WASHINGTON — For companies that want a Pennsylvania Avenue address, the price for the prestige is high. Office rents there are almost twice as much as the D.C. market average.
Real estate firm JLL’s 2017 “Most Expensive Streets” study, which looks at the priciest U.S. office space, ranks Pennsylvania Avenue in Northwest D.C. as the sixth-most expensive commercial real estate address in the country.
It is not only the address of the White House but also home to a variety of prestigious law firms and lobbying organizations, according to JLL.
At an average $80 per square foot, Pennsylvania office rents command a 95.1 percent premium compared to the rest of the market.
Pennsylvania Avenue ranked No. 6 in JLL’s last street study in 2015 as well.
Sand Hill Road in San Francisco ranks as the most expensive office address in the U.S., with average rents of $119.38 per square foot. JLL said Sand Hill Road rents have hit as high as $185 per square foot.
Sand Hill Road is home to prominent venture capital firms and is one of the Bay Area’s most high-profile business addresses.
Despite high rents along the nation’s most expensive streets, companies are willing to pay for it, JLL said. Just 12.8 percent of the nation’s most expensive real estate was listed as vacant, 250 basis points lower than the U.S. average, the real estate firm said.
Tech firms are driving prime rents as much as the financial, law and consulting industries. Five of the top 10 streets in the rankings are tech hubs.
Wilson Boulevard in Arlington falls just outside of the top 10, ranking No. 12, with an average rent of $56.75 per square foot. Wisconsin Avenue in Bethesda is No. 17, at an average $47.05 per square foot.
The 10 most expensive addresses in JLL’s 2017 Most Expensive Streets study:
- 1. Sand Hill Road, San Francisco
- 2. Fifth Avenue, New York
- 3. Mission Street, San Francisco
- 4. Main Street, Boston
- 5. Greenwich Avenue, Greenwich, Connecticut
- 6. Pennsylvania Avenue, Washington, D.C.
- 7. Ocean Avenue, Los Angeles
- 8. Boylston Street, Boston
- 9. Royal Palm Way, West Palm Beach Florida
- 10. Congress Avenue, Austin, Texas
You can see the entire list of the Most Expensive Streets in the U.S. on JLL’s website.
