In this article, I’ll explore the role of «anchors» within a Master Planned Community (MPC).
What is a Master Planned Community?
Master planned communities are large-scale real estate developments where residents can live, work, and play. They are usually found on the urban periphery, where strong growth is expected. You can think of them as the game «Sim City,» but in real life. For a deeper look at what they are, you can read this article I wrote here.
What is an Anchor?
Let’s start with the dictionary definition:
«A device usually of metal attached to a ship or boat by a cable and cast overboard to hold it in a particular place by means of a fluke that digs into the bottom.» (Merriam-Webster)
In everyday language, the word «anchor» refers to the device on a ship that is dropped to the bottom of the sea so the vessel can hold a fixed spot where the crew wants to stay, without drifting away. You normally anchor in a place because it has good attributes: plentiful fishing, safe swimming, calm waters, good weather. And then you get the benefit of the place.
In real estate, the term «anchor» is used as an analogy for something that attracts other things. That «something» is usually a desirable institution or a natural attraction that captures the interest of people, businesses, or investment. Anchors help drive the real estate development of a site.
Shopping malls use the term extensively. To a large degree, a mall’s success depends on the success of its anchor. Mall developers look for land with favorable characteristics: high traffic, a large nearby population, strong purchasing power, among others. Then they look for an anchor for the project, usually a retailer that draws a large number of visitors, like a supermarket. The anchor is essential to getting the development done, because it brings the foot traffic that makes the other businesses inside the mall work. Without an anchor, there is no project.
At the scale of a Master Planned Community or a city, there have to be many anchors to meet residents’ needs. So what kinds of anchors should exist?
A few important questions: What culture and values do we want to foster in the community, and what kind of anchor best serves them? Given the context of the site, which anchors are easiest to develop and will have high demand? Where is the gap in the market?
I have thought about these questions for Porta Norte, and I always land on the same conclusion: the answers apply equally well to Panama City. The order in which the anchors get developed matters. First comes nature, then urbanism, and finally buildings.
1. Nature
Anchors can be natural elements, like beaches and mountains. Nature acts as a magnet that draws residents and visitors who want to enjoy natural beauty. On beaches, you can build marinas, enable water sports, and develop resorts, among other options. In the mountains, you can create trails, ski runs, and mountain biking routes, among other activities.
Natural elements should be promoted first, because every human being has a need to connect with nature. On top of that, nature is already there, so depending on what you want to do, you can take advantage of it with relatively low investment.
Panama is known for its biodiversity and its fertile land. We should make the most of these resources. At Porta Norte, the first thing is to highlight the river, the trees, the views, and the high points.
2. Urbanism
In a home, the members of a family have their own bedrooms and come together in common spaces like the living room and the kitchen. In a city, citizens have their own homes and come together in common spaces like plazas and parks. At the urban level, it is essential to have public spaces designed so that citizens can gather to celebrate, to have fun, and to exercise.
In Panama City, Casco Viejo, with its plazas and its pedestrian-oriented design, is the most beloved neighborhood in the city. It is no coincidence that it is the most walkable urban fabric and the one with the most music, art, and community events. So it makes sense to use this urban approach to build a new kind of neighborhood that people will love. One possible improvement would be to include more trees and greenery in the streets.
3. Buildings
Usually the most common building type is residential. But the more diverse the buildings are, and the more they attract culture and life, the better. That can include universities, schools, temples, public spaces, shopping centers, gyms, sports centers, and much more. My theory is that one of the best anchors, both for Panama and for Porta Norte, would be a great university. A vibrant community is built with families and with young people who want to better themselves, and these educational institutions are the raw material of universities.
In Panama, there is a big opportunity because of the shortage of quality universities. At Porta Norte specifically, a great university would be ideal, since it sits in the largest school hub in Panama, with more than 15 schools within a few kilometers and thousands of students graduating every year, but no university nearby to serve them.
Universities as Anchors
There are many cities that have thrived thanks to the best universities in the world, like Harvard, Stanford, Notre Dame, and the University of Texas at Austin. All of these cities were much smaller decades ago, and the universities have been key engines of their growth.
In short, a university focused on technology, especially on computer science, could be an excellent option. In Panama City there is no university offering world-class technology education, despite growing global demand and the advance of technologies like artificial intelligence.
This conclusion is inspired by a Paul Graham essay titled «How to Make Pittsburgh a Startup Hub.» In it, Graham reflects on the characteristics that made Silicon Valley what it is today and how they might be replicated elsewhere. Here is a representative excerpt:
So suppose cool old neighborhoods and cool little restaurants make this the next Portland. Will that be enough? It will put you in a way better position than Portland itself, because Pittsburgh has something Portland lacks: a first-rate research university. CMU plus little cafes means you have more than hipsters drinking lattes. It means you have hipsters drinking lattes while talking about distributed systems. Now you’re getting really close to San Francisco.
— Paul Graham, co-founder of Y Combinator
A technology-focused university would have the potential to produce talent that can earn significant income in the tech industry, or even start new companies, which would create a virtuous cycle. Other top-tier universities can also be good for urban growth, because universities and urban development have a symbiotic relationship in which both sides benefit.
When you design a new community, you need a clear vision. In the case of Porta Norte, we want a community that is vibrant, healthy, and close-knit. A place where kids can run through the streets, where people can exercise, where there is a thriving economy, and much more. All of these elements together create a place that people love, that they protect, and that lasts over time. Incorporating anchors is one of the key strategies for making that vision real.
To close, here are a few thoughts worth considering: What kinds of anchors do you think Panama City is missing? Where do you see opportunities in the market? Which anchors could improve everyone’s quality of life? Which ones do you think would work well in places like Porta Norte? And how do you imagine the universities of the future?
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