GLOBAL CITIES 2015 REPORT GLOBAL SKYSCRAPERS CITIES 2015 REPORT 03

TABLE OF LOOK SKYWARDS The world’s cities are in the midst of a

building boom and this report addresses the question, INTRODUCTION CONTENTS why do we need these giant buildings? INTRODUCTION BY — JOHNINTRODUCTION SNOW BY — JAMES D. KUHN Head of Commercial, President, Knight Frank Newmark Grubb Knight Frank

Our analysis shows that skyscrapers are cut, which benefits social and are the optimum means of family lives. When offices and THE WORLD’S TALLEST addressing major economic and homes are lifted above street level, geographic challenges facing cities the ground floors and basements BUILDING TIMELINE today. These are: of buildings are freed up for shops and leisure facilities. The spaces »» In order to accommodate between tower clusters can be economic and population growth developed as parks and public a city can either move outwards or areas; while skylines are enlivened upwards. Moving outwards breaks 2019 with iconic architecture. Kingdom Tower, up business clusters, and creates Jeddah political problems, like allowing »» Global real estate capital markets 2010 , development on green fields around are seeing more activity from those Dubai cities. This moves the pendulum who wish to deploy money in very of debate in favour of building large sums (above the $1 billion 2003 , 4-11 12-14 upwards to provide more homes mark). The size of skyscrapers makes Taipei and business space. them attractive to such investors, 1998 TOWERING ABOVE SKYSCRAPER and this will encourage a movement , »» For companies today, staff Kuala Lumpur THE REST INDEX towards developing in scale. retention is high up the agenda. Firms are increasingly focused on keeping Our league table ranking the world’s Losing star fee-earners is damaging Recent enthusiasm for skyscrapers 1974 their staff happy, and delivers leading cities as high rise centres The Sears Tower, an office people want to work in. of commerce and living. for business, and even the cost reflects a shift in the global Chicago of replacing support staff can be economy towards city centres, as 1972 higher than the rent paid on their automation in factories means that World Trade Center, workstations. Skyscrapers are one more humans do knowledge jobs in of several means firms have found offices. Today’s knowledge workers 1931 to make the office an exciting place increasingly want to live near The , New York to be. Also, an inspirational office work, while firms want staff to feel can encourage staff to interact and inspired by their workplace. The 1930/31 The , share knowledge, thus driving skyscraper is successfully delivering New York 15 16-17 18-19 up productivity. the volume and type of homes and 1930 WEST SIDE FIVE FUTURE A B O U T offices our cities require. Bank of »» As well as creating a better Trust Building, STORY TRENDS THE GROUP working environment, skyscrapers We hope you find this report New York

Manhattan’s Far West Side is experiencing What are the global trends that are sending can make the city a better place informative, and if you wish to 1913 a transformation with a new skyscraper city skylines across the world ever higher? to live. If more homes can be built discuss any of the issues raised, The Woolworth Building, New York district under construction. near to work, commuting times please do not hesitate to contact us. 2 GLOBAL SKYSCRAPERS CITIES 2015 REPORT

For a worker earning over £35,000 for staff who wish to jog or cycle to SKYSCRAPER (UPPER FLOORS) RENTAL GROWTH p.a. in London’s The City financial work are becoming common, as is SIX MONTHS TO END OF 2014 district, should they leave, the fee replacing car parking spaces with 04-05 Source: Knight Frank Research, Dubai: The city has added Newmark Grubb Knight Frank Research paid to a recruitment consultant bike racks. A gym in the building, almost 190 skyscrapers to replace them is greater than and eating establishments are also REST

since 2000 the annual rent on their office now increasingly valued by tenants.

