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: north america

  • The first North American night mayor

    With Mirik Milan (Night Mayor of Amsterdam) speaking at the upcoming NXT City Symposium here in Toronto, I figured it was time to revisit the topic of night mayors. If you’re new to this topic and/or the blog, you can get yourself up to speed here (scroll down).

    Firstly, this idea is clearly spreading and it just crossed the pond. Last month on August 24, 2017, New York City Council voted to create the “Office of Nightlife.” It’s a small start. The office will have an annual budget of $300,000. But that’s okay.

    As far as I know, NYC is now the first major North American city with government humans focused on leveraging the benefits of the nightlife industry.

    For the record, my post “Why Toronto needs a night mayor” was published in March 2016. It was obvious that the idea was already spreading throughout Europe and I was hoping that this city (Toronto) take notice and decide to lead within North America. New York City decided to do that instead.

    Secondly, CityLab published an article today called how to be a good night mayor. It is about what NYC can learn from the European cities who are already experimenting with this kind of office. Perhaps my favorite is the recommendation to “reflect your own city’s DNA.”

    Of course, having a night mayor is one thing. Making it highly effective is another. In that regard, it is still early days for North American night mayors, and night mayors in general. Who will truly lead?

    Photo by Alina Grubnyak on Unsplash

  • Population growth across North American cities

    The Centre for Urban Research and Land Development at Ryerson University recently published the following chart on their blog:

    It’s a look at population growth across a few North American cities, broken down according to natural increases, net internal migration from other parts of the respective country, and net immigration from outside of the respective country.

    When you sum up the pluses and minuses shown above, you get to population growth numbers that look like this:

    Houston, Dallas, and Atlanta are monsters in terms of population growth. They’re obviously smaller than New York and Los Angeles, and so on a percentage basis they are really adding a lot of people. Much of this has to do with the ease in which housing can be added in those cities and their relative affordability.

    Toronto is competitive with New York and Los Angeles in terms of an absolute number, but again our base is smaller so on a percentage basis we are growing faster. The big story with Toronto is our dependence on immigration to grow.

    The one city on this list that might surprise some of you is Chicago. Toronto and Chicago share many similarities and are often compared. But when you look at how the Chicago metropolitan area is shedding people, you see that, at least in this regard, it’s in structural decline.

  • 10 city building predictions for 2016

    Dawn by Adrian Popan on 500px.com

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

    Few things are better than waking up in the mountains and seeing a notification on your phone that 9″ of fresh snow have fallen overnight, bringing the 48 hour snowfall total to 16″.

    This is what people in mountain towns live for. They ski in the morning and then head to work in the afternoon. I heard a number of people on the mountain today saying that they, “want to be in the office after lunch.” It’s a lifestyle thing.

    On that note, today I’d like to focus on 10 city building predictions for 2016. I’ve been assembling this list over the past few weeks and now that I have had my fill of Utah powder for the day, I’m dedicating the rest of the afternoon to writing.

    These are never easy to put together. But here are my thoughts:

    1. We will see increased migration to secondary cities – outside of the alpha global cities – which offer a higher quality of life, more affordable housing, and the ability to live a particular lifestyle. This includes cities like Austin (creative startup hub) and Denver (outdoor recreation).
    2. As more and more cities wake up to the importance of lifestyle in attracting top talent, I think we will see a lot of cities follow the lead of Amsterdam and create “night mayors” or some other equivalent. These cities will begin to see nightlife as a competitive urban advantage.
    3. Global cities will start experimenting with different land use and property tax reform strategies to try and deal with rising income inequality and eroding housing affordability.
    4. We will see a barbell of residential unit sizes. We’ll see more well-designed small units as a way to try and promote housing affordability and we’ll see larger urban infill units for families and baby boomers who want to live/remain in walkable urban communities.
    5. In line with above, I think we will see a further rethinking of urban spaces. Flexible spaces, unique program mixes, and a continued blurring of public/private spaces. One example of this is the trend towards small private spaces surrounded by generous public/communal spaces.
    6. The Toronto and Vancouver real estate markets will continue to chug along because of low interest rates, a weak Canadian dollar, and increased foreign investment. That said, I think we will see more restraint when it comes to over-the-top luxury product.
    7. We will finally see a disruptive technology product that starts to get people in the real estate industry thinking that change is on the way. This will not be a product that ports an offline experience online; it will a new way of thinking about the industry.
    8. This will be the year that cities stop fighting Uber (and other similar marketplaces). Cities (and lobbyists) will finally accept that this is a new reality and then work to figure out the best way to create policy around it. Edmonton, Alberta has already become the first Canadian city to regulate Uber.
    9. Road pricing will get the attention it deserves in North America. Things will start out slow, but we will finally get ourselves on a path which recognizes that we can’t build our way out of traffic congestion in most major cities.
    10. I will publish a book on becoming a real estate developer.

