Welcome!

News Feed Item

Real Estate Investment a Major Factor in City Success

Top 30 cities for real estate investment worldwide demonstrate strength of "super cities" and growth of second-tier cities

CHICAGO and LONDON, Jan. 21, 2014 /PRNewswire/ -- As business and political leaders convene to discuss global challenges at the World Economic Forum annual meeting in Davos, Switzerland, there is a greater appreciation for the importance of real estate in reshaping cities and, therefore, the world's commercial geography. According to research by Jones Lang LaSalle (NYSE: JLL), with real estate investment levels reaching a new high of an estimated ten dollars chasing each dollar of prime assets, real estate is no longer considered a consequence of city success, but is now actively employed to drive it. A look at the 30 cities worldwide where 50 percent of the US$4.6 trillion in direct commercial real estate investments has been concentrated over the past decade highlights real estate's impact on the strength of super and primary cities and the growth of second-tier cities.

According to Colin Dyer, CEO of Jones Lang LaSalle: "Investors are allocating more capital to real estate today but focusing on a specific set of cities globally. This has created an increase in demand for the limited stock of prime properties in super cities, the world's most attractive real estate markets. As a result, investors are moving along the risk curve into second-tier markets, which are becoming more conscious of how real estate can make them more attractive to investors. The most successful markets share characteristics like transparency, good governance, strong education systems and innovative city planning. The 'push-pull' effect is strengthening super cities and boosting investment prospects for second-tier cities."

Real Estate Reshaping Cities.

Recent research from Jones Lang LaSalle identifies the connections between cities of different sizes and rankings and how the investment market responds to the underlying momentum that each is creating. These newly revealed patterns and perspectives on performance bring more attention to the need for cities to consider real estate as a core performance driver.

  • Cross border capital investment is boosting demand in the super cities such as London, Paris and New York, supported by the continuing flood of Chinese, Korean, Malaysian and Canadian money (amongst others) and helping consolidate their attraction.
  • But with 50 percent of the US$4.6 trillion in direct commercial real estate investments over the past decade having been concentrated in 30 cities worldwide, there are signs of change. Investment patterns are shifting partly due to the shortage of available product in the super and primary cities and partly to the dynamism in second-tier cities.
  • Mid-size cities with innovative urban strategies, good governance and sound education bases are gaining momentum by using well designed, accessible, flexible real estate to attract and retain growth sectors such as tech, healthcare and bio that will underpin future economic success.
  • While corporates remain focused on containing costs in their existing real estate portfolios, they are migrating to second tier cities and expanding to new geographies to meet business demands and to take advantage of skills and new market opportunities.  This is further encouraging real estate investors up the risk curve as they chase corporates into new geographies.
  • Super cities are the largest, most internationally connected cities with very deep corporate bases and high levels of real estate liquidity.  The four super cities (London, Paris, New York and Tokyo) account for nearly one-fifth of global direct commercial real estate investment activity. 
  • Primary cities have high levels of international connectivity and significant concentrations of global business services.
  • Second-tier cities are mature cities with lower levels of international business activity than the other categories.

 

Top 30 Cities for Direct Commercial Real Estate Investment

 

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management. For further information, visit www.jll.com.

Related Links:
https://www.facebook.com/joneslanglasalle
http://www.linkedin.com/company/jones-lang-lasalle
http://www.joneslanglasalleblog.com/greenblog/
http://www.youtube.com/user/joneslanglasalle
https://twitter.com/jllnews

Video with caption: "Real Estate Reshaping Cities." Video available at: http://origin-qps.onstreammedia.com/origin/multivu_archive/PRNA/ENR/FX-MM49575-COLIN-DYER-DAVOS.mp4

Image with caption: "Real Estate Reshaping Cities." Image available at: http://photos.prnewswire.com/prnh/20140121/MM49575-INFO-a

Image with caption: "Top 30 Cities for Direct Commercial Real Estate Investment." Image available at: http://photos.prnewswire.com/prnh/20140121/MM49575-INFO-b

SOURCE Jones Lang LaSalle

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Building custom add-ons does not need to be limited to the ideas you see on a marketplace. In his session at 20th Cloud Expo, Sukhbir Dhillon, CEO and founder of Addteq, will go over some adventures they faced in developing integrations using Atlassian SDK and other technologies/platforms and how it has enabled development teams to experiment with newer paradigms like Serverless and newer features of Atlassian SDKs. In this presentation, you will be taken on a journey of Add-On and Integration ...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.