Agile Development : Attracting Talent

The tech world offers another lesson to New Urbanist and Smart Growth start-ups. The best tech companies attract the best talent and the best talent attracts the best compensation. Further, these organizations are populated with genius at every post required to deliver their product. Design, engineering, marketing, and delivery are all highly valued as it takes proper execution of each discipline to be successful and to stay on top.

In contrast, the world of real estate development took a less balanced approach. In order to achieve greater reach (or scale, for techies) and deal with the issues of project finance they looked to minimize costs as much as possible. The preferred business model led to the cookie cutter approach to project delivery and allowed the process to be refined for the benefit of the balance sheet. This refinement did not necessarily benefit the customer. The tyranny of the pro-forma led to a one-size-fits-all approach where the only real options involved more or less of the exact same thing.* The result, as we see today, are millions of unoccupied homes all across America. These houses cannot be easily adapted to suit the needs of today's home-buyer and have very little to offer aside from a low price and declining property value.

There is plenty of movement in the market, however, and a tremendous opportunity for certain building types. Class A and B apartment buildings seem to be doing quite well in this otherwise tumultuous property market. Yet instead of advancing the model and generating plans that can adapt to a changing market most developers are content to do more of the same. This leaves an entire market segment under-served and will allow a smart startup to gain a toehold in a market where they would otherwise be shut out.

The first step, however, is to attract the best talent in order to put together a proper project proposal. If the proposal is sound and the market response is positive then the endeavor may attract funding. Until such time the bootstrapped project team will most likely be short of cash. It's almost impossible to find talent to work for free so other arrangements will have to be made. This is where the techies have it all over bricks and mortar developers. By divvying up shares and creating option pools for future hires the savvy tech developers offer the potential of a very lucrative compensation package to their recruits. If the required disciplines in the world of real estate development would choose to organize in such a manner they would be a formidable force in their chosen market.

It's no wonder that tech start-ups are incubated in dorm rooms and garages since the greatest concerns of anyone who signs on to such a venture will be where they will live and where their next meal will come from. Having room and board already covered they are freed to concentrate on their company. This is a tremendous advantage since more time can be dedicated to refining the product and less time seeking a paycheck.

It is possible, however, to work with established professionals by utilizing the charrette method. This delivery type allows the project team to gather for intense workshops at each phase of development and then return to their regular line of work to keep the lights on. This limits the time commitment required of each member of the team while ensuring each phase of the project receives the attention it deserves. The project champion can then steward the development until such time as project funding is secured and the team can work together full time towards the realization of their vision.

This method may entail a paradigm shift away from what is normative in the industry. The results, I suggest, would be better for all involved but most especially for the consumer.

Posted via email from Kenneth Hitchens

Agile Development : Attracting Talent

The tech world offers another lesson to New Urbanist and Smart Growth start-ups. The best tech companies attract the best talent and the best talent attracts the best compensation. Further, these organizations are populated with genius at every post required to deliver their product. Design, engineering, marketing, and delivery are all highly valued as it takes proper execution of each discipline to be successful and to stay on top.

In contrast, the world of real estate development took a less balanced approach. In order to achieve greater reach (or scale, for techies) and deal with the issues of project finance they looked to minimize costs as much as possible. The preferred business model led to the cookie cutter approach to project delivery and allowed the process to be refined for the benefit of the balance sheet. This refinement did not necessarily benefit the customer. The tyranny of the pro-forma led to a one-size-fits-all approach where the only real options involved more or less of the exact same thing.* The result, as we see today, are millions of unoccupied homes all across America. These houses cannot be easily adapted to suit the needs of today's home-buyer and have very little to offer aside from a low price and declining property value.

There is plenty of movement in the market, however, and a tremendous opportunity for certain building types. Class A and B apartment buildings seem to be doing quite well in this otherwise tumultuous property market. Yet instead of advancing the model and generating plans that can adapt to a changing market most developers are content to do more of the same. This leaves an entire market segment under-served and will allow a smart startup to gain a toehold in a market where they would otherwise be shut out.

The first step, however, is to attract the best talent in order to put together a proper project proposal. If the proposal is sound and the market response is positive then the endeavor may attract funding. Until such time the bootstrapped project team will most likely be short of cash. It's almost impossible to find talent to work for free so other arrangements will have to be made. This is where the techies have it all over bricks and mortar developers. By divvying up shares and creating option pools for future hires the savvy tech developers offer the potential of a very lucrative compensation package to their recruits. If the required disciplines in the world of real estate development would choose to organize in such a manner they would be a formidable force in their chosen market.

It's no wonder that tech start-ups are incubated in dorm rooms and garages since the greatest concerns of anyone who signs on to such a venture will be where they will live and where their next meal will come from. Having room and board already covered they are freed to concentrate on their company. This is a tremendous advantage since more time can be dedicated to refining the product and less time seeking a paycheck.

