Category: Real Estate Development

  • It’s a New Year – 2011!

    As I keep reminding people, any good Canadian Prairie Kid can tell you that there’s a good three or four days left to celebrate Christmas…

    In exchanging Seasons Greetings with my colleagues, the universal response has been something to the effect that “2011 will definitely be better than 2010 because it couldn’t get much worse”.  There are all sorts of dark clouds out there, especially here in the States: an unresolved residential mortgage crisis, a glut of building space in virtually every market sector, perceived tight credit markets…. The list goes on.

    Yet, many that I speak to mention that the private sector – in corporations – are sitting on $1.5trillion in cash reserves that sometime soon, under corporate law, they will need to spend.  The three areas the private sector could put these funds towards would be employee bonuses, dividends for shareholders, or capital improvements.  While any of these options will have positive economic ramifications, the latter option – capital improvements – speaks to using money to better one’s ability to compete in the marketplace.

    While it was posted some time ago, I still stand by one of my first posts to The Babuk Report “The Rise and Fall of the McMansion and Other Midwestern Housing Trends”, with a couple updates.  As predicted, the era of the mega house has come to an end.  Even the practice of building more and more on the outer limits of existing urbanized development seems precariously endangered – virtually every US city is surrounded by miles of partially developed land packed full with empty building sites and partially completed houses, usually sited along streets finished with pavement and sewer systems.  It all came true.  Here’s what’s next:

    While we may have a glut of existing building stock, we are a growing population that will need to be accommodated with building space.

    Of the existing space that’s out there, some will simply become obsolete, having lived well beyond its serviceable lifespan.  Without a strong historical or emotional reason to preserve it, this type of building space will be demolished and either replaced with new, or the site vacated.  Entire sections of Detroit are seeing this – it made more sense to abandon entire sections of Detroit: relocate what few residents were left, abandon streets and municipal services, focus on areas with sustainable populations and return the rest of the city to agriculture.

    The same may happen to buildings that lack the “location, location, location” mantra of the real estate industry, or are of a highly specific configuration that won’t lend itself to different uses – like trying to stuff a large public space into something with a small structural grid and low ceilings. This too may be replaced.

    Of other building space that’s left in good shape, we’ll see more of it being renovated and updated, perhaps even being put to adaptive reuse.  The proposed Children’s Museum at Millennium Park in Chicago is a highly creative adaptive reuse of what would otherwise have been an abandoned parking garage.

    Moreover, this development – more appropriately “re-development” will occur in areas that are already part of an established built up area.  As predicted, the areas inside cities closest to convenient public transit are more desirable than others, as the Chicago Tribune reported in an article describing suburban Palatine and it’s Metra Commuter Rail station.

    As for financing – there’s money out there to be lent. It’s just that everyone is too squeamish to step up to the plate.

    All said, here’s the opportunity: existing buildings and building sites well located inside existing desirable communities, close to transportation.  One might even start considering the sort of municipal debt and local tax burden, that can be discussed in a future post.   Start looking, and remember that there’s still a few days left to celebrate Christmas.

  • An Expanding Role for Babuk Presentations

    The relationship enjoyed by Canada and the United States is a model to be envied around the world.  While the cross border relationship thrives in many ways, the intertwined nature of both countries’ economies is fascinating:  not only are both countries each others’ largest trading partner, but the value of exports from one virtually equals the value of imports from the other.

    The premier of Saskatchewan once made a presentation in Chicago about hot dogs with mustard and Chicago Cubs baseball at Wrigley Field. The United States exports baseball as a national past time and cultural phenomenon, Canada exports virtually every bit of mustard consumed in the States that supports baseball. It’s that entwined.  In another presentation I recall, the Canadian Minister of Industry once recounted travelling with the materials of an automotive part – from the extraction of raw materials to the completion and installation of the manufactured part.  He crossed the border between Detroit and Windsor seven times.

    Naturally, I go back and forth quite a bit between the two countries, and I’ve made extensive presentations on both sides of the border.  For some time, through an outgrowth of public presentations, I’ve helped companies understand the markets on the other side of the border.  It just never occurred to me to formalize that as part of Babuk Presentations, Inc.

    Until now.

