Tomorrow's global leaders have new issues to resolve

Real Estate Weekly, Nov 26, 2008 by Jason Turcotte

New York may still remain one of the world's most dominant financial and cultural markets, but according to the Urban Land Institute, cities in teh Far East are swiftly creeping up on New York and London, as globalization has given rise to places like Tokyo, Hong Kong, Shanghai, Dubai and Mumbai. The latest ULI report, released last week, also lists Paris in the mix of leading global markets.

But the report shows that other cities are beginning to hold more stock in the global economy, meaning worldwide success is contingent on the success of these rising metropolises--not just New York and London. "Cities of the 21st century are hubs of a new globalized society. They are physical nodes of the global economy, the environment, information systems, infrastructure and leisure and culture," said Richard Rosan, president of ULI Worldwide. "As a result, the success of these cities is of vital importance not only to city residents, but to whole nations and the global society."

The report, compiled by ULI senior fellow Greg Clark, analyzed 30 factors--ranging from investment opportunity, to climate change mitigation--in determining its global rankings. From there, the data suggests which cities will perform best and what top markets must do to sustain their high standings. ULI also classifies the 30 factors into four key themes:

Global economic reach, with London, New York, Paris, Tokyo and Chicago topping the category; quality of life, with Copenhagen, Vancouver, Vienna and Zurich leading the way; image/attractiveness, led by Paris, London, Sydney, Vancouver, Venice and Vienna; and investment/fiscal, with New York, Paris and London setting the tone.

William Kistler, president of ULI Europe, explained that some factors are more influential than others. While connectivity, quality of life, labor force skills, and business transparency and innovation spur short-term success for many markets, other measures must be mastered in order to prove a long-term world leader.

"To achieve lasting success, other measures must be considered, such as openness to international populations, adaptability of the city's brand, the city's role in fostering international trade, power and influence of the language, investment in the city from all sources, and sustainability in terms of climate and environmental sensitivity," Kistler said.

According to ULI, New York's rise to prominence can be attributed to its 20th century growth and its strong ties to global markets.

New York and London have enjoyed such longstanding success because of its labor skills, connectivity, capital markets, Anglo American legal system, the English language, receptiveness to international populations and cultural influence. But emerging global cities like Hong Kong, Shanghai, Dubai, Mumbai and Sao Paolo have dramatically improved in such capacities, and are poised to provide stiff competition for London and New York in the future. But, for now, New York remains a top dog.

Rounding out ULI's top 30 ranking cities are: London, New York, Paris, Tokyo, Los Angeles, Vancouver, Vienna, Seattle, Copenhagen, Singapore, Chicago, Frankfurt, San Jose, Zurich, Munich, Moscow, Hong Kong, Atlanta, San Francisco, Shanghai, Sydney, Toronto, Venice, Barcelona, Berlin, Boston, Calgary, Istanbul, Melbourne and Rome.

But beyond the traditional economic and cultural factors, those cities that rise to top form in the future also must grapple with a variety of emerging concerns, says ULI, concerns which include, globalization, science, terrorism, overpopulation, technology and climate change.