By: Andrew Batson, Director of Research, JLL
Companies and investors are gravitating to the urban core in search of premium office and mixed-use space. However, industry trends and fluctuations in the market impact each city Skyline in different ways. What’s the beat of your city’s Skyline?
JLL’s annual Skyline Review is back, coming in hot with an analysis of 57 skylines across United States and Canada markets.
Registered users can compare the state of their Skyline with other markets and tap into true office intelligence with a look at vacancy rates, rental rates, LEED certifications and notable trends impacting each market’s premier office buildings.
Explore the Latest Industry Trends Shaping the U.S. and Canadian Skylines
No two cities are exactly alike. But, overarching themes in investment activity, construction and occupancy reveal key industry trends impacting every Skyline. Here are some of the latest trends shaping the U.S. and Canadian Skylines:
- There is a boomerang of creative companies going back to traditional office buildings in the Skyline as rents rise for inventive, open spaces.
- Rental rates in the Skyline continue to surge as tenants continue to place their bid for a prestigious address and high-rise view.
- Cranes and construction equipment are lessening across the Skyline as the new construction of space begins to slow down. There is, however, plenty of office space currently in progress—15 million square feet, to be exact.
- Investors love their Skyline and so do foreign investors, more recently. Still, investors are taking a defensive position on their acquisitions, which is benefitting more secondary markets.
View Your Skyline Floor by Floor
Users can select and interact with one of 57 skylines listed under the “Pick a Skyline” tab. Once they’ve selected a location, hover over buildings to view aggregate data, such as status, submarket, class, square footage and vacancy rates.
In the mySkyline feature registered users can select from over 1,175 buildings in major U.S. Skylines to create their own custom building sets. Once created, JLL Skyline collects statistics from the set to produce an aggregated report. Within each custom view, users can save notes and share their Skyline with colleagues.
Find Out Where Your Office Market Falls on the Skyline Clock
A swell in development has placed higher pressure on rents, raising costs for tenants and propelling the Skyline market further along the real estate cycle. JLL’s Skyline Clock provides a visual representation of each market’s current standing.
Today, a number of markets hold a solid position in the peaking phase as a result of robust growth in rent and declining vacancy rates. However, cities like Cleveland, Columbus, Detroit, Cincinnati, Louisville and Pittsburgh all sit within the rising phase, hinting at continued growth as investors keep an eye on these secondary markets.
Gain Insights on the Most Attractive Markets Using Skyline Leverage
Find out who holds the power in each market using Skyline Leverage. This feature provides users with an inside look at tenant- and landlord-favorable markets. As cities progress further along the real estate cycle, power shifts back and forth between the two, impacting rental rates and the bottom line.
Leverage this tool to find out where your market currently stands, and gain insights on any power shifts occurring in the next two years.
About the Author
Andrew Batson is a Director of Research in the Great Lakes region of JLL. Andrew is responsible for building and continuing to elevate a best-in-class research program that differentiates JLL and drives a competitive advantage in the marketplace through market expertise, analysis and insight. Connect with Andrew on LinkedIn.