【仲量联行】2024年美国超甲级写字楼街区报告_22页_28mb

2024 Most Expensive Streets Report Summary

Key Insights:

• Resilience of Prime Office Corridors: Despite recent market headwinds, including pandemic-related challenges, prime urban office corridors in the U.S. have maintained stability. They attract tenants for their high-quality spaces, strategic locations, and brand enhancement benefits, leading to lower vacancy rates and positive absorption. For example, the Top 25 Most Expensive Streets have a combined vacancy rate nearly 5% lower than the U.S. office market average, which was 21.6% in 2023.
• Shift to Peripheral Urban Areas: Prime corridors are increasingly moving to off-core locations, such as peripheral urban neighborhoods with mixed-use environments. These areas recover faster from the pandemic due to amenities like dining and entertainment, attracting sectors like tech, media, and creative industries. About 60% of top streets are in peripheral submarkets rather than core CBDs, as shown by submarket location profiles.
• Impact of Supply Constraints: Limited new supply in key corridors drives high rent growth. For instance, Sand Hill Road in Menlo Park saw rents rise by 144% since 2017 due to constrained supply and high demand from financial migration. Similar trends observed in South Florida corridors, where Brickell Avenue rents surged 65% in two years.
• Market Trends: Top cities include San Francisco, New York, Miami, and Dallas, with streets like Sand Hill Road ranking as the most expensive due to trophy assets and demand for premium locations. Rents vary widely, with some corridors commanding premiums of up to 150% over average market rates.

Methodology:

• Streets are defined based on buildings with entrances along the street, divided at submarket boundaries.
• Each market has an inventory threshold to exclude low-data streets; only streets with sufficient inventory are included.
• Data is based on asking rents, vacancy rates, and net absorption, sourced from JLL's analysis.

Methodology Details:

• Street-level property sets include all buildings on the thoroughfare.
• Streets are segmented at submarket boundaries to capture local dynamics.
• An inventory threshold ensures data reliability; streets below minimum limits are excluded.

Methodology Notes:

• The analysis focuses on traditional office properties, excluding lab buildings.
• Data spans 2017-2023, with historical rent indices showing long-term upward trends in prime corridors.

This report highlights the dominance of quality-driven locations in shaping real estate value amid economic fluctuations.