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News release

STAMFORD, CT

Rents for Stamford’s High-End Office Buildings Remain Steady

Stamford’s top buildings have seen rents remain level for past four years, despite rising vacancy rates; 70% of transactions within Skyline buildings were relocations


STAMFORD, CONN., August 3, 2015 — Despite a sharp increase in vacancy rates, average asking rents for the premier office towers that make up Stamford’s Skyline remained steady over the past year, according to JLL’s 2015 Digital Skyline. The city’s high-end office buildings posted rents of $53.75 per square foot in the first quarter of 2015, representing just a 0.4 percent drop, or a $0.25 decrease, from the $54.00 per square foot recorded one year earlier. The 16 buildings that make up Stamford’s Skyline have seen rents range around $54.00 since 2011.

Rates for Stamford’s high-end properties have remained level despite a 47.4 percent increase in vacancy rates during the past six months, fueled mostly by the 740,000 square feet at 677 Washington Boulevard put back on the market by UBS. As a result, the city saw vacancy rates for its top office buildings rise to 33.6 percent in the first quarter of 2015 from 22.8 percent in June 2014. This rate is nearly double the 10-year average that Stamford has seen for this set of buildings.

Stamford continues, however, to lure new companies, with seven of the 10 transactions signed at high-end buildings over the past 12 months being relocations. Deloitte & Touche LLP’s relocation to 117,700 square feet at 695 East Main Street marked the largest transaction for the entire Stamford Skyline this year. Other relocations to the city include XL Global Services Inc. taking 11,685 square feet at 107 Elm Street and American Express Travel signing for 10,842 square feet at 100 First Stamford Place.

“The number of new companies relocating to Stamford demonstrates that the city’s high-end buildings have great appeal to out-of-market tenants because of their top-grade amenities and proximity to transportation,” said Robert Ageloff, international director and market director for the firm’s CT/Westchester office. “Looking ahead, the Skyline buildings will continue to attract top-tier tenants but may struggle to fill large blocks of space based on the limited touring activity we’ve seen in Stamford so far this year.”

JLL’s proprietary 2015 Digital Skyline identifies and tracks micro-segments of 47 city centers across North America.  The Skyline features Trophy and Class A buildings where tenants and investors alike focus demand for office space in a flight to quality and efficiency.

About the Skyline Review
For the first time, investors and tenants alike can now access JLL’s Skyline Review via a digital platform. The fully interactive website will feature JLL’s proprietary market insights regarding office supply, demand, rents, leverage and investment into 47 markets across the United States and Canada, with the ability to compare and contrast individual markets or multiples of markets.  In addition, the site will offer videos and infographics. All information will also be available via mobile access. Users can also directly access information about the Stamford, Conn., Skyline.

JLL is a leader in the New York tri-state commercial real estate market, with more than 2,000 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2014, the New York tri-state team completed approximately 22.8 million square feet of lease transactions, arranged investment sales transactions valued at more than $5.4 billion, managed projects valued at $7.6 billion, and oversaw a property management, facilities management and agency leasing portfolio exceeding 163 million square feet.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $56.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.