It is possible, however, to work with established professionals by utilizing the charrette method. This delivery type allows the project team to gather for intense workshops at each phase of development and then return to their regular line of work to keep the lights on. This limits the time commitment required of each member of the team while ensuring each phase of the project receives the attention it deserves. The project champion can then steward the development until such time as project funding is secured and the team can work together full time towards the realization of their vision.

This method may entail a paradigm shift away from what is normative in the industry. The results, I suggest, would be better for all involved but most especially for the consumer.

Posted via email from Kenneth Hitchens

Goldilocks, the Bulls, and the Bears

It was very hard to convince developers to change course during the real estate bull market. The market was too hot and they could not see the benefit of dismantling their well-oiled sprawl machine despite numerous studies proving the market preferred walkable communities. After the bubble burst the current bear market continues to be too cool for them to even think about building new. This despite the fact that most of the empty housing stock is of a format that is not preferred by the market.

As an aside, it has been very interesting to see the property value limbo played out every day in the housing market. How low can you go! I'm of the opinion that these houses will not sell at any price since they have nothing to offer. Poor location, no local amenities, poor construction, and declining values.

Too hot before, too cold now, when will the market reach the Goldilocks conditions and be 'just right'? From what I have seen the market is there. There are plenty of home-buyers active in the market that just can't find what they're looking for. They are choosing to rent an apartment and rents are soaring. They don't want the headaches and have chosen the apartment option because the only other viable option at their price-point is to buy in a neighborhood that is in decline.

Those looking to build new would be best served to spend some time with these renters and listen to their motivations and their concerns. There are plenty of solutions that could tap into this expanding market and potentially revitalize existing neighborhoods in the process. As a matter of fact the simplest solution has been around for at least 3,000 years and is still working everywhere it's tried.

Posted via email from Kenneth Hitchens

Keeping The Vision : Is New Urbanism Enchanting?

Belhaven - Duncan McRoberts

Guy Kawasaki has a new book out called Enchantment. I'm only half-way through it but it has me thinking about the proponents and practitioners of New Urbanism and how the most successful people and projects are indeed enchanting.

The parallel causes of Traditional Architecture and New Urbanism have both had rough starts and faced many road blocks in the early years. What led to the successes we celebrate today had less to do with the star power of the myriad personalities involved and more to do with the wonderful places created. Strolling through some of these towns, seeing the people riding bikes, enjoying a drink at an outdoor café, and bearing witness to a striving human habitat in a beautiful setting is an enchanting experience. 

Along the way, it must be said, there were some less successful projects. Many investigations have been done to determine why some towns are great successes and why others fail. I often liken creating a town to baking a cake. Every ingredient in the recipe is important, no matter how small. If you leave out one of the ingredients you just won't have cake.

What, then, is the recipe for creating an enchanting place? Must it always be cake, or can there be brownies, cookies, and scones? The reality is that every place is different and will have its own flavor, but there are certain ingredients I've noticed in all the Traditional Neighborhood Developments I have visited and the ones where I lived that make all the difference. The most successful projects always manage to include each and every ingredient.

• Passionate Town Founder

It takes a special person to go through the pain of founding a town. They are unsatisfied with business as usual developments and seek out a better way. Once they make their decision they are fully engaged and learn everything they can about towns and town making. They tend to be studious and adopt a 'hands on' approach. It's usually very easy to get in touch with the developer of an enchanting Traditional Neighborhood Development (TND). 

• Elegant Town Plan

Some of the best town plans take great pains to provide wonderful spaces, connected streets, and beautiful vistas that make it easy to find your way around and is welcoming even to those to that don't live there. By understanding that the whole town is greater than the sum of its buildings a well crafted town plan creates an enchanting place.

• Enchanting Town Architect

To help keep the vision of the town the most successful TNDs will have a town architect on staff. Building your dream home can quickly turn into a nightmare, however, an enchanting town architect can make the process a pleasure. Spend some time with Eric Moser or Scott Merrill and you will be enchanted.

• Practitioners Faithful to the Vision

The most enchanting TNDs attract top design talent as well as master builders who produce stunningly beautiful work. They, too, are enchanted by the Town and are inspired to do their best work. It is not uncommon for these professionals to relocate in order to work within an environment they enjoy.

There are many more ingredients that can be added to the mix, but having a healthy helping of all of the above has been a consistent recipe for success.

Posted via email from Kenneth Hitchens

Keeping The Vision : Is New Urbanism Enchanting?

Guy Kawasaki has a new book out called Enchantment. I'm only half-way through it but it has me thinking about the proponents and practitioners of New Urbanism and how the most successful people and projects are indeed enchanting.

The parallel causes of Traditional Architecture and New Urbanism have both had rough starts and faced many road blocks in the early years. What led to the successes we celebrate today had less to do with the star power of the myriad personalities involved and more to do with the wonderful places created. Strolling through some of these towns, seeing the people riding bikes, enjoying a drink at an outdoor café, and bearing witness to a striving human habitat in a beautiful setting is an enchanting experience. 

