Although Austin had the largest construction pipeline on a percentage-of-stock basis at 7.6% (both in the region and nationally), Dallas led development in the region in terms of square footage, with nearly 7.4 million square feet underway. [Total Square Feet x Price per Sq Ft. 12 (months) = Monthly Rent] Manhattan, of course, still commands the highest asking rents in the U.S. at $74.73 per square foot, but rates have continued to slip, coming in 4.27% below year-ago levels. Other leading tech markets, such as Seattle, San Francisco, and Portland also saw their office vacancy rates increase by 1.47%, 2.87 % and 3.20% year-over-year in January. Average base rental rate: $0.85 per square foot per month Estimated operating expenses (NNN): $.25 per square foot per month For this warehouse, the total asking lease rate is $1.10 per square foot per month. Alabama ZIP Codes Alaska ZIP Codes Arizona ZIP Codes Arkansas ZIP Codes California ZIP Codes Colorado ZIP Codes Connecticut ZIP Codes Delaware ZIP Codes District of Columbia ZIP Codes Florida ZIP Codes Commercial construction costs are slightly lower in the Eastern U.S., but they are still above the national average at $523 per square foot. Price Per Square Foot x Total Square Feet = Total Annual Rental Rate For example: $32.00 / sq. Although offices in urban locations experienced the sharpest decline in asking rents, developers were most active in these areas. The Fields a 180-acre, $2 billion mixed-use project in Frisco will eventually include four million square feet of office space alongside retail, restaurants, apartments and hotels. As soon as this statistic is updated, you will immediately be notified via e-mail. Lyft is set to cut its office footprint by 45% across four cities, including NYC, while Meta is looking at reducing its footprint at four addresses by subleasing space and backing out of lease commitments. Access to this and all other statistics on 80,000 topics from, Show sources information Specifically, Class B offices recorded a 6.0% decrease for an average rate of $30.30 per square foot, while listing rates for Class C spaces contracted 12.9% year-over-year, closing November at an average $23.05 per square foot. Despite a slowdown in the tech industry, which makes up an outsized portion of the markets office utilization, the new supply pipeline in Seattle remains substantial. If you are an admin, please authenticate by logging in again. The average U.S. office listing rate stood at $38.04 per square foot, up 1.1% year-over-year Up 80 basis points year-over-year, the national vacancy rate rested at 16.6% Under-construction office space reached 123 million square feet or 1.9% of total stock Office sales totaled $1.9 billion in January, with assets trading at $202 per square foot If you are an admin, please authenticate by logging in again. On the other end of the spectrum, Miami has the least amount of office space (about 12 square feet per person to Boston's roughly 61 square feet per person) and Seattle's is the smallest labor force. Using the same numbers as above, the calculation works like this: $72,000 X .02 = $1,440$1,440 + $500 = monthly rent of $1,940. For example, if the rentable square footage is 1,130 and the price is $1 per square foot . Tech layoffs in the market have been widespread, from giants like Amazon and Meta to real estate tech firms Redfin and Zillow, which will put some downward pressure on office demand and occupancy rates. Across all submarkets, class B office space recorded an average asking rent of $22.96 per square foot. However, Boston, the Bay Area, Washington, D.C. and Dallas each recorded more than $4 billion. Among the 25 largest office markets in the U.S., Manhattan remained on the top for office asking rates at $75.74 per square foot, well above the second-highest rate recorded in San Francisco ($67.43) per square foot and the third-highest rate of $57.06 per square foot in the Bay Area. The national average sale price of an office property fell from $269 per square foot in the first quarter of 2022 to $214 per square foot in the fourth quarter. Finally, the third property has 2,400 square feet of floor space and sells for $400,000. Markets in the South continued to reap the benefits of the pandemic-driven worker migration and company relocation trends. Jeff Gerardi is the owner, President and CEO of ProEst, a California-based technology company that develops estimating software for the construction industry. Listing Rates Listing Rates are full-service rates or full-service equivalent for spaces that were available as of the report period. The commercial real estate market is always in flux with new trends and developments emerging all the time. Advertise; US. You probably want to know how much that space will cost in neighborhood A versus neighborhood B. Are you ready to get started? Year-to-date metrics and data include the time period between January 1 of the current year through the month prior to publishing the report. