Top 10 Metropolitan Areas with a Growing Office Rent Market
A new study by Outsource2india on the office rental market shows how price are moving in different metropolitan areas. Cape Coral - Fort Myers in Florida leads with a 8.3% increase of the price per square foot.
Key takeaway
- With a 8.3% increase of the price per square foot Cape Coral - Fort Myers stands out, followed by Abilene, TX (6.7%) and Montgomery, AL (6.3%).
- Four major metropolitan areas in California are in the top 10 of the most expensive cities to rent. The San Jose metropolitan area leads with a renting price per square foot of $58 for office space.
- The least expensive metropolitan areas offer an average price per square foot of $15. This price is found in Texas, Ohio and Pennsylvania
Highest growth rate in Florida
Data from the National Association of Realtors (NAR) for the first quarter of 2024 reveals that the price per square foot to rent an office hasn't change since 2023 in 74% of metropolitan areas. Only 25% of metropolitan areas have seen a price rise. Cape Coral - Fort Myers in Florida leads with a 8.3% increase of the price per square foot. Interestingly Florida seems to be a very dynamic market with 55% of its metropolitan areas increasing rent prices for offices.
The price per square foot varies significantly across the country. Californians cities remain among the most expensive, with the San Jose metropolitan area leading the way at $58 per square foot, followed by the New York area ($56) and San Francisco ($54).
On the lowest end, the average price per square foot of $15 could be found in a few states. Canton-Massillon OH, Erie, Pa, Wichita Falls, TX, and the Youngstown-Warren-Boardman metropolitan area, OH-PA, all offer office space in this price range. By contrast, the average price in the US is $23.4.
These findings underscore the complex dynamics at play in the office space market. Florida seems to be doing better at growing the office rent market than other states. With very high price, California are experiencing more struggle.
Methodology
We analyzed the office rental market in major U.S. metropolitan areas using data sourced from the National Association of Realtors. Our study focused on the price per square foot. We analyzed the evolution of the price from 2023 to 2024 and the variations at regional levels.
