the real estate innovation lab - hoytgroup.org
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THE REAL ESTATE INNOVATION LAB RESEARCH ON INNOVATION IN THE BUILT ENVIRONMENT
INNOVATION IS IN A PLACE
-DENNIS FRENCHMAN
THE MISSIONA RESEARCH AGENDA FOR INNOVATION IN THE BUILT ENVIRONMENT
THE LAB• REALESTATEANDINNOVATIONARENOTTWOWORDSCOMMONLYUSEDINTHESAMESENTENCE.• OUROBJECTIVEISTOTRANSFORMINVESTMENTUNCERTAINTYAROUNDINNOVATIONINTORISKANDRETURNFORINSTITUTIONALINVESTORSYET
• THEREARECOMPETITIVEFORCESDRIVINGMARKETACTORSINTHEBUILTENVIRONMENTTODIFFERENTIATE–TOINNOVATE.
• THEREALESTATEINNOVATIONLABISTHEFIRSTR&DSPOTFORINNOVATIONINTHEBUILTENVIRONMENT.THEREALESTATESECTORISONTHEFRONTIERFORMEASURINGTHEINCENTIVESTOINNOVATE.
• ASWELLASHAVINGAGROWINGANDURBANIZINGBUILTENVIRONMENTWITHKEENLYCOMPETITIVEINVESTORSTHATAREONTHEONEHANDDEVELOPINGINNOVATIVEREALESTATEPRODUCTSANDONTHEOTHERHANDEAGERTOIDENTIFYPERFORMANCEOFINNOVATIONINTHEREALESTATEMARKETPLACETHROUGHINNOVATIVEDATAPRODUCTS.
INNOVATION IN THE BUILT ENVIRONMENT• INNOVATIONINTHEBUILTENVIRONMENTISABOUTIDENTIFYINGTHEPRODUCTS,PROCESSESANDORGANIZATIONAL(DATA)INNOVATIONSTHATARETRANSFORMINGCOMMERCIALREALESTATE
• CREATINGAMEANINGFULLEXICONOFINNOVATIONFORTHEREALESTATEMARKET• EMPIRICALLYIDENTIFYINGINCENTIVES–PROFITS(LOSSES)–FORINSTITUTIONALINVESTORS.
REMOVING INNOVATION UNCERTAINTY• THEREISREALUNCERTAINTYINADOPTINGINNOVATIVEPRODUCTS,PROCESSESANDDATA• THEREISALACKOFUNDERSTANDINGININNOVATIVEBUILDINGDESIGN,PLANNINGANDIMPORTANTLYFINANCIALINCENTIVES–COSTSANDREVENUES-FROMINNOVATION.
CREATING AN ANCHOR FOR INNOVATION • UNDERSTANDINGOFINNOVATIONINTHEBUILTENVIRONMENT• LIFECYCLEANDIMPACTOFNEWBUILDINGPRODUCTSANDPROCESSESONMARKETPERFORMANCE• HOWITCONTRIBUTESTOTHEGROWTHOFCITIESANDEXPANDINGTHEPRODUCTPORTFOLIOOFINSTITUTIONALINVESTORS
LAB PEOPLEPRINCIPAL INVESTIGATORS
DR. ANDREA CHEGUTDirector Real Estate Innovation LabResearch Scientist
Andrea Chegut is a Postdoctoral Research Associate at the MIT Center for Real Estate. Andrea’s research agenda focuses on the economic outcomes of innovation in the built environment. Her work specializes in innovative real estate products in commercial real estate and thier impacts on investment perofrmance and economic growth. From green buildings and data centers to urban food farms and micro-apartments, she looks at the asset pricing, uptake and diffusion of new products in commercial real estate markets.
EducationPhD Finance, Maastricht UniversityM.S. Economics & Law, Utrecht University
PROF. DENNIS FRENCHMANLeventhal Professor of Urban Design and Planning
Professor Dennis Frenchman is the Leventhal Professor of Urban Design and Planningwww at MIT, where he is former director of City Design and Development and chair of the Masters in City Planning program. He has taught and practiced extensively in Asia, Europe, and South America and served as External Advisor on urban livability to the President of the World Bank. A registered architect, he is also founding principal of ICON architecture in Boston an international architecture and urban design firm.
