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Hotfoot it to Hawaii: Comparing Commercial Real Estate Prices

Hotfoot it to Hawaii: Comparing Commercial Real Estate Prices

The demand for commercial real estate continues to grow rapidly all over the country. So, as you search for that ideal location, how much can you expect to pay? Recent figures show that New York continues to be the most expensive place in terms of square feet for your dollar, but that San Francisco is catching up fast (with prices looking set to rise further).

Clearly, many factors will play their part in the actual cost you have to pay, and there will be the potential for enormous variances between properties located within a few blocks of each other. Prospective renters will need to consider matters such as the use they intend to make of the building, the neighborhood, accessibility and vacancy rates.

However, taking a broad average price, your New York business user can expect to be charged in the region of $80 per month for every square foot of building he rents. Move south 200 miles to Washington DC, and the price falls to around $57 per square foot. Head north to Boston, and the budding entrepreneur can expect to pay substantially less for her money, getting over twice the space per dollar than in New York.

Over on the West Coast, California is home to some of the most varied prices in the land. Whilst San Francisco is catching New York fast, with space costing in the region of $65-70, and prices rising as quickly as anywhere in the country, Los Angeles will be half the cost, although once again, charges are going up sharply. But in some parts of the State, prices are actually on the verge of falling. The good news for renters is that, even where price rises are greatest, the year on year percentage is starting to slow down.

Other major centers of population seem unaffected by their location. Cities as distant from each other as Seattle, Chicago and Miami will all see businesses paying in the mid $30s for their work accommodation, with property a little cheaper in Atlanta, Houston and Dallas. For all the current cost situation, what does look clear is that American’s use of commercial real estate will be undergoing substantial change over the next few years. With the baby boomer generation increasingly entering retirement, and the millennials looking for space that allows for more than just work, plus global economic uncertainty and legislative changes at home, the future is tough to predict.

Perhaps the best option might be to sell up everything and head out to Hawaii, to buy your own office? Overall, during the last three years on the Pacific Island, commercial property has fallen in price. Well, we should all have our dreams.

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Zoobiz

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