    Linking international connections with professional, architectural knowledge to the cross border import / export Architectural / Engineering and Construction communities of Canada and the USA.

    That’s us.  It’s just a natural extension of what’s been happening all along.

  • The North Avenue Architecture Photo Party

    North Avenue, the border between the north side of Oak Park and the Galewood neighborhood of Chicago, is relatively newer than many surrounding neighborhoods. While the buildings along North Avenue post date Frank Lloyd Wright, he golfed here with friends and clients. Many used the area as a place to get away and hide from the City.  It was one of the first automobile oriented commercial strips in the Chicago area. A favorite location for drive-in restaurants, the road west of Oak Park and Galewood – known as State Route 64 – was a renowned teen hangout for street races. 

    Architecturally, the area is rich in 1920’s storefronts with highly decorative terra cotta cladding and details. Later buildings were exuberantly mid-century modern. 

    Experience the world renowned architecture of our town, which is just a scant eight miles / twelve kilometres from another equally world renowned and architecturally significant place, the Chicago Loop.  

    And besides –North Avenue has lots of great restaurants, stores and cultural attractions to discover and enjoy once you’ve completed the North Avenue Architecture Photo Party.

    Instructions:

    By walking along public sidewalks and right-of-ways contained along North Avenue between Austin and Harlem Avenues, and for an area one block north and south along Harlem Avenue; locate these architectural features and details, noting their location. 

    Oak Park is a living museum containing many private homes that just happen to be world renowned masterpieces.  No private residences are featured in the North Avenue Architecture Photo Party.   However, please respect the homeowner’s privacy and remain on the public sidewalks for the hunt.

    Here’s a sampling of the program:

    The Jetsons’ probably get their teeth fixed here.
    Terra Cotta TV
    A monumental building

    An additional feature of the scavenger hunt is the North Avenue Historical Photo Party.  This may be the most enigmatic image of them all:

    North Pole Drive In, River Forest, Illinois

    While historians agree that this was the North Pole Drive In, located in River Forest, Illinois.  It’s also agreed that its architect was Bertrand Goldberg.  No consensus exists on where this was located.  However, I have my theories….

     The entire program is on display in the lobbies of these banks on North Avenue, who have supported the North Avenue Architecture Photo Party:

    ABC Bank, North Avenue, Chicago

    Charter One Bank, North Avenue, Chicago

    Midwest Bank, North Avenue, Elmwood Park

    US Bank, North Avenue, Oak Park

    June 2010 North Avenue Architecture Photo Party is a production of:

    North Avenue Business Association

    Oak Park Architectural League

    This edition has been made possible by:

    Visit Oak Park

    Oak Park River Forest Historical Foundation

    www.3planets.com / www.shopoakpark.com

    Heitzman Architects

    Babuk Presentations, Inc / www.TourAboutChicago.com

    Keep following this event anywhere in the world at www.OakParkArchitectureParty.com

  • Lessons Learned From Both of the Post-war Development Periods

    The changing economy and its effects on the retail streetscape may be best studied in the pre-war and post-war streetscape: pre and post First World War. This particular timeframe holds fascination as it depicts a landscape before and after the automobile’s influence. Oak Park offers another excellent set of examples: it has both types of development at hand.

    Since the 1860’s, downtown Oak Park has been built up next to a commuter train station, and a rapid transit station in time. The largest source of traffic for these train stations was commuter traffic to and from Chicago. Storefronts were built up along adjacent streets. Though this area was never planned, it grew naturally, with many improvements over the years. The commuter train and rapid transit stations are still there, they generate a sizeable amount of foot traffic. While this neighbourhood has some storefront vacancies, it is a sought after location in Oak Park, perhaps one of the most economically vibrant in town. Odd, because this society has become so much more reliant on personal transportation – the automobile – since the initial development. This infrastructure and its layout still seem to work. Granted, there is an ongoing issue about car parking in this area, the sentiment being that more parking garages should be built to provide more accessibility for shoppers; in reality, the parking garages in existence draw on a substantial trade of commuters who park their vehicles to walk to the train stations.

