Can commercial real estate data predict the winner of the National Football League (NFL) championship game between the New England Patriots and the Atlanta Falcons?
JLL’s America’s Executive Chairman and Hall of Fame Quarterback Roger Staubach believes it can – and he’s got the track record to prove it.
Since JLL started making predictions based on real estate market data in 2011, in-house research has accurately predicted the winner nearly 70 percent of the time.
For Sunday’s game at the NRG Stadium in Houston, Texas, Staubach sees the oddsmakers’ favourite – New England – taking the title. “Sunday will be a heck of a game, but this year I think it’s going to be the Patriots that win,” he says.
So what’s the office data driving his thinking?
Boston’s boom time
Boston has one of the strongest economies in the U.S., driven by diverse industries such as healthcare, education, technology, finance and life sciences which together create a strong local jobs market.
Demand for premium office space remains high with two-thirds of the large leases for growing companies and 40 percent of the overall activity in the third quarter of 2016 coming from tech focused companies. The Greater Boston area is also sought after with market rents increasing by 26.5 percent since 2010 to $34 per square foot.
“The Patriots’ recent run of success mirrors the growth of our regional economy and real estate market. Whether every-down players or specialists, the Patriots do their jobs and do them well. Similarly, across many industries and geographies, commercial real estate investors and tenants have created a market that is consistent and strong,” says Jim Tierney, Managing Director, JLL New England region.
Atlanta’s urban renewal
Atlanta will be aiming to put on a strong show on Sunday – just as the city is upping its game to attract more corporate tenants. Continued urbanization and a focus on walkability are driving renewed interest in Atlanta’s urban submarkets and pushing rents higher. Average asking rates in Atlanta have increased by 15.3 percent since 2010 and are expected to climb.
And new public transportation projects are set to further boost the city’s appeal. The T-SPLOST and MARTA expansion will benefit the entire Atlanta metro area by improving safety and functionality for pedestrians, bikers and drivers.
“Atlanta is easily one of the top metro areas in both sports and commercial real estate,” says Mike Sivewright, JLL’s Atlanta Market Leader. “The city continues to improve as a top destination for corporate relocations, with four Fortune 500 headquarters moving to the city in just the past six years, and has solidified its position as a major business hub of the Southeast region. Corporations and talent are drawn to the low cost of living, low cost of doing business, high quality of life and access to Hartsfield Jackson International Airport.”
The money may be on the Patriots to win the Big Game but when it comes to their commercial real estate, both cities are having a successful run.