Brandon Donnelly

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.

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Tag: new york

  • In real life in New York City

    This past weekend Bright Moments opened up their NFT art gallery in New York’s Soho. This is the company’s second gallery. The first was in Venice, California. And there are plans for eight more cities, with Berlin being the next one. (When is Toronto?!)

    Bright Moments is a decentralized autonomous organization (DAO), which is interesting in its own right but is a topic for another post. You can read a bit more about Bright Moments and DAOs, here and here.

    What I would instead like to talk about today is how Bright Moments is operating at the intersection of NFT art and real-world spaces. They are in effect a community. It’s a place for artists to release/showcase their work and a place for people to connect.

    One of the things that the company is doing with each gallery launch is minting an NFT collection that is tied to the city and that uses the local demonym. When they opened their popup in Venice, they launched the CryptoVenetians. And last weekend in New York they launched the CryptoNewYorkers.

    In each case, 1,000 NFTs were minted and the idea is that once they have expanded to their 10 cities, there will be a collection of 10,000 NFTs.

    I have said it before, but this is an exciting time in the world. Maybe this current NFT craze ends up being a massive bubble, or maybe it doesn’t. Either way, things are exciting.

    But here’s the thing.

    Organizations like Bright Moments show you just how important physical spaces, live communities, and cities continue to be. It doesn’t matter that this is digital art being displayed on a screen and that one could be viewing it from anywhere. People want to hang out in the same room and experience these sorts of new things together.

    I can’t see that ever going away.

  • A few observations from Paris

    The last time I was in Paris was in 2006. That’s a long time ago and so it was great to be back in the city earlier this week. I don’t know the city as well as I do many other cities, but I speak enough French to be dangerous and we spent a good amount of time on this trip just exploring. On average, we clocked about 20,000 steps a day. So here’s a list of some of the things I was reminded of or learned of on this visit. If any of you are more familiar with the city, please feel free to speak up in the comment section below.

    • I love Paris.
    • The Parisian art of people watching is alive and well. One of my favorite things about Paris is how so much of the cafe seating faces out toward the street. That’s what you’re supposed to be watching: urban life.
    • Most cities have a clear message. In Los Angeles, it’s probably that you should be more famous. In Boston, it’s arguably that you should be smarter. And in New York, it is perhaps that you should be richer. In Paris, the message feels loud and clear: You should be more fashionable.
    • Compared to Toronto, the center of Paris feels far more static. Less construction. Less change. Less that is new. That’s not such a bad thing given how beautiful the city is. But in my view, cities are about balancing preservation and progress. From what I could tell, a lot of the new construction seemed to be happening in the suburbs and in the outskirts of the city.
    • That said, COVID feels much further along in Paris. The city was very open and everyone seemed to be back in the office. Locals said that the city was operating at maybe 80%. It felt busy.
    • Dress shoes are dead in Paris. Everyone wears cool sneakers no matter how young or old. Think business suits with Nike Air Maxes. My hypothesis is that it’s just far more practical given how much people walk in Paris. I plan to adopt this strategy immediately.
    • In addition to walking, everyone seemingly bikes and/or uses an electric scooter. Again, it didn’t seem to matter how young or old. Paris also seems to have solved the scooter clutter problem, as has many other cities. There are designated spots (painted lines next to on-street car parking) and that’s where you’ll find the scooters. Toronto needs to get on board.
    • Traveling at 300 km/h on a train is a highly civilized way to move between urban centers.
    • There’s nothing wrong with having a picnic and drinking a bottle of wine (or two) in a park. In fact, it is probably something that should be celebrated. Let people be grown-ups.
    • When you purchase a baguette, you should immediately take a bite out of it to see how fresh it is.
    • The Eiffel Tower, much like the CN Tower, looks far better when illuminated.
    • Balconies of any size can be wonderful. We had a small Juliet balcony off of our hotel room in Nice and we used it every day for croissant eating and to dry our bathing suits. In a more permanent situation, I am sure we would have started growing things on it.
    • Midrise buildings do indeed create nice urban street walls. But it’s important to keep in mind that Paris’ midrise blocks are also deep and dense and with lots of courtyard conditions. That’s how the city is able to house so many people at such low building heights.
    • Facing conditions between buildings is less of a concern when you employ less glass. Smaller punched windows allow you to better manage privacy. I would go so far as to argue that if Paris were an all-glass city, much of its current built form would be fairly unlivable.

