Tag: new york

• How will climate change affect our coastal cities?

  One of the reasons New York is the city it is today is because of the superiority of its port. For a number of reasons, which are better explained here by urban economist Edward Glaeser, New York was almost destined to become “America’s port.” Of course, this phenomenon is something that has been repeated all throughout history. Being connected to the right body of water, in the right way, has meant all the difference in terms of economic success.

  But with study after study demonstrating that our economic success is leading to severe climate change and to the melting of arctic ice sheets, those very same port cities are now being put at serious risk. How ironic. Hurricane Sandy was the largest storm surge in the history of New York. Prior to it occurring, the likelihood of such a storm would have been calculated at 0.1%. It was greater than a 1,000 year storm.

  

  But if the research is correct, we’re going to see more storm surges and we’re going to see rising sea levels. This makes many, if not all, sea port cities a high risk zone for flooding, which is why cities, such as Boston, have prepared comprehensive reports on how to manage a rising tide. From adjustable parapet walls to multipurpose green spaces that can absorb excess water levels, cities around the world are looking for solutions.

  But these are merely reactive solutions.

  What need to also be looking at is how we can fundamentally improve our economy so that we’re operating in a sustainable way. Some of the research suggests that what we’ve done is irreversible, but that doesn’t mean we should continue to make it any worse. Part of the issue with this “wicked problem” is that it doesn’t seem immediate to most people, yet. It’s too easy to ignore. But that doesn’t mean it doesn’t exist.

  Image: This Big City

  2014.05.23

• Where the ultra rich buy real estate

  

  Yesterday evening I was reading the Spring Summer Candy GPS Report put out by London-based property developer Candy & Candy. If you’ve never heard of Candy & Candy, then I guess you haven’t been in the market for a £60m apartment. Candy & Candy are the developers behind One Hyde Park in London, which is said to be the world’s most expensive residential development.

  But what is interesting about a project like One Hyde Park is that it’s really only possible in a global city, like London, that attracts a massive amount of foreign investment. A project like One Hyde Park is a possibility of globalization, not a result of local employment numbers.

  Which is why if you take a look at the Candy GPS report, you’ll see that their interest is in tracking the habits of ultra-high-net-worth-individuals (UHNWIs)–those with wealth exceeding US$30 million. Last year, the world was estimated to contain almost 200,000 of them, with a combined wealth of almost $28 trillion. This number is expected to rise to $40 trillion by 2020.

  Now, you may not be in the market for the most expensive apartment in the world, but I thought it would be interesting to talk about where this money is coming from and which cities it’s going into–at least when it comes to real estate.

  The top 3 countries for UHNWIs investing in real estate are Germany, Japan and the United States, respectively. The US has the most ultra rich people, but they have a lower propensity to invest in real estate compared to Germany. Nonetheless, these are the countries that dominate.

  But who are the recipients of this money?

  Well, first of all, it’s going into cities. But it’s flowing into a small number of them. Cities representing 5% of the world’s population are said to attract over 50% of the real estate investments made by the richest people on the plant. 

  According to Candy GPS, the top cities are Hong Kong, London, Moscow, Singapore and New York, respectively. Hong Kong sits at the top, largely because of money flowing in from mainland China, but London is said to have the broadest investment reach.

  So there you have it, a quick overview of where the ultra rich buy real estate.

  2014.05.04

• Necessary city

  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.

  2014.05.03

• Airbnb for retail spaces raises $7.3 million

  Though it’s sometimes common to downplay “this for that” startups (that is, derivative startups that try and borrow a model and use it in another market), Storefront–which can be described as Airbnb for retail spaces–has just raised a $7.3 million Series A round.

  Storefront is a marketplace for short term retail space (think pop-up shops). People with space simply create a listing and decide how much they would like to charge per day, per week or per month. In doing so, Storefront “helps all sorts of brands, sellers, and merchants to create their first brick and mortar retail experience.”

