According to a report from Commercial Edge, San Francisco has surpassed Manhattan as the most expensive office market in the nation. The average asking rent for office space in San Francisco is now $69.14 per square foot, slightly higher than Manhattan’s $68.48 and more than double the national average of $32.79.
This shift can be attributed to high rental rates in suburban areas like Sand Hill Road, which have contributed to San Francisco’s new status as the top office market in the country. However, despite this achievement, Commercial Edge notes that San Francisco still has a high vacancy rate of 27.7%, an increase of 360 basis points from last year.
In comparison, offices outside of San Francisco in the Bay Area have an average asking rent of $54.20 per square foot and a vacancy rate of 26/4%, up by 630 basis points year-over-year.
In October alone, sales prices for offices averaged at $392 per square foot -the highest nationwide- with sales volume reaching$722 million and ranking fourth among Western states’ markets.Similarly,Los Angeles ranks third nationally with sale prices averaging at$354per square footand second regionallyin terms ofsales volumeat$1/7billionthroughOctober.
