When it comes to office real estate, building classes matter more than ever. The amenities, location, and quality of space between Class A office buildings and Class B and C properties can have a huge impact on the demand for a workspace right now. But what about trophy buildings? These are buildings that are either advanced, new, or famous enough to be considered the cream of the crop in their market. It’s a designation that one would think would make it easier for landlords to lease up their space. However, beyond the top-tier offerings that trophy buildings offer, does the trophy tag alone help move the needle?Like building classifications in general, trophy properties are an unofficial class that is sometimes lumped together with Class A buildings in research reports, but there are key factors that separate them from the rest, the main one being prominence. “They’re the ones in the sky that everyone recognizes,” said Brian Schwagerl, a professor of real estate at New York University’s Schack Institute of Real Estate. New York City has a number of obvious ones, including the Chrysler Building, the Metlife Building, and the Empire State Building. Chicago’s Willis Tower (formerly known as the Sears Tower) and San Francisco’s Transamerica Pyramid are certainly part of the crowd, too. In addition to being famous parts of the skyline, trophy buildings are typically landmarked, giving them greater historical status as well as stricter guidelines on how they can be changed...
RSK: Even Trump Tower and the Empire State Building have their rent limits.
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- - Volume: 24 - WEEK: 13 Date: 3/26/2024 3:02:30 PM -