20.0% 13.2% 11.3% 10.6% 7.7% 6.1% 2.9% 2.1% 1.5% 0.8% 0.0% -1.2% work station; and that head-hunter Extensive basement areas and retail charge is just a small part of the concourses that are typical among overall staff turnover cost. This skyscrapers can help on these issues. means that even for staff in support roles the expense of replacement overshadows property costs, and MOVING TO A NEW TOWER TOWERING ABOVE THE this is before considering the effect CAN OFFER A SENSE OF A an enhanced working environment NEW BEGINNING THAT WILL TOWERIN can have on productivity. ENCOURAGE STAFF TO EMBRACE As a consequence firms when THE CHANGES. approaching property now strive for: To this backdrop, skyscrapers are ABOVE THE REST 1   The office as the place to be: flourishing. They are seen as a way Firms aim to create offices to give staff a workplace that feels From New York to Shanghai, companies want that staff want to spend time special, and promotes esprit-de- exciting new work places to inspire staff, while more in. This is partly achieved by corps – an office you want to tell people want to live near work. The skyscraper is innovative fit-out, ranging people about at a dinner party. from games rooms, to buffets seen as the best way to achieve these goals. and cafés, to private work EVERYONE GETS LIGHT areas. Being in a skyscraper is Insurance firm, Markel, has WRITTEN BY — JAMES ROBERTS another way to give the office Chief Economist, Knight Frank recently moved their London office

New York (Midtown) York New Frankfurt Hong Kong Angeles Los (City) London Singapore Shanghai San Francicso Taipei Sydney Dubai Beijing wow factor in the eyes of staff. into 20 Fenchurch Street, a Rafael Skyscrapers are a rising tide in were out-of-town and low rise, 2 Viñoly designed tower. Andy Davies, the modern global city. London and thus cheaper, were growing  The office as a catalyst of the COO and CFO, sees being in a has added 23 new skyscrapers in popularity with companies. integration: This is where firms skyscraper as a way of improving (a building over 350 feet high) Skyscrapers like the city centres use the office to bring about the workplace experience. since the turn of the millennium, they occupied were viewed as changes in working habits, so compared to 17 in the preceding expensive and in decline. people mix and interact to create Markel found a tower floor plate has forty years. While New York a greater sense of community. an advantage over a conventional However, firms today increasingly added four new towers in 2014 Staff are encouraged to leave building as there are no desks view real estate as a means of alone, including the iconic One desks and move around the remote from a window. According controlling a much bigger cost, World Trade Center. This sounds office and speak face-to-face. to Davies: “Wherever you go in the namely staff retention. This has impressive until one considers Moving to a new tower can new office, everyone gets natural coincided with a movement of that Dubai has built nearly 190 offer a sense of a new beginning light, even at their desk; and the people back into cities, reversing skyscrapers since 2000, and that will encourage staff to views are spectacular.” the preceding exodus to the suburbs Shanghai over 90. embrace change. – ’s population has Markel installed internal staircases 3 The new enthusiasm for increased by 19% since 1980. The office which is close that pass through the floors to Chicago’s Hancock Tower, to home: This final point in skyscrapers is partly one of city a true multi-use skyscraper, encourage staff to circulate in the status. Less mentioned are recent SKYSCRAPERS: IT’S ALL ABOUT PEOPLE has the world’s third particular has brought offices office rather than remain tied to highest residence back into city centres from changes in how firms perceive For private sector services firms desks. This increased the incidence out-of-town locations, which offices, particularly in relation to (the mainstay of city office of chance encounters where makes skyscrapers important their workers. occupation) salaries typically knowledge can be shared. Again, to re-introduce more business the open environment and natural In the past, offices were typically account for around half of space into crowded CBDs. light facilitate this cultural change viewed as a cost that companies operating expenses. However, an – according to Davies, “in the new wanted to minimise, with little unquantifiable cost is the loss of Many firms now want to support office, you can’t hide”. thought given to how they could value when successful staff leave, the work/life balance, and try to  20 Fenchurch Street, fit the office around lifestyles. For boost productivity. Consequently, and the additional expense of one of London’s new in the 1970s and 1980s, offices that replacing them. wave of towers instance, locker-rooms and showers CONTINUED ON 06-07 A GLOBAL SKYSCRAPERS Manhattan is seeing two new CITIES 2015 REPORT tower clusters developed

overtake The in REINVENTING THE CITY SKYSCRAPER PRIME YIELD SPREAD OVER B height in 2016. Its design includes 06-07