  What I find interesting about Storefront, and other startups like Airbnb, is that they’re really rewriting the way real estate marketplaces work. Instead of large retail landlords (Storefront) and multinational hotel operators (Airbnb), technology is allowing individuals to now participate in these marketplaces. Supply is being decentralized and anyone with extra space can participate.

  You could argue that these sorts of informal and short term rentals are nothing new, but I don’t think there’s ever been the possibility of scaling up like there is today. I mean, just look at how much attention Airbnb has been getting in New York. These startups are having an impact on the way the larger market functions.

  Change is coming. And I think we’ll see a lot more of it in the real estate space.

  2014.04.28

• Are the suburbs really cheaper?

  

  Smart Growth America released a report this month called Measuring Sprawl 2014. It’s an update to a report they did back in 2002 and it’s worth a read if you’re into urban planning. You can download it here. 

  The report looks at 221 metro areas in the US and develops a “sprawl index ranking.” The higher the number, the more compact the metro area. Not surprisingly, New York tops the list with San Francisco coming in second. But more interesting are the correlations they discovered. As you go up their sprawl index ranking (that is, as the cities become more compact), they found the following:

  • People have greater economic opportunity in compact and connected metro areas.
  • People spend less of their household income on the combined cost of housing and transportation in these areas.
  • People have a greater number of transportation options available to them.
  • And people in compact, connected metro areas tend to be safer, healthier and live longer than their peers in more sprawling metro areas.

  If you’re a follower of smart growth, then some of these will sound familiar. But they’re worth repeating and I’d like to focus on the second one for a minute (not to undermine the importance of living longer). Conventional wisdom dictates that as you sprawl out from the center of a city, the cost of housing drops. And indeed, that’s what they found. There’s a correlation between density and housing costs, and more compact cities generally have more expensive housing.

  However, they also found that the percentage of income spent on transportation is much less in compact metros:

  Each 10 percent increase in an index score was associated with a 3.5 percent decrease in transportation costs relative to income. For instance, households in the San Francisco, CA area (index score: 194.3) spend an average of 12.4 percent of their income on transportation. Households in the Tampa, FL metro area (index score: 98.5) spend an average of 21.5 percent of their income on transportation.

  But here’s where it gets interesting: they found that transportation costs dropped faster than housing costs increased as metro areas became more compact. Meaning if you consider both housing costs and transportation costs in aggregate, it’s actually cheaper to live in more compact areas. From what I can tell, they’re also only considering direct transportation costs and not indirect costs such as the time people waste sitting in traffic. 

  Either way, it’s something to consider the next time you’re thinking about where to live and how much you should be willing to spend on housing. That cheaper suburban home may not be as cheap as it seems.

  Photo by Aythami Perez on 500px

  2014.04.20

• The suburbs, they are a changing

  Earlier today, a good friend of mine shared this New York Times article on my Facebook wall. It talks about how some suburbs are taking action to try and curb the exodus of young people to cities. They’re doing things like making themselves more walkable and building bike lanes. I thought it was an interesting article.

  Of course, it’s not just young people moving from the suburbs to the city. It’s also a case of young people living in the city and never leaving for the suburbs–which they have traditionally done. 

  I’ve talked about this topic a lot here on ATC, but I wanted to share this article because I think it’s one thing to talk about how city centers are on the rise and it’s another thing to talk about how suburbs are starting to take notice and take action to curb their (potential) decline.

  I say potential because some would argue that the suburbs aren’t necessarily on the decline–we just have a scenario where young people are delaying that period of their life, either for economic reasons or for personal/lifestyle reasons.

  I, however, would disagree. I think the growing preference for cities is a real societal shift. That doesn’t mean I think the suburbs are going to die though. There will likely always be a segment of the market that prefers that housing type (or some variation of). I just think the suburbs aren’t going to be what they once were to previous generations.