    As an aside, a very large parking garage might hold as many as 1000 cars, whereas a fully loaded commuter or rapid transit train may hold as many as 1000 people. While parking may be an attraction for commuters, it’s effect is limited. Most transit riders still seem to find other ways to get to the train.

    While Oak Park grew naturally around its train stations in that era prior to mass ownership of automobiles, the town was bordered by country roads.

    Using the First World War as a marker, a pivotal point in time because automobiles were becoming more widespread. The original Garden City concept of orderly development around train stations forming towns, and towns separated by open space was becoming passé ; all of the bits of the open space between established towns were now accessible point-to-point by automobile and seemed to be idyllic places to live. These areas were settled as ‘sprawl’. Our urban design patterns were still based on walkable towns, so these new areas settled by “automobile development” were awkward in their layout.

    Areas of Oak Park like North Avenue were developed in this fashion in the 1920‘s. Small storefronts with large signs were built “cheek by jowl” along a busy highway, originally intended to move traffic from one town to another without stopping in between. Automobile parking happened on either side of this broad right-of-way. Additional parking was provided along the back of the storefronts, allowing customers to enter from either a front or back door. This led to confusion and an informality, as the ‘back doors’ alongside convenient parking also doubled as the service entrance. Architect and Urban Planner Victor Gruen, in his book “The Heart of Cities” chronicled this type of development.

    In Oak Park, North Avenue has more vacancies than anywhere else in tow, and has become a favourite location for tattoo parlours and palm readers. The Village is probably coveting the property and sales tax revenue generated by marginal uses like these, and that this tax income is more difficult to come by in this economy.

    Jumping ahead many years, it was the era after the Second World War that developed an urban model that located a building in the middle of a vast parking lot, the precursor of big box retailers and shopping malls. And oddly, this type of retailer isn’t doing that well either these days.

    What goes around comes around.

  • Happy New Decade!

    Happy New Year.  It’s surprising to see that we’re already a decade into the new century.

    Previous posts have spoken about vacant storefronts and even vacant buildings, all from the aftermath of the latest economic turn.  There is so much vacant space out there that based on current absorption rates, some markets have several years supply of some building types like… condominiums.  It could take several years to recover to get back to where we were. This empty space in empty buildings simply sits and waits.  No one has really caught on to the idea that this space could be re-adapted to different uses.

    In the meantime, one may deduce a similar “oversupply” of the people who design and build. In this case, many of these people have “re-adapted” out of necessity.  While this is good for them, it has left an enormous void of talent, skill and expertise that has left the marketplace.  A colleague (formerly) in the print publishing business suggested that it may take as long as twenty years for the architectural profession to make up lost ground, lost to a “brain drain” caused by the current economy.

    There are fascinating opportunities coming out of all this.  While cities that best depicted the late twentieth century – the Sunbelt – have stalled from an oversupply of built space that led to sharp drops in real estate prices; many cities of the early twentieth century – the Rust Belt – are retreating. 

    It’s like Las Vegas vs. Detroit.

    Las Vegas just opened an incredibly huge hotel complex; its economic viability is yet to be seen.  Residential housing prices in the Las Vegas area are still depressed, though many feel this reveals some “great buys” in the real estate market that services retirees.  The retiree market doesn’t depend on finding employment to sustain housing costs.

    Detroit has even better deals – well, lower prices – in residential real estate.  At first glance, Detroit may seem to be unsustainable and unaffordable: although prices are low, the potential market is people who work.  In a city without jobs, housing at any price is unsustainable and unaffordable. 

    I’ve heard many a seminar presentation about cities like Detroit recently, and Detroit is the oft-cited example. It was a much larger city in its heyday a few decades ago: having shrunk in population but not geographical area, it’s saddled with much more infrastructure than it needs and can support.  Many are projecting Detroit to be a very viable city if it trimmed its infrastructure and broadened its economic base to support a city of its current population levels – still one of the largest cities in the United States.  Some are even proposing urban agriculture for Detroit, a very novel “reuse / re-adapt” concept.

    Michigan Central Railroad Station, Detroit
    Michigan Central Railroad Station, Detroit

    Speaking specifically about Detroit as a precursor and example, it has the potential to be a very vibrant smaller city; the buildings that supported a larger city have been left behind.  Several buildings buildings have been left in ruin – the former Michigan Central Railroad Station, various hotels and office buildings, even industrial complexes where automobiles were once assembled.

