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: miami

  • Experiential art center opens in Miami’s Allapattah neighborhood

    A new 50,000 square foot experiential art center (EAC to those in the know), called Superblue, has just opened up in Miami’s Allapattah neighborhood. It includes installations by Tokyo-based teamLab, Amsterdam’s DRIFT, James Turrell (amazing), as well as many others.

    This is noteworthy because experiential art is both fun (and Instagrammable) and because it is another example of the continuing rise of Allapattah. Art, design, and culture are usually pretty good for city building.

    At the same time, the New York Times raises an interesting question: “Is this a forward step in the march of modernism or a debasement of art into theme-park entertainment?” Arthur Lubow goes on to say:

    The popularity of this genre is driven by contradictory desires, as demonstrated memorably by the line of visitors in 2019 who waited up to six hours for a one-minute stay amid the twinkling lights in Yayoi Kusama’s infinity mirror room at the David Zwirner gallery in Chelsea. Malnourished by their phones and computer screens, people yearn for real-life visceral experiences. And yet they remain stuck in the gravitational pull of virtual reality: The experiences they seek are ones they can record on their phone cameras and post on social media.

    I get this logic.

    But my own view is that just because something has commercial appeal, it shouldn’t mean that the art is any less serious. And just because people want to photograph and share it, doesn’t necessarily mean that they aren’t appreciating it in the same way as someone just standing around and pondering it.

    Perhaps this is a good time to mention that Snap has also just announced the next version of its Spectacles. These ones come with the promise of augmented reality. What is real anymore?

  • Ray: Architecturally-inspired homes at the intersection of art, culture, and community

    Back in 2008, Dasha Zhukova and Roman Abramovich hired starchitect Rem Koolhaas and founded a new contemporary art museum in Moscow called the Garage Museum. Supposedly this was the first philanthropic institution in Russia dedicated solely to contemporary art. (Here’s a short video in case you’re curious what it looks like.) After it opened, the founders apparently had a realization about the way people like to consume art. Yes, people like to look at art and ponder deep things. But it turns out that people also like just being around art and other art-like things. People started coming to the Garage Museum not only to view the various exhibitions, but also to just hang out.

    This insight is now being used to inform a new real estate development company, also by Dasha, called Ray. The mission of the company is to create “architecturally-inspired homes at the intersection of art, culture, and community.” Their first two projects are in Harlem and Fishtown, Philadelphia, but apparently they have something cooking in Miami as well. What Ray hopes to do is integrate art and culture in a more meaningful way through cultural programming, exhibitions in their buildings, artist studio spaces, and other creative ideas.

    There’s also an affordable housing angle. According to the WSJ, Ray’s Harlem project is a joint venture with L+M Development Partners. I don’t know any of the specifics of this deal, but I know L+M, because one of their founding partners, Ron Moelis, was a professor of mine in graduate school. L+M is focused on affordable and mixed-income housing and uses tools like the Low-Income Housing Tax Credit (LIHTC) to make these sorts of projects financially feasible. They aren’t, otherwise. I learned all about them in school and I always found it to be a great way to get the private sector building affordable housing.

    “Art and culture, community, and accessible pricing.”

  • Placemaking as economic development engine

    Earlier this year, the first phase of The Underline opened up in Miami’s Brickell neighborhood. Designed by James Corner Field Operations, The Underline is an eventual 10-mile linear park that will live underneath the city’s elevated Metrorail and run from the Miami River all the way south to Dadeland South Station.

    The first phase — called Brickell Backyard — is the shortest phase at only 0.5 miles. But it cuts through one of the densest parts of the city, if not the densest. Total construction costs for this phase came in at $16.524 million and here’s where that funding came from (source is The Underline):

    $7,688,760 Miami-Dade County
    $1,944,000 FDOT TAP Grant
    $2,000,000 State of Florida
    $4,871,690 City of Miami
    $19,808 FDOT

    The Underline is clearly looking to the example of New York’s High Line, which was also designed by Field Operations. And for good reason: The High Line is a shining example of placemaking as economic development engine.

    The first two phases of The High Line cost around $153 million to construct. But as of 2014 (when I wrote about it here) it was already attracting some 5 million visitors a year and was believed to be responsible for about $2.2 billion in new economic activity. I’m sure the numbers are much higher today.

    As city builders, we are always looking for ways to create value and spur economic development. But it’s perhaps important to keep in mind that the underlying goal isn’t all that complicated: Create cool places where people want to be.

