Dive Brief:

• The average rental rate for “trophy” office space — in high-status, high-amenity buildings — is 77% higher than for others, according to the 2015 JLL Digital Skyline Report, which predicts the gap between those high-cost properties and others will continue to widen in the near term.

• The first-quarter vacancy rate was 10% in trophy buildings and 15% elsewhere, which will contribute to the widening gap, the report said.

• Despite rent increases of more than 20% for two consecutive years, competition to rent in urban highrises is “fierce and growing,” JLL said.

Dive Insight:

Science-related and technical businesses, however, seem to favor buildings with lower rents, where they can conserve their money to spend on interior spaces. Lower-cost historic buildings and converted warehouses are favorites to house businesses in those industries.

The result: Rents are starting to rise in those Class B buildings as well. “The emergence of Class B buildings as viable contenders in the competition for high-growth tenants has led to a revitalization of submarkets and neighborhoods not previously coveted by office-using industries,” the report noted.