10 YEAR BONDS (BASIS POINTS)

a three storey ‘retail bridge’ that Barangaroo, much like London’s

Source: Knight Frank Research, will connect the tower to future Canary Wharf, is an example of Newmark Grubb Knight Frank Research, Thomson Reuters REST neighbouring developments. former-industrial land in a dense city Guangzhou has constructed a centre being wholesale redeveloped CONTINUED FROM 04-05 SHANGHAI’S SUPER TOWER purpose built CBD, the Zhujiang to match economic changes. C New Town, which incorporates ICONIC IS NOT ENOUGH The Shanghai Tower, which Where there is a large swathe skyscrapers like the Guangzhou is now the tallest building in of industrial land, regenerating Martin Jepson, President & COO for Twin Towers (the second of which China, is part of this movement piecemeal is often not an option. A Brookfield’s UK division, believes completes next year). that the best means of achieving towards skyscrapers that allow small office building constructed in TOWERING ABOVE THE the staff-friendly skyscraper is staff to interact, according to the Other Asian towers completing the midst of redundant warehouses via a very efficient floor plate. building’s Marketing Director, this year include Jakarta’s will struggle to sign a tenant, and the “Building iconic for the sake of it is Wendy Yu. “The office floors Cemindo Tower (which will be the local transport authority is unlikely to D not sustainable. Offering efficiency connect with the 21 sky lobbies tallest building in Indonesia), and add it to their routes. Redevelopment of floor occupation and flexibility and courtyard gardens, providing the IB Tower, and the Naza Tower has to be en-masse to get the buy-in is what tenants are seeking first people with spaces to interact. in Kuala Lumpur (these will be from municipal authorities to add and foremost.” This creates a blank Amenities like cafés, convenience the city’s third and fourth highest infrastructure, and with architecture canvas on which the occupier can stores, ATMs, and entertainment E skyscrapers, respectively). of a quality that will draw big name set out a bespoke office that matches facilities are also distributed tenants as anchor pre-lets; which in Over the next two years, Sydney their business practices. throughout the The Shanghai turn persuades other firms to move will add to its skyline the Tower.” A super-tall building to the new district. triple skyscraper International of 6.2 million sq ft, the sense Towers cluster at Barangaroo, a Skyscrapers have the gravitas of community is facilitated by F BUILDING ICONIC FOR THE SAKE major dockside redevelopment. and quality of offices that attract breaking the tower into several OF IT IS NOT SUSTAINABLE. Anchor tenants include HSBC, Fortune 500-type firms, which vertical communities, each with its KPMG, PwC and Westpac. The gives the confidence to other own atrium. G potential stakeholders (such as the complex will include more than local government, retail and leisure Another important factor, according Shanghai’s skyscraper cluster is 800 apartments, a hotel, and tenants, and investors) to back a to Jepson, is offering an entrance to found in the Lujiazui CBD, part of shops, while Renzo Piano has H major regeneration scheme. That a the building that suits the tenant’s the city’s Pudong district whose been commissioned to design growing number of large companies needs. “At 100 Bishopsgate we have futuristic skyline has become J three new residential towers at are willing to be that pre-let anchor the luxury of almost 17,000 sq ft symbolic of China’s economic I Barangaroo South. tenant, even if it means moving to of reception at ground level, so we success. In 1993, Pudong was another part of the city, is behind a can offer some tenants their own largely warehouses and farmland. A B new wave construction around the identity. We don’t scrimp on the By 2000 the population had PARIS FRANKFURT world. New York City has several ground floor space”. This brings out mushroomed to over 3 million, examples of this. the importance of an appropriate before rising above 5 million 492 421 public realm for skyscrapers, where at the time of the 2010 census. NYC’S NEW TOWER CLUSTERS C D impressions are often shaped before Around 40% of people living the front door is even reached. CHICAGO SYDNEY New York is benefiting from the there originate from elsewhere arrival of two new skyscraper Particularly in London’s EC3 in China. This makes Pudong 381 265 clusters, found in Downtown and insurance district, utilising towers a case study in the urgent need E F western Midtown. to raise a firm’s profile has played for emerging market cities to LONDON SHANGHAI a role in generating office demand. go skywards to cope with rapid In Downtown, there is the new Swiss Re famously chose The economic change. 246 245 World Trade Center complex, Gherkin (aka ) in where 5.3 m sq ft of office space order to leverage the publicity TOWERING AMBITIONS G H has already completed, with a HONG KONG NEW YORK value of being in such an iconic Inevitably other cities have building. This set in motion a ambitions to replace the Pudong 190 181 CONTINUED ON 08-10 domino effect of innovative towers towers as the Chinese skyline in EC3 signing up insurance photo that appears in foreign I J The Shanghai Tower is currently China’s tallest building tenants, such as The Leadenhall newspapers. In Shenzen, the Ping SAN FRANCISCO SINGAPORE Hong Kong has the Building, with its tapering design, An International Financial Centre 181 114 highest skyscraper office drawing US giant, Aon. is under construction and is set to rents in the world GLOBAL SKYSCRAPERS CITIES 2015 REPORT