    What did I miss in this list?

    Photo by Alexander Kagan on Unsplash

  • Legendary literary hangouts in New York City

    The New York Times’ recent celebration of the city’s “legendary literary hangouts” is an important reminder of one of the great features of city life. Cities have a way of mixing different people together and inspiring the creation of great things. And sometimes that happens rather informally. (That’s one of the reasons why there’s tremendous value in the nighttime economy.) Tina Jordan writes: “You might think of them as solitary creatures, furiously scribbling or typing alone, but as long as there have been writers in New York City, they have socialized together in an assortment of bars, restaurants, apartments and clubs.”

    For the full thing, click here.

  • US downtowns by use and square footage

    This is an interesting chart from the New York Times showing the breakdown of (real estate) uses across the largest downtowns/CBDs in the US. It was put together using satellite data and data from CoStar, including their boundary definitions for each downtown/CBD. The point of the chart is to show that some US downtowns are heavily dominated by office square footage. But if you look a bit closer, there are other interesting takeaways. Look at retail in Honolulu, hotels in Austin, and how much residential many US cities have in their CBDs.

  • Unicorns overwhelmingly originate in big cities

    In the world of startups, a unicorn is used to refer to a company with a market cap greater than $1 billion. A decacorn, the latest benchmark, is what it sounds like in that it’s a company with a market cap greater than $10 billion.

    While unicorn status is just one measure, valuations are an important yardstick for cities and countries. How many big new companies are you creating? That is a critical question because, presumably, these big new companies are going to create a bunch of new jobs and generate a lot of new wealth for people.

    This recent blog post by Elad Gil is a great summary of what’s happening in the world from this perspective. The raw data is also available if you’d like to dig deeper.

    Here are the number of new unicorns since October 2020 by city:

    Silicon Valley, not surprisingly, continues to dominate, followed by New York.

    Here is a breakdown for the United States as a whole:

    Miami and Austin have been in the news a lot over the past year and their startup scenes may very well be on the rise relative to other US cities. But it’s interesting to see other smaller cities on this list, like Salt Lake City, who are, at least right now, holding their own.

    I found this last set of two charts particularly interesting:

    They are showing unicorn count (first) and unicorn market cap (second) as a percentage of their respective countries. For example, Silicon Valley is sitting at about 47% and 51%, respectively. So about half of all unicorns in the US have originated from this geography.

    But for most other cities on this list, the percentage is much higher and, in many cases, it is 100%. (Silicon Valley is perhaps relatively low because the US has lots of other big and important cities.) For me, this shows the continued dominance of cities. If you’re building the next great unicorn or decacorn, the data tells us that you’re probably doing it in a big city somewhere. And I don’t see that changing anytime soon.

  • + POOL receives “confirmation to proceed with due diligence”

    I learned this morning that + POOL (pictured above) recently received an official” confirmation to proceed with due diligence.” This is after more than a decade of planning, fundraising, negotiations, prototyping and, I’m sure, a bunch of other stuff. City building takes a long time. I’m not exactly sure where this milestone sits in the full spectrum of idea to realization, but it certainly sounds like meaningful progress.

    The idea behind + POOL is pretty simple: People like to swim in water. But the East River is dirty and not the best place to swim (supposedly it’s been this way — unswimmable — since the 1930s). So why not create a dedicated swimming pool in the river and why not make it so that it filters the dirty East River water at the same time. Pretty clever. (The plus sign format is so that it can be split up into four separate uses.)

    New York City is in the midst of creating some incredibly unique public spaces. The other big news is that Little Island opened up this past weekend within the larger Hudson River Park. Also more than a decade in the making, the free 2.4 acre public park, which was designed by Thomas Heatherwick, is the result of a $260 million donation from Barry Diller and Diane von Furstenberg.

