|By Marketwired .||
|July 16, 2014 03:00 PM EDT||
CHICAGO, IL -- (Marketwired) -- 07/16/14 -- JLL (NYSE: JLL) -- David Werner's pending $900 million+ purchase of the trophy Mobil building in New York. Sumitomo's acquisition of 203 North LaSalle in the Windy City. Panoramic Interests newly secured $50M in financing for 160-unit micro apartment complex in San Francisco.
It's "game on" in the intense competition for the U.S. skyline, as both local and international investors try to lock down the trophy skyscrapers that tower over American cities.
"Investors across the spectrum continue to narrow their focus to the skylines of markets -- bidding for the top-tier, trophy assets," said Steve Collins, international director at JLL.
Demand for these top-line office buildings is high and available space is scarce, but that's only part of the story. The surge in interest from capital-rich investors is propelling rents even more than the rising demand among tenants, according to JLL's U.S. Skyline Review.
More capital, higher demand and limited space puts landlords in the catbird seat, giving them confidence to raise rents and offer even fewer concessions. "Landlords are advising tenants, especially large users, to lock in leases now, rather than waiting for the tides to change," says Gregory Green, International Director at JLL and head of the firm's Agency Leasing. "Rents in the skyline will rise even higher over the next 24 months."
Overall, rents for skyline properties in 2013 broke the $40 per square foot mark for the first time, up $6 per square foot from the dark days of 2010, JLL found.
JLL tracked skyline investment in 43 city centers across the nation. Interest comes from so-called "high net worth investors" in local U.S. markets to global investment from international sovereign wealth funds. Canada and China lead the global investors, followed by Chile, Korea, Qatar and Norway. Foreign investment reached $5.2 billion last year, accounting for slightly more than half of all buying activity in the primary markets.
Last year's sales activity in those cities, such New York, Los Angeles and Chicago, is up 43 percent, on a square footage basis, over 2012. Investment in the Manhattan skyline hit 5.1 million square feet of transactions in 2013, including the sale of 350 Madison Avenue by JLL in March. In Los Angeles, Toronto-based Brookfield Office Properties acquired the 4.9 million square feet MPG Office Trust, whose properties include the gleaming 52-foot Gas Company Tower, the city's fourth largest building, and the distinctive reddish-brown Wells Fargo Center.
But the nation's biggest cities aren't the only beneficiaries of this surge in capital -- and competition. Investment activity in the secondary markets -- think Raleigh, Miami and Philadelphia -- was up 20 percent. And low vacancy rates in these cities are feeding price increases that exceed even those in the primary markets. Ten skyline markets examined by JLL had vacancy rates below 10 percent.
And there's more coming. Thanks to demographic shifts and urban re-migration, population growth in skyline centers is nearly triple the rate of cities overall. In the next three to five years, look to Downtown Atlanta, South Park Los Angeles and the Dallas Arts District, among others, to lead the way with new trophy office towers, residential housing and lively retail centers.
Inside the office, workplace strategies are evolving, as organizations move away from larger personal workspace to a more collaborative and open work environment. While companies continue to seek cost savings, planners are looking more toward retaining valued employees by improving workplace culture and environment.
Major Market Highlights
- New York: As stock market indices reached new highs in 2013, demand for top-tier office space in Manhattan's Trophy market drove both asking and taking rents to levels not approached since 2008.
- San Francisco: The San Francisco Skyline continues evolving with more than 1.6 million square feet planned in 2014 and 2015, further shifting the heart of the business district to the South Financial District (SFD) and reestablishing the relevance of the high-rise building among creative companies. View San Francisco's Skyline video.
- Washington, D.C.: Despite restrained levels of tenant demand in 2013, Trophy fundamentals remained solid and vacancy rates fell to 9.9 percent, the lowest level since 2010. That's due to tenants migrating from second-generation core to new and efficient product on the outer core. View Washington, D.C.'s video.
- Chicago: After remaining flat in 2012, the Chicago skyline asking rents increased by $0.47 to $36.94 per square foot in 2013 and surpassed the high-water mark set in 2008, a clear indicator that rents have recovered from the recession. View Chicago's video.
- Houston: Entering 2014, Houston's overall office market continues to benefit from the overall robust STEM-powered economy. Growth amongst energy and energy service companies combined with compressed vacancy rates pushed skyline owners rates upward by 5.0 percent year-over-year to their current average of $44.50 per square foot full service gross. View Houston's video.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2640579
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2640582
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
Apr. 24, 2017 04:45 PM EDT Reads: 3,389
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 24, 2017 04:45 PM EDT Reads: 2,054
Quickly find the root cause of complex database problems slowing down your applications. Up to 88% of all application performance issues are related to the database. DPA’s unique response time analysis shows you exactly what needs fixing - in four clicks or less. Optimize performance anywhere. Database Performance Analyzer monitors on-premises, on VMware®, and in the Cloud, including Amazon® AWS and Azure™ virtual machines.
Apr. 24, 2017 04:30 PM EDT Reads: 1,611
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
Apr. 24, 2017 04:30 PM EDT Reads: 1,964
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busin...
Apr. 24, 2017 04:15 PM EDT Reads: 175
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 24, 2017 03:45 PM EDT Reads: 510
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 24, 2017 03:45 PM EDT Reads: 2,499
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Apr. 24, 2017 03:30 PM EDT Reads: 1,035
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 24, 2017 03:30 PM EDT Reads: 2,516
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 24, 2017 03:00 PM EDT Reads: 1,849
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 24, 2017 02:45 PM EDT Reads: 554
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 24, 2017 02:15 PM EDT Reads: 1,059
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 24, 2017 01:45 PM EDT Reads: 455
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 24, 2017 01:30 PM EDT Reads: 556
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Apr. 24, 2017 01:15 PM EDT Reads: 2,126