  2014.04.17

• New York YIMBY

  Yesterday a friend of mine sent me this NY Times article covering a site called New York YIMBY.

  I’ve spoken about the term YIMBY before and this site is exactly that: a site dedicated to “saying yes in my back yard” to new development in New York. It was founded by 23 year old Nikolai Fedak and currently receives 75,000 monthly visitors. He has plans to expand to other cities and I’ve already emailed him to see if he has any plans for a Toronto YIMBY.

  At a time when it’s common to hate on developers and new developments, it’s refreshing to see a site dedicated to the exact opposite. That’s not to say that all developments are good (New York YIMBY has no problem blasting the ones that suck, as it should), but it’s certainly framing development as a positive thing for cities. 

  In growing cities like New York and Toronto, development is going to happen. And so I would rather we focus on how to make it happen in the best way possible instead of just saying no.

  2014.04.11

• Things that are quintessential

  One of the things I think is important for cities to have are things that are quintessential. I’m talking about a quintessential behaviour, a quintessential experience, a quintessential accent, a quintessential architectural style, or whatever. I’m talking about the things that make people say: “Oh, that’s so New York.”

  What I’m essentially talking about is brand equity for cities. For better or for worse, when somebody associates something with a particular city, you could argue that that city effectively owns a trademark. (Definition of trademark: “…a recognizable sign, design or expression which identifies products or services of a particular source from those of others.”) In this case, the source is a simply a city.

  Sometimes these trademarks are an informal understanding amongst people in the know, but in other cases they can become quite legitimate. Take for example Chicago’s distinct architectural style known simply–at least within architectural circles–as the “Chicago School.” This is a style that Chicago clearly owns. And if another city were to adopt it, people might say: “Hey, that building reminds me of Chicago.”

  All of this is important because, just like companies, cities are increasingly in the position of having to compete for “customers” in a mobile and interconnected world. And if you ask some marketers, they’ll tell you (perhaps self-servingly) that brand is the most valuable asset a company has. But if you believe this to be at least somewhat true, then statements like, “Oh, that’s so (insert city name here)”, are actually pretty powerful.

  Is there anything about your city that you could say is unequivocally yours?

  2014.04.09

• The best city blogs around the world

  

  This morning I’m super excited to announce that Architect This City has just been listed by the Guardian Cities UK as one of ’The best city blogs around the world.’

  There are some great and well known blogs on the list, including The Happy City by Charles Montgomery (Vancouver) and Humans of New York by Brandon Stanton–which went on to become a #1 NYT bestselling book. So it feels good for my fledgling ATC blog to be included.

  A big thanks to the editor of the Urban Times for encouraging the folks over at the Guardian to include it and thanks to everyone who reads ATC. Happy Monday.

  2014.04.07

• Culture in our society and economy

  Last week I was reading the blog of James S. Russell, who used to be the architecture critic for Bloomberg News. He’s no longer the architecture critic, because Bloomberg got rid of his column:

  My column, along with almost all cultural coverage, was eliminated at Bloomberg late last year in favor of a yet-to-be completed revamping that focuses on luxury and lifestyle. 

  Obviously, the decision saddens me personally, but it’s also a regrettably powerful signal that culture doesn’t matter in our society and economy.

  As someone who spent a great deal of time studying art, architecture and design, his post really resonated with me. This is a depressing thought. It may be hard to measure the ROI of the arts, but that doesn’t mean there isn’t a return.

  Ironically, Bloomberg–the former mayor of New York–understood this:

  As Mayor of New York, Michael Bloomberg, the company’s founder, championed arts as valuable to the vibrancy of the city and as a powerful force for economic development. The city has seen unprecedented growth in arts facilities, thanks both to his administration’s efforts and his personal philanthropy. His post-mayoral activities are intended to nurture cities as fields of wealth creation by helping them become cauldrons of innovation, which he recognizes is entwined with vibrant cultural and lifestyle trends.

  That sounds about right.

  2014.04.06