Reimagining Cities-Disrupting the Urban Doom Loop

LIVE/WORK/PLAY CONCENTRATION BY GEOGRAPHY

ALL CITY

ALL WALKUPS

DOWNTOWNS

12.0%

14.3%

14.5%

15.9%

33.5%

21.3%

66.6%

52.2%

69.7%

Live

Work

Play

Source: Places Platform, LLC and Cushman & Wakefield Research estimates based on data from CoStar, CoreLogic, Cushman & Wakefield, U.S. General Services Administration, U.S. Department of Education IPEDS, U.S. Census Bureau, Property Shark

70% of a WalkUP portfolio in one asset class, in this case Work, may have worked well in the pre-pandemic world but not after the rise of remote work and the need to add more vitality to create what is referred to as 24-hour places. 64 This inventory mix is quite different for the other three types of WalkUPs. Office constitutes 36% in Downtown Adjacent WalkUPs, 31% in Urban Commercial and 14% in Urban Universities. When including GSA, owner-user and university office, the Work product portfolio shares increase to 47%, 37% and 37%, respectively. These WalkUps skew more toward multifamily rental, for-sale housing and retail. We note even greater distinctions when comparing across city size tiers. Downtown WalkUPs in gateway cities (Boston, Chicago, Los Angeles, Manhattan, San Francisco and Washington, DC) devote 65% of their product mix to office (76% when owner secondary cities (45%), suggesting that a significant part of the over-exposure to Work (office) products in Downtown WalkUPs is driven by the larger gateway cities. user, university and GSA office space is considered). This stood apart from

DISTRIBUTION OF WALKUP INVENTORY BY LIVE/WORK/PLAY BY CITY TYPE

LIVE GATEWAY

WORK

PLAY

32.3%

54.8%

12.9%

SECONDARY

WORK

PLAY

LIVE

36.2%

46.3%

17.5%

TOTAL OF 15

WORK

PLAY

LIVE

33.5%

14.3%

52.2%

Source: Places Platform, LLC and Cushman & Wakefield Research estimates based on data from CoStar, CoreLogic, Cushman & Wakefield, U.S. General Services Administration, U.S. Department of Education IPEDS, U.S. Census Bureau, Property Shark

64 Kelly, Hugh. (2016). 24-Hour Cities . New York: Routledge

34 Cushman & Wakefield