Paper presented at the ERES conference
in Vienna, Austria 3-6th of July 2013
Linking Creative
Economy and Real
Estate: Lessons and
implications from a
Swedish case.
Stig Westerdahl
Department of Urban Studies, Malmö University, Sweden
E-mail: stig.westerdahl@mah.se
A Creative Economy?
A Cultural or Creative Economy on the rise.
Always existed as a sector or industry – now seen as a
driver for the whole society.
Essential part of city renewals – spectacular buildings.
Opera House in Sidney
Guggenheim in Bilbao
Implications for Real Estate Industry and research?
Outline
Creative industry – define or
characterise?
Definition – a tricky issue. Several international attempts
and suggestions for statistical classification.
Examples: arts and crafts, audiovisuals, books, design
work, films, music, new media, printed media, visual and
performing arts, and creative services.
Characteristics:
Micro-enterprises (a few large actors)
Usually project-based
High risks
Low initial costs
Low transport costs
The creative industry
and the urban bias
Short historical outline
Experience industry (Pine & Gilmore 1999)
A production system (Pratt 1997)
Policy for creative industry – UK in the
1980’s.
Other countries followed (Australia, Sweden
with others).
The general belief is how
Creative industry is growing
It is important to the entire economy
Serves as an inspiration to other sectors.
An urban bias is established.
From production to
consumption
Richard Florida and his writings:
Place
Creative class: scientists and engineers, university
professors, poets and architects, people in music,
design, arts, entertainment and education. Health
professionals and business managers.(30% of
American workforce).
3 T’s: Talent, Tolerance and Technology
Many critics.
Large impact in policy circles – manifested also in
inititives (and buildings)
Competition and place marketing
Connections to the real estate sector.
From production (previous slide) to consumption.
Creativity and urban change
Jane Jacobs ”The Death and Life of Great American Cities”: “intricate
sidewalk ballet”.
Not much on gentrification or real estate companies.
Zukin (1989) on “Loft Living” and (2009) on authenticity.
De-industrialisation
Empty production space became Lofts for artists
When filled with Cultural capital: property developers take over
Coincides with changes in the Art World: Galleries.
Production out – consumption in.
Pratt (2009) on Hoxton, London: A similar story.
Where are the policies to make use of creative industry – no major effects from
new residential housing.
Currid (2007) on New York: “The Warhol Economy”.
Fashion/art/music much more important that realised.
Need for conscious political efforts.
The meeting places crucial to creative industry.
The joint view: Passive policymakers – and the property developers as
culprits. They ripe the fruits, when artists have infused the cultural capital.
The case:
Färgfabriken
Norr
In the middle of Sweden – 600 km north of Stockholm
Östersund - small town – 30.000 people. Sparsely populated
region of Jämtland.
Closure of regimental garrisons
An Art Hall ”Färgfabriken Norr” opened 2008 in one of the former
military buildings.
Three year EU-funded project – to merge art with trade&industry.
More jobs in an area suffering from loss of employment
The property developers offered free rent for three years and
renovation/adjustment of the premises.
No proper calculations: ”gut feeling” and ”intuition”
Property developers more committed than the public sector:
Create an attractive area for industrial and residential tenants.
Conclusions
Östersund-case
Focus on ”consumption” – less on ”production”
Gut-feeling and intution rather than calculations.
The overall situation of the area the main issue.
Real estate industry at large:
Tension ”Consumption” vs ”Production” of creative products/services
point to
Long term perspective necessary – compare London & New York
studies (Zukin, Pratt, Currid and others).
Values of mixed use underestimated?
”Gut-feeling and intuition” –
Values of co-operation with the creative sector underestimated?
Alternative management methods, see things in a new light? Important
for a conservative industry such as real estate?
The final conclusion
Many question-marks!We know little on the role of
property developers – in spite of research on
Planning
Creative industry and its importance at large
The logics of art economy as opposed to
financial economy.
Social consequences of gentrification
And the many disciplines involved:
Human geography, economics, management,
planning, humanities and others..
What about the real estate science?
Future research needs to take property developers as point of departure:
o Linkages property developers and financial institutions in urban
development.
o Linkages developers and public agencies: the role of creative industries?
o Connections real estate sector and the creative sector – possible
cooperation projects? Is a longer time horizon possible?
o Are there openings for a rapprochement between real estate and the creative
sector – beyond mere purchasing the products? What can the industry learn
from the creative sector?
Thanks for
listening!
Questions
and
comments
welcome!