Tag: real estate

• A story about Toronto

  

  Marcus Gee of the Globe and Mail recently published “a made-up story about Toronto that never appeared, but should.”

  It goes like this:

  Toronto city hall is pressing a prominent developer to put up a taller building.

  Mayor John Tory is telling Big City Condo Corp. that the condominium it has planned for the downtown corner of Maple and Oak streets is simply too small. The proposal calls for a 25-storey residential tower. Mr. Tory said it could easily rise to 40 or even 50 storeys.

  He dismissed complaints from locals who said the tower would overshadow the neighbourhood and put too many more cars on the street. The intersection is well served by public transit, with two lines crossing there. The mayor called it a golden opportunity to create urban density.

  He insisted the city must build up instead of out if it wants to avoid more sprawl. “We love tall buildings,” he said. “We need more of them. We can’t keep spreading out and out and out. We need to grow up, and I mean that quite literally.”

  Again, this is made-up. And if you’re from Toronto, you knew that. 

  We are still grappling with the urban intensity that should come along with being an important global city.

  Photo by Redd Angelo on Unsplash

  2017.08.16

• The Hong Kong window ledge

  

  My friends at the architecture practice Valente Rodgers told me something fascinating about the Hong Kong real estate market last night. Both partners worked as architects in Hong Kong for a number of years.

  In Hong Kong, you’re allowed to deduct certain projecting windows from your calculation of Gross Floor Area. 

  This is provided they’re a certain height above the finished floor level, they don’t project beyond certain distances from the outer face of the building’s structural elements, and so on. The precise measurements seem to vary depending on things like the building’s use.

  Since space is such a precious commodity in Hong Kong, it shouldn’t surprise you that lots of developers and architects take advantage of this. The result being a proliferation of these projecting window ledges all across the city. 

  It’s a phenomenon that happens in many cities when a perfectly legal loophole is found in the land use policies.

  In Toronto it used to be solariums. You could also deduct these from your overall GFA, which means a lot of them them got built in condos and apartments of a certain vintage.

  In New Orleans it was the camelback house. These were houses with a single storey toward the street and a second storey toward the rear of the property. This was done because property taxes were assessed based on the height of the house as it met the street. Pushing the density toward the rear of the lot meant homeowners weren’t taxed more. 

  I find these outcomes fascinating because they have absolutely nothing to do with architectural intent and everything to do with trying to optimize within a given framework.

  But what’s even more interesting about the Hong Kong example are some of the downstream externalities.

  Firstly, it sounds to me like these projecting windows have become a normal part of underwriting projects in Hong Kong. Meaning, if you don’t factor in these projections, you’re effectively giving up free GFA. (Can anyone familiar with the HK market confirm this?)

  However, building these projections also means you can’t do unmodulated and clean floor-to-ceiling windows. And if that’s the desired aesthetic, somebody has got to be willing to pay for that “luxury.” So arguably there’s a socioeconomic dimension to having and not having this ledge.

  Secondly, because space comes at such a premium, these ledges are fully taken advantage of and furniture makers have responded by designing pieces that can dovetail with them.

  Below is a photo of a bedroom in Hong Kong that I found on bohemia.life:

  

  This may be a custom bed and I don’t know how deep that window projection is, but it begins to show you how valuable these ledges can be from a space perspective.

  I think we should try and come up with a name to describe these sorts of built form phenomena. If you have any ideas, please drop them in the comments below. And if any of you are familiar with the HK market, let me know if I’m off the mark with any of the above.

  Photo by Jason Wong on Unsplash

  2017.08.12

• The city refused my laneway house

  

  This afternoon I stood up at the Committee of Adjustment (Etobicoke York) to present the laneway house proposal that Gabriel Fain Architects and I have been working on for the past year and that I have been working on since 2009.

  But before I could start I was told that Councillor Palacio had just submitted a last minute letter to the Committee. I was given a few minutes to read it, but the big bold “REFUSE” was probably the only word I needed to read.

  I was then asked if I had read planning staff’s report. I acknowledged that I had read it and that I was aware that they were also recommending refusal of the application. I also noted that a number of my immediate neighbors sitting behind me were also opposed to the proposal.

  That’s how my presentation started. 

  At this point you might be wondering: why bother?

  I stood up today because, as most of you already know, laneway housing is something that I feel strongly about. This isn’t just about my individual project. I mean, why do all of this work for one small dwelling unit? For me, this is about city building and trying to affect positive change. (I would also love to live on a laneway.)