CONTINUED FROM 06-07 a tenant in London’s , La Défense in Paris The Shard, London Burj Khalifa will pass the further demonstrating the media/ combines offices, homes, further 5.3 m sq ft to follow. This Bridge Quarter hotels, shopping and title of the world’s tallest 08-10 is complemented by 565,000 sq ft creative interest in towers. culture in an iconic building to Kingdom Tower in Jeddah in 2019 of retail at Brookfield Place, and skyscraper district. REST

MIXED-USE MOVING UP THE AGENDA Westfield’s World Trade Retail. Increasingly, mixed-use is moving The new office stock is coinciding up the tower agenda – indeed With a population of with a transformation of the 15 million, Shenzen is the majority of skyscrapers in Downtown market, with more embracing tall buildings both Manhattan and London’s technology and creative firms future development pipeline are moving in. Conde Nast, the publisher residential. For instance, in London

of Vogue, is the anchor tenant for TOWERING ABOVE THE a residential tower cluster is being . Other developed at Nine Elms, thanks to firms signed up include ad agency a new underground rail line which KiDS Creative, and tech companies will terminate at the mixed-use High 5 Games, Tinypass, and xAd, redevelopment of the Battersea demonstrating the changing tenant Power Station site. profile of a district once associated with finance. Turning to Midtown, near Penn BEYOND THE LOCAL POPULATION Station we are seeing a new cluster AND WORKFORCE, AN ESTIMATED of skyscrapers being developed. SIX MILLION PEOPLE EACH YEAR growth. This includes delivering perception than reality, as it tends This includes the 28 acre Hudson more homes and additional VISIT LA DÉFENSE. to be the upper floors, above Yards district, which is being business space. Particularly, in the skyline that command the developed by Oxford Properties emerging markets this has led to a premium office rents – the lower and Related Companies. This La Défense in Paris shows how drive to build towers that are ever floors tend to let on standard prime consists of four commercial towers skyscrapers when set in a well- bigger. However, this could change rents. The premium for views can and two residential towers. It is designed public realm can create a as these cities reach maturity. vary from 15-20% in the City of complimented by Brookfield’s destination in its own right. Beyond London and Hong Kong island, to In western cities when skyscrapers neighbouring the local population and workforce, nearly double average prime rents are developed it is common project of 5.8 m sq ft, which includes an estimated six million people long-term obligations, the longevity in Midtown Manhattan. As an island city, practice to pre-let a large share two skyscrapers of 67 storeys each. each year visit La Défense for non- skyscrapers have proved of skyscrapers is also an attraction. of the commercial space either business reasons. A survey of visitors ideal for accommodating In New York, art deco towers from As with the new World Trade NEW WAVE OF INVESTORS before construction starts, or early by the local tourist board found Singapore’s rapid the 1930s still operate as modern Center, the tenants already signed economic growth on in the development process. that half of all non-business visitors Skyscrapers are not just popular office buildings. The prospect of a up for Hudson Yards are not from This is because towers in the were there to shop, and a third were with tenants, as they are also in building that gains almost timeless the financial and professional west, which are unlikely to be tourists from outside Paris. vogue with real estate investors. appeal is of interest to an investor industries who previously backed by government money, are This is the result of more mega- who must think very long-term. dominated Manhattan skyscrapers. La Défense is a successful example shaped principally by commercial funds targeting property in recent Future occupiers will include, of mixing living with work, with its As well as the mega funds decisions. This has been less of years, sometimes sovereign wealth CNN, L’Oreal, Time Warner, and 25,000 local residents . The proposed mentioned above, we are even a factor in emerging markets funds, but also national pension however skyscrapers allow sums increasing interest in real estate as an Coach (a luxury goods firm). designed seeing interest in skyscrapers cities, where governments have schemes and global private equity over the billion dollar mark to be alternative to bonds and equities. is characteristic of from private investors; as shown often wanted to encourage large This transition of skyscrapers funds. Recent examples include invested in a single deal. this mixed-use approach. The 3.4 m Another attraction of skyscrapers by Brazil’s Safra family buying 30 amounts of modern business space away from finance and towards Blackstone purchasing 1740 sq ft project (including twin towers Changes in global capital markets are relates to the diversity of the St Mary Axe. This could suggest a to be developed to accelerate the creative industry occupiers is Broadway and the Park Avenue of 85 and 86 floors) will incorporate shaping the new trend, as the mega- tenancy schedule found in new club of skyscraper investors is modernisation of their cities. seen elsewhere in the world. In Tower in New York for a combined offices, luxury homes, a five star many towers. Multiple tenants San Francisco towers are under funds have traditionally been major emerging where the status factors With economic maturity we could hotel, conference centre, and high- $1.1 bn, while in London the Qatari with leases expiring at different construction to house technology investors in sovereign bonds. Years of found in leasing tower space are see more cities in Asia choosing not end retail. Investment Authority recently times increases exposure to the jobs moving into the city from low- Quantitative Easing (QE) have pushed similarly applied to owning one. to build very big towers in the future, combined with Brookfield to buy rental cycle, creating plenty of rise Silicon Valley. Cloud computing The resounding message from our bond yields to record lows for some of but adopting the western model as the majority shareholding in opportunity to asset manage a SKYSCRAPERS AND THE FUTURE firm, Salesforce has pre-let a new study of the global skyscrapers the most popular triple A and double the need to modernise recedes. The developer Canary Wharf Group. tower to exploit changes in the skyscraper as its headquarters in market is that they are associated A sovereigns, making real estate The skyline of Pudong Turning to the future, skyscrapers drive for super tall buildings may leasing market. San Francisco, and in London they with exclusivity, whether it be for For funds which have very large yields comparatively attractive. QE in Shanghai has offer many opportunities for give way to a world where towers are has also encouraged many funds to become symbolic of also occupy space in The Heron commercial or residential use. This amounts of money to deploy sub- Particularly for pension funds, who China’s emergence as crowded inner cities to address less concerned with height and more Tower. Similarly, Al-Jazeera are can be more of a psychological $100 m deals can be too granular, diversify their investment portfolios, must match income streams with an economic giant problems of how to accommodate with the financial bottom line. GLOBALGLOBAL SKYSCRAPERSSKYSCRAPERS CITIESCITIES 20152015 REPORT REPORT

IN 2009 THERE WERE

SKYSCRAPERS IN THE WORLD WITH HEIGHTS OF OVER NINETEEN ONE THOUSAND FEET

TODAY THERE ARE SEVENTY NINE

40%OF WHICH ARE IN CHINA 28%OF WHICH ARE IN THE UAE Source: Emporis, Knight Frank Research, Newmark Grubb Knight Frank Research Note: based on completed buildings GLOBAL SKYSCRAPERS CITIES 2015 REPORT 12-14

SKYSCRAPER $150.00 $124.00 $108.75 $97.00 $94.25 $91.75 $90.00 $73.00 $68.75 $67.50 $65.00 $61.00 $58.25 $51.50 $43.50 $37.75 $33.25 SKYSCRAPER INDEX $250.50 Skyscraper Prime Office Rents INDEX (USD/sq ft/yr)

Hong Kong remains the world’s leading city for skyscrapers, but New York is closing fast. While Asia may be building apace, economic recovery in the US is buoying demand for towers from investors and tenants in the big North American cities.

