The index will include a plethora of data, including interest rates, asking rents and leasing rents. "It makes a market transparent," says Paul Frischer, managing member of Rexx Index. "We have enough data and a model that people can work with." Plus the data will allow a person to look back 15 to 20 years in an individual market to see the specific impact of certain factors.
The index will focus on 15 major markets including Boston, Dallas, Los Angeles, Manhattan, Miami, San Francisco and Seattle. The Manhattan market will be divided into midtown and downtown markets.
Frischer says the index, will "bring buyers into the RE market that could never enter before." He cites a landlord previously unable to enter the financial markets because the numbers weren't the same, could now enter and understand the figures he's looking at.
A comprehensive US office index does not currently exist because prior to this it was difficult to combine all the statistics and numbers to give a clear picture of a particular market, according to Frischer.
The United Kingdom's IPD Index is a successful model, Frischer says, but replicating that here has been difficult in the past. The IPD covers about 45% of the UK market and trades up to $4 billion, says Frischer. "But relative to the size of the market it is small. And in their market they don't need to drill down city by city."
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