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. As of January, there was 123.6 million square feet of office space under construction nationally, accounting for 1.9% of total inventory. To determine a fair rent value for your property, you need to look at several things, including: Once you combine these different data points, you should be able to generate a good range for what a fair rent price should be. The average household size is down from 2.76 to 2.51 people. Please create an employee account to be able to mark statistics as favorites. As a Premium user you get access to background information and details about the release of this statistic. If youre looking to underwrite single tenant triple net (NNN) investments, look no further. The most affordable neighborhoods in Oklahoma City are Horseshoe Lake, where the average rent goes for $559/month, Deerfield Estates, where renters pay $678/mo on average, and Dunjee Park, where the average rent goes for $678/mo. She has an academic background in Journalism and Irish Studies. Commercial tenants are generally more business-oriented and experienced in leases, and they often hire real estate professionals or attorneys to handle their lease activities if theyre not. Contact us today! You will want to understand what the average price per square foot is in your city, neighborhood, and state, ie your zip code. Using its own estimates and company filings, Cowen & Co. analyst Oliver Chen broke down which retailers are paying the most rent per square foot, as well as which rake in the most sales per square . Similarly, if you are looking at investing in commercial property, you will want to know whether the current or potential future value changes from block to block or area to area. PLUS: get your free PDF download of Tylers book. Commercial real estate is a huge industry that affects millions of people. As you browse locations, one thing may be at the forefront of your mind: rent. I don't think they cover the entire US, and they only look at CRE above a certain dollar size (something like $5,000) Free option: Craigslist Scrape craigslist.org for office building listings. Metros with high quality office products might be better positioned to weather the storm, as tenants continue to look for well-amenitized, Class A office space in premium locations. Per our example above: 3,000 Usable Square Feet x 16.7% common area factor = 501 square feet of common area, 501 square feet + 3,000 Usable Square Feet = 3,501 Rentable Square Feet. CommercialEdge uses aggregated and anonymized expense data to create full-service equivalent rates from triple-net and modified gross listings. Overall, retail was the most affected sub-market. National average rent reached $6.59 per square foot. In terms of location, rates for CBD spaces recorded a 0.2% year-over-year decrease in listing rates for an average of $50.87 per square foot. Search apartments for rent within the 90033 zip code with the largest and most trusted rental site. As soon as this statistic is updated, you will immediately be notified via e-mail. These lease structures are most commonly found in office properties. }); This site is protected by reCAPTCHA and the Google. From time to time I've heard of them gifting data access for research purposes. This report covers office buildings 25,000 square feet and above. Across the top 50 U.S. office markets, the average full-service equivalent listing rate was $38.04 in January, an increase of 1.1% over the past 12 months. What You Need to Know About Calculating Costs When Renting a Warehouse The LoopNet service and information provided therein, while believed to be accurate, are provided "as is". These NNN expenses are also quoted on a square footage basis. Please do not hesitate to contact me. Modified gross leases are often a hybrid of a triple net and full service lease. By incrementally changing the off?s=x part, you can get all 2500. Aside from the data we mentioned above, other considerations include: We could go on about all the things you need to consider to get a relatively accurate sense of your propertys value, but its already clear the biggest thing you need is data. statistic alerts) please log in with your personal account. In the Twin Cities, vacancy rates did increase somewhat, inching up 0.12% on a month-over-month basis. ", JLL, Average rent per square foot paid for industrial space in the United States from 4th quarter 2020 to 4th quarter 2021, by type Statista, https://www.statista.com/statistics/626555/average-rent-per-square-foot-paid-for-industrial-space-usa-by-type/ (last visited March 04, 2023), Average rent per square foot paid for industrial space in the United States from 4th quarter 2020 to 4th quarter 2021, by type [Graph], JLL, February 15, 2022. Nonetheless, Boston saw the highest average sale price at $1,054 per square foot. When you search for office space online, you will see figures like "$52/SQFT.". To use individual functions (e.g., mark statistics as favourites, set So, in this scenario, the $32.00 per square foot would be multiplied by the rentable square footage to give the tenant their annual rent. But taking into account the overall economic uncertainty, the entrenchment of remote work and the upheavals triggered by increased interest rates, office market outlooks anticipate that there will not be much capital for office transactions this year. Tenant flight-to-quality has been taking place since the pandemic, with firms decreasing the size of their footprints but increasing the quality of the space they lease. If the space is too small, it will probably have less frontage as well. In terms of location, office assets in CBDs claimed the highest listing rates at $51.43, up 3% over the past 12 months, while suburban assets stood at $30.47, also up 3.1% year-over-year. Triple net lease structures are most common in retail and tenants are responsible for their own utilities. Your common area factor, which determines each tenants share of the common area on a pro-rata basis, is then used to calculate Rentable Square Footage.