top of page
  • Writer's pictureRealFacts Editorial Team

Most Expensive Streets 2024


city skyscrapers


chart of the most expensive streets in 2024

Prime office corridors across the United States have displayed remarkable resilience in the face of market headwinds, as indicated by a recent report from Jones Lang LaSalle IP, Inc. These corridors, characterized by high-quality office spaces in premier locations, have not only weathered the challenges of the past few years but have also demonstrated growth and stability.


Despite the turbulent times marked by both secular and cyclical challenges, prime office corridors have remained largely immune. Since the onset of the pandemic, there has been a notable trend among tenants to prioritize quality, recognizing the value of high-quality offices not just for recruitment and retention but also for facilitating return-to-office strategies. This emphasis on quality has positioned prime office corridors as highly desirable locations for businesses. The top 25 most expensive streets in the U.S. have maintained a significantly lower vacancy rate than the national average, with positive absorption recorded in 2023 while the broader U.S. office market faced negative net absorption.


An interesting trend emerging alongside the resilience of prime office corridors is the increasing dominance of off-core peripheral urban neighborhoods among the most expensive streets. These neighborhoods, located away from central business districts (CBDs), have gained traction due to their diverse commercial spaces, vibrant atmosphere, and robust amenities such as dining and entertainment. Particularly since the pandemic, these areas have seen quicker recovery rates compared to commercially dominated cores, attracting high-end tenants from the creative, technology, and media sectors.


The trajectory of select emerging prime urban corridors underscores the impact of supply constraints on the market. Many of the most expensive streets experience soaring rents due to limited new supply and a competitive tenant base. For instance, the prime corridors in South Florida, including Miami and West Palm Beach, have seen a surge in rents driven by a wave of financial services tenants migrating from other gateway markets. This migration, coupled with a restricted trophy supply, has resulted in a significant increase in asking rents.


The key findings regarding the trajectory of prime office corridors:


1. Migration from Core CBDs: Prime office corridors are gradually shifting away from traditional CBDs towards peripheral urban neighborhoods.

2. Demand for Quality: Tenants are increasingly seeking high-quality office spaces, leading to positive absorption rates in prime corridors.

3. Supply Constraints: Limited new supply in prime corridors contributes to elevated rents and competition among tenants.

4. Resilience: Despite market challenges, prime office corridors continue to thrive due to their desirable locations and quality offerings.

0 views0 comments

コメント


bottom of page