Knight Frank’s latest skyscraper growth for tower space has buoyed index has been expanded to take New York, where skyscrapers are into account additional measures proving popular with the city’s fast of a city’s significance as a centre of expanding digital and creative firms. high rise business and living. The It is probably no coincidence index now assigns scores to each that the cities ranked first and city based on a range of indicators, second have their CBDs on islands. including skyscraper office rents Skyscrapers are the ideal solution and yields, the spread offered by for space constrained CBDs, investment yields compared to particularly in an era when cities national bonds, the number of high are repopulating, as towers are able rises built, and growth prospects to maximise the potential space for the city. that can be delivered on a site. The previous index had Hong HONG KONG NEW YORK TOKYO LONDON SAN FRANCISCO SINGAPORE SYDNEY MOSCOW LOS ANGELES SHANGHAI BEIJING CHICAGO PARIS FRANKFURT MUMBAI DUBAI KUALA LUMPUR SEOUL Kong in the number one slot with a huge lead. Interestingly, despite SCORES widening the criteria assessed, Skyscraper Prime Office Rents: Hong Kong is still top of the table, Source: Knight Frank Research, Newmark Grubb Knight Frank Research, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 confirming that on a range of Sumitomo Mitsui Trust Research Institute *Illustration not to scale measures it is the world’s leading HONG KONG NEW YORK TOKYO LONDON SAN FRANCISCO LOS ANGELES SYDNEY CHICAGO SHANGHAI SINGAPORE FRANKFURT SEOUL PARIS BEIJING KUALA LUMPUR DUBAI MUMBAI MOSCOW skyscraper city. However, the lead Skyscraper Index: 131.4 126.6 116.8 112.3 112.2 102.9 100.2 98.5 95.3 94 93.6 90.1 84.8 75.6 64.4 62.6 55.2 50.8 over the competition has narrowed. Source: Knight Frank Research, Newmark Grubb Knight Frank Research, Sumitomo Mitsui Trust Research Institute, The IMF, Thomson Reuters, In particular, stronger rental JP Morgan Chase GLOBAL SKYSCRAPERS CITIES 2015 REPORT

Images: Hudson Yards

10 HUDSON YARDS

THE RELATED COMPANIES MITSUI FUDOSAN, THE RELATED COMPANIES

1,700,000 SQ FT 1,300,000 SQ FT 2,600,000 SQ FT

2015 2017 2018 UNDER CONSTRUCTION PLANNED PLANNED

52 STORIES 50 STORIES 84 STORIES

SIGNED: COACH, L’ORÉAL, SAP, DESIGNED FOR LAW FIRMS SIGNED: TIME WARNER VAYNERMEDIA (HBO, CNN, & WARNER BROS.)

5 MANHATTAN WEST 450 WEST 33RD ST 509 WEST 34TH ST

BROOKFIELD PROPERTIES THE MOINIAN GROUP TISHMAN SPEYER

1,800,000 SQ FT 1,800,000 SQ FT 2,850,000 SQ FT

2016 (RENOVATION) 2018-2019 2019 PLANNED UNDER CONSTRUCTION PLANNED

16 STORIES 66 STORIES 61 STORIES WEST SIDE STORY WEST NEW YORK’S NEXT SKYSCRAPER CLUSTER SKYSCRAPER NEXT YORK’S NEW SIGNED: CHASE DIGITAL MEDIA MIXED-USE DEVELOPMENT DEVELOPMENT PLANS POSSIBLE ANNOUNCED JULY 2014

