blank blog post screen and thinking of something insightful to say. 

    The following month on September 11 (I’ll never forget this date), I got laser eye surgery. More specifically, I got custom wavefront LASIK. And today it’s pretty hard to imagine that I used to have to reach for my coke bottle glasses as soon as I woke up every morning.

    Later in September, I also gave a talk at my alma mater, the Rotman School of Management, to a delegation of about 70 urbanists from Portland. It was an honor to be invited alongside rockstars such as Richard Florida and Jennifer Keesmaat.

    In October, I featured a guest post from the former mayor of Toronto, John Sewell. I don’t often do guest posts on my blog, but John had just published a new book and I thought it would be a good way to change things up here. John and I aren’t necessarily on the same page with many urban issues, but we did agree on the Gardiner East.

    For the remainder of October, it was basically just the Jays.

    In November, I spoke at a Product Hunt event focused on real estate + tech. It was incredibly encouraging to see so many entrepreneurs here in Toronto focused on the intersection of real estate and tech. There are lots of opportunities in this space and I am sure that there are many success stories in the making right now. Toronto is the perfect place for real estate + tech innovation.

    And finally, in December, I crossed something off my bucket list and attended Art Basel Miami Beach. I have wanted to go for well over a decade; pretty much since I started studying art history in undergrad. I don’t know what took me so long.

    Oh, I also announced that I was writing a book on becoming a real estate developer

    What a year. I can’t wait for 2016. 

    What do you have on your to-do list for next year?

  • Changing Lanes — A fireside chat with Jennifer Keesmaat and Janette Sadik-Khan

    Citi Bike by Pete  on 500px.com

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

    When I was in Miami at the beginning of this month I missed an interesting event that I normally would have attended. It was a conversation between the Chief Planner of Toronto, Jennifer Keesmaat, and the former commissioner of the New York City Department of Transportation, Janette Sadik-Khan.

    Sadik-Khan was appointed under the Bloomberg administration and quite famously oversaw a huge number of urban changes in New York. Projects such as the addition of hundreds of kilometers of new bike lanes and the creation of 60 new pedestrian plazas across the city – including the one in Times Square.

    I was bummed I couldn’t attend, but thankfully Keesmaat wrote a post on her blog following the event and the Metcalf Foundation shared videos of the conversation. 

    Here’s a piece that I liked from Keesmaat’s blog post:

    “But she also pointed out that when they demonstrated what could be done, when they quickly mobilized around action, residents clamoured for similar changes in their neighbourhoods. Not surprisingly, this is why her book is called Streetfight – because it is a fight. City building is often the battle of ideologies, and when you’re trying to change the status quo, there is always a significant demographic of the population that is fully committed to maintaining business-as-usual.”

    If you have some time, you can also click here to watch the videos. There’s about an hour and a half worth of video, so you might want to open up a bottle of wine or something.

  • NXT City Night 2015

    I just got
    my tickets for NXT City Night,
    happening Thursday, September 24, 2015 at 6:30pm here in downtown Toronto.

    If you’re
    not familiar with NXT City Prize, it’s an annual urban design competition where
    young Canadians (35 years of age or younger) submit ideas to improve the built
    environment. The top submissions win a total of $9,000 in prize money and the winning idea
    gets paired up with the City of Toronto work on actually implementing it. That’s
    the best part.

    The 2015
    finalists have already been announced, here, but the top submissions
    will be announced at NXT City Night. The Chief Planner of Toronto, Jennifer
    Keesmaat
    , will be there, along with the
    competition’s very impressive jury
    .

    I think it’s
    important to keep in mind that a lot of what makes cities great often happens
    through citizen-led grassroots movements.

    The
    High Line in New York
    – which today attracts over 5 million visitors a year
    and is believed to be responsible for over $2.2 billion in new economic
    activity – was really the work of 2 friends who thought that preserving and
    repurposing the High Line was a cool idea. Which is why in 1999 they founded a
    non-profit called Friends of the High line. Amazing things happen when people and
    passion get involved.

