Reimagining Cities-Disrupting the Urban Doom Loop

LIVE SHOWS PREMIUM IN LESS DIVERSE WALKUPS % Change total PPSF (2019-2023) by PP/CW Product Diversity Index Quartile

REAL ESTATE DOES BETTER WITH MORE PLAY % Change total PPSF (2019-2023) by PP/CW Product Diversity Index Quartile

Least diverse 25% of WalkUPs

Most diverse 25% of WalkUPs

Least diverse 25% of WalkUPs

Most diverse 25% of WalkUPs

First Second Third Fourth

First Second Third Fourth

0%

0%

-5%

-5%

-10%

-10%

-15%

-15%

-20%

-20%

-25%

-25%

-30%

-30%

-35%

-35%

-40%

Above Median Play Exposure (for Diversity Quartile)

Above Median Live Exposure

Below Median

Below Median

Source: Places Platform, LLC; Cushman & Wakefield Research Note: The C&W/PP Diversity index was used to determine the ‘Diversity Quartile’. Then within each quartile, a median was calculated for that quartile only and each WalkUP was designated as above or below the exposure to WORK commercial real estate.

Source: Places Platform, LLC; Cushman & Wakefield Research Note: The C&W/PP Diversity index was used to determine the ‘Diversity Quartile’. Then within each quartile, a median was calculated for that quartile only and each WalkUP was designated as above or below the exposure to WORK commercial real estate.

WalkUP diversity, we found that above median exposure resulted in worse outcomes (see the relationship between the bars reverse in the fourth quartile group in the Live chart above). A possible reason for this may be that a balanced ecosystem may be in play where different product types coexist in optimal proportions in the highest product diversity areas. Thus, the marginal increase in residential share can possibly disrupt this balance, leading to diminishing returns or even negative impacts on PPSF. Indeed, as we will see later in our final section, the distribution of real estate in these WalkUPs appears closely aligned with our estimates of what is optimal.

matter the PPSF outcomes studied, we found that within each diversity index quartile, above median exposure to Play resulted in less steep declines. In fact, for multifamily, in the two most diverse quartiles (third and fourth), there were increases in PPSF over the 2019 to 2023 timeframe for those WalkUPs with more Play, not less. As we will explore more in depth shortly, Play currently appears to be under-represented in the portfolio mix and thus having more of it yields consistently positive results across this analysis.

A third iteration revealed that more Play resulted in better outcomes, period. No

Reimagining Cities: Disrupting the Urban Doom Loop 49