EducationMArchAS and MCP, MITBArch, University of Cincinnati
PROF. DAVID GELTNERProfessor of Real Estate Finance
Professor David Geltner is the Professor of Real Estate Finance in the Department of Urban Studies & Planning with a joint appointment in Engineering Systems in MIT’s School of Engineering.Geltner served as Academic Director of the MIT Center for Real Estate during 2003-08 and is the faculty chair of MIT’s Master of Science in Real Estate Development (MSRED) program. He is the lead author of the most widely-cited real estate investments textbook, “Commercial Real Estate Analysis & Investments”, now in its third edition.
EducationPhD Civil Engineering, MITM.S. Urban Studies, Carnegie-Mellon and University of Michigan
STEVE WEIKAL
Director Real Estate Technology HubHead of Industry Relations
Steve Weikal is Head of Industry Relations at the MIT Center for Real Estate. He manages relationships between the Center, its global network of industry partners and over 1000 alumni of MIT’s Master’s in Real Estate Development (MSRED). His research focuses on innovative new technology and business models that disrupt the traditional ways of developing, transacting and managing real estate. He is the Founder of Real Disruption - a series of conferences discussing the impact of emerging technology on the real estate industry.
EducationMSRED and MCP, MITJD, Suffolk University Law SchoolLEED, AP
INNOVATION THINKERSRESEARCH TEAM
ANNIE RYAN
Master’s of City Planning student at MIT emphasizing in City Design and Develop-ment. Her research focus includes accelerator program research, designing for creati-ve industries and integrating complete streets into existing suburban streetscapes. Prior to MIT she worked as an ur-ban designer at PlaceWorks, an urban planning firm in the San Francisco Bay Area, whe-re she designed place-making strategies with public sector clients throughout California. Contact: [email protected]
ISABEL TAUSENDSCHON
Visiting PhD Candidate at the MIT Center for Real Estate. Her research focuses on the impact of innovation districts, incuba-tors and accelerator real estate space activities on small and medium enterprise firm perfor-mance. Isabel holds a Bachelor’s degree in Business Adminis-tration and a Master’s degree in Finance from Maastricht University. Isabel is currently a PhD Candidate in Finance.
CHARLES STEELMAN
Masters in Real Estate De-velopment student at MIT’s Center for Real Estate. Prior to MIT, he spent five years as a commercial real estate advisor with Studley in Washington, DC. In that position, Charles represented firms in over three million square feet of lease and purchase/sale transactions. At MIT, Charles focuses on the financial, legal, design and technology aspects of the real estate industry. His thesis rese-arch involves creating a model for understanding innovation in real estate products.
EMILY ROYALL
Master’s of City Planning student at MIT emphasizing in City Design and Development. She received a B.S. in Neuro-science and a B.A. in Plan II from the University of Texas at Austin. In her transition to city planning, Emily is interested in transforming and re-imagining our relationships to cities in the age of Information. In her graduate work at MIT, Emily has studied digitally mediated urban development, and its impact on human behavior and urban culture. She hopes to carry forward her knowledge and experience to promoting healthy, inclusive cities in the 21st century.
DANIEL FINK
Daniel is a SMArchS Candi-date at the MIT’s School of Architecture and Planning. His research is focused on advan-ced computational methods to bridge the domains of urban design, planning, and real esta-te. Daniel was the Founder and Director of Urban Agency a computational urban design & research consultancy, and also a founding member & Project Architect at Grimshaw Archi-tects’ Sydney studio. Daniel is a Teaching Assistant at MIT, a tutor at a variety of Australian universities, exhibited & publis-hed with University of Techno-logy Sydney, shortlisted for the 2014 Australian Pavilion at the Venice Architecture Biennale.
