Jones Lang LaSalle Reveals the Most Expensive Streets for Office Space in North America

In a recent study of 40 office markets across North America, Jones Lang LaSalle reveals the most expensive streets* for office space.  Sand Hill Road in Menlo Park, Calif., topped the list with average rents reaching almost $114 per square foot (psf), while iconic streets such as Fifth Avenue in New York runs at $97 psf and Pennsylvania Avenue in Washington, DC fetches above $80 psf.

Toronto’s Bay Street comes in at number nine with average rents running at around $52 psf and the top rent on the street making $78 psf, a staggering 81 percent higher than the average office rents in the rest of the city.  Albert Street, in the capital follows behind, ranking tenth with an average office rent of $49.94 psf which is 66 percent higher than average rents in the rest of the city. Burrard Street in Vancouver lands in 11th place with average rents hitting $48.88 psf and the top rent on the street coming in at $61.80 psf.

“Rents for office space in these streets were around 60 percent higher than the average rents in the same metropolitan area,” said Jim Becker, President, Jones Lang LaSalle Canada. “Location is everything in real estate and this study proves it.  Despite economic conditions, demand for these prime and often prestigious addresses continues to be high.”

The Top Five Most Expensive Streets for Office Space in Canada:

1. Bay Street, Toronto, $52.09 per square foot
At the epicenter of Toronto’s financial district and possessing one of the lowest historical vacancy rates in Canada, Bay Street is home to many international banks, financial companies such as hedge funds and securities companies as well as law firms.

2. Albert Street, Ottawa, $49.94 per square foot
One of the main east-west streets in downtown Ottawa, Albert Street houses many of the capital’s government office buildings.
 
3. Burrard Street, Vancouver, $48.88 per square foot
A main thoroughfare in the city’s financial district and home to top law firms and financial service and real estate related companies.

4. Third Avenue, Calgary, $47.51 per square foot
Law firms as well as energy and oil companies are among some of the tenants renting space on Calgary’s Third Avenue.

5. McGill College Avenue, Montreal, $41.05 per square foot
The scenic avenue located in downtown Montreal and stretching only four blocks has attracted and retained some of the largest banks, insurance companies and law firms in Canada.

 


“These streets are really driving Canada’s office market,” said Becker.  “Despite exceeding the national rent average of $32.20 by 28 percent, there is never a shortage of tenants willing to rent space at one of these coveted addresses.”

Across the 40 markets analyzed in the study, rents on the most expensive streets exceed the market average by 49.8 percent.
 

North America’s Most Expensive Streets for Office Space**:

on September 23, 2011