MARKE T
TRENDS
High-Priced
Office Markets
Te location for the top fve most expensive streets for ofce space — San Francisco Bay Area,
New York City, Fairfeld County, Conn., and Washington, D.C. — haven't changed in two years,
they've simply shufed places, according to Jones Lang LaSalle's recent report. However, a
comparison of the 2013 and 2011 rankings illustrate the diference between the fates of the
No.1 and No.5 markets. Te Bay Area registered a 30 percent increase in average market rents psf from 2011 to 2013; No.5 ranking Washington, D.C., clocked a 33 percent
decrease in average ofce rents psf. In between, New York, Silicon Valley, and Fairfeld
County registered increases of 12 percent, 21 percent, and 14 percent respectively.
Most Expensive Streets for Office Space
Sand Hill Road,
San Francisco Bay Area
54.00
60.39
53.49
Fifth Ave., New York
$110.76
75.96
102.02
94.92
82.26
67.44
University Ave.,
Silicon Valley, Calif.
Greenwich Ave.,
Fairfield County, Conn.
92.96
37.42
32.10
Pennsylvania Ave.,
Washington, D.C.
35.96
75.83
53.48
2013 average full-service rent on street psf
2013 average market rent psf
2011 average market rent psf
Source: Jones Lang LaSalle
MARKET
Falling Cap Rates
YOY change through 2Q13
Source: Marcus & Millichap
6
November | December | 2013
Primary
markets
Secondary/
tertiary
markets
APARTMENT
RETAIL
OFFICE
INDUSTRIAL
↓20 bps
↓10 bps
↓30
bps
↓40 bps
↓40 bps
↓40 bps
↓40
bps
↓80 bps
Commercial Investment Real Estate