• ANDREACHEGUT• DAVIDGELTNER• DANIELFINK
RESEARCH PLATFORM SNAPSHOT
THE PATH OF INNOVATION FOR DATA, PRODUCTS AND PROCESSES
THE CRE TECH DATABASE
INNOVATIONCITIES
PLACES&
PEOPLE
INNOVATIVEPRODUCTS
SPACES&
TECHNOLOGY
THE IDEAL
DEVELOPER PARTNER
REAL ESTATETECHNOLOGY
HUB
• NYMARKETDATAANALYSIS
• DATAAGGREGATION
• MASSINGDATAFROMTRADITIONALANDNEWPROVIDERS
• MAPPING21STCENTURYAGGLOMERATION
• COMPREHENSIVEACCELERATORDATABASE
• LINKINGFIRMPERFORMANCETOPLACE
• LINKINGINNOVATIONTOTHECREPRODUCTLIFECYCLE
• THECREREALESTATEPRODUCTHYPECYCLE
• PRODUCT,PROCESS&ORGANIZTIONALINNOVATIONSINCRE
• CRETECHCOMMUNITY
• DATASCOUTINGANDEXPOSURE
• NETWORK&ENGAGEMENT
• KNOWLEGESHARE
RESEARCH TEAM
RESEARCH TEAM
• THEIDEALDEVELOPERSURVEY
• HIDDENVALUEINREALESTATEDEVELOPMENT
• ABENCHMARKINDEVELOPMENT
RESEARCH TEAM
RESEARCH TEAM
RESEARCH TEAM
• ANDREACHEGUT• DAVIDGELTNER• CHARLESSTEELMAN• ALISONCROWLEY• EMILYROYALL
• ANDREACHEGUT• DAVIDGELTNER• DENNISFRENCHMAN• STEVEWEIKAL
• ANDREACHEGUT• STEVEWEIKAL
• ANDREACHEGUT• DAVIDGELTNER• DENNISFRENCHMAN• ISABELTAUSENDSHOEN• ANNIERYAN• STEVEWEIKAL
THE CRE TECH DATABASE
THE CRE TECH DATA BASE
AN R&D SPACE FOR INNOVATION IN THE BUILT ENVIRONMENT
1 DATA AGGREGATORS COME TOGETHER
PRICE DYNAMICS IN MOST VALUEABLE REAL ESTATE MARKET
THE FUTURE OF REAL ESTATE DATA2
3
RESEARCH TEAM:
DAVIDGELTNERANDREACHEGUT
FROM ANALOGUE TO DIGITAL
THE GROWTH IN DATA PLATFORMS
SOURCE: CBRE - CRE TECH YEAR END REPORT 2015S
NEW DATA LANDSCAPES ACROSS DIMENSIONS
A PLETHRA OF NEW PLATFORMS
$186 $218$446
$1,142
$1,714
$1,869
$2362011 2012 2013 2014 2015 2016 YTD
40
70
105
170
191206
$236
Dollars ($M) Deals Projected Deals
Source: CB insights
Urban Tech Financing History: Deals and Dollars2011 - 2016 YTD (2.16.16)
A GROWTH IN CAPITAL TO THE SECTOR
PRIVATE EQUITY CONTRIBUTIONS TO - REAL ESTATE TECH -
SOURCE: CB INSIGHTS, QTR 2 2015S
Digital Map Products
RealConnex
AnySizeDeals
CityFeet.comOfficespace.com
Compstak
IdealSpot
WeWork
Offices.netHiRise
PivotDesk
LiquidSpace
CoreLogic
TreppReal Capital Analytics
(RE)meter
REIS ReportsCrediFi
Actovia
Advanced REICoStar
Xceligent
PiinPoint
PropertyLineSiteCompli
AxiometricsProperty Shark
EDR BuildFax
First American Data Tree
ReonomyProspectNow
Crelow
StreetEasyFloored
EsriRedfin
Zillow
LoopNETCreate.io
CityZenith
SmarterBetterCities CubeCities
Matterport
AgorafySpotCRE
Catylist Spacelist
RealMassive42Floors
TheSquareFootDigsy
RofoBuzzTarget
CIMLStheBrokerList
Broker D
atabases
Dem
ogra
phic
s
M
ortgage/F
inanacial D
ata
Short-term / Coworking Space
Lease/Sales Transactions
Ownership Info
Geolocation/Visualization
List
ing/
Avai
labi
litie
s
Property Data
CHEGUT AND FINK, 2016
DATABASE CLUSTERING
UNLOCKING THE DATA GENERATING PROCESS
CRE TECH DATA BASE
AN R&D SPACE FOR URBAN DATA COLLECTION
• ONE MARKET THAT HAS THIS DATA OPPORTUNITY IS NEW YORK CITY (NY) AND ITS BOROUGHS. • THE PROPERTY MARKET IN THE NEW YORK CBSA IS ONE OF THE MOST COMPETITIVE GLOBALLY, WHICH OFFERS POTENTIAL INSIGHTS ON A LARGE COLLECTION OF INNOVATIVE PRODUCTS, PROCESSES AND DATE ENTERING THE NY PROPERTY MARKET OVER THE PAST 15 YEARS. • WE CAN COMBINE NEW AND EXISTING DATA SOURCES: REONOMY, COMPSTAK AND GEOTEL OFFER NEW DATA SOURCES AND NCREIF AND RCA ARE EXISTING DATA SETS WE CAN EXPAND UPON. • COMBINED, THIS DATASET OFFERS INSIGHTS ON CORE ASPECTS OF NY PROPERTY VALUE – AIR VALUATION, BUILDING COMPONENTS (CAP EX, OP EX) GROUND INFRASTRUCTURE – NOT TO MENTION CORE VA-LUATION METRICS FROM APPRAISALS, RENTS AND TRANSACTIONS.
