Tag: toronto

• A Love Letter to the Great Lakes

  This week, the first ever international street art festival will be taking place in Toronto. It’s called A Love Letter to the Great Lakes and it is running from June 20 to June 25, 2016.

  The goal of the festival is to use public works of art to get people thinking about our water resources and, more specifically, about the Great Lakes. Together, these Lakes represent 20% of the world’s fresh surface water.

  So this week, 21 local and international artists will be painting giant murals in 3 different areas of the city: Queen & Ossington, Queen & Spadina, and at the mouth of the Don River.

  The collaborators for the event include Tre Packard (Pangeaseed Foundation), Jason Botkin (A Love Letter to the Great Lakes, En Masse), Jaqueline West (Herman & Audrey), developer Jeff Hull (Hullmark) and Devon Ostrum (Friends of the Pan Am).

  Below is one of the works already in progress. It’s by Jason Botkin and it’s located on one of the bents of the Gardiner Expressway East at the mouth of the Don River.

  

  This event caught my attention for 3 reasons.

  First, I think the city is going to be left with some rad looking murals. Here is one from a similar event in Cozumel, Mexico called Sea Walls: Murals for Oceans in Cozumel:

  

  Second, like many others, I care deeply about the environment. But until we put in place the right economic incentives / disincentives, we need all the awareness building that we can get.

  Third, seeing Jeff Hull on the list of collaborators reminded me that there’s a new breed of real estate developers emerging in our cities. The big bad developer is sometimes (often?) thought to be greedy and insensitive to local communities. But I think the next generation sees itself quite differently. They see themselves more as city and community builders.

  So if you’re in Toronto this week, get on your bike and head over to one or more of the mural sites. Tweet me if you decide to go and maybe we can connect.

  2016.06.20

• Rental apartment expansion in Detroit

  The Detroit Free Press recently published a summary of some of the new rental apartments coming online in and around downtown Detroit. Here’s the map that they published along with their piece:

  

  Based on this article, demand is outstripping new supply and rents are starting to push above $2 per square foot. This strikes me as a solid number given that there are also for sale lots/houses in the city going for $10,000.

  Going back to some of the posts I have written about rental apartment development in Toronto, you might remember that $3 psf is roughly our magic number given current cost structures.

  In some special circumstances you might be able to get a project off the ground with rents closer to $2 psf, but that’s an exception to the rule. There are many areas in the Toronto region with $2 psf rents and few, if any, new rental apartments.

  But Detroit is obviously a different city, as is every real estate market.

  Land would be cheaper. Many of these new rental apartments are conversions of existing buildings (which were probably bought for cents on the dollar). And I wouldn’t be surprised if there are tax abatements and other incentives to encourage more development. 

  I also wonder if people in the city aren’t being at least partially drawn to multi-family buildings because of the safety and security benefits. That’s something that certainly came up when I was in Detroit last weekend.

  Regardless, this is a good news story for Detroit, which is not always the story you hear people telling of the city.

  2016.06.05

• Event: Community Consultation for Mirvish Village

  

  One June 13, 2016 from 6:30 to 9:00 pm, the City of Toronto will be hosting a community consultation meeting for the proposed redevelopment of Honest Ed’s / Mirvish Village. 

  The meeting will be held at the Bickford Centre Auditorium at 777 Bloor Street West (across from Christie Pits Park).

  The purpose of the meeting is to present Westbank’s revised development proposal, which was submitted to the city last month. Their first proposal was submitted last summer (July 2015). 

  Some of the key changes include a new on-site public park, the retention of additional heritage buildings (now 21 in total), more pedestrian porosity, and the retention of Honest Ed’s alley in its current location.

  I consider Westbank to be one of the most thoughtful developers in the city and so I’m pretty excited to see this one evolve. I’m planning to attend the community meeting and maybe I’ll see you there.

  Below are a couple of other renderings to give you a taste.

  

  2016.06.02

• Towards car-free living

  Right now, there’s an apartment building in San Francisco that is trying to encourage car-free living by offering residents a $100 per month credit that can be used for Uber and/or for public transit. Prospective residents can even get a $20 credit to go check out the community. (The program is a partnership with Uber.)

  The reason this leasing strategy caught my attention is because we’re at a point where city builders are now trying to recalibrate themselves to this new emerging world. 

  When I was at the Land & Development conference earlier this month, one developer brought up this exact point. He more or less asked: If you’re starting development on a new building today and you’re expecting approvals in 2 or so years and completion in another 3 or 4 years, what do you think the state of cars/driving will be at that point? Should you really be building all that underground parking?

  These are great question. And they highlight one of the challenges of development. It takes a long time to bring new supply to the market and a lot can change during that time period. My sense is that we are pretty clearly seeing downward pressure on driving and car ownership.