    Images: The Underline

  • Where Americans moved over the last year

    According some recent data from the US Census Bureau and USPS (via this CityLab article), the number of Americans who registered (between March 2020 and February 2021) that they were making a permanent move somewhere else, only increased by about 3%. And the vast majority of people that did move tended to simply spread out and move within the same metro area — about 84%. About 7.5% moved within the same state. And about 6% moved to some other top 50 metro area in the US.

    Some are of the opinion that these moves to the outskirts of cities would have happened regardless. The pandemic simply sped things up. Perhaps. But whatever the case may be, CityLab and others have argued that an “urban exodus” is likely the wrong way to describe what is happening. Despite reports that everybody seems to be moving to Texas and Florida (yes, Miami saw a spike), most people are simply spreading out in geographies where they already happened to live.

    The notable exceptions are the Bay Area and New York. San Francisco and San Jose — both of which usually register as being two of the most expensive housing markets in the US — saw permanent moves increase by 23% and 17%, respectively. Compared to other metro areas in the US, these figures stand out. (I assume this data is collected after somebody goes to the post office and says that they want to change their address forever.)

    But we are already seeing net outflows from San Jose and San Francisco start to taper off (see above). It’s also important to keep in mind that these cities were losing people well before the pandemic started. They are expensive places. And the fastest growing cities tend to be ones that sprawl, have a more elastic housing supply, and are consequently more affordable. That said, I suspect we’ll see this tapering off continue. The “urban exodus” isn’t going to be what it’s cracked up to be.

    Images: CityLab

  • The new Miami

    The last year has been challenging for the hospitality industry. But at the same time, it was a good year to renovate. The W South Beach recently unveiled a $30 million renovation project that includes all 357 rooms. Designed by local studio Urban Robot Associates, the project directive was an interesting one. The team was asked to reimagine the hotel for the “new Miami.” A Miami that is more grown up and cultured, but that, of course, still has a bit of an edge. With all of the attention that Miami and Florida are getting right now, this project feels timely and indicative of something broader underway. Indeed, it’s hard not to acknowledge that Miami is having a moment right now. This also happens to be one of the last hotels that I stayed at prior to last March’s lockdown. So I have a clear “before” in my mind. It’s fun to see how much it has changed over the last year while I was mostly sitting at home. (Shameless plug: I also love the pale wood herringbone floors, which, coincidentally, will also be on offer at One Delisle.)

    Images: Urban Robot Associates

  • The birth of electronic music

    What We Started is an interesting documentary about the birth and history of electronic dance music (EDM), starting with house music in Chicago and techno music in Detroit.

    Personally, I view EDM as being distinct from house & techno, and it’s generally not my favorite kind of electronic music. But that’s besides the point. EDM is now wildly popular. It has crossed over into the mainstream and bled into many other genres.

    What’s fascinating about the story of electronic music is that it’s a reminder that new ideas and new movements tend to start out on the fringe. Electronic music came from hobbyists experimenting in their garages, basements, and in warehouses. It was people tinkering with something that they were passionate about.

    And let’s face it, that’s the only way this genre of music could have gotten started because no record label would have signed an electronic DJ back in the 1980s. It was weird and underground, and in the early years, the US mainstream media was openly hostile toward it.

    It reminds me of a blog post that Chris Dixon wrote back in 2013 called, “what the smartest people do on the weekend is what everyone else will do during the week in ten years.” New ideas start on the margin.

    The other fascinating thing about this story is that the emergence of new ideas are often tied to a particular time and place. Think tech and Silicon Valley. In the case of techno, which is often described as being sharper, faster, and more precise than house music, it feels right that it originated in a city like Detroit.

    Detroit was extremely musical, but it was also high-tech. It was machines and assembly lines and that clearly created fertile ground for a new genre of music that relied on, well, machines.

  • Rich people and nerds (in Miami)

    Back in 2006, Paul Graham penned an essay about how to be Silicon Valley. Since then, it seems like every city on the planet has tried to replicate the successes of the Valley. At the time, his argument was pretty simple. Geography used to be destiny when it came to cities. New York City, for example, is arguably what it is today because of its geography and its deep harbor, which created a natural competitive advantage compared to other east coast cities such as Boston and Philadelphia. But this, he argues, has become far less relevant. Now, you can create a great city pretty much anywhere. So what are the necessary ingredients?

