Reimagining Cities-Disrupting the Urban Doom Loop

INGREDIENTS OF VIRTUOUS SPIRALS

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Attraction of other successful developments (agglomeration)

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Critical Mass of Successful Development and Self-sustaining Population

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Source: Places Platform, LLC; Cushman & Wakefield Research

The complex mix of various product types within walking distance of each other means that every new development adds more foot traffic. 31 For example, if a restaurant is within walking distance of a new 200-unit rental apartment with an average of 1.5 people per unit, that means 300 new potential customers are now conveniently nearby to help increase sales and boost real estate valuations without any investment on the part of the restaurant. Another example is a sports and event arena that needs parking, primarily during the evening and weekends for events like games and concerts. Nearby office buildings, which have parking that is mostly occupied

during the workday and empty at night and on weekends, can offer their parking spots to arena visitors. Each additional dollar of parking revenue during these times generates a high net profit—around 90%— since only a small fraction —about 10%—goes toward operational costs. This increased parking revenue boosts the office building’s valuation and drives increased tax revenues just by being located close to the arena. These cycles can be sustained long term once a WalkUP achieves critical mass. This clustering of a diverse array of businesses, land uses and amenities creates a synergistic environment that enhances the city’s competitiveness and attracts more

31 McCann, Philip and Frank van Oort. “Theories of agglomeration and regional economic growth: a historical review.” Handbook of Regional Growth and Development Theories, 2020.

Reimagining Cities: Disrupting the Urban Doom Loop 21