Chicago's Skyline saw its best year since the recession in 2014, and the momentum is continuing. See what's going on with the city's Trophy space, and click through at the end to explore building-by-building market analyses in Chicago and other key U.S. cities.

1. JLL Chicago Skyline
Navigating the Gulf

2. Trophy vs. Non-Trophy Vacancy
With a first quarter direct vacancy rate of 6.1% for the Chicago Skyline
Trophy market compared to a 16% vacancy rate for the Chicago
Skyline Non-Trophy market, it’s unlikely that dynamics between these
two segments will change in the near term. The widening gap is a
result of demand for Trophy space where vacancy has declined 240
basis points since 2009. As economic momentum shifts into full gear
this year, resulting in tightened office market conditions,
From a competition standpoint, Trophy vacancy
levels in Chicago are lower than levels in New
York, San Francisco, Seattle, Washington DC
and Boston, among other cities.
the gap between Trophy and
Non-Trophy rents will widen even
further over the near term.
16%direct
vacancy rate
NON-TROPHY
6.1%direct
vacancy rate
TROPHY
9.4%Seattle
VACANCY
8.4%Washington DC
VACANCY
8.6%Boston
VACANCY
10.3%New York
VACANCY
7.7%San Francisco
VACANCY
6.1%Chicago
VACANCY
Chi SF DC
VACANCY %
Bos Sea NYC
0 2 4 6 8 10

3. New Trophy Supply
Despite nearly 2.25 million
square feet currently under
construction across the
Skyline, of which both
buildings are considered
Trophy, the majority of that
supply relief (60 percent)
is preleased and the
availability that does exist
will not offer supply relief
to tenants until 2017.
As a result, tenants in the Trophy market will face diminished
negotiating leverage over the next 18 months.
2015
2016
2017
900Ksquare feet
ONLY
of new Trophy space
will be available
in 2017
2.25 million square feet
of new Trophy space
Know Your Tenants
The widening gulf between Trophy
and Non-Trophy rents may change
tenant demand moving forward
as the city sees an increasingly diverse tenant base focused
around technology develop and spread — a consideration for
owners and developers of existing and future Trophy product,
but one they may not be able to entertain due to elevated
construction costs and sales pricing.

4. jll.com/chicago2015 JLL Skyline Review
Click here
to explore JLL’s interactive Skyline Review