{"id":1004053912,"date":"2012-12-04T09:13:30","date_gmt":"2012-12-04T17:13:30","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004053912"},"modified":"2022-12-04T07:43:32","modified_gmt":"2022-12-04T15:43:32","slug":"special-report-finding-a-framework-for-future-global-cities","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/special-report-finding-a-framework-for-future-global-cities\/","title":{"rendered":"Special Report: Finding a Framework for Future Global Cities"},"content":{"rendered":"<p><em>Michael Ratliff, Associate Editor<\/em><\/p>\n<div id=\"attachment_1004053920\" style=\"width: 226px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/regions\/international\/special-report-finding-a-framework-for-future-global-cities\/attachment\/nova-luz-1\/\" rel=\"attachment wp-att-1004053920\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004053920\" data-attachment-id=\"1004053920\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/special-report-finding-a-framework-for-future-global-cities\/nova-luz-1\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-1.jpg\" data-orig-size=\"500,458\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"1\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Nova Luz, Courtesy of AECOM Technology Corp. &lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-1.jpg?w=500\" class=\" wp-image-1004053920  \" style=\"border: 1px solid black\" title=\"1\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-1.jpg\" alt=\"\" width=\"216\" height=\"197\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-1.jpg 500w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-1.jpg?resize=300,275 300w\" sizes=\"auto, (max-width: 216px) 100vw, 216px\" \/><\/a><p id=\"caption-attachment-1004053920\" class=\"wp-caption-text\">Nova Luz, Courtesy of AECOM Technology Corp.<\/p><\/div>\n<p>By 2030 it is likely that 60 percent of the world\u2019s population will be living in an urban setting. This startling figure means that urban planners must take increasing care in planning smart developments to keep up with demand. Rapid global urbanization also means that emerging and established cities need to work harder than ever to align the goals of private investment, infrastructure development and public policy as they try to reinvent themselves for the 21st century.<\/p>\n<p>A panel at the 2012 Global Real Estate Markets Conference hosted by the James A. Graaskamp Center for Real Estate (Wisconsin School of Business) at the New York Stock Exchange on Friday took the opportunity to view how aligned development goals can establish a smart urban framework for future growth.<\/p>\n<p>One city that is shaping up to emerge as a dominant global city is S\u00e3o Paulo, the largest city in Brazil (not to mention the largest city in both the western and southern hemispheres). The city has grown from a population of 32,000 in 1880 to its current size of 11.3 million. This rapid growth was not accompanied by adequate urban planning, and problems with traffic, road infrastructure, crime, pollution and poverty have been some of the negative results. But the city is in the midst of an urban regeneration project known as Nova Luz (New Light) that is focused on reinventing \u2018Cracolaindia\u2019, a 123-acre economically and socially distressed district.<\/p>\n<div id=\"attachment_1004053922\" style=\"width: 220px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.commercialsearch.com\/news\/regions\/international\/special-report-finding-a-framework-for-future-global-cities\/attachment\/nova-luz-2\/\" rel=\"attachment wp-att-1004053922\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004053922\" data-attachment-id=\"1004053922\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/special-report-finding-a-framework-for-future-global-cities\/nova-luz-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-2.jpg\" data-orig-size=\"500,458\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Nova Luz 2\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Nova Luz, Courtesy AECOM Technology Corp. &lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-2.jpg?w=500\" class=\" wp-image-1004053922 \" title=\"Nova Luz 2\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-2.jpg\" alt=\"\" width=\"210\" height=\"192\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-2.jpg 500w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-2.jpg?resize=300,275 300w\" sizes=\"auto, (max-width: 210px) 100vw, 210px\" \/><\/a><p id=\"caption-attachment-1004053922\" class=\"wp-caption-text\">Nova Luz, Courtesy AECOM Technology Corp.<\/p><\/div>\n<p>The Nova Luz master-planned redevelopment, which was designed by AECOM, has a price tag of about $2 billion and will bring office space, an exhibition center for the 2014 FIFA World Cup, and most importantly, 60,000 units of mixed-income housing. The reinvention will come at a time of economic growth in Brazil that is accompanied by changing demographics, according to Ricardo Pereira Leite, CEO of the S\u00e3o Paulo City Company for Social Housing.<\/p>\n<p>\u201cBrazil\u2019s GDP is rising, and our urbanization rate is above the global average. In San Paulo, for example, we are close to 100 percent. The price of residential real estate is going up, and the middle class is expanding,\u201d said Leite.<\/p>\n<p>One of the biggest challenges that Leite faces with Nova Luz project is a lack of institutional investor support, forcing the city to raise most of the funds on its own. Still, Leite is optimistic that the quality of the project\u2019s design will attract investors down the road.<\/p>\n<p>\u201cI think that in ten years, S\u00e3o Paulo will still have many of the problems it faces today, but I hope that we will be able to be closer to the \u2018compact city\u2019 concept.\u201d<\/p>\n<p>Another city currently in the process of a major reinvention that AECOM has advised on is New York. While the city that never sleeps is far from an emerging city, New York is getting a brand new 60-block neighborhood on its West Side known as Hudson Yards. Jay Cross, president of Related Hudson Yards, was on hand at the conference to speak about his company\u2019s 27-acre portion, which actually broke ground today.<\/p>\n<p>\u201cCommercial office will lead the project, as it is important to get to that critical mass and then pace in the housing,\u201d Cross said.