By: JC Pelusi, Market Leader, Managing Director, JLL
JLL’s 2015 Digital Skyline provides unparalleled insights for more than 600 million square feet of commercial real estate in 47 cities across the U.S. and Canada. It offers investors and tenants alike a birds-eye view of national trends, plus an up-close look at local market performance.
Not sure how to use the digital tool? We’ve got you covered. Read on for actionable ways commercial real estate occupiers, owners and investors utilize the Skyline.
Related Post — Aim higher: JLL Presents The 2015 Digital Skyline
3 Tips for Business Owners & Corporate Executives
1. Strategize your next move. Are you approaching the end of a lease, or considering relocation?
The Skyline is fundamental in making your initial list of viable properties for relocation. You can zoom in on individual buildings, and check out current vacancy, rents, LEED certifications and more. Make better relocation decisions by comparing markets or buildings within your market.
Below, check out Key Bank’s building profile in Cleveland.
2. Leverage insights for smarter negotiations. Review availability in competing properties and drill down into asking rents. Are you over-paying as compared to similar properties (i.e. same class, square footage, etc.)? Give yourself ample time to analyze the market, giving you the leverage to gather information and approach your landlord.
Another option: hiring an advisor will save you time and stress. Your broker already has a pulse on the market, knows where to cut costs, and can ensure there aren’t any hidden expenses in your lease.
Related Post — How To Advance Your CRE Negotiation Strategies
3. Understand how national trends will trickle down. See what’s happening in real estate on a larger scale. In the Skyline, JLL pinpointed five national trends that will likely domino throughout local markets in the coming months or years.
Among these trends, JLL asks: “Is B the new trophy?” On a national scale, JLL reported an increased interest in Class B, customizable space. Columbus’ local market also observed an upturn in Class B leasing since 2014.
Bottom line: Staying abreast of future trends helps you stay smart and agile.
4 Tips for Investors
1. Compare assets. Interested in acquiring a building? Use the Skyline to draw comparisons between buildings in a number of primary and secondary markets.
The Skyline offers a holistic visualization of local markets, with quick indicators of good (and bad) performance. For example, red indicates direct vacancy, and blue indicates available future space.
2. Stay ahead of the game. Beyond micro-trends, JLL researchers have pinpointed key trends impacting commercial real estate on a larger scale. Each profile also indicates whether local markets will move into landlord-favorable territory in future years.
Below, check out the key Skyline themes or read more on the investment environment.
3. Identify opportunities. Review the digital Skyline with your broker, highlighting prime investment zones. The Skyline presents a macro-level view of secondary markets, which can help you zoom in on opportunities to leverage or exploit. Discuss prospects, gains and losses for your next big acquisition.
4. Keep tabs on foreign investment. Over the past five quarters, foreign capital has played a starring role in U.S. investment—representing 35 percent of all activity. The result? Domestic investors are shifting interest to top tier secondary markets, while primary market price tags continue to increase. See JLL’s full video for details.
JLL’s digital Skyline lets you simply click on a building in your market to view all the specifics. The Skyline is designed to help investors and tenants in each market make informed and confident real estate choices. Ready to get started? Take a look at JLL’s 2015 Digital Skyline.
About the Author
JC Pelusi is an International Director for JLL and works out of the Pittsburgh office. As the leader for JLL’s Great Lakes region, JC has extensive experience in a variety of areas, including Corporate Account Management and Transaction Services. View JC’s full bio to read up on his experience, or connect with him on LinkedIn.