    In archaeology, we know of classical ruins, of medieval ruins and the like.  Here, we have a new category:  modern ruins. Quite fabulous modern ruins, at that.

    Regardless, it’s still a decade into the new century. Just as the nineteenth century economy was different than the twentieth century economy that followed; the nineteenth century set up the twentieth century’s economy.  The same may be true of the twentieth and the twenty first century’s economies.  The economic structure of the new century hasn’t revealed itself.

    Yet.

  • Tall Buildings Fall Short

    A recent news report from the Council on Tall Buildings and Urban Habitat cites fifty major, tall building projects worldwide that have been halted by a global economic downturn.

    Last Friday, the Chicago Architecture Foundation’s “Chicago Model City” exhibit temporarily included the scale model of Santiago Calatrava’s “Spire” condominium project, the real one being on indefinite hold.  Asides from the model representation, the only physical evidence this project has left in Chicago is a large, circular foundation, commonly referred to as the “bathtub”.

    Had the actual project been built, it would have been much taller than anything else in Chicago, including the Willis (nee Sears) Tower.

    Guess which building is the Spire?
    Guess which building is the Spire?
  • Convenient Access by Car

    While early industrialists had grand visions of mechanized buildings and cities that walked, many of those ideas were whimsical at face value.  Mind you, when applied as small parts, they were very useful – like the passenger elevator.  One of those side concepts probably came to be applied to personal transportation – the automobile – which I argue is a highly popular form of architecture.  Unfortunately, it’s a half baked idea of the original concept, and a half baked idea that has turned tables on traditional architectural and urban planning principles.

    Original El Rancho Hotel, Las Vegas
    Original El Rancho Hotel, Las Vegas

    What got me going on this topic was a recent assertion that the original El Rancho Hotel in Las Vegas was planned specifically to be only accessible by car, not on foot.  At the time, the Las Vegas Strip had some seemingly seedy elements to it.  The thought was to start a brand new “strip” away from the original Strip.  The new Strip would be elegant and – controlled. It was a specific tourist destination. To keep the new hotel a “controlled” atmosphere, the easiest way to do this was to limit the patrons only to those who had cars.  It mitigated the seedy element.

    At this point, one can easily imagine the sorts of gated subdivisions and target market power centres that populate suburbia.  All too often, getting from one’s house to do shopping, go to work or school, or even to go to a neighbour’s house is virtually impossible on foot in a cul-de-sac’d subdivision.  It’s all designed to be accessible by car only, leading to all sorts of social / economic ills.  Maybe even obesity.

    Back to Las Vegas – the new Strip grew.  Eventually, it became larger than the original strip, all of the new hotels modeled after this “accessible by car” concept.  Robert Venturi even wrote a book “Learning from Las Vegas” that looked at the intricacies of this new type of planning and the sort of spaces that just happened around the hotels.  I thought that it was written tongue in cheek, but apparently he was serious.

    Since then, Las Vegas has built sidewalks up and down the new Strip, and offered transit service along the road.  The scale of the street is still built around automobile speeds, rather than pedestrian travel.  Now, the automobile scale can be exciting in a way – think of Dan Tana driving up and down the strip in his classic Thunderbird.

    West of Chicago, along Roosevelt Road – it has a highway designation, though I can’t recall the number – there is an endless suburb that stretches some twenty miles or so – so mind numbing that I can’t even convert the distance to metric measures.  My daughter refers to it as the “Land of Parking Lots”.

    “they paved paradise, and put up a parking lot….”

  • If Buildings Could Walk…

    A previous post described “if walls could talk”, but what about if buildings could walk?

    It’s not that far fetched an idea. 

    Taking cues from the railroad industry, it wasn’t uncommon at the turn of the 20th century to find fixed structures – buildings – with large moving parts. 

    Bridges were prime examples. 