<\/p>\n<div id=\"attachment_1004053914\" style=\"width: 234px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/regions\/international\/special-report-finding-a-framework-for-future-global-cities\/attachment\/hudson-yards\/\" rel=\"attachment wp-att-1004053914\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004053914\" data-attachment-id=\"1004053914\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/special-report-finding-a-framework-for-future-global-cities\/hudson-yards\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Hudson-Yards.jpg\" data-orig-size=\"480,514\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Hudson Yards\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Hudson Yards&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Hudson-Yards.jpg?w=480\" class=\" wp-image-1004053914 \" title=\"Hudson Yards\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Hudson-Yards.jpg\" alt=\"\" width=\"224\" height=\"240\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Hudson-Yards.jpg 480w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Hudson-Yards.jpg?resize=280,300 280w\" sizes=\"auto, (max-width: 224px) 100vw, 224px\" \/><\/a><p id=\"caption-attachment-1004053914\" class=\"wp-caption-text\">Hudson Yards<\/p><\/div>\n<p>The Related component will begin with Eastern Yards, which has an 80 percent commercial\/20 percent residential ratio that will all be built in a single phase. When that construction is complete, Related will begin Western Yards, which flips the ratio to 80 percent residential\/20 percent commercial. That phase should be built between 2017 and 2020.<\/p>\n<p>But it isn\u2019t just new buildings that will pop up. The MTA is expanding the 7 line to 10th Avenue, the third phase of the High Line elevated park is under construction, and an adjacent portion of the Hudson River Park will be revamped during the build out. Cross says that 50 percent of the lot area will be open to the sky. The crown jewel of the first phase will be a 70-story, 2.4 million-square-foot office tower capped off with a ballroom, sky club restaurant, observatory and private club. But just how does a massive project like this move forward in a city where getting shovels in the ground is never a simple task?<\/p>\n<p>\u201cIt all has to do with very enlightened public policy,\u201d Cross said, adding that the city is giving Related a 40 percent tax rebate for the first 5 million square feet of office space. \u201cOur partner in this is the MTA, who came to the table with the right attitude. The city and MTA crafted out the rules early in the process &#8230; Our job is to build a trusting relationship with the public sector.\u201d<\/p>\n<p>Tom Murphy, the former Mayor of Pittsburg and senior resident fellow at ULI who is largely credited with breathing life back into The Steel City, chimed in on the importance of a symbiotic relationship between the public and private sectors in any successful game-changing project.<\/p>\n<p>\u201cIt is a sophisticated conversation that recognizes that Related needs to make money, but at the same time the public sector doesn\u2019t want to get their pocket picked,\u201d said Murphy. \u201cOften, I say that cities have a disease in the water called the \u2018It\u2019ll do\u2019 disease. Instead of saying we are going to be a world-class city, they will just build something \u2018that will do\u2019. Hudson Yards is a great example of what a world-class city like New York wants to do.\u201d<\/p>\n<p>But while Related\u2019s goal, like any real estate developer, is to turn a profit, the public sector shoots for social goals, according to Cross.<\/p>\n<p>\u201cThere is a phrased coined by our lawyer that the public sector\u2019s currency is not money. We oftentimes fail in terms of thinking of their currency, which are social goals. Once you start thinking of solving their problems, things turn on their head and the private sector is given an opportunity to affect big change.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By 2030 it is likely that 60 percent of the world\u2019s population will be living in an urban setting.<\/p>\n","protected":false},"author":952,"featured_media":1004053920,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,16,21783,1600,21742,21747],"tags":[],"class_list":["post-1004053912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-international","category-investment","category-new-york","category-latest","category-office"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Special Report: Finding a Framework for Future Global Cities - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/special-report-finding-a-framework-for-future-global-cities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Special Report: Finding a Framework for Future Global Cities\" \/>\n<meta property=\"og:description\" content=\"By 2030 it is likely that 60 percent of the world\u2019s population will be living in an urban setting.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/special-report-finding-a-framework-for-future-global-cities\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2012-12-04T17:13:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-04T15:43:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/12\/Nova-Luz-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"458\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Anna Spiewak\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-finding-a-framework-for-future-global-cities\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-finding-a-framework-for-future-global-cities\\\/\"},\"author\":{\"name\":\"Anna Spiewak\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/1bbb99675c2609ea2e6792f8b25d7b76\"},\"headline\":\"Special Report: Finding a Framework for Future Global Cities\",\"datePublished\":\"2012-12-04T17:13:30+00:00\",\"dateModified\":\"2022-12-04T15:43:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-finding-a-framework-for-future-global-cities\\\/\"},\"wordCount\":1021,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-finding-a-framework-for-future-global-cities\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2012\\\/12\\\/Nova-Luz-1.jpg\",\"articleSection\":[\"Development\",\"International\",\"Investment\",\"New York\",\"News\",\"Office\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-finding-a-framework-for-future-global-cities\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-finding-a-framework-for-future-global-cities\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-finding-a-framework-for-future-global-cities\\\/\",\"name\":\"Special Report: Finding a Framework for Future Global Cities - 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