Property markets count cost of NY terrorist attack
US SPECIAL – Direct losses to downtown Manhattan’s real estate market in the recent terrorist attack on New York could be as much as US$10bn (€11bn), claims Chicago-based property services and investment management company, Jones Lang Lasalle (JLL).
According to JLL, Manhattan has already lost approximately 25 million square feet of commercial office space, and the net loss in the coming year will represent 18.5% of the downtown office market there.
JLL suggests that building management costs may increase as a result of heightened security and insurance premiums over the short term, and this will affect investors and developers alike.
Longer term, though JLL does not anticipate a large scale exodus from central business districts to suburban equivalents, demand for suburban locations will increase and security practices known more in Europe and Asia will become commonplace in the US.
Security will also become a differentiating factor for prime versus sub-prime space.
Jones Lang Lasalle has a portfolio of approximately 700 million square feet under management worldwide, whilst its investment management arm, Lasalle Investment Management, has US$ 22.5bn in assets under management.