Ask an office tenant which factors most impact their leasing decisions, and there’s at least one answer you can rely on: “Location, location, location.” Though desirable locations typically come with a high price tag, many office tenants are willing to pay for the prestige, accessibility, or surrounding amenities that come with it. This year, JLL’s biennial Most Expensive Streets study has revealed that the most expensive street in Philadelphia is 30th Street, specifically between Walnut and Arch. Furthermore, 30th Street came in at the 16th most expensive street in the United States overall.
(Photo courtesy of Brandywine Realty Trust)
Adding to the surge in demand for many streets like 30th is exceptional preleasing on new developments. For example, the delivery of FMC Tower has cemented University City as one of the most desirable office locations in Greater Philadelphia’s core, with rents here carrying an 83.9 percent premium.
The fact that Philadelphia is in the midst of a tech, media, education and health expansion is no coincidence. In fact, five of the top 10 most expensive streets are tech hubs, including San Francisco’s Sand Hill Road, a mecca for venture capital firms, and Boston’s Main Street, a global destination for life science and technology companies.
So just how much will companies pay to occupy one of America’s most desired office addresses? These high-profile strips command an average full-service rent of $48.65 per square foot, a 46.9-percent premium compared to the rest of the country. On the most coveted blocks of 30th Street, rent averages $48.30 per square foot.
A testament to the enduring value we place on location, these offices remain consistently occupied despite prices. Just 12.8 percent of the nation’s most expensive real estate is vacant – a full 250 basis points lower than the U.S. average – while vacancy on 30th Street is a mere 7.1 percent. With so much momentum and the coming maturation of the Schuylkill Yards development, we expect that rents in this desirable area will only continue to climb. To stay up to date on the country’s prime commercial corridors, visit JLL’s Most Expensive Streets report and follow the media coverage in outlets like Curbed and PhillyVoice.