Of course, San Francisco, New York and Boston lead the way in the list of the 25 most expensive streets in the United States, but Texas is has a few streets in the mix: Congress Avenue in Austin (No. 10), McKinney Avenue in Dallas (No. 14) and Main Street in Houston (No. 21). 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 with the rest of the country. In Dallas, McKinney Avenue in Uptown is demanding upwards of $62 per square foot.
“Dallas’ Uptown is a desirable location for employment and living,” said Walter Bialas of JLL Research. “[Locating in] one of the original ‘live, work, shop, play’ environments in DFW, these companies are positioning themselves to attract top talent and retain employees. It’s certainly not unique in the grand view of what’s happening in commercial real estate, but it’s an excellent example of thoughtful urban planning, which has made this area what it is, and something that’s being implemented in other areas. It’s become a model for good planning both locally and nationally.”
Here are the Top 10, with notes from JLL:
1. Sand Hill Road, San Francisco: Home to some of the most prominent venture capital firms, Sand Hill Road is one of the Bay Area’s most high-profile business addresses. Rents average $119.38 per square foot and have hit as high as $185.
2. Fifth Avenue, New York: Popular among hedge funds, investment banks and law firms, Fifth Avenue remains a New York landmark and one of the country’s most glamorous addresses. Average rents reached $116.04 per square foot, with top rents of $185 coming at a 157.9 percent premium compared with the rest of the market, helping propel Fifth Avenue up one place from the previous report.
3. Mission Street, San Francisco: Mission Street is home to a blend of prominent tech and financial services tenants, making it one of the best-recognized addresses in San Francisco. With an average asking rent of $93.68 per square foot, Mission Street’s ranking rose by two spots since 2015.
4. Main Street, Boston: Main Street is at the heart of Kendall Square in Cambridge and a hub for the top life sciences and tech companies globally. An address here comes with average rents of $90 per square foot, a list-topping 143.6 percent premium compared with Boston at large. Vacancy is also in the mid-single digits at a minuscule 5.3 percent.
5. Greenwich Avenue, Fairfield County, Connecticut: Housing a variety of hedge funds and financial services companies, Greenwich Avenue is also lined with upscale retailers and restaurants. Rents average $86.53 per square foot, with top rents coming in at $101, a whopping 177.4 percent premium compared with the rest of Fairfield County.
6. Pennsylvania Avenue, Washington, DC: Pennsylvania Avenue not only serves as the address of the White House, it’s also home to a variety of prestigious law firms and lobbying organizations and offers some of the best views in Washington, DC. At $80 per square foot, sharing a street with the White House and the Capitol means paying a 95.1 percent premium compared with the rest of the market. The street maintained its ranking from 2015.
7. Ocean Avenue, Los Angeles: Ocean Avenue runs north and south along the Pacific Coast, offering stunning ocean views and easy access to the beach. But gaining access to the famed strip, where rents average $78.20 per square foot, is anything but easy: vacancy is just 7.1 percent.
8. Boylston Street, Boston: Boylston Street is the premier office market in Boston’s CBD. The area attracts primarily financial and legal services firms. At $68.87 per square foot, Boylston Street was supplanted from its previous ranking at No. 7.
9. Royal Palm Way, West Palm Beach: With a concentration of high-net worth individuals living in the surrounding areas, Royal Palm Way is home to many financial institutions and wealth management companies. Staying put in the ninth spot on the list, Royal Palm Way averages $61.80 per square foot, a 96.1 percent premium compared with the rest of West Palm Beach.
10. Congress Avenue, Austin: Traditionally home to financial and state government users, Congress Avenue has been transformed by a wave of new office, multifamily and retail developments into one of the market’s most dynamic corridors. A newcomer to the list’s top 10, Congress Avenue averages $55.20 per square foot and boasts a 9.5 percent vacancy rate.
For more information:
www.us.jll.com and look under the “research” tab.