Innovation is playing out across a more diverse global map than ever before, but a critical shortage of premium, investment-grade real estate is creating a new competitive frontier where quality of place — not just the city — is paramount, according to a new report from JLL. The fourth edition of JLL’s Innovation Geographies report reveals the severity of this supply-and-demand imbalance.
The analysis finds only 11 percent of global office space was built after 2020, leaving a limited pool of the modern, high-quality buildings that are typically sought after by innovative companies. That number falls to 9 percent in the San Francisco Bay Area and other major global innovation hubs such as Beijing, Boston, New York City and Seoul. Acute shortages in Paris and London have led new-build central business district vacancy rates to fall to 0.9 percent and 1.2 percent, respectively.
