Gensler Report Shows What Makes Cities "Sticky"

• Urban glue: Gensler’s latest report uncovers the surprising emotional factor that keeps people rooted in cities.

• Square deal: A vacant Times Square tower will become 1,250 apartments, aided by a major tax break to boost housing.

• Crowdfail: Landa, a real estate crowdfunding platform, is facing backlash over app outages, user fund inaccessibility, and vague excuses.

Urban Development

Gensler Report Shows What Makes Cities "Sticky"

What makes cities attractive? That is a billion-dollar question being asked by every city in the world, especially those that are experiencing population loss and the economic woes that come with it. Gensler's City Pulse 2025 shows that, while affordability often draws individuals to a city, it's often the emotional connections—feelings of pride, belonging, and community—that compel them to stay. The report reveals that these intangible factors are paramount in retaining residents, suggesting that cities must invest in more than just economic incentives to foster long-term commitment.

The study highlights a growing trend: smaller cities are becoming increasingly attractive due to their balance of affordability and quality of life. However, as these cities grow, they face challenges in maintaining their unique identities and ensuring that infrastructure keeps pace with population influxes. The key lies in fostering environments that not only meet economic needs but also nurture emotional well-being.

For city planners and developers, this means reimagining urban spaces to prioritize community engagement and cultural resonance. Investing in public spaces, cultural touchpoints, and inclusive community experiences can transform transient residents into long-term citizens. By understanding and implementing these emotional drivers, cities can build a sustainable future rooted in both economic vitality and emotional fulfillment.

Overheard

Times Square Project Highlights Incentives' Role in Office-to-Housing Conversions

Times Square is one of the most visited places in the world. On a busy day, half a million visitors can visit the area. Most of them have no idea that the 38-story office tower that sits at the counter of 7th Ave and 42nd Street, just a short block away from the Times Square plaza, has been empty since 2022. Like other older buildings in Midtown Manhattan, 5 Times Square has struggled to attract new tenants after its former occupant, EY, left for a newer building across town.

Now, the owners of the building, RXR Realty, Apollo Global Management, and SL Green Realty, have plans to redevelop the building into 1,250 apartments. The project was able to pencil thanks to a generous tax break from the state, a 90 percent exemption on property taxes for the first 30 years after the building is finished. State and city officials have been keen to bring more housing, particularly affordable housing, to Midtown Manhattan. “This 5 Times Square Project perfectly fits into my objective of being creative and finding anywhere and everywhere we can to build housing,” Governor Kathy Hochul said.

Turning an office building into an apartment building is no easy task. As cities look for ways to increase their housing supply in downtown areas, they will need to consider similar incentives that states like New York have offered to developers. One day the economics will support profitable office to residential conversions. But for now politicians will have to work with the real estate industry in order to support the transition from empty offices into much needed living spaces.

Questions Arise About Crowdfunding Platform's Continued Outage

The crowdfunding platform Landa has been around since 2022. Earlier this year, the company's app had become inoperable and complaints against the company mounted. Now, an exposé has shown the repeated excuses the company has used to avoid explaining exactly why its users are not able to access their funds.

Even if Landa is able to fix what they call a technical issue, it will be hard for them to continue to attract investors. They are currently facing a lawsuit from a current investor for "repeated defaults" on $35 million of funding.

The recent indictment of the CEO of Nightengale Properties shows that government prosecutors are willing to go after executives involved in real estate crowdfunding fraud. If the outage is truly a technical issue, then the team at Landa will need to explain to the world what the problem is and how they intend to fix it.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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