    Many city building trends and shifts seem to happen in a global way. But I think it’s worth noting that a lot of these predictions were likely written with my North American lens on, and in some cases my Toronto lens on.

    It’s not easy sitting down and thinking about what will happen in the future. But it’s a worthwhile exercise. It forces you to take a stance and then, when the future does come, you can see how well you did. I saw Fred Wilson do this on his blog and I thought it was a great idea.

    Now I would love to hear what you think about my predictions and what yours are for this year. Please let us know in the comment section below.

  • The future of housing in Toronto

    On Monday evening I gave a 45 minute talk at the Rotman School to a delegation of about 70 people from Portland. The talk was about Toronto housing, but more specifically about the history and possible future of high-rise housing in this city. 

    Thanks to everyone who commented on my lead-up post over the weekend. It was really helpful to hear what other people in this city (as well as people not from this city) are thinking. Many of the comments also echoed my own beliefs.

    The narrative I told in my presentation was about two significant, yet very different, periods of time when Toronto built more high-rise than low-rise housing. The first was our post-war suburban slab tower boom. And the second, which we are currently living through, is really the outcome of the Places to Grow Act (2005).

    But as I mentioned over the weekend, the really interesting question is: what’s next?

    In my view, what we are seeing today is fundamentally different than what we saw in the post-war years. Despite the fact that we were building towers then and we are also building towers now (albeit much taller ones), the ideology behind them has changed. It has gone from suburban to urban.

    Toronto’s post-war towers were built upon a particular dream. The dream of getting in your car, escaping the decay of the city, whisking up the Don Valley Parkway (nobody whisks on the DVP), and being rejuvenated by all the light, air, and green space afforded to you in your Ville Radieuse.

    But it turns out that people of means didn’t want that back then. They wanted a suburban house. That was the dream.

    Today, however, cities are back in vogue

    Companies are moving into city centers to compete for the best talent. Retailers are moving downtown to capture disposable income. And the most pressing problems are no longer about decay and urban blight, they are about housing affordability, gentrification, and too many rich people pushing out the poor.

    The narrative has changed.

    So in the context of Toronto, I feel as if we are at an inflection point when it comes to housing. The multi-family dream may not have stuck decades ago, but I believe it will stick for many, though not all, today. And this will happen for a variety of reasons ranging from sheer preference to sheer necessity. The alternative is no longer an affordable bungalow on a 50′ x 150′ lot that happens to be 10 minutes from the subway.

    But as a result of this shift, I also think a number of other things will happen. 

    Eventually, Toronto will look to loosen some of the land use restrictions on its single family neighborhoods. This could mean “gentle” low-rise intensification (new planning buzzword, take note), as well as the acceptance of laneway or accessory dwelling housing. This won’t be popular, as one person said in the comments over the weekend, but eventually the pressures will become too great.

    At the same time, I think we’ll be brought full circle with respect to our suburban towers. The suburban ideals in place at the time means that many of these tower communities have relatively low densities. That represents a tremendous opportunity for this city and it’s only a matter of time before we truly figure out how to unlock them.

    But for all the change and disruption that’s happening in Toronto, I think it’s also worth saying that those of us who live here should consider ourselves a lucky bunch.

    One of the things I actually asked the delegation from Portland was, what struck you the most when you arrived in Toronto? The response I got was: its vibrancy. 

    Everywhere you walk downtown, they said, people are on the streets – walking, cycling, and hanging out. In fact, some said it’s almost hard to remember which street is which because every street seems to be so full of activity. Most North American cities do not have this kind of sustained vibrancy in the core, I was told. And so that makes us a pretty special place. We must be doing something right.

    It’s easy to take those sorts of things for granted when you live somewhere. So today I’m trying to do the exact opposite of that. I’m trying to stop and appreciate the place I call home.

  • The big challenge is suburban infill

    Photograph Thorncliffe Park Drive (TORONTO) by Jenver Rosales on 500px

    Thorncliffe Park Drive (TORONTO) by Jenver Rosales on 500px

    Between the 1950s and 1980s, Toronto built a lot of towers. A 2010 report by the Centre for Urban Growth and Renewal identified 1,925 rental apartment towers of 8 storeys or more across the Greater Toronto Area. 

