by Vladislav Boutenko, Richard Florida, and Julia Jacobson

Summary. The metaverse isn’t the end of cities. Rather, this evolution of the digital world should be seen as a complement to the physical world, and companies should develop their location strategies to maximize the potential of both the megacities that have become centers of talent and innovation, and the new opportunities presented by the metaverse. In developing this strategy, companies should think of the physical world and the metaverse as channels, both of which are good at communicating different kinds of information. The real world is good for creating emotional connection, while the metaverse is better at transmitting huge amounts of information. As such, companies should tailor their consumer and office strategies to utilize the strengths of both channels.

If the combination of Covid-19 and remote work technologies like Zoom have undercut the role of cities in economic life, what might an even more robust technology like the metaverse do? Will it finally be the big upheaval that obliterates the role of cities and density? To paraphrase Airbnb CEO Brian Chesky: The place to be was Silicon Valley. It feels like now the place to be is the internet.

The simple answer is no, and for a basic reason. Wave after wave of technological innovation — the telegraph, the streetcar, the telephone, the car, the airplane, the internet, and more — have brought predictions of the demise of physical location and the death of cities. Time and time again, such prognostications have been proven wrong. And while the pandemic has changed where and how people work, the trend of talented people, innovation, and economic activity becoming increasingly concentrated in fewer and larger superstar locations has consistently proven durable. Cities aren’t going anywhere.

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Continue reading here: The Metaverse Will Enhance — Not Replace — Companies’ Physical Locations