Intertwined with asset- and regulation-specific forms of obsolescence is the broader shift from spaces to places and the increasing need to create cohesive, amenitized and balanced destinations that encourage residents, workers and visitors alike to utilize and enjoy. Over the course of the post-pandemic recovery, the gap between “origin” submarkets such as traditional CBDs and business-heavy districts and off-core, less business-centric “destination” submarkets has only widened. Mixed-use environments including Shibuya in Tokyo, 22@ in Barcelona and Fulton Market in Chicago continue to reshape the spatial trajectory of investment and interest from residents, visitors and businesses alike.

Public authorities making conscious efforts to focus on both high-level regeneration and small-scale reparative approaches are already beginning to prove advantageous. In the City of London, intense demand for prime office space is being met through strong development activity that not only consolidates commuter footfall but also places great weight on user experience. Streetscape improvements to reduce car traffic, activating office lobbies with arts and cultural spaces, and experiential spaces such as observation decks in new developments all help to create a stimulating environment even outside of working hours. 

On the other hand, sustained conversion of mid-century office product to residential and hotel use in New York’s Lower Manhattan neighborhood is adding thousands of new apartment units to a traditionally 9-to-5 neighborhood that has long struggled to attract visitors and retailers for recreational purposes, all while helping to keep market fundamentals in check. Master-planned new development is reflecting this movement as well, such as the regeneration of a former post office site in Tokyo’s Azabudai Hills precinct which is further diversifying the real estate balance and offering for the wider Toranomon submarket.

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