    That’s the second largest inventory of apartment towers in North America – many or most of which are in car-oriented suburban neighborhoods.

    Of course, Toronto continues to build a lot of towers. But this second and current wave of towers is quite different than the last. Virtually all of them are now condo (as opposed to rental) and most are concentrated in central neighborhoods that are generally well-serviced by transit.

    This has created a lot of positives for the city. It brought more people into the core to live, which in turn brought more retailers and employers into the city. It has created what I believe is a more vibrant and exciting 24/7 city.

    But this return to city centers (as well as the economic spikiness it has created) is now well established both in Toronto, as well as in other cities all around the world. Every real estate conference or panel you go to now talks about Millennials and their desire to be in walkable communities. We got it.

    And relatively speaking, those kinds of communities aren’t that difficult to create when you’re infilling city centers. Certainly not at this point. The street grid and bones are usually all in place. And the urban form is often conducive to transit.

    The real challenge – and thus opportunity – for Toronto and lots of other cities is how to urbanize the (inner) suburbs and in particular these “towers in a park”. If you follow this space, you’ll know that there’s a lot more that we could be doing.

    How do we rethink their relationship to the rest of the city? How do we better connect them through transit? How do we plug them in economically? In my opinion, these are far more difficult tasks. But they’re important ones for the long-term success of our cities.

  • Locations of the 100 tallest skyscrapers in the world

    This morning I stumbled upon the following chart (via The Atlantic) summarizing the locations of the 100 tallest skyscrapers in the world.

    As you can see North America dominated tall buildings for most of the 20th century. But then in the 1980s, Asia starting building. Then in the 2000s, the Middle East started building. And today, Asia and the Middle East are where the world’s “supertalls” sit.

    What’s fascinating about this shift is that in many cases, there’s absolutely no physical or economic need to developing so tall. Yes, rising land values can drive up the height of a building, but not to the extent that we’ve been seeing.

    Instead, building “the tallest building in the world” is more symbolic than anything else. It’s about ego. It’s about asserting your position on the global stage. And so while this is a chart about tall buildings, it’s actually a pretty telling chart about global ambitions.

  • From suburban houses to downtown condos

    Last Friday the Financial Post published an interesting article talking about Mattamy Homes and the new office that its founder, Peter Gilgan, is in the process of opening up downtown in the Toronto-Dominion Centre (which just so happens to be my favorite office complex in the city).

    At 64 years old, Peter recognizes that his company has changed and the world has changed. He he himself recently moved downtown and now he’s bringing his company with him.

    “Our Oakville office [a western suburb of Toronto] is a reflection of what our business was 25 years ago,” he says. “We were a local, west-end Toronto builder. Now we’re the largest home builder in Canada and we’re the largest private home builder in all of North America.”

    Come September he will move his finance, legal, IT, human resources and strategic marketing team —  about 100 of Mattamy’s 1,100 staff — into the new downtown digs. He wants to attract “the absolute best talent.”

    “The young people seem to really want to work down here. So that’s one reason. The other thing is to make sure the business has the capital to move forward and expand. Well, where’s the capital? It ain’t in Oakville.”

    This of course isn’t a new thing for suburban homebuilders. Many in Toronto have made the switch – or at least expanded – from suburban houses to downtown/urban condos. And I’m assuming that’s what is going to happen here.

    Still, it’s fascinating to see this trend continue. Young people really do want to live and work “down here.”

  • Rethinking single family neighborhoods

    image

    Earlier this week a good friend of mine sent me a scanned article from this month’s issue of Urban Land Magazine called: Rethinking PADs–Private Accessory Dwellings. He said, I know you have a thing for PADs, so here you go. 

    PADs, or private accessory dwellings, is simply another term for nanny flat or laneway house. Whatever you want to call it, the concept is the same. It’s about taking a single family house and adding an additional dwelling onto that same lot. 

    In many cities around the world, this is not allowed. Each lot is to have only one dwelling unit. And that’s because the single family home – particularly in North America – has been considered sacrosanct.

    But as I’ve argued and demonstrated before, I think we’re on the cusp of this changing. Here’s a snippet from the Urban Land article (unfortunately, I don’t think the full article is available online):

    “If PADs can be added in appropriate scale and number, existing housing, zoned land, and current infrastructure could be efficiently used to increase housing supply and to stabilize and even reduce housing prices. Moreover, since PADs are by definition smaller than existing dwellings, they will attract both younger and older residents who will enrich the intergenerational composition of both urban and suburban communities.”