  I could go on here about how the proposal was shorter than other existing structures on the lane, how the FSI was in check, how we had carefully studied shadows, and how planning staff had already supported greater densities and multiple dwellings on lots of similar size in the area. 

  But that’s not what today was really about.

  Today I heard loud and clear that whether the proposal was a laneway tiki hut or a 2 storey laneway suite, the community did not want more people living in the area and they most certainly did not want more renters living in the area.

  My message to the Committee was that in my humble opinion this is inevitable. Look to Vancouver. Look to Edmonton. Look to many other cities. What we are debating today, or at least what we should be debating today, is what these laneway houses or suites or tiki huts are going to look like.

  Right or wrong, our proposal was an attempt to answer that question. We looked carefully at what others had done before us, including our friends at Lanescape and Evergreen, and we proposed something that we believed was sensitive to its context.

  We were unsuccessful.

  But here’s the silver lining. At the end of it all, and right before a motion was made to refuse the application, one of the committee members said something very impactful. He more or less said: “I agree with you. This is inevitable.”

  Sadly today was not that day.

  I would like to thank everyone who came out today and everyone who got up to speak in support of laneway housing. It meant a lot to me. Some of you are also readers of this blog and it was great to meet you in person. Thank you.

  2017.08.11

• From retail to logistics

  Over the past few weeks we’ve been talking about the future of the mall on this blog. It’s a topic that I’m very interested in.

  Yesterday the Wall Street Journal published an article talking about the trend of converting retail/shopping facilities to logistic centers. 

  Here’s an excerpt:

  “In Mesquite, Texas, FedEx Corp. next month will open a 340,000 square-foot distribution facility on what once was the site of the former Big Town Mall. Located along U.S. Highway 80 in Texas, the mall declined after newer malls were built nearby. It was demolished in 2006 and the land was later rezoned for industrial use.”

  It turns – and we’ve talked about this – that good retail locations are also good distribution locations. They are usually located close to humans and infrastructure.

  Here’s another example from the article:

  In North Randall, Ohio, Amazon.com Inc. is considering the site of the former Randall Park Mall as a fulfillment center, according to Port of Cleveland, a local government agency focused on spurring job creation and economic growth in Cuyahoga County. Amazon didn’t immediately respond to requests for comment.
  

  For a short time when it opened in 1976, Randall Park Mall was the largest shopping center in the world and had been “a thriving heartbeat” for the local economy, according to Mr. Davis. But the mall closed in 2009 as stores struggled with fewer shoppers.

  Assuming this trend continues and people continue to buy things online, one has to wonder about the placemaking that should or needs to happen in these areas.

  2017.08.10

• Just put up a sign

  Back before the 2008 financial crisis, I did a short stint working for a real estate developer in Dublin, Ireland. 

  Most of our projects were in Ireland, but our consultant teams were sometimes from all over.

  One day we were having a meeting with our architect from Germany and we started talking about a particular project’s green space.

  But this wasn’t the sort of green space that was supposed to be actively used. It was a green space that, I guess, you were just supposed to look at and admire for its greenness. 

  So one of my Irish colleagues asked, while referencing the proposed design: “How are we going to keep people off the grass?”

  Our German friends didn’t immediately appreciate the concern and responded with: “What do you mean?”

  Irish: “How will we stop people from walking and hanging out on the grass?”

  German with serious face: “Oh. We will put up a sign.”

  At that point, every Irish person in the room just started laughing and more or less said: “Yeah, that’ll never work.”

  Cultural differences can be subtle.

  2017.08.04

• Power to the people

  Bloomberg columnist Barry Ritholtz recently interviewed Richard Barton about his startup companies. Barton founded Expedia while he was an executive at Microsoft (Gates and Ballmer era) and then went on to cofound Zillow (real estate site) and Glassdoor (jobs site). 

  I’ve been following the work of Barton for many years now because I admire the common thread among his startups: They’re about bringing transparency to industries where transparency is lacking. I used to try and dissect his thinking when I was working on my own real estate/tech startup.

  I believe there’s still a lot of room for transparency in the real estate space, but that doesn’t negate the work that Barton has done. He’s all about using technology to bring “power to the people.” That’s a good thing.

  Click here to listen to the podcast.

