{"id":37434,"date":"2020-03-16T15:40:00","date_gmt":"2020-03-16T13:40:00","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=37434"},"modified":"2020-03-25T15:07:27","modified_gmt":"2020-03-25T13:07:27","slug":"most-expensive-office-submarkets-2019","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/03\/16\/most-expensive-office-submarkets-2019\/","title":{"rendered":"The Most Expensive U.S. Office Space Submarkets In 2019"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Key Takeaways<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>California\nhome to 36 of 100 most expensive U.S. office submarkets in 2019<\/li><li>New York\u2019s\nPlaza District, Gramercy Park and Chelsea all in top 10<\/li><li>Mountain\nView\u2019s Shoreline takes most expensive submarket in 2019 with average sale price\nper square foot of $1,554 compared to $233 national average<\/li><\/ul>\n\n\n\n<p>The U.S. commercial real estate market saw a total of 2,619 major deals last year, averaging $233 per square foot of office space. The office market is presently driven by Silicon Valley tech giants as well as financial conglomerates in New York. <\/p>\n\n\n\n<p>To determine which areas are most in demand, COMMERCIALCaf\u00e9 conducted <a href=\"https:\/\/www.commercialcafe.com\/blog\/top-100-expensive-office-submarkets-2019\/\">a study<\/a> that ranked the most expensive office submarkets in the U.S. in 2019.<\/p>\n\n\n\n<p>A <strong>submarket<\/strong> is defined as a component area of a larger <strong>market<\/strong>. For instance, the Plaza District in New York is a submarket of the larger <a href=\"https:\/\/www.propertyshark.com\/cre\/office\/us\/ny\/manhattan\/\">Manhattan office market<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2020\/03\/Most-expensive-submarkets-in-2019-Average-1024x720.jpg\" alt=\"Most expensive office submarkets in 2019 - top 10\" class=\"wp-image-37439\"\/><\/figure>\n\n\n\n<p>As usual, California\nand New York City dominated both the full list and the top 10. In particular,\nCalifornia made up half of the top 10, and Mountain View\u2019s Shoreline submarket\ntook the #1 spot as the most expensive office submarket in 2019. The submarket,\nsituated in the Bay Area, averaged $1,554 per square foot of office space. <\/p>\n\n\n\n<p>Mountain View \u2013\nShoreline\u2019s first-place finish is due to several major deals that occurred last\nyear. Specifically, Google purchased the properties at 1842 North Shoreline\nBoulevard, 900 Alta Avenue and 1053 Joaquin Road, totaling more than $300\nmillion.<\/p>\n\n\n\n<p>Besides Mountain View\u2019s Shoreline, 35 other California submarkets also made the top 100. Santa Monica landed at #3, while three submarkets in the <a href=\"https:\/\/www.propertyshark.com\/cre\/office\/us\/ca\/san-francisco\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">San Francisco office market<\/a> occupied the 6th, 8th and 10th places, respectively.<\/p>\n\n\n\n<p>On the opposite coast,\nthree submarkets from New York state made the top 100 list, all of which are in\nManhattan. Notably, they all made the top 10, as well. The most expensive of\nthe three \u2013 the Plaza District submarket \u2013 averaged $1,260 per square foot of\noffice space to land in the runner-up spot. The largest deal that occurred in\nthe Plaza District last year was Wafra\u2019s sale of the Coca-Cola Building to SHVO\nfor $937 million \u2013 just a few weeks after Wafra initially purchased it for $909\nmillion.<\/p>\n\n\n\n<p>The other two New York\nsubmarkets were Gramercy Park at #5 and Chelsea at #9. The state of New York\nalso had the highest average sale price among the contiguous United States at\n$515 per square foot.<\/p>\n\n\n\n<p>Besides the three submarkets in New York State, two other submarkets in New York\u2019s metropolitan area were also featured in the top 100: Bergen County Central in New Jersey at #62 and Stamford, Connecticut, at #75.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2020\/03\/Most-expensive-submarkets-in-2019-by-state-1024x720.jpg\" alt=\"Most expensive office submarkets in 2019 - by state\" class=\"wp-image-37440\"\/><\/figure>\n\n\n\n<p>As far as the highest\nnumber of submarkets in the top 100, North Carolina and Washington state\ntrailed California, with 11 and 10 entries, respectively. The highest-ranked\nNorth Carolina submarket was Crownpoint, which finished at #42 with an average\nprice per square foot of $373. <\/p>\n\n\n\n<p>In Washington, Lake Union cracked the top 10, reaching eighth place with an average price of $866 per square foot \u2014 higher than <a href=\"https:\/\/www.propertyshark.com\/cre\/office\/us\/wa\/bellevue\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Bellevue<\/a> at #14 and Seattle\u2019s central business district at #23. Washington had a statewide average price per square foot of $414.