The 9/11/2001 Impact on Trophy and Tall Office Property

Miller, Norman G.; Markosyan, Sergey; Florance, Andrew; Stevenson, Brad; Veld, Hans Op’t

doi:10.1080/10835547.2003.12089680

Cited by 10 publications

(10 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, Miller et al (2003) find that there was no significant increase in vacancy rates in tall and trophy buildings across the major cities of the US although New York showed modest and negative effects on vacancy rates. The survey evidence by Miller et al (2003) indicating that the impact on tall and trophy buildings should show little lasting effects, although the truly famous buildings have suffered as a consequence of 9/11. Miller et al (2003) also found that sublease activity increased in famous buildings and since increases in sublease activity leads to increases in vacancy rates the authors argue that 9/11 had a negative effect on tall and trophy office markets.…”

Section: The Impact 9/11 On Real Estate Marketsmentioning

confidence: 73%

“…In other words, the 9/11 attacks had only a financial impact on real estate security returns and was therefore short lived as the assessment by investors of the effects of the terrorist action on the economic prospects of the economy evolved. In support of this view Miller et al (2003) find that there was no significant increase in vacancy rates in tall and trophy buildings across the major cities of the US, even though New York showed modest and negative effects on vacancy rates. While, survey evidence reported by Miller et al (2003) indicated that the impact on tall and trophy buildings should show little lasting effects, although the truly famous buildings have suffered as a consequence of 9/11 (Dermisi, 2005).…”

Section: Introductionmentioning

confidence: 95%

“…The survey evidence by Miller et al (2003) indicating that the impact on tall and trophy buildings should show little lasting effects, although the truly famous buildings have suffered as a consequence of 9/11. Miller et al (2003) also found that sublease activity increased in famous buildings and since increases in sublease activity leads to increases in vacancy rates the authors argue that 9/11 had a negative effect on tall and trophy office markets. This is supported by Dermisi (2005) who finds that in Chicago which contains three of the four tallest buildings in the US (Sears Tower (first); Aon Center (third) and the John Hancock Center (fourth)) that although security measures were immediately heightened in the buildings after the terrorist attacks some tenants still vacated their office space as a direct consequence of the increased risk, with the terrorist attacks having a continuing and significant impact on vacancy and sublease vacancy rates in all three buildings.…”

Section: The Impact 9/11 On Real Estate Marketsmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of 9/11 on Us Reit Returns: Fundamental or Financial?

Gheno¹

2006

International Journal of Strategic Property Management

View full text Add to dashboard Cite

Following the attack on the World Trade Center on 9/11 volatility of daily returns of the US stock market rose sharply. This increase in volatility may reflect fundamental changes in the economic determinants of prices such as expected earnings, interest rates, real growth and inflation. Alternatively, the increase in volatility may simply reflect the effects of increased uncertainty in the financial markets. This study therefore sets out to determine if the effects of the attack on the World Trade Center on 9/11 had a fundamental or purely financial impact on US real estate returns. In order to do this we compare pre‐and post‐9/11 crisis returns for a number of US REIT indexes and in general we find that the effect of the attack on the World Trade Center on 9/11 had only a financial effect on REIT returns and therefore was transitory.

show abstract

Section: The Impact 9/11 On Real Estate Marketsmentioning

confidence: 73%

Section: Introductionmentioning

confidence: 95%

Section: The Impact 9/11 On Real Estate Marketsmentioning

confidence: 99%

See 1 more Smart Citation

The Impact of 9/11 on Us Reit Returns: Fundamental or Financial?