•
USING NEW YORK CITY AS A DATA LABORATORY
CRE TECH DATA BASE
DATA MASSING FOR CRE DEVELOPMENT AND PERFORMANCEINFRASTRUCTURE
PLANNING
VALUATION
CHEGUT AND FINK, 2016 -- DATA PROVIDERS OMITTED
Zillow/Trulia
Create.io
Cre
diFi
RE Meter
Opportunity Space
NCREIF
Rea
l Cap
ital
Ana
lyti
cs
C
ompstak
ReonomyMortgage Details
Lender
Sale Date
Units
Floor Space Use
Lease Terms
Rent Rates
Investor GroupInvestor Type
Investment Volume
Investment Properties (#)Acquisitions
Dispositions
Holdings
Class
Market Value
NOICapEx
Acquisition Costs
Administrative ExpensesMarketing Expenses
Utilities
Maintenance
InsuranceManagement Fees
Property Taxes
Property Location
Assessed Value
Tenant EBITDA Margins
Tenant EBITDA Growth
Tenant Net Revenues GrowthTenant Gross Profit
Tenant Current Ratio
Tenant Debt/Equity
Tenant Net RevenuesTenant Asset Turnover
Tenant ROE %
Tenant ROA %
Loan AmountLoan Seasoning
Owner/Landlord Details
FAR
Lot coverage (setbacks, widths, areas)
Land Use
Regulations & ZoningTenant Name
Occupancy req's
Parking req'sOther Land Use Conditions
Nearest Transit OptionsWalkability
Zipcar Bike Share
Avg. Commute Time
Zipcode Cars/Household
Property Type
Size
Purchase DatePurchase Value ($)
Year BuiltBedrooms
BathroomsListing Period
PLAYING IN THE DATA SANDBOX
UNDERSTANDING DATA SYNERGIES AND NEEDS
-Air valuation
-Building components
Create data to identify building
components
-Ground infrastructure
-Ownership and tenancy
Identify ownership
-Operating and Capital
Expenditures
Link in changes to building
DECOMPOSING VALUE WITH DATA
New and old data sources allow for greater building descriptives
FINK, 2016
MAKING NEW INTER-DISCIPLINARY CONNECTIONS
LINKING DATA ACROSS ABSTRACT BARRIERS AND FIELDS
INNOVATIVE PRODUCTS
INNOVATIVE PRODUCTS, SPACES AND TECHNOLOGY
Linking Innovation to the Built Environment
1 IDENTIFYING INNOVATION IN THE BUILT ENVIRONMENT
OBSERVE INCENTIVES PROFITS (LOSSES)
A LANGUAGE OF INNOVATION FOR BUILDINGS 2
3
RESEARCH TEAM:
DAVIDGELTNERANDREACHEGUTCHARLESSTEELMAN
DRIVERS OF INNOVATIVE REAL ESTATE PRODUCTS
LINKING INNOVATION THEORY TO THE BUILT ENVIRONMENTThere is a nascent field within economics on innovation. Our work grounds innovation theory to the built environment. The path of innovation is important for understan-ding the adoption of new technologies and the system that has developed to bring new products and processes to the market efficiently. The stage of innovation – R&D, invention, innovation and diffusion – is an important consideration in understanding costs, human capital requirements, value changes and market incentives.