    I’m happy to see Urban Land (the magazine of the Urban Land Institute) giving this topic some air time. There are a number of social, economic, and environmental benefits to intensifying single family neighborhoods. And the most progressive cities in the world are already doing it.

    What is your city’s position on accessory dwellings? Toronto doesn’t support them. But there are instances where people have gotten them approved.

    Image: Kensington Market Laneway House, Toronto via Flickr

  • Make no little plans

    “Make no little plans. They have no magic to stir men’s blood and probably themselves will not be realized. Make big plans; aim high in hope and work, remembering that a noble, logical diagram once recorded will never die, but long after we are gone will be a living thing, asserting itself with ever-growing insistency. Remember that our sons and grandsons are going to do things that would stagger us. Let your watchword be order and your beacon beauty. Think big.”

    -Daniel Burnham, Chicago architect. (1846-1912)

    I’m a big fan of Chicago. Having now visited the city, I can say that everyone was right when they told me that I was going to love it. It has great art and architecture, great food (with some of the largest portions I’ve ever seen), great nightlife, and great people. 

    But I don’t want to talk about any of these things today. Instead, I want to talk about something much more specific that stood out to me last weekend: Chicago’s relationship to both the water and the street.

    While Chicago and my hometown of Toronto share many similarities– including being situated on a Great Lake and having rivers flow through the middle of them–the relationship to these bodies of water is remarkably different. Here is a photo of people kayaking in the Chicago River on a Friday afternoon:

    image

    What impressed me about Chicago is how intimate and urban the relationship is with the lake and its rivers. If you look at the photo above, you’ll see that many of the buildings are built right up against the river, but that there’s space allocated for riverwalks, patios, and so on. It’s all about engaging and connecting with the water.

    Toronto on the other hand, is only recently starting to reacquaint itself with its bodies of water. We spent much of the second half of the 20th century with our back turned to the lake and without a strong urban connection to the Don River. And if I had to guess why it’s because we built highways along them.

    We built the Gardiner Expressway adjacent to Lake Ontario and we built the Don Valley Parkway adjacent to the Don River. This fundamentally changed our orientation and largely precluded us, I think, from creating the same kind of waterside urbanity offered in Chicago.

    As an example, consider that in the first half of the 20th century, Toronto’s Parkdale neighborhood – which today still has a questionable reputation – was actually an affluent and desirable waterfront community filled with beautiful Victorian mansions. It was well connected to the waterfront, and so the area flourished. Here’s what Sunnyside Pavilion used to look like:

    image

    But then in the 1950s we built the Gardiner Expressway, disconnecting Parkdale from the lakefront and destroying many of its amenities, such as the Sunnyside Amusement Park. In turn, the rich people left and their large Victorian mansions got chopped up into rooming houses and other rental housing stock. And in my view, Parkdale still hasn’t fully recovered from this. 

    Highways are divisive. There’s no question.

    So unless you can afford to bury them, it comes down to trade offs: Do you want to make it easier for people to drive in from the suburbs or do you want a truly spectacular water or riverfront? In the 1950s we chose the former. But even still today, the thought of tearing down–even a portion of the Gardiner Expressway–is fraught with opposition. I guess not much has changed.

    image

    The second way that Chicago impressed me is through the relationship that many of its buildings hold to the street. They come down to ground level with authority and with great retail presence, and often make no amends about their mass and impressiveness. This frames the street and creates a level of urbanity that isn’t always found in Toronto – particularly outside of the downtown core.

    In Toronto, the trend today is towards street level podiums, significant setbacks, and delicate point towers that minimize the impact of their height and allow for natural light to reach street level. It’s well-intentioned and perfectly appropriate in many urban settings. But sometimes you need a little urban assertiveness. Sometimes you want to impress and impose. And Chicago does that.

    What I’m getting at is that Chicago architect Daniel Burnham was on to something. He famously advocated for man (that was the era) to think big. Make no little plans, he said. And it’s admirable advice. Toronto is going through a tremendous transformation right now. We’re North America’s boomtown, which is a title that Chicago would have held at one point.

    But as we build for the future, let’s remember that, long after we’re gone, we’re going to be judged based on the plans we are making today. So why not make them big ones.

  • 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.