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Office Asking Rents 2021: The Top 50 U.S. Submarkets

by Point2 Staff
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4 min. read

The previous two years have sent shockwaves through commercial real estate markets across the country. With hybrid working environments in place, companies have had to adapt when choosing which type of properties to operate in, forcing unprecedented change throughout the sector. In addition, significant increases in investment in medical and life sciences real estate have inevitably contributed to lifting certain markets, altering the map of the most desirable destinations for capital.

A recent study by CommercialSearch looks at how the landscape has changed and examines the priciest U.S. office submarkets. Studying the average asking rents per square foot in Q4 2021, they’ve compiled a top 50 list.

In this overview, we’ll look at the findings at regional level.

West: Pacific Coast Dominates the Rankings

The West Coast area is by far the dominant force in the ranking, with 27 Californian submarkets and one in Seattle making the top 50 list. Menlo Park in San Francisco takes the number one spot, with an average asking rent of $118.73 per square foot.

With nine entries in total, submarkets in San Francisco lead the way, followed by LA and the Bay Area, which each have seven. The remaining four Californian submarkets are in San Diego.

San Francisco and the Bay Area feature heavily in the top 10, too, with six spots between them. Beverly Hills, LA, also makes the top 10 in ninth place, giving California seven slots.

Asking rents across California’s submarkets range from $46.55 per square foot to Menlo Park’s $118.73. Meanwhile, the Bellevue Market in Seattle ranks 43rd overall with an average asking rent of $48.58.

Northeast: New York City Takes the Lead

With twelve entries in the top 50, the Northeast is the second-largest regional group. Manhattan leads the way with six of these markets — its Plaza District takes the number two spot in the national ranking, with an average asking rent of $107.41 per square foot. This makes it one of the only two submarkets to exceed the $100 mark.

Two other Manhattan submarkets make the top ten, Chelsea at number six and Times Square – Hell’s Kitchen at number seven. Of the six NYC submarkets in the top 50, only the Financial District, with an average rent of $56.26, is not located in Midtown.

Outside of NYC, the remaining six northeast submarkets are located in New Jersey, Massachusetts, Philadelphia and Connecticut. Of these, New Jersey’s Hudson Waterfront South submarket ranks the highest, taking the 26th spot with an average rent of $56.52. It’s closely followed by Boston’s Central Business District at 27, with an asking rent of $56.41. Finally, Downtown Boston is marginally less expensive and takes the number 33 spot with a price of $54.77.

South: Florida Submarkets Outpace Those in Texas

With just ten submarkets making the top 50 list, the southern region of the U.S. is somewhat lagging behind the West and Northeast. In fact, the Uptown/Oak Lawn submarket of Dallas – Fort Worth takes the last spot in the top 50, with an average asking rent of $46.47 per square foot. At the other end of the spectrum, the most expensive southern submarket is Brickell in Miami, which ranks twelfth. Here, you can expect to pay an average of $68.52 per square foot.

Florida leads the way in the south, with four submarkets in total, two in Fort Lauderdale and two in Miami. Fort Lauderdale’s Hollywood and Central Business District rank 42 and 46, respectively, while Miami’s other entry, Coral Gables – Downtown, comes in at 47.

Texas had three top 50 entries, with Downtown Austin being the most expensive. Ranking 23rd, the average asking rent is $58.93 per square foot. D.C. also occupies three slots — East End in Washington D.C. – Suburban Maryland is the most expensive here, ranking 24th with an average asking rent of $58.17.

 

Interested in the office or shared spaces market in the cities mentioned in this study? Check out the links below:

Office space for rent in Los Angeles

Coworking in Los Angeles

Office space for rent in New Jersey

Coworking in New Jersey

Office space for rent in Washington D.C.

Coworking in Washington D.C.

Office space for rent in Fort Worth

Office space for rent in Miami

Office space for rent in Fort Lauderdale

Office space for rent in Manhattan

Coworking in Manhattan

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