In Manhattan’s 1 & 2 MANHATTAN WEST Far West Side an THE RELATED COMPANIES BROOKFIELD PROPERTIES ambitious new 2,300,000 SQ FT 4,000,000 SQ FT district is under 2020 TBD construction, with PLANNED PLANNED world famous 62 STORIES 67 STORIES EACH companies signed PROJECT IN EARLY STAGES SKADDEN, ARPS OF PLANNING SIGNED: AN LOI Source: as anchor tenants. Newmark Grubb Knight Frank Research 5 02 01 living near work in densely developed inner cities. work developed densely inner in near living of popularity the of matching a means towers offer For cities western growth. population and economic to rapid response space in business homes and of swathes large of delivering a means offer skyscrapers cities, by For 2050. 814 markets emerging million India’s to is population forecast nearly doubleurban to to 41 by 2030. 28 currently from to jump million) space for uses. other internal up freeing for a need counterweight, the eliminate would which technology on magnet Itno cable. based is into looking steel. elevatorare Thyssen-Krupp an has that weight of the of it a fraction is , to hoist as energy less using while one long kilometre as as be can which company, Kone, have developed a new fibrecarbon cable mega cities (those with a population of over a population 10 (those cities with mega Finnish increase. consumption energy weight and both the globe. the Theglobe. the number UN of is predicting problematic becomes as metres much 500 above CITIES GLOBAL about rapid population growth in cities across across cities in growth rapidabout population steel going With cables, effective. cost economic opportunities have brought brought have opportunities economic and possible both this to make emerging are Migration, gentrification, and growing growing and gentrification, Migration, higher, new rise technologies buildings As

2015 REPORT SKYSCRAPERS LIVING INTHECITY NEW TECHNOLOGY TRENDS FUTURE component of urban growth. to go upwards, making skyscrapers an essential five trends that will encourage the Global Cities thus converting air into ‘land’. Below we identify spreading out, or vertically by building skywards When a city grows it can do so either laterally by

02 01 05 03 04 05 04 03 economy of shopping, culture and tourism. and economy of shopping, culture evening and weekend a encouraging hours, office of outside CBD town the no longer a ghost becomes centre, the more in people to live towers allowing With events, of to improvelife. quality cultural and markets for used be These can tower concentrations. between created be can sculptures and art with interspersed space not is upwards extending laterally, public areas commercial Once amenities. other and leisure retail, to work. or cycling jogging like commuting eco- increases sprawl also Reducing countryside. into the surrounding further lines extending rather than times at efficiency and peak capacity local maximising on to focus networks transport allow would cities More vertical to sprawl. need concentrated, the reduce – a factor in Detroit’s recentSkyscrapers bankruptcy. them around to towns ‘adopt’ the suburban cities struggle of new skyscrapers. where we have a raft seen is code, post EC3 the in firms insurance the London, in cluster business enduring most the that noteworthy It is helps to keep local. a cluster skywards Going future. in clusters could ahi-tech be set to in significance grow New in York, South or Midtown suggesting Francisco San in it SOMA be whether areas, urban dense in frontage, and indeed floors, basements first and for indeed and frontage, problems if funding municipal and political create to cluster propensity a strong shown has companies homes skywards frees up floor frees the ground homes skywards also It can longer oncommutes staff. imposing and new wave of the digital Indeed case. not the been the city at ground level. Building offices and and offices level.at the city ground Building on fields, green building networks, transport has this instances most but in clusters, business skyline, the ordinary citizen encounters encounters citizen ordinary the skyline, problems creating of extending outwards, to break-upexpected widely was trading While media attention often falls on the on the falls often attention media While sprawl typically they grow cities As electronic and internet of the The rise THE COMMUNITY CITY LIMITING SPRAWL BUSINESS CLUSTERS

5 FUTURE TRENDS 16-17 GLOBAL SKYSCRAPERS CITIES 2015 REPORT 18-19

ABOUT CONTACT SKYSCRAPERS 2015 REPORT BY KNIGHT FRANK AND NEWMARK GRUBB KNIGHT FRANK

JOHN SNOW, HEAD OF COMMERCIAL JONATHAN MAZUR, KNIGHT FRANK MANAGING DIRECTOR OF RESEARCH ABOUT THE GROUP +44 20 7861 1190 NEWMARK GRUBB KNIGHT FRANK [email protected] +1 212 372 2154 [email protected] THE GROUP JAMES D. KUHN, PRESIDENT NEWMARK GRUBB KNIGHT FRANK NICHOLAS HOLT, HEAD OF RESEARCH +1 212 372 2200 KNIGHT FRANK ASIA PACIFIC Knight Frank and Newmark Grubb Knight Frank, [email protected] +65 6429 3595 [email protected] together, is a thoroughly integrated market-leading JAMES ROBERTS, CHIEF ECONOMIST KNIGHT FRANK DAVID JI, HEAD OF RESEARCH global real estate advisor. +44 20 7861 1239 KNIGHT FRANK GREATER CHINA [email protected] +852 2846 9552 [email protected] LIAM BAILEY, GLOBAL HEAD OF RESEARCH MATT WHITBY, HEAD OF RESEARCH KNIGHT FRANK KNIGHT FRANK AUSTRALIA +44 20 7861 5133 +61 2 9036 6616 [email protected] [email protected]