    Start with an idea. Put some money around it. And then fight like hell for many years. That’s how these remarkable urban spaces are getting created. This is also pretty much how real estate development works.

  • 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

  • New York City rolls out contactless fare payment at every single subway station

    I’m late to the party here, but I was reading this morning about how New York City recently completed the rollout of its One Metro New York (OMNY) fare payment system. What this does is allow you to use contactless payment systems, like Apple Pay, to get on the subway. ONMY is now available across the five boroughs on every bus and at all 472 subway stations (feel free to impress your friends at virtual parties with this stat).

    Metrolinx here in Toronto is similarly piloting contactless payments on the Union Pearson Express. You now have the option of tapping a credit card, a phone, or a watch. Maybe this doesn’t seem like such a big deal, but I still remember when the PRESTO payment card was first rolled out — it felt late to me. Apple added near-field communication (NFC) to iPhone in 2014, and at that point I think it was fairly obvious that standalone payment cards wouldn’t be around much longer.

    That time has arrived for New York City and will be hopefully arriving shortly for Toronto. And I think it will be particularly useful for tourists who may not have a Metrocard (NYC) or PRESTO card (Toronto) and just want to jump on a train. I’ve only taken the subway a handful of times during this pandemic, but I’ll be back at it once the world fully resumes. And I definitely can’t wait to take the UP Express to the airport again (and to the Junction).

  • London super prime and the City Trifecta Index

    The latest (15th) edition of Knight Frank’s annual The Wealth Report was published last month. I find these interesting because they give you a global view of how and where capital is flowing into real estate (specifically prime real estate). London, for example, did rather well last year despite the pandemic. Buyers from the around the world spent nearly $4 billion on what is commonly referred to as “super-prime properties.” This is real estate with a sale price of US$10 million or more. London saw 201 super-prime properties trade hands last year, with an average price of $18.6 million and with 31 of these transactions being at or above $25 million. This is an increase compared to the year prior (2019), which I suppose is something given that the UK’s housing market was more or less frozen between March and May of last year. These figures put London at the top, ahead of New York and Hong Kong, when it comes to super-prime real estate sales in 2020. (London figures via the Financial Times.)

    Another interesting thing that you’ll find in the report is a city ranking that Knight Frank calls their City Trifecta. What this index does is take Knight Frank’s City Wealth Index (which considers where wealth is currently concentrated) and then adds in two other dimensions: innovation and wellbeing. The idea here is that innovation should drive future economic growth and wealth, and that wellbeing (quality of life) is pretty important when it comes to the future competitiveness of our global cities. When you look at the world’s top cities through this lens, the ranking starts to differ from what you may be used to seeing with cities like London, New York, and Hong Kong at the top (see above chart). Now you have Munich taking the number one spot; Boston and Toronto in 5th and 6th position, respectively; and cities like Zurich jumping up ahead of cities like Hong Kong. These kind of rankings always need to be looked at with a critical eye, but they can be interesting nonetheless.

    Image: Knight Frank

  • Net domestic migration is still pretty suburban

    For years, the data has been clear. Many Americans are moving from expensive cities, like Los Angeles, to less expensive metropolitan areas like Dallas-Fort Worth.

    But Wendell Cox’s recent article over at New Geography is a good reminder that these data sets can be limited. The US Census Bureau currently tracks domestic migration at the county level only. This can be a bit of a problem as counties vary dramatically in terms of geography and population.

    The New York metropolitan area, for example, is comprised of 25 different counties averaging about 750,000 residents. The Los Angeles metropolitan area, on the other hand, is compromised of two counties averaging about 6.6 million residents.

    These sorts of nuances become important when you’re trying to figure out things like whether people are moving to/from urban cores or the suburbs. Case in point: The San Diego metro area is compromised of a single county. When people move there, the data says nothing about how urban or suburban they might be.

    Dallas-Fort Worth is a lot easier to read. Since 2010, it has had the largest net domestic migration of any metro area in the US: +443,000 residents. But county data reveals that it is entirely suburban. The core (Dallas County) actually lost 57,000 people from 2010 to 2019. And this is not unique to the Dallas-Fort Worth area.

    Photo by Gabriel Tovar on Unsplash