What Does The Future Of Cities Look Like Now?

‍Fifth Wall Newsletter: https://mailchi.mp/fifthwall/what-makes-a-city-vibrant

The pandemic accelerated shifts toward remote work and suburban living, according to a comprehensive report from McKinsey. Here are a few more takeaways:

• Hybrid work is the new normal. Office attendance has stabilized at 30 percent below pre pandemic norms.
• Real estate is local. Demand is likely to be lower in neighborhoods and cities with dense office space and expensive housing.
• Cities and buildings must adapt. Untethered from offices, residents have left urban cores and shop elsewhere.

But what can cities do? “Right now is a moment in time for mayors, city councils, and real estate developers to work together to revitalize urban cores and enable real estate to create culture in their cities,” writes Brendan Wallace, co-founder and managing partner at Fifth Wall. 

This is what that could look like:

• Focus on public transit—cities are more vibrant and accessible when there are efficient trains, buses, and bike shares available.
• Bring on variety. Mixed-use neighborhoods fared better than office-dense neighborhoods. Public parks, retail, gyms, restaurants, and apartments—these are the spaces that engage residents (unlike parking lots and office towers).
• Tech offers new use cases. There's still a lot of value in downtown office buildings—especially at the intersection of real estate and tech. Think data centers, intermodal facilities, even urban farms.