<\/p>\n\n\n\n<p>Meanwhile, the Sun Belt also added a number of submarkets in the top 100. Specifically, seven submarkets in Texas \u2014 including West <a href=\"https:\/\/www.propertyshark.com\/cre\/office\/us\/tx\/houston\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Houston<\/a>\u2019s central business district at #47 \u2014 made the list. Other Sun Belt states with entries in the top 100 were Florida with seven, Arizona with three and Nevada with one.<\/p>\n\n\n\n<p>Last year, the most active major office market by number of deals was the Washington D.C. \u2013 Suburban Maryland market with 155 sales. Eight submarkets part of this office market made the top 100 list \u2014 four in Virginia, three in <a href=\"https:\/\/www.propertyshark.com\/cre\/office\/us\/dc\/washington\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Washington, D.C.<\/a> and one in Maryland. The largest deal in the market was the purchase of 1701 Rhode Island Avenue by Exan Group for $105 million, which averaged $1,035 per square foot.<\/p>\n\n\n\n<p>Other states also placed submarkets in the top 100, including Oregon and Colorado with two each and Illinois with one submarket \u2013 West Loop, a <a href=\"https:\/\/www.propertyshark.com\/cre\/office\/us\/il\/chicago\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Chicago<\/a> suburb \u2013 in the 20th spot.<\/p>\n\n\n\n<div class=\"infogram-embed\" data-id=\"173fcef1-5fb0-4fa7-b905-d0a7e4ced44d\" data-type=\"interactive\" data-title=\"Most Expensive Submarkets\"><\/div><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName(\"script\")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(\"script\");o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,\"infogram-async\");<\/script>\n\n\n\n<p><em>Check out a detailed analysis of 2019\u2019s most expensive office submarkets in <\/em><a href=\"https:\/\/www.commercialcafe.com\/blog\/top-100-expensive-office-submarkets-2019\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\"><em>COMMERCIALCaf\u00e9\u2019s full report<\/em><\/a><em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways California home to 36 of 100 most expensive U.S. office submarkets in 2019 New York\u2019s Plaza District, Gramercy Park and Chelsea all in top 10 Mountain View\u2019s Shoreline takes most expensive submarket in 2019 with average sale price per square foot of $1,554 compared to $233 national average The U.S. commercial real estate&hellip;<\/p>\n","protected":false},"author":71,"featured_media":37438,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[738,8283,376],"tags":[11105,11108],"class_list":["post-37434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-california-real-estate","category-national","category-new-york-commercial-real-estate","tag-national-commercial-real-estate","tag-new-york-commercial-properties"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Most Expensive U.S. Office Space Submarkets In 2019<\/title>\n<meta name=\"description\" content=\"Office space demand is now driven by tech giants as well as financial powerhouses. 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Lucian holds a background in language and literature studies and brings more than 5 years of previous freelance writing experience to his commercial real estate journalism.","jobTitle":"Senior Content Writer, CRE Industry Reports & Studies","url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/author\/lucian-alixandrescu\/"}]}},"jetpack_featured_media_url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2020\/03\/most-expensive-submarkets-rewrite-new-york-skyline.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/37434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/users\/71"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/comments?post=37434"}],"version-history":[{"count":6,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/37434\/revisions"}],"predecessor-version":[{"id":37523,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/37434\/revisions\/37523"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/media\/37438"}],"wp:attachment":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/media?parent=37434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/categories?post=37434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/tags?post=37434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}