Jones Lang LaSalle released it's official list of 2013's top ten most expensive streets in the United States for office space, with bicoastal cities topping the chart. The recent study of 40 office markets across the United States, with rents on the most expensive avenues exceeding the market average by 49.8%. "This year's results are particularly interesting because, not only do they demonstrate the standard real estate rule that location is everything, but they also reflect the overall office space demand trend in the U.S.," said John Sikaitis, Managing Director of Office Research at Jones Lang LaSalle. "We are seeing a slight uptick in occupancy rates as a result of the rate of business growth in the economy combined with a lack of new development."
The Top 10 Most Expensive U.S. Streets for Office Space (click here to view the 2011 results):
1. Sand Hill Road, Menlo Park, Calif.: $111.00 p.s.f. (-2.5%)
Historically the most expensive area in Silicon Valley, Sand Hill Road has deep roots with the venture capital community and houses the top VC firms in the greater Bay Area.
2. Fifth Avenue, Midtown Manhattan, NYC: $102.00 p.s.f. (+5.0)
Consistently ranked among the most expensive shopping streets in the world, Fifth Avenue is also home to numerous hedge funds looking for top-quality space in Midtown and willing to pay more for those coveted office locations with their unparalleled amenities.
3. University Avenue, Silicon Valley, Calif.: $95.00 p.s.f. (+14.1%)
Located in Downtown Palo Alto, University Avenue is known for its vibrant startup community, as its proximity to Stanford University makes it an ideal location for recruiting top young talent.
4. Greenwich Avenue, Greenwich, Conn.: $93.00 p.s.f. (+3.4%)
Greenwich Avenue competes with the best commercial real estate, leveraging its rich history preserved through older buildings. Top-shelf retail establishments dot the historically-rich corridor, from the top of the Avenue down through the transit center. Hedge funds and financial services firms occupy the majority of office space, with many top executives only steps from their homes. Premier office buildings offer close proximity to train, and command rents as high as $100 p.s.f.
5. Pennsylvania Avenue, Washington, DC: $76.00 p.s.f (-5.5%)
Despite slower overall market conditions in recent quarters, Pennsylvania Avenue has continued to experience rent premiums to the rest of the market. Known as "America's Main Street," Pennsylvania Avenue is home to many firms wanting close proximity to Washington's two main points of power, the White House to the west and the Capitol to the east. A big growth area in tenant demand in recent years has stemmed from the government affairs sector of corporate America.
6. California Street, San Francisco: $62.10 p.s.f. (+43.9%)
The main street of the city's North Financial District, California Street, is known for its historic cable car route, broadness and high-priced real estate. Growth in tech and associated industries, along with limited new supply, have pushed rents up by almost half over the past two years.
7. Boylston Street, Boston: $60.20 p.s.f. (+14.3%)
Boylston Street runs through two of Boston's most prestigious areas, Back Bay and the Financial District. It is home to numerous landmarks, Trophy office buildings and high-end retail, as well as some of the city's most distinctive skyscrapers.
8. Avenue of the Stars, Los Angeles: $60.12 p.s.f. (+1.9%)
The thoroughfare through the highly desirable Century City market, Avenue of the Stars is home to many prominent legal and financial service firms and talent firms, as well as the largest cluster of Class A Trophy assets on the Westside.
9. Royal Palm Way, West Palm Beach: $58.52 p.s.f. (+0.9%)
Royal Palm Way is dubbed "Banker's Row" due to the concentration of wealth management and financial services firms, catering to the wealthy residents on Palm Beach Island.
10. Newport Center Drive, Orange County: $50.06 p.s.f. (+4.3%)
Sitting on a bluff overlooking the Pacific Ocean, Newport Center Drive is a 1.3 mile ring that encompasses the Fashion Island retail center. World class dining and retail amenities along with ocean view suites and access to posh residential neighborhoods make Newport Center Drive one of the most premiere places to rent office space in Southern California.
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