The Value of World Trade Centers
The World Trade Centers Association (WTCA) is a worldwide organization, with headquarters in New York, formed for the purpose of enhancing world trade. It has the exclusive worldwide right to grant the use of the name "World Trade Center" for one entity per economic region. The WTCA achieves its mission by offering a great variety of services that help companies engage in international trade. There are currently more than 300 licensed World Trade Centers around the globe.
The purpose of this report is to illustrate the value created for communities and investors when a World Trade Center is created. Specifically, when a WTC building or complex is developed using the WTCA name, the unique services offered enhance value by attracting tenants who are leaders in international trade and commerce. Those services include: one-stop-shopping for government and trade offices; access to WTCA Online; TradeCard services; trade information services; seminars & trade missions; translation, research and office services; publications; and a WTC Club for members.
Video On The Impact Of WTC Real Estate
Following a comprehensive analysis by C. H. Johnson Consulting, Inc., this November 2001 report examines the impact and value added by three different classes of World Trade Centers. These include:
What follows is an overview of advantages that World Trade Centers offer investors, and five case studies which show how the WTC designation enhances economic development and the value of real estate projects developed under its banner.
- World Trade Centers which have a major national impact, and enjoy substantial levels of government support. These "Global World Trade Centers" include Taipei and, formerly, New York.
- World Trade Centers which provide major commercial development opportunities in large regional markets. These "Regional World Trade Centers" include Boston and Sao Paulo.
- World Trade Centers which significantly enhance and accelerate development of smaller markets. These "Small Market World Trade Centers" include Dresden.
Advantages For Investors
Based on its case study analyses, Johnson Consulting has identified five basic advantages which a WTC license provides for investors and their community marketplaces.
- Brand Naming Rights. World Trade Centers, like convention centers or arenas, become recognizable public assembly points. The name itself tends to increase the volume of visitors involved in global business services.
- Concentration of International Services. Governments as well as private sector firms frequently endorse WTC projects, and use the facility to concentrate and consolidate agencies and services. This enhances the value of the facilities by making it easier for both tenants and their clients to conduct 'one-stop-shopping' global business at WTCs.
- Real Estate Premiums. In cases where facilities have been developed, the WTC name usually enhances both rental rates and occupancy levels. In many cases the facilities outperform the market as a whole, and in all instances, WTCs are among the highest identity projects in the local marketplace. This includes office, retail and hotel space.
- Redevelopment Impact. Because of scale or government sponsorship, or both, WTCs in most cases dramatically increase the value of adjacent real estate - especially in areas where the WTCs have acted as urban pioneers.
- Economic Impact. Many WTC projects include hotels, conference and exhibition facilities, which attract out-of-town business clientele. These visitors introduce new spending, which results in a positive fiscal impact on the host community.