Business View Magazine | October 2019

11 BUSINESS VIEW MAGAZINE OCTOBER 2019 OPENING L INES J ones Lang LaSalle Incorporated (JLL), the American commercial real estate services firm’s latest research with The Business of Cities reveals that no longer are a city’s economic fundamentals the main draw for corporate occupiers and investors. Instead, quality of life, innovation, sustainability, governance, and resilience increasingly factor into location and investment decisions. Cities that adapt to new economic models – such as the innovation economy, experience economy, sharing economy, and circular economy – will enjoy new sources of real estate demand and attract higher cross- border investment. “What businesses need from cities is changing, as a result of technological disruption, growing concerns over climate change, and geopolitical tensions,” says Jeremy Kelly, Director, Global Research at JLL. “By sifting through more than 500 city indices, we pinpointed key trends that will matter most for our clients.” Several new economic models are shifting attention to how cities build a customer service culture, foster urban experiences, expand innovation industries, and achieve sustainability: • The innovation economy demands that locations become flexible, optimize space, and break down barriers between building uses. The model renews focus on central business locations as venues for collaboration, innovation, clustering, and commercialization. • The experience economy amplifies customer expectations for on-demand services, thrives on customized experiences facilitated by data collection, and fosters concentration of a mix of activities in high-amenity locations. • The sharing economy promotes the rise of new living and working patterns (including CITIES THAT ADAPT TO NEW ECONOMIC MODELS COMPETE BEST IN REAL ESTATE SECTOR