Forces of globalization, urbanization and technology are transforming the definition of a successful city and reshaping the global urban hierarchy in the process. Success can no longer be measured simply by considering a city's size and history. Today it is more likely to revolve around innovation, liveability and the ability to transform and adapt to constantly changing socio-economic forces.
The JLL City Momentum Index (CMI) tracks the rate of change in urban economies and commercial real estate markets to identify cities with the most dynamic economies. Covering 120 established and emerging cities around the world the CMI measures short-term socio-economic and commercial real estate momentum along with related measures of 'future-proofing': whether a city has the educational, innovative and environmental resources to maintain long-term sustainable momentum.
Many of the 'Top 20' cities in the 2016 CMI – London, San Francisco and Sydney for example– are home to vibrant mixed-used districts which create and amplify opportunities to conceive and commercialize new ideas. This reinforces the idea that city momentum involves much more than economic growth. It also requires building an innovation-oriented economy through technology. It means creating cutting-edge new businesses. And it involves attracting talent and nurturing a diverse and inclusive workforce.
There is growing recognition that real estate can have a key role in accelerating city momentum by providing the infrastructure and environment for creativity, productivity, innovation and entrepreneurship.
As a result, the role of commercial real estate is changing from housing businesses to envisioning and developing built environments that attract companies and talented people.
To build momentum – or even to maintain their current competitive position – cities need to commit to bold moves. Such activities will be required to meet the demands of growing urban populations, respond to increasing strains on resources and support the shift to new and different types of economic activity.
As we track the world's top 500 significant urban transformation projects, it is neither a surprise nor a coincidence that several of the most visionary and innovative programs are found in CMI Top 20 cities.
As the traditional concept of a global city hierarchy continues to shift, a new model of city clusters is emerging. It supports the idea that successful, innovation-focused cities come in different shapes and sizes.
"Established World Cities" –London, New York and Tokyo, for example – remain dominant commercially, but face new competition. They continue to gain momentum, often by executing bold urban projects.