Moving to Urbanism TOD and Urban Real Estate Conference May 3, - PowerPoint PPT Presentation

Corporations Moving to Urbanism TOD and Urban Real Estate Conference May 3, 2016 Adam Ducker, Managing Director

THE LAST ONES TO GET IT. . . CORPORATE AMERICA MOVES DOWNTOWN • To attract and retain the best talent • To build brand identity and company culture • To support creative collaboration • To be closer to customers/ partners • To centralize operations • To support triple bottom line business outcomes TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 2

GE GOES TO BEANTOWN Construction in Boston’s Seaport Neighborhood Old HQ; Fairfield, CT We want to be at the center of an ecosystem that shares our aspirations,” CEO Jeffrey Immelt TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 3

AND EVEN DETROIT. . . Hello Downtown Old HQ; Fairfield, CT “. . . But we found we weren’t getting the kind of young, tech- savvy people we wanted to hire. They just didn’t want to work in that type of setting. To be able to compete, we needed to be where they wanted to be .” -- CEO Matt Cullen TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 4

WHAT THE WORKERS GET? (ANALYSIS OF 500 COMPANIES THAT MADE SUBURBAN TO URBAN MOVES) TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 5

TRANSIT REVOLUTION IS REAL, BUT MILLENNIALS REALLY ARE DRIVING IT. . TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 6

REALLY A STRUCTURAL CHANGE. . . NOT JUST ABOUT LIFESTAGE TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 7

AND WHY DOES TOD WORK SO WELL? MODE SHARE AND LIFESTYLE OPTIONALITY! TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 8

MORE ABOUT LIFESTYLE THAN ABOUT CONVENIENCE (OR COST!) TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 9

AND SO THE MILLENNIALS IN PARTICULAR (ALTHOUGH NOT EXCLUSIVELY) ARE GOING TOD TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 10

WHY DO THE CORPORATIONS CARE? BECAUSE IT’S THE EDUCATED WORKERS MOST OF ALL TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 11

TODAY’S ELITE EMPLOYEES – MORE BALANCED OBJECTIVES REGARDING INCOME AND MEANING TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 12

SO HOW PERVASIVE IS IT, MEANINGFUL, BUT NOT A SEA CHANGE YOU MIGHT SAY. . . Age 22-34 Household Residential Locations 40% 60% 38% Distribution of Households by Density Quartile 55.8% 55.7% 55.5% 55.5% 55.3% 36% 55.2% 55% Average Urban Propensity Score 53.5% 34% 52.9% 52.8% 52.6% 32% 30% 50% 28% 26% 45% 24% 22% 20% 40% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1st Densest Quartile (L) 2nd Densest Quartile (L) 3rd Densest Quartile (L) 4th Densest Quartile (L) Avg. Density Percentile (R) TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 13

EXCEPT AMONG THE BEST EDUCATED, HIGHEST EARNERS. . . MOST VALUED EMPLOYEES Age 22-34 Household Residential Locations by Adjusted Income Level 65% 60% Average Urban Propensity Score 57.0% 56.8% 56.1% 56.5% 54.8% 55% 53.6% 52.8% 51.0% 50% 50.0% 45% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Below $50,000 $50,000 - $100,000 $100,000+ TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 14

“AGGLOMERATION EXTERNALITY” “Sprawl probably reduces productivity. When people cluster more tightly together, they become more productive -- this is known in economics as an agglomeration externality ” --Bloomberg TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 15

DENSITY DRIVES PRODUCTIVITY! TOD AND URBN REAL ESTATE CONFERENCE | MAY 3, 2016 16

Adam Ducker Managing Director Phone: (240) 644-0980 aducker@rclco.com RCLCO 7200 Wisconsin Avenue 11 th Floor Bethesda, MD 20814 Phone: (240) 644-1300 Fax: (240) 644-1311 www.rclco.com