IDENTIFYING INNOVATIVE PRODUCTSCore to any analysis on product innovation is the identification of innovative/ non-traditional real estate products and their link to financial incentives. A primary con-tribution of this research line is the identification and search for innovative real estate products. We develop a framework for anchoring the ’products’ into an innovati-on typology and language within the context of real estate that links back to core economic expectations of supply and demand in the market place.
Identification is key to isolating the period and space for the innovation at the last two stages within the innovation system. Here the real estate market needs a name, understand the extent of innovation difference in the system, human capital requirements and where the innovation is in the market lifecycle. In addition, we isolate the value drivers of demand, supply, any value differences and sources of value changes and resources for profit protection like patents or the imitation gap.
THE PATH OF INNOVATION IN REAL ESTATELike other markets, commercial real estate also undergoes these stages of innovation across types of innovation. Commonly, innovation is associated with changes in processes. When applying process innovation to the built environment, one example is a process innovation in construction and recently the use of robotics. Figure 1 highlights examples of the process innovation path starting with basic research – R&D - in micro-bots that self create new structures through magnetic fields; prototypes – inventions - of 3D printing robots for onsite wall construction; innovative firms – innovation - that take to market brick laying robots or the recent scaling – commercial diffusion - of remote controlled robots in structural demolition. Each stage of the path has a role in decreasing or sharing costs, creating or identifying value and impor-tantly differentiation on where a process is in its arrival to the market place.
VALUE DRIVERS OF INNOVATIONThere are three pillars of innovation – process, organization and product – that generate technological progress. There is the development of new commercial real esta-te products that are either taking up new developments or giving new economic, physical or functional purpose to existing buildings. From green buildings meeting the market demand for energy efficient and sustainable structures to data centers, cell towers and fiber-lit buildings meeting the exponential digital demand of data bytes and to supertall skyscrapers serving the burgeoning market for mixed-use development and billionaire capital. Real estate product innovations are the main focus of this research line.
Importantly, there are considerations for the relative investment performance of the assets in the short- and long-run. Our research investigates the investment per-formance of innovative products as a group and singular innovations, if possible. In this way, we observe incentives for investing in innovative real estate products over time, potentially identify long-run dynamics of innovative products and help discern for the real estate sector how a niche becomes mainstream.
INNOVATION IN COMMERCIAL REAL ESTATE
THE DRIVERS OF INNOVATION RENTS
MEETING DEMAND• Identifying and developing/redeveloping the physical, functional and economic use of a site serves as an important driver for innovation in commercial real estate.
DEMAND MOMENTUM• Demand may not necessarily be linear in time and may possess jumps, which make it difficult (uncertain) for expan-ding building development.
SUPPLY CONSTRAINTS• Innovation thrives on scarcity. Innovators that can supply a scarce product, resource or commodity are rewarded with monopoly rents.
EFFORT COSTS FOR PRODUCT AND PROCESS INNOVATIONS • Innovation requires effort: research, planning and development. Effort is not cost- less. Thus, a fundamental change in the process of construction or the redefinition of the construction process to serve a new type of need is likely to be costly.
SHORT VS. LONG RUN DYNAMICS• Competition to develop useful structures that can also meet demand will likely ensue over time. However, in the short run, supply constraints from suitable real estate and construction periods can protect innovation value in the short run.
THROUGH WHAT MEANS...
Product
Organiza/on
Process
Transforming Real Estate, Districts
& Ci/es
New product types for the marketplace Serves a new or latent demand in the market
New processes in construc/on
Serves the market on
producing physical capital
New organiza/onal systems for monitoring, measuring and
implemen/ng innova/on
Supports innova/on
BASIC RESEARCH
Fundamental knowledge
De (Re) – construction
Government agencies & universiti-
es, laboratories
HC: Scientists
PROTOTYPES
Applied research
Discovery of practical application
Patents, copyrights, trademarks, trade-secrets
HC: Engineers
TAKING TO MARKET
Business Development
Taking products, process & or-ganizational technical change to commercial use
Cost is financed by market
HC: Entrepreneurs
SCALING
Uptake and Refinement
Market scale through imitation
Costs decrease standards
HC: Market Actors
INVENTION INNOVATION DIFFUSION
INNOVATIVE PRODUCTS, SPACES, AND TECHNOLGY
Adopting innovation at the right stage ...