    So I would
    encourage you to grab a ticket and join me at NXT City Night next week. Tickets are
    $25, but if you use the coupon code ATHISCITY,
    you’ll get $5 off your ticket 🙂

    The event is
    also taking place in a spectacular old warehouse building at 56 Maud Street
    (formerly St. Andrew’s Market Hall). That alone is reason enough to come. I’ve been inside before. Get your Instagram ready. But
    if that’s not enough, there’s also:

    • Open bar including Steam Whistle beer and Pillitteri Estate wine
    • Catering from Oyster Boy, Kanpai Snack Bar, Thoroughbred and many more
    • Art installations by Wayward Collective
    • Beats by Jesse Futerman and A Digital Needle
    • Local wares from GetFresh, Shopify, Spacing Store and Swipe

    I hope to see
    you there. Make sure to tweet at me
    if you’ll be there so we can connect in person.

  • Those troublemakers

    Toronto City Hall by Sébastien Pacaud on 500px.com

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

    Jennifer Keesmaat is the Chief Planner of Toronto. She was hired for this job in 2012.

    She has a Masters in Environmental Studies (Politics and Planning). She is a Registered Professional Planner with the Canadian Institute of Planners. And she was also the founder of 2 (city) planning firms prior to taking the position of Chief Planner for Toronto.

    So presumably, she was hired for this job because she possesses some sort of expertise in the realm of planning. I also presume that she is expected to make her opinions known to other people so that informed planning discussions can occur and decisions can be made.

    So I find it curious that in some circles, and in the media, Jennifer Keesmaat is being branded as a “troublemaker.”

    A lot of the recent chatter stems from the fact that Keesmaat was at odds with Mayor Tory during the Gardiner Expressway East debate (quote via Toronto Life):

    Eventually Tory had enough and pulled Keesmaat into a meeting where he basically told her to zip it. “The mayor has said it is perfectly appropriate for staff to make their opinions public, as Ms. Keesmaat has done,” wrote his communications chief, Amanda Galbraith, in a statement. “It is not appropriate for city staff to campaign against councillors or the mayor on social media or through other public platforms.” Keesmaat counters that she never campaigned. “I stated an opinion,” she says simply.

    But the “troublemaking” didn’t just start with the Gardiner East. Pretty much since the moment she took the position of Chief Planner and launched her own blog (ownyourcity.ca), she was dubbed a shit disturber. (Those bloggers!)

    But if you ask me, these criticisms stem from an old and outdated way of thinking.

    The last thing we need from government is less transparency and more politicking. We should be working towards more, not less, information. Even if that information doesn’t butter our metaphorical bread.

    What do you think?

    I think this will make for a great discussion in the comment section below.

  • Is Toronto’s urban growth boundary really making the city less affordable?

    image

    This morning the Globe and Mail published an article by Toronto’s chief planner, Jennifer Keesmaat, called Greenbelts make cities more livable, affordable and transit-friendly.

    The headline immediately caught my attention because conventional economic wisdom would suggest that supply constraints – whether natural or artificially created – generally have a negative effect on housing affordability.

    To be clear though, I support Ontario’s greenbelt. I think an urban growth boundary is the right thing to have if we want to build sustainable, walkable, and transit-oriented communities. But I’m also not blind to some of the potential (negative) externalities.

    However, Keesmaat’s article got me wondering just how prevalent those externalities might be and to what extent our greenbelt is actually impacting housing affordability in Toronto. In her article she cites a recent report by the Pembina Institute that very clearly argues the following:

    “There is no shortage of land throughout the GTA [Greater Toronto Area] to build single-family homes for decades to come, but this land is predominantly located far from the City of Toronto and other established centres of employment in the GTA.”

    More specifically, the report found that of all the land available for development in the region (within our growth boundary), 81% of it is projected to still be unused by 2031. This got me thinking: it’s not that there isn’t land still available in the region; it’s that there isn’t land in the areas where demand is the greatest.

