How battle for innovation is driving cities to re-imagine boundaries

Cities are competing to regain their vibrancy; the ones which make true mixed-use work for them will win. 
Written By:
Liam Bailey, Knight Frank
3 minutes to read
Categories: World Regions UK

The main character in most of Charles Dickens’ books is London. For the great chronicler of the world’s first global city the vitality, crime and poverty of what was then the largest city in the world, drew him in and became his obsession.  

What made London interesting was the dense mix of activities. Residential and commercial areas were one and the same, with housing, small-scale manufacturing, shops and offices creating a street life full of variety and energy. The downside to this organic and chaotic mix was endemic poverty, disease and pollution. 

"The ‘war for talent’ has been a critical driver, with cities competing ever harder to nurture the right ecosystem to attract the best workers."

The response in London, and throughout the developed world, has been almost a century of planning rules with one overriding objective – zoning: the separation of the city’s activities into more controllable spaces.

The problem is that zoned cities are generally dull. So, for several decades, cities have been trying to untangle the restrictions they put in place. The desire to make cities more interesting places has coincided with a number of related trends which are propelling true mixed-use to the forefront of development activity. 

The ‘war for talent’ has been a critical driver, with cities competing ever harder to nurture the right ecosystem to attract the best workers. While not every city has an environment that immediately appeals to this group – somewhere in-between San Francisco, New York and east London - a number are finding that they can create it.

Miami’s focus on high-end residential development provided a catalyst for innovation in retail and design industries. Dubai’s skill at urban repositioning focused initially on tourism following the financial crisis, but is now widening into the creative sectors. 

The challenge for city authorities is balancing their top-down approach to regeneration without undermining the authenticity that talented workers appear to demand from their working and living environments. Put simply - how do you create creativity? 

" One of the biggest growth areas we see is health and fitness, an industry which has moved far beyond the obvious gym and swimming pool offer."

In some cases it is a simple process – the happy confluence of cheap space and accessibility were the drivers behind the transformation of Shoreditch in London and Brooklyn in New York. In other locations, the top-down approach is a valid route forward. 

As The Wealth Report confirms, education is a key driver underpinning residential demand. Over 25% of all ultrahigh net worth individuals considering changing their country of residence in 2016 name this as the key push factor.

Universities in particular have a real ability to encourage commercial development, especially supporting research and development requirements - attracting high skill employment. 

Layering other uses into the urban mix is a key focus for cities to maximise their attractions to current and future residents and commercial occupiers. One of the biggest growth areas we see is health and fitness, an industry which has moved far beyond the obvious gym and swimming pool offer, with the intelligent use of the city as the enabler of fitness – most visibly through the encouragement of cycling. 

At lunchtime in Shoreditch one can see suited City lawyers, who have walked up from their smart offices around Moorgate, buying lunch in street markets, rubbing elbows with techies from the start-ups.

This highlights a desire for local diversity, individuality and a more human scale within development – the move towards a more engaging and mixed urban environment is clear. Dickens would approve.