The combined group have strategy, leasing, workplace highly developed and enviable more than 12,500 property consultancy, tenant representation Valuations business who can professionals, with more than and project management. manage the valuation of a portfolio 370 offices around the world; this of global assets from a single Our Global Capital Markets global commercial and residential location whilst working closely teams operate from five core CAVEATS capability allows us unrivalled with our teams at a local level. regions, the UK, Europe, Asia, access to wealth, properties and Middle-East and The Americas. occupiers in 55 countries. Our track record of trust and This report is published for general information Many external sources regarding Skyscrapers or damage resultant from the contents of this We have unrivalled access integrity means we, together, are only and not to be relied upon in any way. have been consulted for this report, but forecast. As a general forecast, this material Our integrated office network to institutional, corporate, becoming increasingly recognised Although high standards have been used in the the information has been cross referenced does not necessarily represent the view of preparation of the information, analysis, views against Knight Frank and Newmark Grubb Knight Frank in relation to particular properties enables us to offer clients a dedicated sovereign and private wealth. as the advisor of choice in the service from our headquarters in and projections presented in this report, no Knight Frank’s proprietary knowledge, and or projects. Our Office Leasing teams are global real estate market. With responsibility or liability whatsoever can be information kindly provided by several firms London and New York City. Together, appointed on some of the most high our best-in-class advice, and accepted by Knight Frank LLP for any loss or in the development sector regarding their we are strengthened by the specialist profile buildings around the world, ability to deliver seamlessly in damage resultant from any use of, reliance on or specific skyscraper projects. This explains desks we have created in these cities, reference to the contents of this document. any disparities between data in the report and including The Shard in London, collaboration, we set ourselves devoted to further enhancing our that quoted elsewhere. Gateway in Sydney, SRE Finance apart in the global market place. As a general report, this material does not global client relationships. necessarily represent the view of Knight Frank COPYRIGHT: Centre in Shanghai and the Empire The combination of our people, LLP in relation to particular properties or projects. We have a highly developed Global @ Knight Frank LLP 2015 State Building in New York. The network, research and technology Corporate Services business Within this report all figures quoted for 2014 are FORECAST CAVEAT: Reproduction of this report in whole or in part strength and depth of our Leasing has helped us grow our enviable year-end. with hubs in London, New York Forecasting is an inherently uncertain is not allowed without prior written approval of and Tenant Representation track record and, for that reason, Knight Frank LLP to the form and content within and Hong Kong. Working with This report was largely written in March 2015 activity and subject to unforeseen changes business enables us to offer clients a clients come back to us time and based on available data and drawing from the which it appears. occupiers of commercial premises in the external environment. Although truly global service. time again. business news and market sentiment at the high standards have been used in the Knight Frank LLP is a limited liability partnership our teams are able to offer an time; then going to press in early April 2015. preparation of the information, analysis, and registered in England with registered number To complement our Capital Our objective is to deliver outstanding level of service Rent figures quoted for cities in the Americas, projections presented in this forecast, no OC305934. Our registered office is 55 Baker Markets, Tenant Representation globally, regionally and at a country uncompromising standards, our are prime average asking rents. Rents legal responsibility can be accepted by Knight Street, London, W1U 8AN, where you may look at or city level. We excel at portfolio and Leasing teams we have a clients deserve nothing less. elsewhere are quoted normal prime achieved. Frank Research or Knight Frank for any loss a list of members’ names. GLOBAL SKYSCRAPERS WWW.KNIGHTFRANK.COM/GLOBALCITIESCITIES 2015 REPORT