    Put differently, young families aren’t clamoring for single family homes in High Park and Leslieville because the greenbelt has restricted their ability to find new housing. They’re doing so because they want to live in neighborhoods like High Park and Leslieville.

    If you dive into the data, the report shows that in 2004 the average price of a detached home in Toronto was about $117,000 more than the rest of the Greater Toronto Area. As of 2013, that spread had grown to about $200,000. And indeed the data shows that it’s the core of the city where home prices seem to be appreciating the fastest.

    image

    So when it comes to housing affordability and supply, the greenbelt may actually be a red herring. Releasing it would not increase the supply of housing in areas where demand is already high, which is probably why this same report also found that – with or without an urban growth boundary – most Canadian cities are seeing similar increases in home prices.

    So what should we be doing?

    I think we should do two things: (1) focus on accommodating more growth in the areas that people already want to live in, and (2) figure out ways to transform the less desirable areas into more desirable ones. This second one will be the hardest, because it’s likely going to mean changing car dependent areas into transit-oriented ones, which is no easy task.

    The good news though is that we are already doing these things. There’s more that I would like to see happen, but we’re headed in the right direction.

    If your city has a greenbelt or you have experience with greenfield development in the Toronto region, I’d love to hear your thoughts in the comments. This is an area of development that I’ve never really been involved with.

    Image: Flickr

  • My #CityResolve

    Yesterday the Urban Land Institute here in Toronto launched a great social media initiative called #CityResolve. The idea is that instead of making a personal New Year’s resolution, that you instead make one that would benefit your city as a whole. This is great for me because I don’t really believe in New Year’s resolutions.

    You can read more about the initiative here, but all you have to do is tweet your resolve using #CityResolve. One person will be selected for a one-on-one meeting with Toronto’s Chief Planner, Jennifer Keesmaat – where you could then pitch your idea directly to the top 🙂

    For me though, I feel like I’ve already been acting on my resolve, which is this blog. When I started writing every day back in August 2013, I did so for myself, but also for a clear mission: To promote the building of beautiful, sustainable, and globally competitive cities. I don’t profess to have all the answers, but I hope to initiate the right kind of discussions.

    If that feels like a cop out though, here’s another:

    //platform.twitter.com/widgets.js

    What’s yours?

    Image: Flickr

  • Toronto approves 755 storeys of new development

    image

    Earlier this week, Toronto City Council approved the equivalent of 755 storeys of new development, a lot of which will end up in the downtown core. The translates into 6,887 new housing units and roughly 4 million square feet of new commercial space. The Globe and Mail called it the Manhattanization of downtown.

    If you’d like to go through the complete City Council meeting agenda, you can do that here. (I warn you though, it won’t be an exciting read.)

    One notable project that was approved is 50 Bloor Street West, which is a 71-storey mixed-use building in Yorkville adjacent to and on top of Holt Renfrew (It includes a $6 million Section 37 contribution). I mention this one because it’s impressively tall and because it’s a project that I was involved with when I was at Morguard. Watch for Yorkville in the coming years, there’s a lot in the pipeline.

    While I think this is all incredibly exciting, our chief planner, Jennifer Keesmaat, is entirely correct in pointing out that all of this highlights the desperate need for better infrastructure, the most critical of which is a relief subway line that cuts across downtown.

    But to be clear, this isn’t a question of just planning for growth. This is a question of planning for growth and making up for decades of infrastructure disinvestment. That’s the position we’re in today, which means we have a lot of hard work to do. Though I’m confident we’ll get it done.

    The other thing that this level of intensification should highlight for you is that public transit, and other forms of mobility such as biking and car sharing, have to be central to our goals. It’s simply infeasible for everybody to be driving around in a car. We’re currently demonstrating how efficient that ends up being.

    So as Toronto continues to intensify, I think we’ll quickly discover that traffic and private cars aren’t the answer or even the right question to be asking.

    Image: Flickr