Economy Watch: US Has 3 of Top 10 Most Dynamic CRE Markets
- Feb 08, 2017
Where is the economy and the commercial real estate market changing the most quickly? According to the fourth edition of JLL’s City Momentum Index, which was published recently, Bangalore takes the No. 1 spot this year, with London (No. 1 last year) being bumped down to No. 6, largely on account of Brexit and its aftermath. Ho Chi Mihn City (Saigon) was No. 2 and Shangai was the top Chinese city at No. 4.
The index tracks the speed of change of a city’s economy and commercial real estate market, identifying those cities that have the most dynamic attributes over the short and long term. It covers 134 major established and emerging business hubs across the globe, tracking 42 elements of a city’s dynamism.
These elements are grouped into three main sub-indices: Socio-economic momentum relating to changes in city GDP, population, air passengers, corporate headquarters and foreign direct investment; CRE momentum relating to changes in absorption, construction, rents, investment volumes and real estate transparency covering the office, retail and hotel sectors; and high-value incubators relating to the ability of a city to maintain momentum over the longer term (that is, its future-proofing capacity) in terms of education, innovation and environment.
Three U.S. cities made the top 10: Silicon Valley, at No. 3 (considered a city for the purposes of the report); Austin, at No. 7; and Boston, at No. 9. New York came in at No. 14, while Seattle was No. 20 and San Francisco was No. 21. Also in the top 30 were Raleigh-Durham (No. 24) and L.A. (No. 27).