Reimagining Cities-Disrupting the Urban Doom Loop

The place-based analysis in this report/ study includes the following:

data for businesses, governments, nonprofits and universities requires manual acquisition since there are only partial public or private data sets available. It is estimated that owner-user businesses, governments, nonprofits and university real estate contain approximately 5%-10% of all real estate inventory in the 15 cities.

• Data of all real estate products in the 15 sample cities are collected. This includes data for multifamily rental, for-sale housing, office, retail, industrial, cultural (museums, live theater, etc.), sports and events facilities, convention centers, government buildings, universities, etc. These product types are divided into two broad categories: » Income properties are leased or rented properties that are cash flowing. The data is captured by private real estate datasets from Cushman & Wakefield, CoStar, etc.

• Data is collected from the “bottom up” at the individual property parcel level. We let the market determine the boundaries of places under analysis, not super imposed, top-down artificial boundaries, such as ZIP codes or traditional commercial real estate submarkets. • All real estate product data is sorted into the Places Lens© , which has two dimensions, as shown in the visual on the next page. The first divides all land into the two development forms: Walkable Urban 15 and Drivable Sub-urban, 16 mentioned earlier. The second dimension divides all land into the two land use economic functions: regionally significant 17 and local serving. 18 The resulting four-cell matrix is the Places Lens©.

Owner-user real estate is owned and used exclusively by households (for-sale housing) or businesses, governments, nonprofits and universities (referred to as owner user). For-sale housing datasets are available from many sources. (Our research employs CoreLogic for sale housing datasets.) However, owner-user commercial real estate

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15 Walkable Urban development form uses multiple transportation systems to get to the place (cars, trucks, transit, biking and walking) but once you are there nearly everything is within walking distance (about 1/2 mile), which controls the land mass of the WalkUP. These places are high-density and include small blocks, sidewalks, and narrow roadways. Walkable Urban development is a mix of uses built at a high density; generally starting at 1.0 floor area ratio or FAR, generally going to 4.0-5.0 FAR but can go even higher such as the case of Midtown Manhattan at about 40.0 FAR, by far the highest density in the country. Due to the constraint of walking distance, Walkable Urban places tend to be between 100-800 acres in size. 16 Drivable Sub-urban development form uses cars and trucks for the vast majority of trips from home, shopping or work. Transit, biking and walking tend not to be practical. Drivable Sub-urban development segregates nearly all uses, separating for-sale housing from rental housing, retail from office and industrial. Drivable Sub-urban density is much lower than Walkable Urban places, generally starting at 0.05 FAR and topping out at 0.8 FAR—in other words 1/10th to 1/40th the density of walkable urban places. This sprawl is why this development form generally uses over 95% of all metropolitan land. 17 A regionally significant place is a concentration of base or export jobs and organizations that make the major contribution to the GDP of the place, city, and metropolitan area. The jobs that are in regionally significant places tend to be among the highest paying in the metro area. 18 Local-serving economic function is focused on the needs of the residential housing (both for-sale and rental) of the place. Local-serving places tend to be 90% residential square footage and 10% of the square footage is commercial and public sector services. The employment base tends to be grocery and drug store jobs, police and firefighters and local-serving professionals (doctors, dentists, realtors, lawyers, accountants, etc.).

12 Cushman & Wakefield