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When looking into renting a commercial space, you are going to come across a large variance between prices in the United States. The price is often correlated with the desirability and competition associated with that location, both of which stem from a wide set of factors.
Location, location, location. Certain streets will obviously be more desirable than others according the prestige that comes with it as a result of the already existing business there. These often include law firms, consulting firms, and the banking industry.
However, a huge field that is now driving up rent is technology companies. With technology being such a fast-growing field, the demand for office space is increasingly high. The tech companies that have grown to be large, require buildings that are A-class similar to those used by the previously mentioned firms. In fact, the streets that have the highest rent in the USA are in cities considered to be tech hubs.
We must remember, “commercial real estate” covers a broad range of types of spaces from industrial/warehouse to office spaces. These are not characterized by the same pricing.
Office space has a much higher rental rate than industrial space. This comes down to location as well – industrial spaces are often not located in an urban area.
Although those are the top 5 most expensive areas for commercial real estate, there a few more that should be mentioned. These areas have prices starting from $58.00 per sq. ft. to $78.00 per sq. ft.
If you are looking into renting an office space and come across a price that seems like it is incredibly high, consider the location and what it has to offer. Consider what the demand is and what kind of business are already in existence there. When lease rates are high, the number of concessions you can extract from a landlord are going to be low - such as negotiating for a lower net effective rent, getting out of a personal guarantee, reducing the security deposit, and achieving flexible expansion rights.