  2017.07.31

• Less is more

  The Wall Street Journal recently asked: Venice Beach Is a Hot Place to Live, So Why Is Its Housing Supply Shrinking? 

  According to Issi Romem, chief economist at BuildZoom, it’s because Venice Beach is the toughest place in America to build housing.

  Here are some numbers from the WSJ:

  “The Venice Beach population is shrinking even as the local economy has boomed. The neighborhood had about 27,000 residents in 2015, about 3,800 fewer than in 2000, according to U.S. Census data. At the same time, the ZIP Code has added 4,000 new jobs, according to Jed Kolko, chief economist at employment website Indeed.”

  And here is a chart that speaks to the relationship between housing prices and housing supply:

  

  Housing supply, alone, isn’t going to solve all of our problems. But it certainly matters. Also, what’s up with Chicago?

  2017.07.29

• Where’d the night go?

  I’m a few months behind on this one, but back in April the CBC published a documentary called: Where’d the night go? 

  It’s about Toronto’s grassroots music community and “DIY venues”, all of which are under pressure as a result of rising real estate values and an overall crackdown on illegal venues. This is a perfect example of what Jane Jacobs was getting at when she said that new ideas require old buildings. 

  If you can’t see the video below, click here. When I watched it, I got stuck watching 3 pre-roll ads. Sorry if that happens to you as well.

  //www.cbc.ca/i/caffeine/syndicate/?mediaId=924601923901

  2017.07.27

• Only 9% of new homes sold last month were low-rise single-family

  

  BILD (the Building Industry and Land Development Association) just released its June 2017 data for the Greater Toronto Area’s new housing market. You can read the full release here. But I would like to point out a couple of things:

  About 91 percent of the 6,046 new homes sold last month were multi-family condo apartments in high-rise and mid-rise buildings and stacked townhomes, while only nine percent were low-rise single-family homes.

  The average price of available new condo apartments continued to rise with an increase of more than $22,000 from May. June’s $627,000 average price marked a 34 percent increase from a year ago. The average available unit was 845 square feet with an average price per square foot of $742. A year ago, the average price per square foot was $587.

  From this, it’s once again clear that Toronto is in the midst of an incredible transformation from a low-rise city to a more vertical city. New supply on the low-rise side of the market is heavily constrained.

  I get the sense sometimes that many people in this city, and others, believe that access to a low-rise detached house should be a right. Go to school. Get a good job. And then buy that house with a backyard. 

  The data speaks to a very different reality.

  Photo by Victoria Heath on Unsplash

  2017.07.25

• Gigantic shopping machines

  

  This morning I gave a presentation and participated in a design charrette that was organized by B+H Advance Strategy about the “mall of the future.” (See photo above.) It’s a 2-day event and I was only able to stick around for a few hours in the morning, but I think it’s great that B+H Architects takes the time to research and get a deeper level of understanding in the areas in which they work. Great design demands that.

  The way the charrette was structured was around a handful of future scenarios. The idea being that it’s impossible to accurately predict the future, but it is possible to play out different possible futures to see what you get. I’m looking forward to seeing what the teams ultimately come up with at the end. I would also be really curious to hear your thoughts in the comment section below.

  But before we decide on what malls are going to become in the future, it’s perhaps useful to think about how they got their start. The man largely credited with inventing the fully enclosed mall typology is a man by the name of Victor Gruen. He was a Vienna-born architect who moved to the US in 1938. 

  In the words of Malcolm Gladwell:

  “Fifty years ago, Victor Gruen designed a fully enclosed, introverted, multitiered, double-anchor-tenant shopping complex with a garden court under a skylight—and today virtually every regional shopping center in America is a fully enclosed, introverted, multitiered, double-anchor-tenant complex with a garden court under a skylight. Victor Gruen didn’t design a building; he designed an archetype.”
  

  The most interesting thing about this story though is that Gruen’s initial hope was that the mall would urbanize America’s suburbs. The garden court was supposed to be a kind of town square. And his broader vision included a mix of higher density uses surrounding the perimeter. But in reality the opposite happened: The mall helped to further suburbanize America.

  However, as our malls begin to show their age (or die) and as we relearn to appreciate walkable urban environments, mall landlords are increasingly thinking mixed-use and higher density. And ironically, many of the plans probably don’t look all that dissimilar to Gruen’s original ideas. So maybe one possible future is simply the one that Gruen wanted to create all along.

  Image: Kinetic Commerce

  2017.07.19