Continued movement to more affordable, lifestyle-centric
cities is further diversifying the landscape for innovation-focused
companies and investors
CHICAGO, March 25,
2024 /PRNewswire/ -- Throughout the next decade,
market specialization, talent migration, sustainability goals and
new technologies such as AI will continue to shape the global
knowledge economy and high-tech industry ecosystem. The third
edition of JLL's Innovation Geographies examines how
innovation continues to influence real estate location and
portfolio strategies, based on the dynamics of 108 cities globally.
Ranked across a range of output, funding and talent indicators, JLL
identified eight groups of cities across varying innovation and
talent concentrations to provide a perspective into rapidly
evolving global, regional and national landscapes.
Capital injection into new technologies, such as generative
AI, has fueled market expansion
As emerging and alternative
technologies continue to drive innovation, the San Francisco Bay Area remains the top city
globally for both innovation and talent by a significant margin,
outperforming most on venture capital, research and development
investment, productivity and talent breadth. This is evident
through investments in new technologies, such as generative AI, of
which the Bay Area received nearly $49
billion in funding over the past three years – more than
Beijing and New York combined. Beijing, Boston, Tokyo, London, Seoul, Singapore, Shanghai, New
York and Paris also
continue to be top performing hubs for innovation and talent, as
was the case in previous years.
However, as talent shortages, rising home prices and regulatory
pressures catalyze expansion into lower-cost markets, cities such
as Austin have joined the ranks of
global innovation hubs and secondary markets are improving their
breadth of talent and scale of output.
Similarly, mid-sized cities including Brisbane, Lisbon, Manchester, Raleigh,
North Carolina and China's
Hangzhou have also experienced
both innovation and talent improvements.
"As opportunities for innovation continue to grow globally,
corporations and investors must navigate a landscape where mature
and emerging hubs complement each other," said Phil Ryan, Research Director at JLL. "Finding
the right balance of assets across established markets and emerging
secondary and tertiary markets globally will be crucial for
sustained growth and resilience, especially as emerging markets
become more competitive."
Trade and the urban form are also impacting the geography of
innovation
External geopolitical forces are shaping the
geography of innovation with more aggressive trade and industrial
policies in the U.S., the EU and China incentivizing onshoring and domestic
production of critical components. This realignment will place
additional emphasis on in-house research and development, as well
as co-location with manufacturing firms' access to transportation
and logistics nodes. Phoenix,
Columbus, Berlin and Fukuoka, Japan are just some of the cities
with multi-billion-dollar semiconductor or high-tech materials
fabrication plants being built in or near their metropolitan areas
due to these policies.
Sustainability and efficiency standards also continue to drive
innovation, as many of the fastest-growing innovation hubs,
particularly those in Asia and
the United States, are at the
highest risk of the effects of climate change. Advancement in green
prop-tech will be crucial in helping to lower emissions in existing
buildings, which represent more than 80% of future inventory in
2050. Innovation anchors are and will continue to be vital to the
success of accommodating this growth in precincts such as Tech
Central in Sydney, the Jurong
Innovation District in Singapore,
Schuylkill Yards in Philadelphia
and ID in Manchester, which
exemplify the ability of innovation to catalyze multi-faceted
regeneration.
Find out more by downloading the Innovation Geographies
whitepaper here.
About JLL
For over 200 years, JLL (NYSE: JLL), a
leading global commercial real estate and investment management
company, has helped clients buy, build, occupy, manage and invest
in a variety of commercial, industrial, hotel, residential and
retail properties. A Fortune 500® company with annual
revenue of $20.8 billion and
operations in over 80 countries around the world, our more than
106,000 employees bring the power of a global platform combined
with local expertise. Driven by our purpose to shape the future of
real estate for a better world, we help our clients, people and
communities SEE A BRIGHTER WAYSM. JLL is the brand name,
and a registered trademark, of Jones Lang LaSalle Incorporated. For
further information, visit jll.com.
Contact: Allison Heraty
Phone: +1 312 228 3128
Email: allison.heraty@jll.com
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SOURCE JLL