    Paul argued that you only really need two kinds of people to create a technology hub: rich people and nerds. You need people creating new things and you need rich people to fund those new ideas. That’s it. So in theory, if you could just dump a bunch of these kinds of people in one place — Nunavut? — you’d perhaps get unicorns coming out the other end. He goes on to say that Miami is a perfect example of a city that has lots of the former, but very few of the latter. It has lots of rich people, but, in his words, it’s not the kind of place that nerds like. So it is/was not a good startup city. (I’m a nerd and I like Miami.)

    But the year is now 2021 and a global pandemic seems to be helping to change this dynamic. Every tech entrepreneur and/or investor now seems to want to move to either Austin or Miami. To that end, SoftBank recently announced that it has earmarked $100 million for startups that are based in Miami or that plan to be based in Miami in the near future. It’s perhaps a good testament to the momentum that seems to be developing around the startup scene in the city, which is something that their mayor has been incredibly vocal about.

    But here’s something to consider. Was Paul right about the two requisite ingredients for a successful startup hub? And if so, does Miami now have enough nerds? Maybe this recent influx of people was just what it was missing.

    Photo by Cody Board on Unsplash

  • Crossing the chasm in Austin

    I can’t open Twitter these days without seeing someone in the tech industry talking about moving or talking about someone who just moved to either Austin or Miami. “What’s the best neighborhood in Miami for startups? My friend just moved to Edgewater. Where did so-and-so move?”

    Here’s a recent article from the WSJ talking about how accelerated tech-fueled growth is straining Austin. And below is a set of charts (from the article) comparing home prices in Austin and San Francisco. (Reminder, the California-to-Texas migratory pattern recorded the highest number of “net movers” last year.)

    But in reading through the article, I am reminded that the challenges facing Austin are not entirely unique. Growing cities all around the world are being put in a position where they need to decide whether they want to remain car-oriented and relatively low-density, or if they want to make the shift toward more transit-oriented urbanism.

    It’s admittedly not easy, both politically and practically speaking. It’s hard to rewrite deeply entrenched built form. But Austin is naturally looking at what happened in San Francisco, where restrictions on new development are thought to be partially (largely?) responsible for the city’s unaffordable housing.

    According to the same WSJ article, voters in Austin turned down two previous transit proposals. One was in 2000 and the other was in 2014. There was concern over too much urbanization. There was concern it would induce more people to move to the city. And there was concern that it would threaten the city’s low-rise single-family homes.

    But this year a transit plan was approved that includes three new rail lines, one of which will tunnel through downtown. Provided that Austin can effectively pair this with more housing, more uses, and more density — which is generally what you need to make transit work — then it may be well on its way to crossing, if you will, the chasm of urbanity.

    Charts: WSJ

  • Condo transaction volumes in Miami-Dade county are up 61.4% year-over-year

    This pandemic seems to have been good for real estate located in places that people like to spend time in, but maybe had to limit their time there in the past because of things they had to do like, you know, work in an office. This includes everywhere from “cottage country” outside of Toronto to sunny destinations like Miami.

    Here are some figures that I came across for South Florida via Analytics Miami. Comparing November 2020 to a year prior, condo transaction volumes in Miami-Dade country are, interestingly, up 4.3% for condos less than $1 million and up 61.4% for condos worth more than $1 million.

    Somewhat similarly, single family home transaction volumes in Miami-Dade county (for the same time period) are down 5.2% for houses worth less than $1 million and up 100% for houses worth more than $1 million.

    Sometimes you see a decline like this (the -5.2%) because there simply aren’t enough houses on the market for less than $1 million. But it could also be that more rich people are looking for expensive properties in Miami compared to last year.

    As you may have gathered from here and here and here, I’m not all that bullish on the permanency of this whole working from home thing. But there’s no denying that there’s a very clear trend around people moving to places that are warmer. This was happening well before COVID-19.

    There is also some evidence that rich people are starting (continuing?) to eschew high tax states like California for lower tax states like Florida and Texas. I don’t have the data to be able to comment on how meaningful this trend is, but, for whatever it’s worth, apparently Elon Musk just moved to Austin.

    Photo by aurora.kreativ on Unsplash

  • Latin American architecture and Miami’s influence

    Art Basel Miami Beach was cancelled this year for obvious reasons. It had originally been scheduled to kick off on December 3rd. But Design Miami is still hosting some physical exhibitions and naturally a lot of online programming. They also partnered up with Dezeen (and others) to host a series of online talks as part of the festival. Here is one about Latin American architecture and its symbiotic relationship with Miami. For some, Miami is known as “the capital of Latin America.” This talk explores that idea, but also how the relationship really runs both ways. It’s with architects Tatiana Bilbao and Carlos Zapata, and developer Joseph Schwarzkopf.

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