Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 719

I have a friend who is a big fan of Tesla. And judging by what's going on with the company's stock these days, he is not alone. This morning he sent me this article talking about how Tesla has introduced an entirely new business model for the automotive industry. The two key takeaways are as follows. One, Tesla is in many ways a software company. The hardware and software onboard each vehicle are continually getting better and oftentimes these improvements are delivered to their customers for free via over-the-air updates. This is not how the incumbent car companies work. And two, fully electric vehicles are going to crush after-sales revenue by virtue of the fact that electric vehicles simply don't require the same amount of service. So now you're in a position where the cars last longer (and apparently depreciate a lot less). This might seem bad for business, but if you can build an ecosystem of energy products and services around said car, then maybe you've got a big ass Tesla moat. Maybe. I have no idea what the company should be valued at today, but all of this is interesting to me and I'm fairly certain that the car I have right now will be the last combustion engine vehicle I ever own. Depending on when autonomy arrives, it may also be the last car I ever own.

My super scientific Twitter balcony survey has revealed that most people seem to like balconies and terraces. Out of the 257 people that voted (not a huge number), 77.4% said that if they were in the market to buy or rent a new place, they would probably want a balcony or terrace. I realize now that my wording could have been more precise. Either way, the results seem to suggest a clear preference.

But there are all sorts of reasons for why you might want to avoid building balconies: energy performance, upfront costs, long-term maintenance, usability at high elevations, overall aesthetics, and so on. In fact, I once had an architect turn down a job because they don't typically work on residential buildings and, when they do, they refuse to work on ones that have balconies. He told me that they don't want the liability.

But then what inevitably happens is that the sales and marketing team joins the design meeting and says, "yeah, we hear what you're saying, but people like outdoor spaces." And then the great debate starts. Okay, so what percentage of the suites should have an outdoor space? What about a sliding glass well? I think so-and-so is doing it on their project. Yeah, but they're real expensive and they leak air.

The reality is that there are many buildings without private outdoor spaces and there are many cities where it is common not to build them. Moreover, my Twitter survey doesn't really tell you exactly how people might behave when they're about to make a purchasing decision. What you really want are data points and things like A/B tests.

Let's take for example two typical/identical 600 square foot suites, with the only difference being that one has a balcony and the other doesn't. Now let's say that the one with a balcony is selling for $1,400 psf or $840,000 and the one without a balcony is selling for $1,350 psf or $810,000. Will some of the 77.4% that voted balcony/terrace possibly buy the $810,000 suite? Of course. Because it's less expensive.

So how does one go about making the right decision when it comes to designing for outdoor spaces? Well, in some cases, you won't have a choice. We have had instances where the City has asked us (okay, forced us) to remove all of the balconies on a particular elevation because they didn't fit with the urban design aesthetic that they wanted for the streetscape. That always pisses me off.

That aside, my view -- and this is just my opinion -- is that you can't generalize when trying to make this decision. You need to carefully consider who your customer is or will be. I've written before about the divide between investor demand and end-user demand in residential buildings. It impacts design, and outdoor spaces are no different.

If you take for example Junction House , it is a predominately end-user building. That's who we thought would be buying and that is who bought. When the team was designing the two-storey House Collection , the intent was to create a kind of substitute for low-rise housing. And so these homes had to have outdoor spaces (they have terraces). This was never a question or a debate.

Similarly, one of the reasons why One Delisle looks the way that it does is because the team set out to create unique terraces, as well as varying outdoor spaces, all throughout the tower. The thinking was, "people like terraces in mid-rise buildings, like Junction House, so let's figure out how to do that in a high-rise building typology."

At the same time, we have suites with Juliet balconies at Junction House and it is certainly true that the above recipes may not be suitable for every project. Again, there are lots of buildings without private outdoor spaces, including ones that have sold during this pandemic. One of the things that I have also discovered is that common area outdoor spaces and nearby green spaces can have an impact on whether or not people feel they need private outdoor space.

All of this to say that one size does not fit all. Which is probably why this topic remains such a great debate.

Note: I am making a distinction between balconies and terraces. Balconies typically cantilever out from a building and are not insulated. Terraces, on the other hand, are typically a roof condition in that they sit above a conditioned space. This usually means that the concrete slab will need to get "built up" with insulation and paving. A drainage system will also be required.

Image: Junction House

This has become a frequently reported topic, but here's a recent article from Wired talking about tech workers living out the American Dream -- in Canada . The story is pretty simple. Immigrants are smart and work hard. Canada has a system in place that privileges newcomers who are young and smart. And this has become a boon for our largest city and for the country. Here are two excerpts from the article:

But there's a new global winner: Canada, and particularly Toronto. Since 2013, the tech scene there has grown faster than in any other North American city. In 2017, Toronto added more tech jobs than Seattle, the San Francisco Bay Area, and Washington, DC, combined; in 2018 (the most recent year for which numbers are available), the city was second only to the Bay Area in new tech jobs. Toronto is so crammed with immigrants that nearly 50 percent of all residents were born outside the country.

Canada's immigration policy is hardly warm and fuzzy. On the contrary, it's icily calculating. The government loves educated, elite newcomers, because they help propel the economy, says immigration lawyer Peter Rekai, but it wants them young, so they won't drain the public health care system. Their parents are much less welcome.

In the first quarter of this year, international migration accounted for 82.3% of Canada's population growth . And at the beginning of this year, Ottawa was planning for up to 370,000 new permanent residents . It is highly unlikely that we hit that number given our current health crisis, but I have no doubts in my mind that we will hit it in the very near term. And when we do, it will be a good thing for Toronto.