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DECEMBER 09, 2013
Past Weeks
By Ryan Ori December 09, 2013
Willis Tower, already knocked from
its perch as the Western
Hemisphere's tallest building by
New York's One World Trade
ADVERTISING
Center, soon could face a new
challenge from within its own city.
The owner of the observatory in
Costar photo
the John Hancock Center on North
Michigan Avenue is planning a
tourist experience called the “Tilt”
that would rival the Ledge, the
popular and profitable glass-floor
balconies on Willis' 103rd floor,
according to sources familiar with
the proposal.
Paris-based Montparnasse Group 56, which bought the 94th-floor John Hancock Observatory for
$44.2 million in 2012, has discussed creating an enclosed glass box protruding from the
observatory that would hold several visitors. Once they're strapped in, the box would tilt, creating
downward-facing views of downtown.
More is at stake than prestige and vertigo. Well-known skyscrapers can generate significantly more
cash per square foot in ticket sales, souvenirs, food and drinks than through office and retail rents
in the rest of the tower, says Daniel Thomas, executive director of the World Federation of Great
Towers, a group dedicated to generating tourism for its 42 member towers.
“It's no secret that observation decks as a business are very profitable, as opposed to leasing
square footage in the building,” says Mr. Thomas, a former general manager of the Hancock
Observatory who is based in Chicago.
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In going public this year, New York's iconic Empire State Building disclosed that more than $92
million, or just over 40 percent of its annual revenue, is generated by its observation decks. The
world's most visited spire, the Eiffel Tower, with more than 7 million tickets sold per year, likely
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brings in considerably more, Mr. Thomas says.
He estimates Willis Tower's annual revenue at more than $25 million in ticket sales alone, while
Hancock likely brings in more than $10 million.
A spokeswoman for the Hancock Observatory declines to comment on the plans. Randy Stancik,
the Willis Skydeck's general manager, would not disclose revenue figures.
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“I strongly believe there is room for two observation decks in Chicago,” Mr. Thomas says. “The
unique situation that the Hancock has is, it has twice the floor space as Willis Tower on the
observation-deck level. The Hancock has the capacity to handle a lot more demand.”
Last month, Willis Tower lost its title as the hemisphere's tallest skyscraper. The Council on Tall
Buildings and Urban Habitat, the Chicago-based arbiter of building heights, ruled that One World
Trade Center in New York will be recognized officially as 1,776 feet tall—eclipsing the Chicago
http://www.chicagobusiness.com/article/20131207/ISSUE01/312079986/hancock-center-c... 12/9/2013
Hancock Center considering rival for Willis Tower's Ledge - In Other News - Crain's Chi... Page 2 of 3
high-rise's 1,450 feet. That decision came after a committee met to discuss whether the top of the
New York structure is a spire, which counts toward height, or an antenna, which does not.
The John Hancock Center is 1,128 feet tall but has an advantage in its proximity to tourists
shopping and staying on Michigan Avenue, as well as better views of Lake Michigan.
Unlike Willis, the Hancock Observatory faces internal competition from the Signature Room one
floor above it. Many visitors choose dinner or a drink on the 95th floor and skip the observatory,
which is owned separately.
Annual visits to the Willis Tower Skydeck (pictured above) have jumped more than 40 percent from
2008, the year before the Ledge opened, to 1.6 million in 2012. Tourism at the 110-story Hancock
has remained stagnant, with 530,000 guests last year.
The Hancock Observatory's specific plans have not been unveiled. If the observatory owner can
gain city approval for the Tilt, it could be the kind of attraction needed to capture thrill-seekers
familiar with the Ledge, as well as wilder options available in other countries.
Daring guests at China's 1,109-foot-tall Macau Tower can bungee jump or skydive from a 764-foothigh platform. Or they can walk, strapped into a protective harness, around the ledge—an option
also available atop Toronto's 1,168-foot CN Tower overlooking Lake Ontario.
Mr. Stancik, a vice president at Chicago real estate firm U.S. Equities Realty LLC and former
general manager of the Hancock Observatory, declines to comment on the potential impact of the
Hancock plans on his Skydeck operation, saying, “I can't speak to an unknown.” But he says the
Ledge has led to spinoff business such as pre-opening breakfasts, after-hours private dinners and
other events.
“We were first to market with a product like this, and our growth has not slowed down since we
started this,” Mr. Stancik says. “You can't come to Chicago and not see us.”
For complete coverage of Chicago-area real estate, visit ChicagoRealEstateDaily.com.
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