Greater Boston’s growing tech economy is acting as a catalyst for commercial real estate investment, with the region topping Silicon Valley and 11 other global markets categorized as “innovators” in a new JLL report.
The report groups Greater Boston with such U.S. markets as Austin, Denver, San Diego and Seattle, which all have high real estate investment levels relative to their economic size. Boston is the top destination for real estate investment among the group, JLL said in its 2018 “Universe of City Indices” report, with over $33 billion in commercial real estate deals topping $5 million from 2015-2017. The data excludes land, residential and development transactions.
Boston and other U.S. “innovators,” along with overseas competitors such as Berlin and Stockholm, have world-class science and tech sectors that attract high levels of foreign investment, the report said. But they tend to lag in creating a “diverse cosmopolitan culture” and have housing and infrastructure challenges.
Coastal cities also face rising risks from climate change, pointing to the increased focus on resiliency strategies.
London, New York, Paris, Hong Kong, Tokyo, Singapore and Seoul are classified as the “Big Seven” global cities, which attract nearly a quarter of all global commercial real estate investment. Another 10 cities including San Francisco, Los Angeles, Chicago and Washington, D.C. are classified as “contenders” because of their high real estate growth rates.