Real Estate Investors Target Innovation Economies
According to a recent study by JLL, real estate investors are putting their money into cities with strong technological economies: GeekWire reports that the study “finds a correlation between the real estate investment dollars spent in a community and the strength of its innovation economy.”
A staggering 37 percent of annual real estate investments from the past decade were funneled through just nine cities around the world: Boston, London, New York, Paris, San Francisco, Seattle, San Jose, Sydney, and Tokyo.” What’s more, is that each of these cities ranked among the top twenty on JLL’s list of the world’s most innovative cities. Seattle came in at fifteenth on the list, which was comprised using venture capital activity, foreign investment, research and development spending, patents, demographics, educational institutions, and employment rates.
As Carol Hodgson, research director of JLL, said in a statement, “Targeting innovative cities has now become an explicit part of investment strategies. Our research also shows that innovation-centric cities appear to be more resilient to economic shocks,” citing research indicating that these cities saw lesser falls in real estate values and faster economic bounce-backs.
Read more about the world’s most innovative cities here.