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News release

BALTIMORE, MD

Pratt Street One of America’s Most Expensive Streets

JLL reveals the most expensive streets across the United States


BALTIMORE, Dec., 8 2015 -- It’s been said there are three things that matter in real estate: location, location,  and JLL’s latest biennial study of the “Most Expensive Streets” across the United States emphatically substantiates the cliché.

Baltimore’s Pratt Street comes in at number 33 on the list, with average office rents that are 22.8 percent higher than the average office rents in the Baltimore region overall.

“The majority of Baltimore’s premium office properties are located along Pratt Street, where tenant demand has dropped vacancy rates (below/to nearly) 6 percent,” said Mark Levy, Market Leader for Greater Baltimore, JLL. “A regeneration of the immediate area has delivered residential, retail and hotel developments, further amenitizing Pratt Street’s waterfront location.”

JLL’s 2015 list, which ranks according to rent costs per square foot, includes thriving thoroughfares from the most active markets around the country. Some long-standing names have been added to the list while others are newer to their elite real estate status.

“Baltimore’s Inner Harbor is well known as a model for post-industrial waterfront redevelopment, offering museums, restaurants and retail destinations for locals and tourists alike,” added Levy. “The top notch office inventory on Pratt Street both enhances and reflects this cultural focal point, ensuring its longevity as Baltimore’s premier destination for office occupancy.”

On aggregate, rents on the most expensive streets are up 9.3 percent since 2013; this is 1.7x and 2.9x higher than rent growth in CBDs and overall, respectively. Nationally, vacancy across properties on these pricey streets is down 50 basis points, lower than the national average, in part due to greater occupancy growth in the middle market and recent deliveries beginning to hit the market.

The Top 10 Most Expensive Streets
According to JLL, rents on these 10 streets cost the most on a per-square-foot basis:
1. Sand Hill Road, San Francisco Peninsula: Dubbed “the Wall Street of the West,” due to the presence of multiple venture capital firms, Sand Hill Road remains at the top of JLL’s rankings for the third time in a row.  Its 2015 average rent is $141.60 p.s.f., up more than 27 percent in the last two years.
2. Hamilton Avenue, Silicon Valley: The rise of tech played a large role in Hamilton Avenue’s catapult to the second most expensive street. Add in restrictive planning ordinances and a transit-friendly, walkable environment, and the appeal is apparent. Its 2015 average rent is $124.44 p.s.f., up more than 31 percent in just two years.
3. Fifth Avenue, New York: Although facing competition from creative space in Midtown South and rising micro-markets like Bryant Park and Columbus Circle, Fifth Avenue still leads the pack in New York, a city synonymous with large price tags. Its 2015 average rent is $119.27 p.s.f.
4. Greenwich Avenue, Fairfield County: Although one of the least-urbanized streets in the top 10, Greenwich Avenue is known as the hub for hedge funds and also offers proximity to New York. Its 2015 average rent is $90.25 p.s.f., down nearly three percent from 2013.
5. Mission Street, San Francisco: Mission Street makes its first foray into the top 10, driven largely by the rise of tech developments south of Market Street. Other contributing factors include the Transbay redevelopment and creative space in nearby properties. Its 2015 average rent is $89.58 p.s.f.
6. Pennsylvania Avenue, Washington, DC: “America’s Main Street” commands international name recognition due to its location near the White House and U.S. Capitol buildings. Redevelopments and renovations of marquee buildings will drive rents and tenant demand. Its 2015 average rent is $72.65 p.s.f., down from $75.83 p.s.f. in 2013.
7. Boylston Street, Boston: High-profile properties and a broad range of tenants keep Boylston Street solidly among the top 10 Most Expensive Streets. Additional retail and hotel space is on tap to deliver on Boylston, which will keep the street competitive. Its 2015 average rent is $67.44 p.s.f.
8. Avenue of the Stars, Los Angeles: While there is plenty of star power in Los Angeles, the Century City submarket is a pre-eminent hub for the highest-profile legal, financial and entertainment tenants. Its 2015 average rent is $63.12 p.s.f.
9. Royal Palm Way, West Palm Beach: Royal Palm Way earned its nickname, “Banker’s Row,” due to its concentration of wealth management and financial services firms. Its 2015 average rent is $58.07 p.s.f., down from the $58.52 p.s.f. of two years ago.
10. Newport Center Drive, Orange County: According to the market’s fundamentals, it may be the perfect storm for investors to check out Orange County’s top retail and office destination, Newport Center Drive, which is displaying vacancy near 11 percent and rent growth of 3.3 percent since 2013. Its 2015 average rent is $51.72 p.s.f.

For full report findings, please visit http://www.us.jll.com/united-states/en-us/research/office/americas-most-expensive-streets.

For full report findings, please visit http://www.us.jll.com/united-states/en-us/research/office/americas-most-expensive-streets.

For more news, please visit The Investor, an online and mobile app news source providing real-time commercial real estate news to asset buyers and sellers around the world.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center website: http://bit.ly/18P2tkv.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $57.2 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.