CHICAGO, May 15, 2019 /PRNewswire/ -- JLL's (NYSE: JLL)
latest research indicates that real estate capital flows to cities
with the strongest innovation and talent characteristics. In
addition to drawing capital, these tech-savvy cities with highly
skilled workforces also attract corporations interested in hiring
the best employees.
Capital follows innovation
Innovation-oriented
cities have a strong competitive advantage in today's
technology-driven world. Of the 109 cities analyzed, the nine
leading global markets – Boston,
London, New York, Paris, San
Francisco, Seattle,
San Jose, Sydney and Tokyo – accounted for around 37 percent
of total annual real estate investment volumes over the past
decade. Cities that rank just below these leaders, outperforming on
either talent or innovation, have seen a significant uplift in
transaction volumes since the global financial crisis. For example,
real estate investments in Washington,
DC, a talent-rich city, have grown by 260 percent while in
Stuttgart, an innovation-centric
city, volumes have almost tripled.
"Targeting innovative cities has now become an explicit part of
investment strategies," says Carol
Hodgson, Director, Global Research at JLL. "Our research
also shows that innovation-centric cities appear to be more
resilient to economic shocks. During the last downturn, these
cities saw average real estate capital values fall less and bounce
back more quickly. These include cities such as Seoul, Berlin
and Chicago."
Attracting corporate occupiers
Like real estate
investors, corporate occupiers also search for locations that have
advanced innovation ecosystems. These cities sustain highly skilled
workforces and are best placed to succeed in the future. The mature
markets of Europe, the U.S. and
Australia are the world leaders
when it comes to talent. Cities like London, San
Francisco, Washington, DC,
San Jose and Seattle are home to cutting-edge universities
along with well-qualified, growing populations.
For cost-conscious businesses, the most affordable hubs relative
to their innovation and talent offerings are smaller cities like
Austin, Helsinki and Melbourne. Second-tier Australian cities such
as Brisbane and Perth also perform well, offering a
significant discount with more attractive yields and rents up to 67
percent lower than in Sydney.
East versus west – the increasingly global nature of
innovation
Although San
Francisco is still the world's most tech-savvy metro area,
U.S. cities no longer dominate in innovation. Three of the top five
most innovative markets – Tokyo,
Singapore and Beijing – are now in Asia Pacific.
Asian cities have made rapid progress toward developing
sophisticated future-looking business ecosystems, while
China's government is committed to
bringing the country's higher education up to par with the U.S. and
Europe. Shanghai, Shenzhen, Seoul and Bangalore continue to expand their
capabilities and global reputations as leading tech hubs.
For more information, download the Innovation Geographies report
here:
https://www.jll.co.uk/en/trends-and-insights/research/innovation-geographies-2019
Methodology
JLL's Innovation Geographies study
covers over 100 cities globally and tracks a broad range of factors
to assess a city's innovation capacity and the relative strength of
its talent pool. Innovation is defined by the level of foreign
direct investment in high-tech industries; research and development
expenditure; the number of patents awarded and venture capital
activity. The strength of a city's talent pool is determined by its
demographics, the quality of its higher education institutions, the
proportion of people with a bachelor's degree and employment in
high-tech industries.
About JLL
JLL (NYSE: JLL) is a leading professional
services firm that specializes in real estate and investment
management. Our vision is to reimagine the world of real estate,
creating rewarding opportunities and amazing spaces where people
can achieve their ambitions. In doing so, we will build a better
tomorrow for our clients, our people and our communities. JLL is a
Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries
and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a
registered trademark, of Jones Lang LaSalle Incorporated. For
further information, visit jll.com
Connect with us
https://www.linkedin.com/company/jll
https://www.facebook.com/jll/
https://twitter.com/jll
https://plus.google.com/+joneslanglasalle
Contact: Gayle Kantro
Phone: +312 228 2795
Email: Gayle.Kantro@am.jll.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/real-estate-capital-follows-innovation-300850144.html
SOURCE JLL-IR