R&D
REAL ESTATE PRODUCT INNOVATION CYCLESPRODUCT LIFE CYCLE + LAND VALUE
REAL ESTATE PRODUCT INNOVATION CYCLESINNOVATIVE PRODUCTS + HYPE CYCLE
INNOVATIVE PRODUCTS SPACES AND TECHNOLGY
A suite of innovative products (26 new innovative products)
Identification Innovation name LEED, Energy Star, BREEAM… Micro-dwellings, Micro-units, Lilliput
properties, aPodimentsData Centers, Co-location Facilties, Server
Farms, The CloudInnovation Typology Product (Systems) Product (Architectural) Product (Architectural)
Human Capital
Human capital needed for development: knowledge of design, engineering advancement, material changes and construction efficiency
Design, Pre-fabrication, Offsite Engineering, Logistics, Modular Construction, Creative Public-Private Partnerships, Land Acquisition, Building Codes
Telecommunications, Network Engineering, Electrical Engineering, Power Generation, Building Codes
Innovation System Commercial diffusion Innovation Commercial diffusion
Lifecycle of each stage:
Multiple stages – green buildings started in the 1970s during the ‘ 1973 Oil Crisis’ from the OAPEC oil embargo – govtsencouraged conservation and reduction in energy demand
R&D, Invention, Innovation; R&D and Intellectual Property protection are happening rapidly.
Multiple stages – 1970s data centers started with the creation of the internet at universities - 1990s development of the commercial backbone of the internet -2000s monopoly busting broke up the Bell network to create more building competition
Value DriversDemand Institutional investors, government
tenants, Institutional investors, government tenants,
Telecom, governments, corporates, stock markets, the cloud
Supply 13.5% of CRE stock in top 30 marketsLittle over a 1,000 units today, but extensive regulatory push is driving growth in residentially supply constrained cities
5,900 at least commercial buildings
Value Precedents 16.5% Trades, 7.9% Effective Rents Small samples: 66% more in rents 23.6% more than the commercial real estate stock
Price/Market Size Effect Price Effect: Low Supply - High Demand Price Effect: Low Supply - High Demand Price Effect: Low Supply - High DemandCost change 0 to 3% more 0 to 10% more 0 to 15% more
Profit ProtectionImitation gap - Spread between architects, engineers and developers learning the product
Imitation gap - Spread between architects, engineers and developers learning the product
Imitation gap - Spread between architects, engineers and developers learning the product
Underwriting distinctionsGreen leasing, incentives tied to energyefficiency, water efficiency and waste reduction
Product underwriting is not dissimilar from traditional products
Leases and purchasing made on the basis of kWh, supply is impacted by Moore’s law, demand is from digital bytes and not h t
Green buildings Micro-dwellings Data centers
INNOVATION
SPACES
PEOPLE
CITIES
&
RESEARCH TEAM:
ANDREA CHEGUTDENNIS FRENCHMANDAVID GELTNERISABEL TAUSENDSHOENANNIE RYANSTEVE WEIKEL
