Reimagining Cities-Disrupting the Urban Doom Loop

Breaking down further by product type, we see that Work PPSF values are more influenced by the PP/CW Product Diversity Index, indicating a reward as the area becomes more product diverse. This is more notable with Downtown, Downtown Adjacent and Urban University WalkUPs. Again, we witness a downward slope in Urban Commercial. We also note that for-sale housing and multifamily products see a relationship between diversity index and valuation PPSF. This makes intuitive sense. People, especially those who choose to live in WalkUPs, tend to prefer living near amenities. A higher PP/CW Product Diversity Index is a proxy for more amenities (restaurants, retail, hotels, sports and entertainment, etc.), which is reflected in PPSF growth for both product types. This trend holds for Downtown, Downtown Adjacent and Urban University WalkUPs. A second way to frame our analysis is to rank our WalkUPs by the PP/ CW Product Diversity Index and then to break all 208 WalkUPs into diversity quartiles to explore the extent that over-representation of any major product type drives these pricing trends.

PP/CW PRODUCT DIVERSITY INDEX VS PPSF CHANGES 2019 PDI level vs 2019-2023 % change in Work PPSF

PP/CW PRODUCT DIVERSITY INDEX VS PPSF CHANGES 2019 PDI level vs 2019-2023 % change in Live PPSF

Downtown

Downtown Adjacent

Urban Commercial

Urban University

Source: Places Platform, LLC; Cushman & Wakefield Research

Reimagining Cities: Disrupting the Urban Doom Loop 47