JPMorgan Chase (JPM) is opening a new $3 billion global headquarters in the heart of New York City and breathing life into the struggling commercial real estate market after its Covid-19 collapse.
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The new corporate headquarters comprises 60 floors, 2.5 million square feet, and is situated at 270 Park Avenue in the heart of Manhattan. When fully staffed, the new headquarters will house 14,000 employees of JPMorgan Chase, which is the world’s biggest bank with $4 trillion of assets under management.
The corporate office tower has some impressive features and amenities, including a state-of-the-art gym, an Irish pub, massive stock trading floors, and claims to be the largest renewable energy and net zero emissions skyscraper in New York City. However, the office tower’s most impressive feature might be symbolic, as analysts say it signifies a rebound in the Big Apple’s commercial real estate market.
Recovery
A recent report from commercial real estate firm Cushman & Wakefield found that, five years after Covid-19 began, Class A office leasing in Manhattan has rebounded to its historic level of 41% share of the real estate market within New York City, signaling renewed corporate confidence.
Another report from accountants Deloitte found that 68% of respondents to a recent survey are optimistic about the commercial real estate market, particularly related to leasing conditions. The recovery is positive for real estate investment trusts (REITs), as well as commercial real estate companies such as Kilroy Realty Corp. (KRC), CoStar Group (CSGP), and Simon Property (SPG).
Is JPM Stock a Buy?
The stock of JPMorgan Chase has a consensus Moderate Buy rating among 19 Wall Street analysts. That rating is based on 12 Buy, five Hold, and two Sell recommendations issued in the last three months. The average JPM price target of $309.13 implies 6.03% upside from current levels.
