By: Walter Bialas
When I arrived here three-and-a-half years ago, Klyde Warren Park just opened. That was a game changer that we all recognized. Our urban core has continued to evolve as occupancy has increased in many buildings and rents are now pushing the $50 per square foot level. Our Skyline buildings comprise a variety of assets, from large skyscrapers built in the prosperous 1970s and 1980s to recently delivered office projects.
As we were preparing this year’s Skyline report, the one theme that came clear was that you can’t paint every building with the same brush. Differences exist: scale, floor-plate sizes, amenities (both in the building and the immediate neighborhood), parking, and micro-location all play into a particular asset’s competitive advantage or challenge. And, in today’s competitive market, these factors are all important.
One observation we’ve made in the past is the spread between our larger, older skyscrapers and the smaller, often newer properties. As we illustrate below, there is more to the story than just the “averages”. For assets under one million square feet, occupancy is high and the strong tenant demand is driving rents. This is influencing the concept of value across the board as well located, older properties look to re-invent themselves to capitalize on this upswing, Clearly, our urban core continues to evolve, albeit, on a building-by-building basis.