    It took the use of steel used as structure to give rise to this.  The first structure built of steel was a bridge built in 1775 over the River Severn near Coalbrookdale, Shropshire, in the western midlands of England – the “Iron Bridge” as it’s called today.  Steel was a lighter-weight material that permitted more flexibility in shape than did masonry, with the advantage of superior strength when compared to wood. Moving ahead a century or so, shipping lanes along rivers located on flat plains required a way for bridges – built relatively low to the ground – to be built so as to give way to permit relatively tall shipping traffic to pass. 

    Turntable Bridge, Chicago, 1898
    Turntable Bridge, Chicago, 1898

    Confining this description to bridges found in Chicago: some of the first bridges designed for this were turntable bridges.  There still are a couple of these left in Chicago. They are configured as steel trusses set onto a central pier in the middle of the river.  Train tracks were built inside the truss structure.  When shipping lanes were needed, train traffic would come to a stop, and the entire truss – hundreds of feet or dozens of metres long – would rotate around this pier.

    Pennsylvania RR Bridge, Chicago, 1908
    Pennsylvania RR Bridge, Chicago, 1908

    Turntable bridges had their limitations, not the least of which was the central pier becoming an obstruction in a shipping lane.  Finding ways to raise bridge sections vertically, rather than rotating them horizontally, became the issue at hand.  Those types of bridges appear in all sorts of variants.  Some have a truss spanning between two towers, this central truss raises and lowers between the towers.  Still others rotate truss sections vertically to give clearance along the waterways, the most dramatic examples are those with truss structures raised above, rather than below the track bed.

    Western Avenue Pennsylvania RR Bridge, Chicago
    Western Avenue Pennsylvania RR Bridge, Chicago, 1907

    Beyond bridges, other railway structures rotated (roundhouses with turntables) and lifted materials (coal towers and granaries).

    The SS France - a complete floating community of thousands of people
    The SS France – a complete floating community of thousands of people

    Railways – and shipping lines – gave rise to buildings – entire communities – that were mobile.  It could be possible for one to live their entire life on an ocean liner; all lodging and dietary needs cared for in addition to entertainment, recreation, socializing, even employment and well being.  In a stretch, one may make the same case for a transcontinental train.

    The Walking City, Archigram
    The Walking City, Archigram

    Going back to our history lesson studying some of the early modernist architects: many – like Le Corbusier – had a vision of “buildings as machines”.  Looking to what’s traditionally defined as architecture, this concept taken to mean “buildings that move” really hasn’t come to pass, save for a couple amusement park rides, or visionary works from think tanks like Archigram. 

    In a mobile society, having one house that could move with its occupants could be a sustainable concept.  It reinforces the notion of small housing, since that would take less energy to move around.  Part of one’s housing could be detachable and self propelled for personal transportation. Perhaps a workplace concept also becomes something that one takes with them and “plugs in” to a workplace community.  

    The ideas are endless, and seemingly appropriate.

  • Is your morning commute still fun to drive?

    Time was, driving was a fun recreation.  From a casual Sunday excursion, to a cross country trip, to something energetic like Nascar racing, the experience generated by being catapulted through ever changing scenery was exciting.

    A happy way to commute...
    A happy way to commute…

    Automotive design enhanced the experience. Swooping masses of sheet metal clad in bright colours, outlined in shiny chrome, housed behemoth power plants and sumptuous interiors swathed in deluxe upholstery.

    It was a see and be seen experience.  People actually drove with their windows down, weather permitting.  That morning commute into work just didn’t seem half bad.

    But then, the morning commute was far shorter then than it may be now.  The US Census Bureau has since started to measure the number of “extreme commuters” who spend more than 90 minutes a trip commuting from home to work.  Regardless how fanciful one’s wheels may be, that much time down the same roads in the same traffic day in and day out can’t help but become dreary.

    And dreary may best describe current automotive design. Body styles are generated by current trends in wind tunnel testing; cars are distinguishable only by slight nuances in wrinkles or folds along sheet metal. Grey – or rather, silver – is a popular colour. Interiors offer much the same choice, perhaps with a cloth or leather option; higher priced cars sport two toned colour schemes. 

    Given parameters, powerplants have improved but that may signal the difference in concept. New powerplants exhibit engineering prowess, as does the styling. Styling – for the sake of styling – played a larger role when the morning commute was still fun.

    Imagine the morning commute in this !
    Imagine the morning commute in this !

