Cushman & Wakefield (NYSE: CWK), a global leader in real estate services, has released a groundbreaking study titled Reimagining Cities: Disrupting the Urban Doom Loop. This in-depth report focuses on 15 major U.S. cities, analyzing their existing real estate portfolios and comparing them to the ideal property mix needed for future success in a post-pandemic economy. The study highlights significant insights into how cities must adapt their real estate strategies to thrive in a rapidly evolving landscape.
Cushman & Wakefield (NYSE: CWK), a global leader in real estate services, has released Reimagining Cities: Disrupting the Urban Doom Loop, an innovative study analyzing the real estate portfolios of 15 key U.S. cities. The report reveals that many cities, particularly walkable urban areas near city centers, have real estate mixes that deviate from optimal portfolio theory—especially downtowns, where 70% of the available square footage is currently dedicated to office space.
The study identifies an ideal real estate mix for cities to thrive, suggesting that cities should aim for a balance of 42% Work (office, owner-occupied, GSA), 32% Live (for-sale and multifamily rental housing), and 26% Play (retail, hotel, and entertainment). Reconfiguring these urban pockets, which account for just 3% of a city’s landmass but contribute 37% of its tax revenue and 57% of its GDP, is critical for long-term sustainability. If these areas falter, the entire city could face economic hardship.
In partnership with Places Platform, LLC—a real estate technology company co-founded by Christopher B. Leinberger, a distinguished scholar at George Washington University—Cushman & Wakefield’s report explores the recent past and potential future of these cities, addressing concerns around “urban doom loops” and providing strategies for reversing them.
The report outlines four key strategies for revitalizing cities and their downtowns:
- Reducing the share of real estate dedicated to Work, especially in downtown areas.
- Increasing residential (Live) spaces, particularly in downtowns.
- Expanding the ratio of for-sale housing within the Live category.
- Enhancing entertainment (Play) spaces to boost visitor foot traffic.
Kevin Thorpe, Cushman & Wakefield’s Global Chief Economist, emphasized the urgency of the findings: “Our study is a call to action. Many cities risk entering an urban doom loop, which is difficult to break. Today’s real estate mix is still tailored for an economy from two decades ago, but cities are now driven by the experience economy, not just knowledge sector production. Doom loops are not inevitable, but the time to act is now.”
The report also presents a first-of-its-kind real estate database, created by Places Platform, LLC in collaboration with Cushman & Wakefield. This comprehensive dataset includes nearly all real estate data at the parcel level for the 15 sample cities, covering a wide range of property types, from office and housing to retail, cultural institutions, and sports venues.
Rebecca Rockey, Cushman & Wakefield’s Deputy Chief Economist, noted, “This collaboration has led to unprecedented analysis, helping investors, businesses, and city leaders understand their current real estate portfolio mix and take actionable steps toward growth and prosperity.”
Key findings from the report include:
- Pandemic-induced urban decline is reversible: Cities have begun regaining residents and attracting visitors, reversing earlier population losses.
- A balanced urban real estate mix generates higher value: On average, cities should aim for 31% Live, 42% Work, and 26% Play to create more vibrant, resilient urban areas.
- Office space remains important but overrepresented: While office space should remain a significant component of downtown real estate, reducing its over-reliance and increasing residential and entertainment options will enhance property values.
- Downtowns are too Work-centric: Currently, 70% of downtown space is dedicated to office use, compared to just 16% for Live and 15% for Play, underscoring the need for a more balanced mix.
- Other walkable urban areas are more balanced but still need adjustments: Neighborhoods such as Downtown-Adjacent and Urban University areas have closer-to-optimal ratios but could still benefit from more residential and entertainment spaces.
The report concludes by recommending that cities facilitate rebalancing by simplifying processes like zoning, offering incentives for adaptive reuse of office spaces, and expediting development approvals.
“Cushman & Wakefield is committed to helping clients navigate the ever-changing real estate landscape,” said Michelle MacKay, CEO of Cushman & Wakefield. “This report reflects our rigorous approach to understanding the full real estate ecosystem and helping our clients make informed, confident decisions.”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more
