2030 workforce This decadewill shape how the workplace and workforce of 2030 will look andoperate.

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AUSTIN, TX—This decade marks one of seismic demographic change.Baby Boomers will leave the workforce and Generation X will marchever closer to retirement age, to be replaced by GenerationY/Millennials and Generation Z as the dominant generations in theworkplace.

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This has major implications for real estate occupiers, investorsand policy-makers around the world, according to a new researchreport from Cushman & Wakefield, Demographic Shifts: The Worldin 2030. The report analyzes the seismic shifts in internationalworkforces as 693 million Baby Boomers reach retirement age and 1.3billion members of Gen Z enter the labor force during the next 10years.

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"Generation Z is actually the largest cohort in the world withjust under two billion people–26% of the global population," KevinThorpe, global chief economist and head of research with Cushman& Wakefield, tells GlobeSt.com. "Even as the largest generationin human history, it accounts for a considerably smaller proportionof the total population because people are living so much longer.It is certainly possible that we will look back and view GenerationZ in a similar light as Generation X, squeezed between two moretalked about generations."

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The impacts of this will permeate through all facets of the realestate sector, from the composition of the workforce to how thenature of work changes, from where people live and work to how theyshop and relax. While these trends will take place acrosscountries, the most acute effects will be felt at the city andlocal levels.

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The report analyzes four key demographic issues: the aging ofBaby Boomers, the progression of Millennials through the lifecourse, the difference between Generation Z and Millennials, andthe impacts on the world's cities. The report extends a globalviewpoint and takes the perspectives of both occupiers andinvestors to identify opportunities and challenges that will beencountered by 2030.

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"These demographic trends will drive the pace of growth incities around the world," said Dr. Dominic Brown, head of insightand analysis, Asia Pacific at Cushman & Wakefield. "Cities willneed to establish themselves as places to attract the highestquality workers and in turn, create the greatest real estateopportunities for occupiers and investors alike."

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Cushman & Wakefield compared labor force growth and GDPgrowth of more than 137 cities worldwide. Cities with high growthin both categories have the best prospects for strong real estatedemand, while slow growth in both categories indicates a laggingmarket. Cities with faster growth in GDP than in the working-agepopulation are high productivity markets that may appeal toinvestors as they rise up the value proposition. Those with greatergrowth in labor than GDP are considered low productivity marketsthat need to harness that attraction of talent to boost output.

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Austin stands out in the report as one of North America'sleaders, because both its population growth and GDP growth areabove the national average. The report authors noted that Austin isamong the North American cities that are grappling with how toimprove productivity to further enhance the growth benefits comingfrom strong population growth. Some of these initiatives includeinvesting in infrastructure and technology, and exploring ways tomodernize the taxation system. The more tech-focused Austinbecomes, the more it aligns itself with the future workforce.

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"Changing demographics are important to our corporate clients asthey pursue more dynamic workplace strategies to manage amulti-generational workforce," said David Smith, Americas head ofoccupier research at Cushman & Wakefield. "On the investorside, clients need to understand the factors that will drive thedemand of various property types, such as the number of new workersand/or recent retirees in the market. This is particularlyimportant in cities like Austin, which is seeing strong populationgrowth across nearly every age group, as well as a rapidly agingpopulation."

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.