ed forum february 5, 2015. place as the driver for real estate and economic development rick duke,...
TRANSCRIPT
ED Forum
February 5, 2015
PLACE as the Driver for Real Estate and
Economic Development
Rick Duke, CEcD, EDFP
CEO and President
Georgia BRE Insights, LLC
“ A Look Back”
to
April 2009
Create Place
Who’s Your City by Richard Florida(March 2008)
“Forget the past, when cities and civilizations were
confined to fertile soil, natural ports, or raw materials.
In today’s high-tech world, we are free to live
wherever we want. Place, according to this
increasingly popular view, is irrelevant.”
Who’s Your City by Richard Florida
“It’s a compelling notion, but it’s wrong. Today’s key economic factors—talent,
innovation, and creativity—are not distributed evenly across the global
economy. They concentrate in specific locations. It’s obvious how major new
innovations in communications and transportation allow economic activity to
spread out all over the world. What’s less obvious is the incredible power of
what I call the clustering force.”
Rapid Changes Occuring
America’s suburbs aging more rapidly than the central cities
Clear pattern of neighborhoods close to the urban core holding their values better than neighborhoods in suburban and exurban communities.
Empty-nesters and young professionals have retuned to cities and have shown a willingness to pay a premium to be close to their offices and to stores, coffee shops, bars, music venues and other entertainment. Downtowns have come to life while suburban malls are struggling. (“The Unraveling of the Suburban Fringe,” BusinessWeek, July 12, 2008)
Possible trend of wealthier and more educated older suburbanites moving to the cities
Metro Atlanta Urban Centers
Atlantic Station
Decatur
Piedmont and Lindbergh
Buckhead
Midtown
Vinings
BaCk to Now
Location Preference Shift
“Companies Say Goodbye to the ‘Burbs” - The Wall Street Journal, December 4, 2013
Motorola will join United Continental Holdings Inc., Hillshire Brands Co. —the successor to Sara Lee Corp.
— and other corporate giants abandoning vast suburban campuses for urban offices nearer to the young,
educated and hyper-connected workers who will lead their businesses into the digital age.
“Is something wrong with Chicago’s suburbs?” - Crain’s Chicago Business, July 31, 2014
“Forget big suburban campuses, innovative companies are moving downtown” - Quartz, May 22, 2014
Where Knowledge Workers Want to Live
“The Suburban Shift: Why Companies Are Moving Downtown and What You Can Do” - Relocation and HR Trends, Urbanbound, October 14, 2014
“Young workers pushing companies to locate in cities” - Boston Globe, July 19, 2012
Generation X
•Generation X members are in their early 30s to mid 40s. They have recently entered the housing market as choosy, opinionated buyers. They don’t necessarily want the sort of house their parents would buy or that the Xers grew up in.
•Generation X is even larger-81 million strong-than the Baby Boom generation
•many prefer inner city living or urban-like community-walkable and compact design
Where Knowledge Workers Want to Live
Generation Y (Millennials)
•late teens to early 30s
•largely prefer downtown living, often in rental apartments with easy access to walkable neighborhoods and public transportation.
•They are not afraid to question authority, are constantly seeking out new challenges and want meaningful work.
•lazy, narcissistic and prone to jump from job to job
•more open-minded, and more supportive of gay rights and equal rights for minorities.
Raleigh, NC“300 acres on edge of RTP sold for mixed-use development” - Triangle Business Journal, November 10, 2014
“7 Reasons It’s Finally Time to Live in Research Triangle Park” - Forbes, January 23, 2015
“Raleigh Leads The Best Places for Business and Careers in 2014” - Forbes, July 23, 2014
Atlanta Rankings
“East Atlanta named third hottest neighborhood in the country” - Atlanta Business Chronicle, January 22, 2015
Atlanta Rankings
“Top 35 cities on Livability” (of 100 most populous cities) - Vocativ, January 23, 2015
Recent Metro Atlanta Announcements“Mercedes moves U. S. headquarters to Sandy Springs from New Jersey” - January 6, 2015
“Microsoft to put ‘innovation center’ in downtown’s iconic Flatiron building” - January 27, 2015
“Germany’s RIB Software to relocate American HQ to Midtown’s Tech Square” (700,000 square foot mixed-use tower) - Atlanta Business Chronicle, January 30, 2015
“Coca Cola Enterprises to open Innovation Center at Georgia Tech” – January 28, 2015
“Home Depot to open Innovation Center at Georgia Tech”-August 15, 2014
“Post Properties Moving Forward with Centennial Park Apartments”-November 20, 2014
NCR
From Duluth
To Midtown
Athenahealth®
From Alpharetta to Ponce City Market
Worldpay US
From Sandy Springs
To Atlantic Station
Trends
Employment and economic impact. A nationwide office study in 2014 determined that vibrant, mixed-use centers are preferred over single-use office parks by 83 percent of office tenants. NAIOP Research Foundation, Nov 2014, Emil Malizia
Mixed-use urban centers account for as much as 50 percent of new commercial real estate development, even though they occupy only about 1 percent of the land, Christopher Leinberger found in 2014.
Real estate market. The biggest unmet desire in the housing market, according to the report called Who’s On Board 2014, is to live in a mixed-use neighborhood. Conversely, people living in single-use residential areas express the most dissatisfaction with where they live.
KNOWLEDGEalso the Driver for Real Estate and
Economic Development