  That said, this isn’t the case in every city or in all parts of a particular city. I just got back from a trip to a Detroit where it’s pretty hard to imagine the city being oriented around anything but the car. But in cities like San Francisco and Toronto, car-free living is already a reality for many people and so we need to respond to that.

  How do you see yourself driving, or not driving, in the next 5 to 10 years?

  2016.05.31

• Architect Profile: Omar Gandhi

  

  This week – thanks to an introduction from a mutual friend – I had the pleasure of having lunch with architect Omar Gandhi. 

  Based in both Halifax and Toronto, the Globe and Mail has called Omar one of Canada’s next top architects and Wallpaper Magazine has named him one of the top 20 young architects in the world. So if you haven’t yet heard of him, consider this post as your heads up.

  What’s exciting about his work is how it really reflects the ethos of the places he works in (east coast Canada in many cases). At the same time though, his works seems to define a new modern and Canadian design sensibility. 

  And this is what I believe great architecture should do. It should respond to and reinforce local cultures, but also help to shape them as they invariably evolve. Architecture and culture are inextricably linked.

  I love seeing local talent thrive, so I hope you will take a minute to visit Omar Gandhi’s website.

  Image: Modern Cabin in Cap Breton from OG

  2016.05.27

• In support of a super-metro

  

  I just got home from a couple of coffee meetings, an afternoon bike ride and an impromptu basketball shootaround. Toronto is a different place in the summer. And it feels great to be biking everywhere.

  But Toronto is more than just Toronto. Toronto is at the center of a much larger urban agglomeration. And our continued success is going to partially hinge on our ability to work together in a coordinated way.

  Greg Spencer of the Martin Prosperity Institute recently published an interesting article called: Is it time to create a super-Metro? Here’s what it’s about:

  Our research at the Martin Prosperity Institute shows that economic competition is now primarily between cities rather than countries. To be successful in this environment, Toronto and its neighbours need to find a way to erase local divisions and solve their problems together. 
  

  Toronto is a wildly successful city, world-class in many respects. When our current institutional arrangements were forged, no one predicted the level of growth the region is experiencing. Status quo local government arrangements cannot adequately deliver the level of co-operation and collaboration needed to cope and plan for the future.

  Greg believes that the answer is a new regional authority that could give “democratic legitimacy to the very important decisions being made for the benefit of the wider region.” 

  I’m not going to comment on how all of this should be executed, but I fully agree that we need to think and act as one consolidated urban entity.

  Cities are the economic driver of the new global economy, but many (most?) of our governance structures do not properly reflect that reality. And the risk is that we are allowing arbitrary municipal boundaries and lack of coordination to hinder our ability to compete globally.

  This goes for Toronto and it goes for every other city region around the world.

  2016.05.22

• 3 obscure things to think about before buying a condo

  If you’re an architect, developer, or someone else in the business of building buildings, chances are you have an extensive mental list of things that you would think about before buying a piece of real estate. I know I certainly do. These are things you learn over time – sometimes by making mistakes.

  Depending on the type of real estate, this list would vary. So this is not going to be a comprehensive list of things to consider, by any means. But today I thought I would mention 3 things that a lot of people might not think about when buying a new condo, particularly when buying pre-construction off drawings.

  Noisy Adjacencies: 

  What’s around the suite? Elevator shafts, mechanical rooms, and gyms all create noise. There are measures to protect against all of these noises, but that doesn’t stop me from worrying about these sorts of things. For instance, in my experience, some (many?) condo gyms don’t have the right kind of floor to deal with dropping weights. In these cases, something is usually done after turnover to address the noise complaints.

  Exposed Overhangs: 

  Does the suite overhang the floor below or sit on top of a space that is exposed to the elements, such as a loading bay or walkway? If so, you might get a cold zone if it hasn’t been properly insulated or heat traced. Of course, most projecting condo balconies also create a thermal bridge that can create a cold zone around it. But the first example could be worse. If you live in a place that doesn’t have subarctic winters (Toronto) this may be a moot point.

  Transfer Floors: 

  The most efficient way to build a multi-family building is to repeat the same floor plan as you go up the building. This ensures that everything runs in a straight line. The minute you create stepbacks and offsets, you then need to start “transferring.” This means that structure and services will need to be brought from one location of the building to another. This can lead to deeper structural beams and additional bulkheads which could then impact ceiling heights in the suites. This won’t always be the case, but something to think about when you see dramatic changes in the building’s form next to your suite.

  Again, this is not a comprehensive list, but these are some of the small – perhaps anal – details that I would think about if I were buying a condo. Feel free to add other items in the comment section below. They don’t have to be anal-retentive in nature.

