To see where rents are moving up, investors are looking down South to mid-size cities in the Sun Belt. That’s where, according to JLL’s Skyline, office space in the skyline is seeing the highest rent growth – and it’s not even close.
A quick look at the stats makes for eye-popping reading: Nashville leads the way with 27.4 percent rent growth year-over-year through Q1 2017, while Austin (24.2 percent), San Antonio (21.2 percent) and Raleigh (17.4 percent) aren’t far behind.
“Tenants are willing to pay more for the prestige of a skyline address, and they recognize that being downtown in a highly visible building is a tangible, powerful recruiting tool,” said Scott Homa, JLL Director of U.S. Office Research.
Rents in North America’s tallest office buildings have been climbing sky high for the past seven years. JLL’s Skyline report shows that since 2010, rent space within these coveted office spaces has increased more than 20 percent to a new peak of $44.55 per square foot on average.
But it’s a unique combination of exploding industries and talent pools that is