JLL Examines Real Estate Development’s Impact on Growing Cities in New United Nations Publication

As city leaders around the globe strive to foster sustainable urban development, UN-Habitat invoked the assistance of various industry experts to compile “Finance for City Leaders,” a comprehensive analysis that outlines strategies for managing unprecedented demographic, environmental, economic, social and spatial challenges.

Through bringing large numbers of people into close proximity, cities can spark economic growth, foster innovation and generate prosperity. They also face pressing challenges of creating a livable environment for residents, enabling economic activity that benefits all citizens and encouraging urban development that is environmentally sustainable, equitable and resilient to disruptive forces. Particularly urgent is the need to finance this development.

“By 2050, close to 70 percent of the world’s population is projected to live in cities,” said Doug Carr, Vice President, Public Institutions, JLL. “Not surprisingly, that poses quite a challenge with spiralling demand for space juxtaposed against a limited supply. As we point out in the book, employing a coordinated and disciplined approach to urban planning across public and private sectors offers a number of important benefits and advantages to cities facing the challenges posed by this rapid urbanization.”

Published by UN-Habitat, a UN program working toward a better urban future, “Finance for City Leaders” presents innovative solutions for improving municipal finance, showcasing best practices for improving and sustaining municipal finance, and disseminating lessons learned. The handbook is intended for municipal authorities, technical staff of municipalities and urban development practitioners.

Carr, along with co-authors Greg Clark, Chair of JLL Cities Research Center, and Tim Moonen, Director of Intelligence at The Business of Cities, presented insights in a chapter titled, “The Role of Real Estate Development in Urbanizing Cities.” In addition to outlining the function of real estate development in growing cities, the chapter explores:

• Global phenomena impacting urbanization and real estate.
• The emerging role of city growth planning, including analytical frameworks for intelligent planning and coordinated land use planning.
• How cities can capture and leverage increases in land and property values using public private partnerships.
• Intelligent planning through highest and best use analysis and master planning.
• How public authorities can attract private capital and co-investment.
• Strategic imperatives for ‘Established,’ ‘Emerging’ and ‘New World’ cities and how real estate can make them competitive within their category.

According to the handbook, the rate of building construction today is faster than ever. Demand for private capital investment is increasing for real estate and surrounding infrastructure in emerging cities. In more established cities, where the pace of change is usually slower, shifts in technology, demography and sustainability imperatives are also driving real estate change.

About JLL Public Institutions
JLL is the premier provider of strategic real estate advisory for local, state, national and federal governments as well as public and higher education institutions. Its national team covers the entire real estate lifecycle from strategy, public private partnerships, facilities management and sustainability services to transaction and project management. JLL brings both the experience and expertise to convert real estate portfolios into working assets that meet operational and occupancy requirements while generating revenues and reducing costs.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. JLL is a Fortune 500 company with, as of December 31, 2015, revenue of $6.0 billion and fee revenue of $5.2 billion, more than 280 corporate offices, operations in over 80 countries and a global workforce of more than 60,000. On behalf of its clients, the company provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. As of September 30, 2016, its investment management business, LaSalle Investment Management, has $59.7 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.