Every two years, JLL takes a look at the priciest addresses across the United States, along with the factors that have shaped these record-setting rents. In 2015, location, industry and competition are contributing to office rents that are 1.7 times higher than CBD rent growth, and 2.9 percent higher than overall rent growth.
According to the firm, rents on these 10 streets cost the most on a per-square-foot basis:
- Sand Hill Road, San Francisco Peninsula: Dubbed “the Wall Street of the West,” due to the presence of venture capital firms, Sand Hill Road remains at the top of the rankings for the third time in a row. Its 2015, average rent is $141.60 p.s.f., up more than 27 percent in just two years.
- Hamilton Avenue, Silicon Valley: The rise of tech played a large role in Hamilton Avenue’s catapult to the second most expensive street. Add in restrictive planning ordinances and a transit-friendly, walkable environment and the appeal is apparent. Its 2015 average rent is $124.44 p.s.f., up more than 31 percent in just two years.
- Fifth Avenue, New York: Although facing competition from creative space in Midtown South and rising micro-markets like Bryant Park and Columbus Circle, Fifth Avenue still leads the pack in New York, a city synonymous with large price tags. Its 2015 average rent is $119.27 p.s.f.
- Greenwich Avenue, Fairfield County: Although one of the least-urbanized streets in the top 10, Greenwich Avenue is known as the hub for hedge funds and also offers proximity to New York. Its 2015 average rent is $90.25 p.s.f., down nearly three percent from 2013.
- Mission Street, San Francisco:Mission Street makes its first foray into the top 10, driven largely by the rise of tech developments south of Market Street. Other contributing factors include the Transbay redevelopment and creative space in nearby properties. Its 2015 average rent is $89.58 p.s.f.
- Pennsylvania Avenue, Washington, DC:“America’s Main Street” commands international name recognition due to its location near the White House and U.S. Capitol buildings. Redevelopments and renovations of marquee buildings will drive rents and tenant demand. Its 2015 average rent is $72.65 p.s.f., down from $75.83 p.s.f. in 2013.
- Boylston Street, Boston: High-profile properties and a broad range of tenants keep Boylston Street solidly among the top 10 Most Expensive Streets. Additional retail and hotel space is on tap to deliver on Boylston, which will keep the street competitive. Its 2015 average rent is $67.44 p.s.f.
- Avenue of the Stars, Los Angeles: While there is plenty of star power in Los Angeles, the Century City submarket is a pre-eminent hub for the highest-profile legal, financial and entertainment tenants. Its 2015 average rent is $63.12 p.s.f.
- Royal Palm Way, West Palm Beach: Royal Palm Way earned its nickname, “Banker’s Row,” due to the concentration of wealth management and financial services firms. Its 2015 average rent is $58.07 p.s.f., which is actually down from the $58.52 p.s.f. it was two years ago.
- Newport Center Drive, Orange County: According to the market’s fundamentals, it may be the perfect storm for investors to check out Orange County’s top retail and office destination: Newport Center Drive is displaying vacancy near 11 percent and rent growth of 3.3 percent since 2013. Its 2015 average rent is $51.72 p.s.f.