Creative companies are changing the market for U.S. office space. In recent years, many creative firms in the technology, advertising, media, and information sectors left the office buildings that make up the Skylines of North America. They wanted nontraditional, eclectic spaces in cities and areas that may have been off the beaten path. But times are changing. High demand, expensive rents and low availability of unique space have now created a boomerang back to more traditional Skyline properties. These Skyline spaces are, in many cases, more efficient and newly built or renovated, and building owners and developers are using fresh design features and perks to lure creative companies back. Visit https://skyline.jll.com/ to learn more about this trend.

1. 2017
Why are
creative
companies
returning to the
skyline?

2. Creative tenants return to the
skyline
Ten years ago, creative companies – those in the
technology, advertising, media and information sectors
– left their traditional office buildings behind in search of
more unique, flexible space. They vacated central
business districts across
the country and flocked to suburban campuses, fringe
markets and city outskirts instead.
“We saw a meaningful shift in what creative
companies desired in their work spaces,” explained
Scott Homa, Director of U.S. Office Research at JLL.
“Their migration outside traditional office buildings in
central business districts had a significant impact on
office leases in Skylines across the U.S.”© 2017 Jones Lang LaSalle IP, Inc. All rights reserved.

3. No Vacancy
It didn’t take long for the trend to hit
markets across the country. As more
tenants flocked to unique buildings, office
space become hard to find and harder
to afford. As a result, many of those
creative firms packed their bags and
headed back to where they started: the
Skyline.
For instance, in Oakland's Uptown
submarket, rents skyrocketed by more
than 41 percent in the last 12 months to
an average of $51.41 per square foot.
Oakland’s average asking is rent in the
Skyline is $54 per square foot.
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved.

4. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
Competing for tenant attention
“Traditional office buildings are catering
to today’s tenants with appealing
amenities, modern design and energy
efficient spaces,” said Homa. “Owners
are investing in new perks to entice
these companies to come back.”

5. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
New perks welcome old tenants
To attract creative tenants into their
buildings, landlords have gotten
creative. Think perks like dog-
friendly buildings, game rooms,
top-of-the-line fitness centers and –
for the environmentally conscious –
electric car charging stations.

6. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
Promoting work-life balance is key
Other perks that are top of
mind for creative firms?
Anything that helps
promote work-life balance,
like the ability to have your
car washed while you’re at
work or book a personal
training session in the
building.

7. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
Tech giants lead the way
Over the past year, tech giants
like Spotify, Expedia, Salesforce
and Twitch accounted for 1.4
million square feet in Skyline
lease signings larger than
100,000 square feet.

8. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
skyline.jll.com