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
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Many companies start their journey to the cloud in the DevOps environment, where software engineers want self-service access to the custom tools and frameworks they need. Machine learning technology can help IT departments keep up with these demands. In his session at 21st Cloud Expo, Ajay Gulati, Co-Founder, CTO and Board Member at ZeroStack, will discuss the use of machine learning for automating provisioning of DevOps resources, taking the burden off IT teams.
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
Cloud-based disaster recovery is critical to any production environment and is a high priority for many enterprise organizations today. Nearly 40% of organizations have had to execute their BCDR plan due to a service disruption in the past two years. Zerto on IBM Cloud offer VMware and Microsoft customers simple, automated recovery of on-premise VMware and Microsoft workloads to IBM Cloud data centers.
Why Federal cloud? What is in Federal Clouds and integrations? This session will identify the process and the FedRAMP initiative. But is it sufficient? What is the remedy for keeping abreast of cutting-edge technology? In his session at 21st Cloud Expo, Rasananda Behera will examine the proposed solutions: Private or public or hybrid cloud Responsible governing bodies How can we accomplish?
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...