July 5, 2016 Comments Off on JLL Skyline Report: Trends Shaping California’s Skylines Views: 481 Bay Area, California News, Los Angeles, Orange County, San Diego, West

JLL Skyline Report: Trends Shaping California’s Skylines

JLL just released its annual Skyline Report, which analyzes the Best of the Best office properties in 52 markets across the U.S. Connect Media asked researchers to compare and contrast the top office markets in California we cover. Here are a few key findings for Los Angeles, Orange County, San Diego and San Francisco.

Los Angeles
On the road: The downtown Skyline is changing at an unprecedented pace with the addition of high-end residential, entertainment, retail and cultural venues within the CBD. The successful absorption of new multifamily and retail developments will be very telling on the Skyline office sector’s future performance.

Orange County
More, more, more: The delivery of new Class A space will attract tenants looking for modern office product, but at a premium price. Orange County has been experiencing landlord-favorable conditions, with average asking rents approaching pre-recession market peak rates. The premium that tenants are willing to pay for best-in-class space will be tested at the highly desirable Skyline buildings.

San Diego
Gone today, here tomorrow: While many markets across the U.S. are expecting to enter a new era of availability with the delivery of 34.4 million square feet of Skyline buildings, San Diego has yet to see a new multi-tenant, or speculative office development in Downtown during this recovery. Development has occurred in the suburbs. New developments, such as One La Jolla Center and The Heights at Del Mar, will inevitably begin to shift the balance from landlord-favorable conditions, and ease the leasing environment for tenants.

San Francisco
New development defines Skyline: San Francisco’s Skyline has seen strong rent growth as a result of robust demand and supply constraints. With the maturation of large tech companies, which value urban amenities and proximity to employee residences, Skyline properties and developments have and will continue to attract leasing activity from this sector.

Companies such as Google, LinkedIn, Salesforce.com and Uber have significantly expanded their footprint within the Skyline properties, limiting large-block available space, and further illustrating the shift toward urban, vertical campuses. Several developments have delivered in the past two years, but at nearly 100% pre-leased they provide no relief to active tenants in the market. New construction totaled more than 2.5 million square feet between three projects, Park Tower, Salesforce Tower and 181 Fremont, which will redefine the Skyline over the next two years.

Read More at 2016 JLL Skyline Report findings

Read More at JLL’s Skyline Report

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