While traditional drivers like the financial, law and consulting industries continue to make their presence felt on the streets, tech is having an outsized effect. JLL's The Investor takes a deep dive into the 10 U.S. most expensive streets
Just how much will companies pay to occupy one of America’s most desired office addresses? According to JLL’s 2017 Most Expensive Streets study, which looks at the priciest U.S. office space, those high-profile strips command an average asking rent of $48.65 per square foot, a 46.9-percent premium compared to the rest of the country.
And they remain as popular as ever. Just 12.8 percent of the nation’s most expensive real estate is vacant – a full 250 basis points lower than the U.S. average.
What’s driving these expensive prices for the top streets? The age-old real estate adage of “location, location, location” still holds true, but it’s the new mix of tenants that’s increasing competition.
“As tech companies mature, their space needs begin to mirror those of traditional white-collar industries in these expensive locations,” said Scott Homa, JLL Director of U.S. Office Research. “Sand Hill Road is no longer the only example of this. We see it in cities like Boston, Cambridge and Austin where major tech players have leased large blocks of premium space.”
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