Gheno¹

2006

International Journal of Strategic Property Management

View full text Add to dashboard Cite

show abstract

“…Consistent with this observation, Dermisi (2006) reports an increase in vacancy rates after 9/11 in high-end buildings close to the main Chicago landmark buildings. A survey in Miller et al (2003) showed that after 9/11 tenants were more concerned with the profile of their co-tenants and preferred to avoid companies or agencies that might be possible terrorist targets. In addition, Miller et al (2003) analyze data for a sample of tall and trophy buildings in 10 U.S. cities.…”

Section: Terrorism In Citiesmentioning

confidence: 99%

“…A survey in Miller et al (2003) showed that after 9/11 tenants were more concerned with the profile of their co-tenants and preferred to avoid companies or agencies that might be possible terrorist targets. In addition, Miller et al (2003) analyze data for a sample of tall and trophy buildings in 10 U.S. cities. They fail to find significant evidence of an impact of the 9/11 attacks, with the exception of an increase in sublet activity for a small set of "truly famous" trophy buildings.…”

Section: Terrorism In Citiesmentioning

confidence: 99%

Is Terrorism Eroding Agglomeration Economies in Central Business Districts? Lessons from the Office Real Estate Market in Downtown Chicago

Abadie¹,

Dermisi²

2006

View full text Add to dashboard Cite

The attacks of September 11, 2001, and more recently the Madrid and London downtown train bombings, have raised concerns over both the safety of downtowns and the continuous efforts by terrorists to attack areas of such high density and significance. This article employs building-level data on vacancy rates to investigate the impact of an increased perception of terrorist risk after 9/11 on the office real estate market in downtown Chicago. Chicago provides the perfect laboratory to investigate the effects of an increase in the perceived level of terrorist risk in a major financial district. Unlike in New York, the 9/11 attacks did not restrict directly the available office space in downtown Chicago. Moreover, the 9/11 attacks induced a large increase in the perception of terrorist risk in the Chicago Central Business District, which includes the tallest building in the U.S. (the Sears Tower) and other landmark buildings which are potential targets of large-scale terrorist attacks. Our results show that, following the 9/11 attacks, vacancy rates experienced a much more pronounced increase in the three most distinctive Chicago landmark buildings (the Sears Tower, the Aon Center and the Hancock Center) and their vicinities than in other areas of the city of Chicago. Our results suggest that economic activity in Central Business Districts can be greatly affected by changes in the perceived level of terrorism.

show abstract

Is terrorism eroding agglomeration economies in Central Business Districts? Lessons from the office real estate market in downtown Chicago

Abadie

Dermisi

2008

Journal of Urban Economics

110

View full text Add to dashboard Cite

The attacks of September 11, 2001, and more recently the Madrid and London downtown train bombings, have raised concerns over both the safety of downtowns and the continuous efforts by terrorists to attack areas of such high density and significance. This article employs building-level data on vacancy rates to investigate the impact of an increased perception of terrorist risk after 9/11 on the office real estate market in downtown Chicago. Chicago provides the perfect laboratory to investigate the effects of an increase in the perceived level of terrorist risk in a major financial district. Unlike in New York, the 9/11 attacks did not restrict directly the available office space in downtown Chicago. However, the 9/11 attacks induced a large increase in the perception of terrorist risk in the Chicago Central Business District, which includes the tallest building in the US (the Sears Tower) and other landmark buildings which are potential targets of large-scale terrorist attacks. We show that, following the 9/11 attacks, vacancy rates experienced a much more pronounced increase in the three most distinctive Chicago landmark buildings (the Sears Tower, the Aon Center and the Hancock Center) and their vicinities than in other areas of the city of Chicago. Our results suggest that economic activity in Central Business Districts can be greatly affected by changes in the perceived level of terrorism.

show abstract

The 9/11/2001 Impact on Trophy and Tall Office Property

Cited by 10 publications

References 0 publications

The Impact of 9/11 on Us Reit Returns: Fundamental or Financial?

The Impact of 9/11 on Us Reit Returns: Fundamental or Financial?

Is Terrorism Eroding Agglomeration Economies in Central Business Districts? Lessons from the Office Real Estate Market in Downtown Chicago

Is terrorism eroding agglomeration economies in Central Business Districts? Lessons from the office real estate market in downtown Chicago

Contact Info

Product

Resources

About