CRE Report 04.02.2012

Aerotropolis – The future of cities

Bob – Walt, Todd Clarke talked about the Aerotropolis event, you were there, and can you give fill us in on what he talked about?

Walt – Greg Lindsay the author had a lot to say about what’s ahead for the cities of the world.

One interesting point he discussed was the strength of cities, as they get larger.  He drew an analogy that larger animals are not more efficient than smaller animals, for example the elephant is not more efficient than a mouse.  But for cities the larger they get they better they get.  Cities prosper more as they increase in size and population. And what do larger cities have, they have more amenities and a greater network effect.  Large cities feed on themselves and the larger cities will continue to prosper. 

Bob, here is an amazing statistic about the top 100 cities in the world.  The top 100 cities produce 33% of the World’s GDP.  The top 600 cities in the world produce 66% of the World’s GDP.  The world is now 50% urbanized.  The US is currently 80% urbanized so this trend of larger cities is going to continue.

Bob – So what is the story with the title of the book Aerotropolis? What is the link to air travel?

Walt – Just as major cities were once built around ports, or railroads, the future world cities will be built around air travel. The ability to ship by air and to get anywhere in the world quickly will be key for the future of cities.  And not all of those cities will be large cities; some smaller cities will also have success in the future air travel of the Aerotropolis.

Bob – What were his thoughts on Albuquerque?

Walt – Well, we weren’t on any of his slide or any lists that he talked about.  But he did talk about Mesa Del Sol and how it is an example of how cities and developments will need to be constructed in the future. Close to air travel, great infrastructure for connectivity, which Mesa del Sol has and creating a sense of place and connection.

One concern he spoke about was the Wright Law that controls some of Southwest’s flights connections out of Texas and when that law expires it could have an effect on Albuquerque air travel.

Bob – How can people get a hold of you to talk about commercial real estate?

Walt – Thanks Bob, Walt Arnold 256-1255, follow me on Twitter and become fans with us on Facebook for daily CRE news updates in ABQ and around the globe .  One last thought, Lindsay talked about how great cities have a sense of place and a quality of life.  If ABQ can develop a strong sense of place and reason for people to be here, we will be fine.  We need to find our comparative advantage, we need to improve our educational system and need to figure out a way to capitalize on our strengths especially cooperation with Sandia and Los Alamos.  If we can do these things we will be a great city and a great place to own commercial real estate.