- 1 Minute Read
- 12th September 2011
Office space rental in California skyrockets
According to a recent report on office space rental in the USA real estate firm, Jones Lang LaSalle Inc, noted Sand Hill Road in Menlo Park, California, as the most expensive street in North America.
These findings come as somewhat of a surprise, as office space in Manhattan’s financial district are hot property with corporate businesses. However, it seems sunny California has skyrocketed in relation to the 40 North American office markets surveyed.
Vice president of research at Jones Lang LaSalle Inc, John Sikaitis, told Reuters that “location is everything in real estate and this study proves it”.
Compared with an average of $54 per square foot in the Menlo Park area, the actual rental price of serviced offices on Sand Hill Road start at a whopping $198 per square foot! Second on the list was Manhattan’s Fifth Avenue, which has an average rental price of $97.14 per square foot, and third was Greenwich Avenue in Connecticut at $89.86.
One of the reasons behind this huge rental price is notable to the Venture capital companies based on Sand Hill Road which are start-up businesses with high-potential. However, it has been predicted that Mission Street in San Francisco will soon overtake Sand Hill Road as being the most expensive street to rent office space in America due to its fancy new business centres, and plans to unveil a 1,200 foot tower, Transbay Tower. If these predictions are correct, Downtown Manhattan may have to move over as the office market shifts South.