INNOVATION PLACES, SPACES & PEOPLE
Linking economic growth to a place
1
2
3
THE FIRST COMPREHENSIVE ACCELERATOR DATABASE
INNOVATION DEMAND
MAPPING 21ST CENTURY AGGLOMERATION
THE EVOLUTION OF URBAN FORM
BUILDINGS AND URBAN FORM SHIFT FOR ECONOMIC GROWTH
FACTORIESOFFICE
BUILDINGSINCUBATORS ACCELERATORS
CO-WORKING
INDUSTRIAL CLUSTERS
CHARACTERIZED BY A HIGH CONCENTRATION OF MANUFACTURING
ENTERPRISES THAT WERE ENGAGED IN SIMILAR OR COMPLIMENTARY WORK (MULLER AND GROVES,
1979)
SCIENCE &TECHNOLOGY
PARKS
SUBURBAN AND ISOLATED LAB AND FIRM CLUSTERS THAT ARE DEVELOPED TO
COMMERCIALIZE RESEARCH AND ATTRACT SCIENTISTS
FROM INDUSTRY AND ACA-DEMIA (DAHLSTRAND &
SMITH, 2009)
NEW
CENTURYCITIES
DEVELOP HUMAN AND SOCIAL CAPITAL IN A WAY
THAT WILL MAKE BUSINESS SECTORS SUCCESSFUL
(JAROFF, FRENCHMAN & ROJAS, 2009; FLORIDA,
2014; HUTTON, 2004; BUG-LIARELLO, 2004)
INNOVATION
DISTRICTS
MIXED-USE TRENDS ALTE-RING THE LOCATION PRE-
FERENCES OF PEOPLE AND FIRMS. RE-CONCEIVING THE LINK BETWEEN ECONOMY SHAPING, PLACE MAKING AND NETWORKING (KATZ AND BRADLEY, 2013; KATZ
AND WAGNER, 2014)
2005-PRESENT1980 - PRESENT1930 - PRESENT1870 - PRESENTTIME
WORKER DEMAND
BUILDING PRODUCT
URBAN SCALE
REAL ESTATE PRODUCT INNOVATION CYCLESINNOVATIVE PRODUCTS + HYPE CYCLE
ACCELERATORS
CO-WORKINGINCUBATORS
SOURCE: REAL ESTATE INNOVATION LAB, MIT CRE, CHEGUT, GELTNER & GELTNER, 2016
ACCELERATORS
PERISH, PIVOT OR GROWDEFINITION - AN ORGANIZATION PRO-VIDING ENTREPRENEURSHIP EDUCATION FOR A LIMITED TIME TO A COHORT OF SE-LECTED NEW VENTURES WHO BEGIN AND GRADUATE TOGETHER. ACCELERATORS ARE INTERESTED IN ACHIEVING THE SAME OVERALL GOAL OF HELPING TO IMPROVE THE ODDS OF SUCCESS FOR STARTUPS.
FIRMS & CLASSES EQUITY & CAPITAL
TENURE
510 396 426US BASED
ACCELERATORSUS CITIES FIRMS GRADUATE
PER YEAR
AVGMINMAX
MONTHS IN RESIDENCE
5.67 %MEAN EQUITY STAKE TAKEN
4 MONTHS
2 WEEKS
48 MONTHS
$62,103MEAN CAPITAL
GIVEN
THEMATIC FOCUS
11 2FIRMS
PER CLASSCLASSES
PER YEAR
0 % 10 %MIN MAX
$2.5K $120KMIN MAX
4 20MIN MAX
1 15MIN MAX
411 GENERAL
TECHNOLOGY
9 EDUCATION
11 HEALTH
SOURCE: REAL ESTATE INNOVATION LAB, MIT CRE, CHEGUT, FRENCHMAN, RYAN, TAUSENDSHOEN, 2016
ACCELERATING FIRM GROWTH & PERFORMANCE
THE RISE OF ACCELERATORS
SOURCE: REAL ESTATE INNOVATION LAB, MIT CRE, CHEGUT, FRENCHMAN, RYAN, TAUSENDSHOEN, 2016
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BostonDetroitBuffalo
Seattle
Montreal
CambridgeRochester
St. Louis
Santa Monica
Philadelphia
San FranciscoFremont
Syracuse
New YorkBrooklyn
Sunnyvale
San Diego
Esri, HERE, DeLorme, MapmyIndia, © OpenStreetMap contributors, and the GIS user community
Innovation DistrictsG Existing/Developing
G Planned
CoWorking Spaces! 1 - 2! 3 - 9
! 10+
Accelerators and Incubators! 1 - 2
! 3 - 9
! 10+
Patent Licenses500 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 +
US - INVENTION AND INNOVATION
Identifying clusters of innovation, people and places
SOURCE: REAL ESTATE INNOVATION LAB, MIT CRE, CHEGUT, FRENCHMAN, RYAN, TAUSENDSHOEN, 2016