Commercial office rental incomes are increasing, according to new research from BOMA that ranks the most expensive office markets in the U.S. for both operation and rental costs. Drawing from data in the 2015 Office Experience Exchange Report (Office EER), BOMA researchers found that San Francisco has the highest operating costs at $11.72 per square foot (psf), with New York City, San Jose, Washington, D.C., and Baltimore rounding out the top five. Conversely, Cincinnati came in as least expensive at $5.34 psf, with Salt Lake City, Orlando, Atlanta, and Fort Worth, TX also noted as having low operating costs.
The survey, which gathered data from over 5,300 buildings in the U.S. and Canada representing more than 820 million square feet, also measured U.S. markets by average rental incomes. The results show that New York City is the most expensive at $48.51 psf, with Washington, D.C., San Francisco, and Washington D.C.’s suburbs in Maryland and Virginia accounting for the top five. Topping BOMA’s list for least expensive markets by rental income is Detroit at $17.85 psf, with Columbus, OH, Fort Worth, St. Louis, and the suburbs of Chicago also coming in with low average rental incomes.