Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 1497

Last Sunday the Toronto Star ran this article talking about a $30 million class-action lawsuit against developer Elad Canada. The claim is that the developer failed to deliver on the promise of direct underground subway access from its project—Emerald City Condominiums—to the Don Mills subway station.

The developer, however, doesn’t feel that they made such a representation:

The lawyer for condo developer Elad disputes the claim saying, “there was never any representation that there would be underground access” from the condo building to the subway or directly to Fairview Mall: Both are easy to reach by walking out the lobby doors and six metres to the subway entrance right out front.

But when you check the project’s website , it says the following:

Emerald City is also a commuter’s dream come true. With easy underground access to the Don Mills subway, you can be in downtown Toronto in just minutes.

Now, I suppose you could argue that, since it’s the subway, that all access is underground. And that it’s certainly “easy”. But when I read the above statements, I can understand why somebody might think there’s underground access to the subway station from  within the building. That’s what I would think. It’s misleading.

But I want to hear from all of you (especially if you’re a lawyer).

Do you think the developer unfairly led purchasers into believing that they would have direct and underground access to the subway station from their building?

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.

I was out last night near Yonge and College for a friend’s going away party and the topic of the College Park building came up (originally an Eaton’s department store). We talked about how in the 1920s it was planned as a 38-storey Art Deco tower (see above photo), but that the Great Depression forced Eaton’s to scale back their plans. They ended up building a 7-storey building, albeit an impressive one.

Then today, thinking about that discussion, I became curious about the story of Eaton’s. Where exactly did it start and how did they get to a point where they were planning the largest retail and office complex in the world?

Well, as many of you probably know or can guess, the first Eaton’s store was opened where the Toronto Eaton Centre mall currently sits today. The exact address was 178 Yonge Street, which is just north of Queen Street. But what was interesting about this location is that, at the time, it was considered to be far removed from Toronto’s center of fashion and retail. That was King Street East. Below is  a map from 1842 .

In 1869 when Timothy Eaton opened his first store, the heart of Toronto was what is today known as Old Town (although most people would probably just refer to it either as King East or as the St. Lawrence Market). People shopped along King Street between Yonge and Jarvis, and Queen Street probably would have felt out of the way.

But Eaton’s succeeded at Yonge & Queen, along with rival store Simpson’s, and retailing shifted northward. With Eaton’s College Street, the company was once again looking north. In fact, they wanted to move their entire operation from Queen Street up to College Street, and they even tried to get Simpson’s department store to do the same (somebody clearly understood agglomeration economies ).

But since the full build out of Eaton’s College Street never actually happened, both stores were kept in operation and a customer shuttle bus was run between the two of them (until the Yonge subway line opened up in the 1950s). With the opening of the Toronto Eaton Centre mall in the 1970s, Eaton’s closed both Queen and College Street locations, and consolidated operations near Dundas Street.

In 1999, after 130 years of operation, the company went bankrupt.

What I find interesting about this story is that it speaks to how dominant the department store business model was at the time and how it was shaping the city around it. If Eaton’s had achieved its vision for the corner of Yonge & College, Toronto might look a lot different today. Perhaps we’d all be shopping for fashion along College Street.