According to new analysis from global real estate services firm Cushman & Wakefield, the price of rent has risen dramatically, especially in metropolitan areas.
Average Price of Rent
The average asking price of rent on available space in all markets, suburban plus central business district (CBD), reached $29.96, up $0.49 or 1.7% from Q4 and 4.6% from a year ago. Since the bottom of the cycle in Q1 2010, average asking office rents have increased 19.5%. Five metro areas recorded double-digit year-on-year rent growth in Q1: Brooklyn (+16.5%), Oakland/East Bay (15.0%), Palm Beach (+13.9%), Nashville (+13.8%), and Seattle (+11.0%). San Francisco continues to hold the top spot in terms of rent growth in this cycle. Since Q1 of 2010, asking rents in San Francisco have increased by 119.9%.
Highest Average Rents Overall
In terms of highest average office rents achieved, Manhattan continues to lead the pack, with all three CBD markets in the top five: Midtown Manhattan tops the list with average asking rents of $78.83 per square foot, followed by Midtown South Manhattan ($71.48), San Francisco ($69.66), San Mateo ($58.74), Downtown Manhattan ($58.54) and Washington, DC ($53.21).
More reports from Cushman & Wakefield are available at its Research and Insights page.