July 19, 2017
Creative firms are doing what they do best: driving change, especially when it involves premium office space. That “boomerang” effect was a key finding in JLL’s 2017 Skyline report, which combined with eight straight years of occupancy growth, has contributed to record rents and a decidedly landlord-friendly market.
The report tracks space in the tallest buildings in 57 markets across North America.
“We’ve seen an important shift in demand for skyline office buildings,” said JLL researcher Scott Homa. “Today, a lack of creative space in more unique and eclectic neighborhoods is drawing technology, advertising, media and information companies into more traditional business districts and high-rise office buildings.”
Some highlights from this year’s edition include:
- Skyline vacancy remains below the national average at 12.9%, with vacancy of trophy buildings – those ultra-premium office towers within a skyline – at just 10%
- Rents hit a record $44.55-per-square-foot
- Net absorption, jumped to 8.3 million square feet, more than five times what it was a year ago
- Buyers, on the hunt for higher investment returns, are exploring secondary markets
- The construction pipeline remains healthy, but shows signs of slowing
For comments, questions or concerns, please contact Dennis Kaiser