Not Everyone Wins a Trophy

PHOENIX—There’s no space like trophy space. The premiere office towers that make up Phoenix’s skyline boast—by far—the most expensive office space to rent, garnering asking rents that are 33.5% higher than non-trophy space, according to JLL‘s 2015 Digital Skyline. Average Phoenix trophy rates in the first quarter of 2015 were $26.53 per square foot, compared to $19.87 per square foot in non-trophy buildings. This gap between local trophy and non-trophy space is approaching peak historical spreads: 10 years ago, the difference was 37.6%.

“Owners of the Valley’s trophy buildings recognize the leasing power of top-end amenities,” says JLL managing director John Bonnell. “As Phoenix’s economy improves, owners from The Esplanade to CityScape are taking the initiative to make sure those flight-to-quality amenities are in place, and that trophy properties earn their position in the marketplace.”