{"id":1004353469,"date":"2019-09-19T04:36:17","date_gmt":"2019-09-19T12:36:17","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004353469"},"modified":"2019-09-19T06:49:12","modified_gmt":"2019-09-19T14:49:12","slug":"how-global-cities-adapt-to-changing-economic-models","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/how-global-cities-adapt-to-changing-economic-models\/","title":{"rendered":"How New-Model Cities Are Attracting CRE Investment"},"content":{"rendered":"
\"\"<\/a>

Jeremy Kelly, Director, Global Research, JLL. Image courtesy of JLL<\/em><\/p><\/div>\n

Global cities that adapt to new economic models focusing on quality of life, innovation, sustainability, governance and resilience are becoming new sources of real estate demand and attracting higher cross-border investment, according to a new report from JLL and The Business of Cities,<\/a> a London-based intelligence and strategy firm.<\/p>\n

Issues like technological disruption, concerns over climate change and geopolitical tensions are also changing what businesses need from cities, Jeremy Kelly, director, global research at JLL, said in a prepared statement about the 21-page report, \u201cDemand & Disruption in Global Cities 2019.\u201d <\/em><\/p>\n

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READ ALSO<\/strong>: Coworking to Overtake Tech as Office Leasing Driver<\/a><\/p>\n

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The report describes four new economic models\u2014innovation economy, experience economy, sharing economy and circular economy\u2014and notes they are having a strong impact on global cities, including four that have joined the global leader board\u2014Berlin, Munich, Boston and Stockholm. The innovation economy demands locations become more flexible in use of space and also renews focus on central business districts as venues for increased collaboration. The experience economy thrives on customized experiences and services, while offering a mix of activities. The sharing economy promotes new living and working patterns like coworking and co-living and raises demands for spaces that can be reconfigured. The circular economy emphasizes operational efficiencies and resilience in buildings.<\/p>\n

\"\"<\/a>

Image courtesy of JLL<\/em><\/p><\/div>\n

Six of the seven cities that have topped JLL and The Business of Cities\u2019 Established World Cities list since 2013\u2014London, New York, Paris, Singapore, Tokyo and Hong Kong\u2014continue to maintain their stronghold. Seoul is also on the list. Dubbed \u201cThe Big Seven,\u201d they are followed closely by \u201cThe Global Contenders\u201d\u2014San Francisco, Los Angeles, Shanghai, Toronto, Chicago, Beijing, Amsterdam, Sydney, Madrid and Washington, D.C.<\/p>\n

Together they are the top 20 in \u201cThe Order of Established Cities\u201d but the report uses more than 500 benchmarks to track cities\u2019 ability to attract businesses and investments, build their jobs base, improve their infrastructure platforms and sustain their growth over the long term. The authors noted the benchmarks, up from about 300 in the 2017 report, produced more in-depth data that also looks at quality of life, urban vibrancy, resilience, economic inclusion and social cohesion, as well as prospects for long-term economic competitiveness. Noting that corporate occupiers and investors are making decisions based on a much broader set of factors than in the past, the report shows a correlation between cities\u2019 all-around competitiveness and their ability to attract cross-border real estate investment.<\/p>\n

Topping the list<\/strong><\/h2>\n

Despite some challenges like increasing risks from Brexit and a recent slowdown in momentum, London still leads all the global cities. The report notes<\/a> that London continues to record excellent performance because of its diversification into fintech, robotics, medtech and retailtech, as well as its ongoing cycle of infrastructure investment and redevelopment. Paris, number 3 on the list, continues to benefit from innovation, especially in terms of talent and the business climate, and is also beginning to be a leader in circular economy adoption.<\/p>\n

The four cities that are part of the \u201csecond division\u201d of \u201cThe Global Contenders\u201d have seen their all-around performance improve in the global benchmarks and they are successfully competing on the global stage due to quality of life advantages, innovation capabilities or institutional strength. For example, Munich is in the top 10 because of its transportation system, reputation, student appeal and its increase in investments across assets.<\/p>\n

 \u201cIt is interesting to see that all the new global contenders are medium-sized cities which have developed strengths in the innovation economy. Despite their smaller populations, they are now stepping up and competing on a global stage. These cities are successfully embracing the new economic models to attract capital, corporates and talent,\u201d <\/em>Kelly told Commercial Property Executive.<\/em><\/p>\n

While \u201cThe Big Seven\u201d and \u201cThe Global Contenders\u201d are at the core of the top global cities, the report also breaks down the cities into several other categories, including \u201cNew World Cities\u201d and \u201cEmerging World Cities\u201d as well as \u201cHybrids\u201d and \u201cNatural Growth Engines.\u201d The report states the hybrids\u2014Santiago, Cape Town, Abu Dhabi, Dubai, Warsaw, Prague, Budapest and Bucharest\u2014are all medium-sized cities that have attributes of both \u201cEmerging\u201d and \u201cNew World Cities.\u201d They compete in specialized markets and have a superior livability compared to regional and national peers. But their labor force and customer appeal are more like those of \u201cEmerging World Cities.\u201d<\/p>\n

\u201cNational Growth Engines\u201d are cities that are in stable, developed national economies that have large domestic markets, have few competitors and are often built around services or supply functions. Cities that fall into this category are Dallas, Houston, Atlanta, Osaka, Nagoya and Buenos Aires.<\/p>\n

New additions to the \u201cNew World Cities\u201d list this year are Manchester, Stuttgart, Lisbon, Montreal and Philadelphia. The report points to several \u201cEmerging World Cities\u201d as locations to watch and they include Guangzhou, Shenzhen, Taipei, Istanbul and Moscow.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new report from JLL and The Business of Cities looks at new economic models that are impacting global real estate demand and cross-border investment decisions.<\/p>\n","protected":false},"author":1068,"featured_media":1004353535,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,16,23891,21742],"tags":[42461,43808,32796],"class_list":["post-1004353469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-international","category-national","category-latest","tag-coworking","tag-jeremy-kelly","tag-jll"],"acf":[],"yoast_head":"\nHow New-Model Cities Are Attracting CRE Investment - 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\/how-global-cities-adapt-to-changing-economic-models\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How New-Model Cities Are Attracting CRE Investment\" \/>\n<meta property=\"og:description\" content=\"A new report from JLL and The Business of Cities looks at new economic models that are impacting global real estate demand and cross-border investment decisions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/how-global-cities-adapt-to-changing-economic-models\/\" \/>\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=\"2019-09-19T12:36:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-09-19T14:49:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/09\/The-Order-Of-Established-Cities-2019b-Featured.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\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\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/how-global-cities-adapt-to-changing-economic-models\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/how-global-cities-adapt-to-changing-economic-models\/\",\"name\":\"How New-Model Cities Are Attracting CRE Investment - 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