![\"Three](\"https:\/\/offices.net\/news\/wp-content\/uploads\/2024\/07\/united-states-commercial-property-prices-per-square-foot-2024-colleagues-confer-offices.net_.jpg\")
<\/p>\n<\/p>\n
The United States is home to one of the world\u2019s largest commercial real estate markets, accounting for nearly<\/span> 40% of all real estate globally<\/span><\/a>. The latest data from 2024 show that this market generates<\/span> revenues in excess of $1 trillion<\/span><\/a>, and<\/span> 16 of the world\u2019s 30 most competitive commercial property markets<\/span><\/a> are located in the United States.<\/span><\/p>\n Early 2024 data show that the average<\/span> asking price per square foot for US offices stands at $37<\/span><\/a>. Retail averages out to $23 per square foot, and<\/span> industrial space<\/span><\/a> comes in at just under $8 per square foot. However, there are significant variations in average prices based on location and real estate class.<\/span><\/p>\n Here\u2019s a summary of the average commercial property rates in key USA cities:<\/span><\/p>\n <\/p>\n Contents<\/p> Industrial space<\/span><\/a> averages $26 \/ sq ft \/ year<\/span><\/p>\n Retail: $57 \/ sq ft city-wide<\/span><\/p>\n $19\/ sq ft \/ year for<\/span> industrial premises<\/span><\/a><\/p>\n Retail:<\/span><\/a> $36 \/ sq ft<\/span><\/p>\n Industrial:<\/span><\/a> $27 \/ sq ft<\/span><\/p>\n Retail<\/span><\/a>: $38 \/sq ft<\/span><\/p>\n $15 \/ sq ft for<\/span> industrial space<\/span><\/a><\/p>\n Retail<\/span><\/a>: One of the priciest markets in the nation at just under $44 \/sq ft<\/span><\/p>\n Industrial properties:<\/span><\/a> $15 \/ sq ft \/ year<\/span><\/p>\n Retail:<\/span><\/a> $22 \/ sq ft<\/span><\/p>\n Industrial:<\/span><\/a> $11 \/ sq ft \/ year<\/span><\/p>\n Retail:<\/span><\/a> $26 \/ sq ft<\/span><\/p>\n Industrial:<\/span><\/a> $15 \/ sq ft \/ year<\/span><\/p>\n Retail: $32 \/ sq ft<\/span><\/p>\n $12 \/ sq ft \/ year for<\/span> industrial properties<\/span><\/a><\/p>\n Retail:<\/span><\/a> $26 \/ sq ft<\/span><\/p>\n Industrial:<\/span><\/a> just under $18 \/ sq ft \/ year<\/span><\/p>\n Retail:<\/span><\/a> $28 \/ sq ft<\/span><\/p>\n Industrial space<\/span><\/a> is charged at an average of $8 \/ sq ft \/ year<\/span><\/p>\n Retail:<\/span><\/a> $21 \/ sq ft<\/span><\/p>\n Industrial premises<\/span><\/a> average $9 \/ sq ft \/ year<\/span><\/p>\n Retail:<\/span><\/a> under $19 \/ sq ft<\/span><\/p>\n Industrial rates:<\/span><\/a> $5 \/ sq ft \/ year<\/span><\/p>\n Retail:<\/span><\/a> $23 \/ sq ft<\/span><\/p>\n In the majority of markets, per square feet prices are calculated and quoted on an annual basis.<\/span><\/p>\n However, in some states (such as<\/span> California<\/span><\/a>) commercial real estate prices are quoted monthly. Generally speaking, to calculate base rates, the total rent amount is multiplied by the square footage leased.<\/span><\/p>\n Example: A 5,000-sq ft office at $40 \/ sq ft<\/span><\/i><\/p>\n 40 * 5,000 = $200,000 \/ year or 200,000 \/ 12 = $16,700 \/ month.<\/span><\/i><\/p>\n Other factors to take into account include tenant incentives in the form of rent-free periods, and the<\/span> type of lease structure<\/span><\/a>, since each lease type comes with different inclusions and exclusions that affect the final calculation.<\/span><\/p>\n For example, properties leased under a gross or full-service structure may be quoted at a higher rate, since the majority of operating expenses are included as part of the base rent and passed onto tenants. On the other hand, a commercial property leased under a triple net lease (NNN) may have a lower asking price, but operational expenses will need to be paid for separately.<\/span><\/p>\n In addition, macroeconomic policy, employment trends, and market conditions such as the demand-supply ratio and vacancy rates may affect the price per square foot of commercial properties.<\/span><\/p>\n One of the most significant trends affecting commercial real estate transactions in the USA is related to the<\/span> increase in interest rates<\/span><\/a> that took place in March 2022. This put pressure on real estate prices, leading to a price correction that in some cases has reversed the gains made during the previous 2 years.<\/span><\/p>\n Overall, there has been a<\/span> 22% decrease between 2022 and 2024<\/span><\/a> in sale prices, as well as slow rental growth for office properties averaging 0.7% nationwide. This is in contrast to rental growth rates of 5.5% for industrial properties, which still benefit from the ongoing e-commerce boom and the solidification of online consumer habits.<\/span><\/p>\n The above, combined with ongoing changes in the use of office buildings, and also in physical retail space trends, has resulted in<\/span>Current Rates for Commercial Real Estate in Core US Markets<\/b><\/span><\/h2>\n
New York<\/b><\/a>: Average gross rates for<\/b> Manhattan offices<\/b><\/a> are $71 per square foot<\/b><\/span><\/h4>\n
Los Angeles<\/b><\/a>: $41 \/ sq ft for offices<\/b><\/span><\/h4>\n
San Francisco<\/b><\/a>: $60 per square foot for office space<\/b><\/span><\/h4>\n
Miami<\/b><\/a>: Just under $50 per square foot for offices<\/b><\/span><\/h4>\n
Boston<\/b><\/a>: $49 per square foot per year for metro offices<\/b><\/span><\/h4>\n
Austin<\/b><\/a>: Office space averages $42 per square foot<\/b><\/span><\/h4>\n
Washington D.C.<\/b><\/a>: Offices average $40 per square foot<\/b><\/span><\/h4>\n
Philadelphia<\/b><\/a>: $38 per square foot for<\/b> offices<\/b><\/a><\/span><\/h4>\n
Seattle<\/b><\/a>: $37 per square foot for offices<\/b><\/span><\/h4>\n
Atlanta<\/b><\/a>: $36 per square foot for<\/b> office space<\/b><\/a><\/span><\/h4>\n
Chicago<\/b><\/a>: Approximately $28 per square foot for office space<\/b><\/span><\/h4>\n
Dallas<\/b><\/a>: $29 per square foot for offices<\/b><\/span><\/h4>\n
![\"A](\"https:\/\/offices.net\/news\/wp-content\/uploads\/2024\/07\/united-states-commercial-property-prices-per-square-foot-2024-calculator-papers-on-laptop-offices.net_.jpg\")
<\/p>\nHow to Calculate Price Per Square Foot in the USA<\/b><\/span><\/h2>\n
Trends Impacting Price Per Square Foot<\/b><\/span><\/h2>\n