The Real Deal New York

San Francisco office rents now the priciest in the nation

Office rents in San Fran pushed past Manhattan for the first time in more than a decade

January 09, 2016 03:00PM

San Francisco

San Francisco (Credit photoeverywhere in Category North America)

Residential rents in San Francisco have been outpacing NYC’s for some time. But now, San Fran is beating out New York on another front: office rents.

Office rents in San Francisco are in fact the most expensive in the country, with landlords asking up to $72.26 a square foot in the fourth quarter of last year, according to a new report from CBRE Group cited by the New York Times. Manhattan office rents were $71.85 a square foot during the same period.

Moreover, prices in San Francisco rose 14 percent last year, compared with 7 percent in Manhattan.

And of course, the price surge can be blamed on…you guessed it: tech firms. An interesting side note: San Francisco office rents haven’t surpassed Manhattan’s since the dot-com bubble a decade and a half ago. [NYT]Christopher Cameron