  If you’re on the building side, you work to get ahead of these issues by, for example, anticipating where you could need additional height for transfers and sound attenuation (such as around mechanical spaces). But buildings are complicated and sometimes things happen. It’s a long way from initial sketch to finished occupied building.

  2016.05.21

• #WeTheOther

  We may not all agree on things like bike lanes and transit, but if there’s one thing that can generally unite a city it’s playoff sports. 

  I love the solidarity that it creates. You may have nothing else in common with the person sitting next to you at the bar, but suddenly you’re best friends because your team is winning.

  As I write this post, #WeTheOther is currently breaking the internet after CBS Sports ran a cheeky online poll asking: Who will win the NBA title? The four options were:

  1. Warriors
  2. Thunder
  3. Cavaliers
  4. Other

  For those of you who don’t follow basketball, there are only 4 teams left in the NBA playoffs right now! So in what was likely a deliberate snub to the Toronto Raptors, CBS conveniently obfuscated them in their poll.

  Here’s how Mayor John Tory quickly responded:

  

  What would sports be without the trash talking?

  2016.05.17

• What it takes to unlock infeasible development land (and some thoughts on parking)

  

  One of the questions that came up after my recent post about land pricing was: what is it going to take to develop underutilized land on the outskirts of city centers?

  So today I thought I would talk about a new development project that was also discussed at the Land & Development conference I recently attended. I think will begin to answer this question.

  The project today is known as the Rockport Weston Community Hub & Rental Building. And it’s going to include a community cultural hub, 26 live/work artist spaces, and 300 rental apartments. 

  It’s located in the Weston neighborhood of Toronto, which is designated as a “Neighborhood Improvement Area.” These are lower-income areas that the city considers to be “at-risk.”

  Given this, rents are naturally lower here than in other parts of the city, which means that it’s basically infeasible to develop here. There has been no large scale development in this community since the 1970s!

  To put some numbers to this, the developer said they were projecting rents somewhere around “two and a quarter.” So let’s assume for a second that the average apartment rents will be $2.25 per square foot. 

  At this rate, it means that a 600 square foot one-bedroom apartment will have a face rent of $1,350 per month. This may seem fairly high, but it almost certainly wouldn’t be enough to get a project like this off the ground under normal market conditions. At least, that’s the case here in Toronto with current cost structures.

  So what had to happen was a fairly complicated public-private partnership, which you can read all about here. But at a high level, there seems to have been 3 main economic factors that allowed this project to move forward:

  1) The developer was able to acquire the land for cents on the dollar. As I said in this post, land is expensive. So this helps a lot.

  2) The developer was able to make use of extra parking in an adjacent building. Assuming that underground parking could cost around $50,000 per stall, this is a huge cost savings.

  3) Lastly, the project is benefiting from the public invest made in the airport rail link that now quickly connects this site to both Pearson International and downtown Toronto.

  The moral of the story is that infeasible sites require some sort of subsidy or top up to make them work. Or, there needs to be an exceptional circumstance. Because if the rents aren’t there, nobody is going to build. It’s as simple as that.

  That said, here’s one idea…

  This discussion reminds me of a post I wrote a while back called, The hypocrisy of parking minimums. Frankly, I don’t understand why a city like Toronto still has parking minimums. If anything, we should have parking maximums.

  Underground parking is a huge cost that has to get carried by purchasers and renters in a new building. For example, let’s assume that 300 apartment suites would require 180 parking stalls (ratio = 0.6). Assuming $50,000 per stall, that’s a $9 million cost.

  So the second takeaway is that it’s probably time we took a good hard look at how we think about and plan for parking in our cities. Especially since the entire mobility space is being quickly disrupted.

  Image: Rockport

  2016.05.12

• It sold for what?

  Today I spent the day at the Land & Development conference here in Toronto. If there was one running theme throughout the day, it was: “Holy shit, I can’t believe that X piece of land sold for $Y million. How will they (the developer) ever make the numbers work?”

  Outside of the real estate development community, there’s often the perception that developers are building everywhere and that there’s lots of land left in cities, like Toronto. When you see all the cranes in the skyline, it naturally seems like we’re building a lot. Things seem easy.

  But the reality is that it’s extremely difficult to find “land” in markets like Toronto and Vancouver. And by “land”, I mean properties that can be feasibly acquired/assembled, entitled, developed, and then brought to market. The way the speakers today spoke about land it’s as if it were a rare precious commodity.

  I say all this, not to complain about how tough things are, but simply to shed light on the process. A developer’s job is to take a piece of property and figure out a way to create additional value. But to do that, they need to find a suitable piece of real estate. “Land” is an input.

  This has implications for consumers, because inputs turn into outputs. And if one of the inputs is becoming scarcer, then it’s pretty safe to assume that the outputs, such as new housing, are also becoming scarcer.

  2016.05.11