A shift to hybrid working, fluctuating visitor numbers, aging real estate and competition from emerging submarkets continue to weigh on the short-term outlook for many Central Business Districts (CBDs).
- Despite short-term challenges, CBDs are in a strong position to capitalize on their strengths moving away from overreliance on offices to become multi-purpose destinations attracting residents, visitors, businesses, and investment
- Partnerships between the public and the private sector will be critical to the success of CBD transformation, maximizing growth opportunities and creating dynamic city cores that work for all
Central Business Districts will have to reinvent themselves to remain competitive
Across the world’s largest cities, Central Business Districts dominated by commercial real estate and heavily reliant on office workers and business travelers were hit particularly hard during the pandemic.
Three years on, cities are at an inflection point. Structural changes to how people live and work and the urgent need to address broader urban issues mean that significant change is about to take place.
CBDs need to reinvent themselves to remain attractive and competitive in an environment of subdued demand for office space, fluctuating commuting and travel patterns and growing competition from emerging submarkets which offer access to a wide range of amenities, quality office space and rapidly growing populations.
Read full report here
