Search
 

As the S&P Goes, So Go Rents

NEW YORK CITY-Since the mid-1990s, Midtown class A rents have lagged the stock market by approximately 12 months, says Jones Lang LaSalle.

By Paul Bubny | Updated on January 15, 2010

NEW YORK CITY-Can office landlords and tenants predict where rents are going by following the stock market? In a way, they can, says Jones Lang LaSalle: the firm’s fourth-quarter Manhattan leasing report shows that since the mid-1990s, class A Midtown rents have risen and fallen about a year after the Standard & Poor’s 500 index’s peak and valleys.

“Since the financial services industry is tied so closely to occupancy in Manhattan, it makes sense that any effect in that industry would affect the real estate market,” JLL’s James Delmonte tells GobeSt.com. “If you look at the chart, it appears that the stock market bottomed out in the first quarter of 2009, so if the 12-month correlation holds true, we should see asking rents reach bottom in the first or second quarter of this year.”

Since the stock market’s post-Lehman dive, the S&P 500 has rebounded. Does this mean that rents will start climbing later this year? “This downturn may be different; the lag may be a little longer,” says Delmonte, VP and director of research for JLL’s New York office.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.