     

     

     

     

     

     

     

    Still doesn’t say why we started living ninety minutes away.

  • Architecture as a Machine

    Many early-modern architectural theoreticians were impressed by inventions of the machine age.  Some, like French Architect Le Corbusier, promoted the concept of architecture as a “machine for living”.  Still others, like Mies van der Rohe, spoke of the ‘machine aesthetic”.

    From that same historical period, one may find many examples of “architecture as a machine” along Chicago’s waterways and railways.  Many other towns and cities have tremendous examples as well.

    Atchison, Topeka & Santa Fe RR Grain Elevator, Chicago
    Atchison, Topeka & Santa Fe RR Grain Elevator, Chicago

    Perhaps one of the earliest examples of a tall “skyscraper”, granaries – better known in North America as grain elevators – first appeared along canals.  Canals introduced the idea of valuable “frontage” along waterway’s edge.  In order to achieve maximum financial return when building a facility along a canal, the formula was to use as little frontage as possible while building as large a building as possible – the idea of stacking uses vertically.  Grain elevators acted as a transition between transportation modes by way of a storage depot.  Grains would be brought to the elevator, deposited, and stacked on top of other grains in storage.  The act of transporting the grains upward caused great architectural drama; the economy of designing tall, vertical structures to store grains created sensations.  Once stored, grains had to be deposited back down to earth on a means of conveyance that could carry a larger amount of goods; the path returning to earth also creating impressive architectural forms.

    Coal Towers. Chicago & Northwestern Railroad, 40th Street Yards, Chicago.
    Coal Towers. Chicago & Northwestern Railroad, 40th Street Yards, Chicago.

    Engaging materials along a similar sequence of path, coaling towers refreshed the coal bins of steam locomotives.  Initially built of wood, they were round in shape; a circular plan being the most efficient use of materials.  Later, when built of concrete, they were square in plan.  Perhaps squares are easier to arrange on a site than circles.

    Atchison, Topeka and Santa Fe RR Bridge over Bubbly Creek, Chicago
    Atchison, Topeka and Santa Fe RR Bridge over Bubbly Creek, Chicago

    Architect / Engineer William LeBaron Jenney designed truss bridges during the Civil War.  He observed that trusses could be mounted vertically, rather than horizontally to create a ‘”skyscraper” frame.  While bridge trusses display breath-taking shapes and repetitions, the types of bridges that move – turntable bridges that turn around and drawbridges that go up and down -show an ability to move entire buildings.  Apart from amusement park rides, modern architects have never found reason to do this, though devices that move within buildings – like passenger elevators – are very useful.  The British architectural movement, “Archigram” had great, though fantastic visions of buildings that would pick up and walk, though none have come to realization.

    Burlington, Northern & Quincy RR Roundhouse, Aurora, Illinois
    Chicago, Burlington & Quincy RR Roundhouse, Aurora, Illinois

    Roundhouses were initially facilities where railcars would be stored, then eventually facilities where locomotives would be serviced.  They were designed to fit into the tightest of spaces.  A locomotive would drive onto a turntable that would turn, pointing the locomotive – or railcar as it was – onto a track that led to the appropriate service bay.  Though most roundhouses were simply arcs, some roundhouses were near complete circles.  The latter types surrounded the turntable with almost 360 degrees of service bays, the leftover being a ‘slot’ that locomotives would drive through to approach the turntable.

    Many have looked at these buildings sitting empty and derelict, wondering why they can’t be retrofitted into some other use.  True, a couple concrete grain elevators have been turned into hotels; square beds have a difficult time fitting into round spaces, and the walls can be so thick so as to create structural challenges in creating window openings.  Likewise, finding ways to introduce horizontal circulation at every level takes away from the original form. However, as I’ve explained to others before, these buildings are not unlike my old, manual typewriter.  Maybe its appearance could be updated by painting it a different colour, or replacing the strike pads with a different font.  It wouldn’t make any sense to “modernize” it to be an electric typewriter, and it would make no sense to do an adaptive reuse on a manual typewriter to become a coffee percolator.  A manual typewriter is a machine; its shape and form are intrinsic to its function.  Same with a grain elevator.  Or coaling tower.  Or roundhouse.