Along the way, it must be said, there were some less successful projects. Many investigations have been done to determine why some towns are great successes and why others fail. I often liken creating a town to baking a cake. Every ingredient in the recipe is important, no matter how small. If you leave out one of the ingredients you just won't have cake.

What, then, is the recipe for creating an enchanting place? Must it always be cake, or can there be brownies, cookies, and scones? The reality is that every place is different and will have its own flavor, but there are certain ingredients I've noticed in all the Traditional Neighborhood Developments I have visited and lived that make all the difference. The most successful projects always manage to include each and every ingredient.

• Passionate Town Founder

It takes a special person to go through the pain of founding a town. They are unsatisfied with business as usual developments and seek out a better way. Once they make their decision they are fully engaged and learn everything they can about towns and town making. They tend to be studious and adopt a 'hands on' approach. It's usually very easy to get in touch with the developer of an enchanting Traditional Neighborhood Development (TND). 

• Elegant Town Plan

Some of the best town plans take great pains to provide wonderful spaces, connected streets, and beautiful vistas that make it easy to find your way around and is welcoming even to those to that don't live there. By understanding that the whole town is greater than the sum of its buildings a well crafted town plan creates an enchanting place.

• Enchanting Town Architect

To help keep the vision of the town the most successful TNDs will have a town architect on staff. Building your dream home can quickly turn into a nightmare, however, an enchanting town architect can make the process a pleasure. Spend some time with Eric Moser or Scott Merrill and you will be enchanted.

• Practitioners Faithful to the Vision

The most enchanting TNDs attract top design talent as well as master builders who produce stunningly beautiful work. They, too, are enchanted by the Town and are inspired to do their best work. It is not uncommon for these professionals to relocate in order to work within an environment they enjoy.

There are many more ingredients that can be added to the mix, but having a healthy helping of all of the above has been a consistent recipe for success.

Posted via email from Kenneth Hitchens

Two Americas?

I'm not talking about North America and South America, nor am I resuscitating John Edwards' political rhetoric. But in the images below compiled by Steve Mouzon what we see are two visions for America which are actually operating simultaneously. While some may think the compact urbanism shown in some photos are images from yesteryear, the truth is that right now wonderful towns all across America are providing livability, walkability, and quality of life for millions of people. So, while some may argue that Americans have already voted with their wallet and that the small town model lost, there are in truth hundreds of small towns that are serving their citizens today. They will also be better placed if the cost of living continues to rise. Take a look.

New_Urbanism_101.pdf Download this file

 

Posted via email from Kenneth Hitchens

Two Americas?

I'm not talking about North America and South America, nor am I resuscitating John Edwards' political rhetoric. But in the images below compiled by Steve Mouzon what we see are two visions for America which are actually operating simultaneously. While some may think the compact urbanism shown in some photos are images from yesteryear, the truth is that right now wonderful towns all across America are providing livability, walkability, and quality of life for millions of people. So, while some may argue that Americans have already voted with their wallet and that the small town model lost, there are in truth hundreds of small towns that are serving their citizens today. They will also be better placed if the cost of living continues to rise. Take a look.

New_Urbanism_101.pdf Download this file

 

Posted via email from Kenneth Hitchens

Collective Learning

This is a great TED talk and manages to delve into the concept of Collective Learning. This illustrates how advancement comes about by passing along knowledge from generation to generation which then leads to great leaps in human civilization. In effect the speaker, David Christian, provides a great definition of tradition and makes the notion of reinventing the wheel look just plain silly. It's worth 17 minutes of your time to watch.

 

Posted via email from Kenneth Hitchens

Collective Learning

This is a great TED talk and manages to delve into the concept of Collective Learning. This illustrates how advancement comes about by passing along knowledge from generation to generation which then leads to great leaps in human civilization. In effect the speaker, David Christian, provides a great definition of tradition and makes the notion of reinventing the wheel look just plain silly. It's worth 17 minutes of your time to watch.

 

Posted via email from Kenneth Hitchens

I told you so!

I just toured a project that I completed back in 1999. Despite my best efforts to educate the client some poor decisions were made in pursuit of value engineering. Today this five star resort and spa is losing its skin. The exterior is popping clear off.

Instead of being happy that I was right in my prediction those many years ago I'm instead upset and disappointed. I could be taking satisfaction that my understanding of how buildings go together is beyond that of the world class contractor that sold the client a terrible direct apply exterior finish system. I can only think of the incredible waste of it all.

Hopefully the client will look at the original specification for the exterior and just build it right instead of trying to patch it all up. The bottom line is that there is no better way to save money than building to last.

It gives me no joy to say it, but dammit, I TOLD YOU SO!

Posted via email from Kenneth Hitchens