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This is a weird study. Fifth Avenue doesn't have the most expensive office space in NYC, and Greenwich Ave. barely has any office space (or are they talking about Greenwich Ave. in CT?). The most expensive office street would be Park Ave. and the most expensive office district would be Midtown South, especially around Flatiron/Union Square.
Greenwich Ave in Ct. Which also does not have much office space. San Hill Rd and Hamilton Ave in Menlo Park and Palo Alto, respectively, have more office space than Greenwich, CT, but still don't have A LOT of office space like many of the streets on that list.
Fifth Ave doesn't have the highest rents in the city, but collectively as a street it does. They would be comparing against Park Ave as a whole, which I believe has higher peaks than Fifth, or other E-W streets in Midtown that might have higher peaks right around Central Park, but drastically taper off to something more mellow a block or two in either direction.
The fact that Mission overcame California Street in SF this year has been a talking point, but it's largely due to the fact that it has much more "new" office space (Salesforce Tower for instance is leasing at > $100psf and is a huge chunk of new leasing activity/space for that street at 1.4 million sf; then there's 535 Mission which delivered last year and leased up close to $100psf) and there's now greater cache for South of Market street addresses, Mission being the equivalent for SoMa as California is in the North of Market financial district.
I see only one street per city. If they didn't limit it to one, this list would be dominated by New York, followed by San Francisco. I note that "Broadway" in greater San Francisco must mean Oakland...those rents look about right for Oakland, and there is no office space on Broadway in SF.
Fifth Ave doesn't have the highest rents in the city, but collectively as a street it does. They would be comparing against Park Ave as a whole, which I believe has higher peaks than Fifth, or other E-W streets in Midtown that might have higher peaks right around Central Park, but drastically taper off to something more mellow a block or two in either direction.
If they are comparing streets as a whole, then W-E streets in Manhattan would be more expensive. 5th ave goes all the way up to Harlem... Some of those W-E streets are pretty expensive end to end, terminating in Hudson Yards/Chelsea on the west side, and the East Village/Gramercy Park/Kips' Bay on the East side. They don't go through any of the hood areas like 5th ave does.
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Originally Posted by 18Montclair
Im certain there are other streets in Palo Alto/ Menlo Park that are in the $100psf range. University Av, Page Mill Rd, Hanover St etc.
I guess they only picked 1 street from each city, because otherwise the list would just be dominated by 2-3 of the same cities.
So they list San Diego's 10th Ave for #8 most expensive street in a CBD but don't show it in the overall streets list, where it would rank 13th right behind El Camino Real in the Del Mar Heights suburban submarket.
10th Ave seems like a rather odd street as well considering there really isn't much office space along that street, I believe the built some new offices by Petco Park so that may be what's driving it.
Also Los Angeles doesn't have a single street in its CBD that could beat out Jacksonville, St Louis, etc...?
If they are comparing streets as a whole, then W-E streets in Manhattan would be more expensive. 5th ave goes all the way up to Harlem... Some of those W-E streets are pretty expensive end to end, terminating in Hudson Yards/Chelsea on the west side, and the East Village/Gramercy Park/Kips' Bay on the East side. They don't go through any of the hood areas like 5th ave does.
JLL could have made a cutoff at 59th St, where the GM building is, a building with some of if not the highest rents in the city due to its unique position above Central Park (a couple leases in that building alone combined with quieter leasing years at other streets like Park could easily single-handedly put Fifth at the top of the list). Not that there's really any significant amount of office space above 59th that would move the needle in any direction. Fifth Ave in the 40s coming south has also become ubiquitous with tech and creative office tenants, and serves as sort of the Menlo Park of Manhattan. So between the hedge funds in the 50s and the tech tenants in the 20s/30s and all of the renovations and reglorification of both office/retail in the 40s, I'm not surprised that Fifth Ave takes the spot in NYC. I don't think there's a single other street in the entire world that has as much cache or prestige as Fifth Ave does, generally speaking.
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Originally Posted by sav858
Also Los Angeles doesn't have a single street in its CBD that could beat out Jacksonville, St Louis, etc...?
LA's CBD is an absolute bargain considering the stature of LA (of course this is part of the thesis - will it play out is the question). LA's high rent districts are entirely on the Westside. That being said, I believe that DTLA absolutely crushes places like Jacksonville and St. Louis, but JLL's list only includes one street per city, so you wouldn't see LA's CBD on there since it doesn't exceed rents found on the Westside (hence Ave of the Stars in Century City).
Yeah, I'm not sure they even got Jacksonville right. It's hard to wrap ones head around how they determined what the ppsf of a "street" was and what constitutes the entire "street." Generally speaking though, Jax is tough to gauge cause Class A office space in the CBD easily outpaces the suburban campuses, but there's also not any one entire street of just office space in downtown Jax.
I'm not surprised that Fifth Ave takes the spot in NYC. I don't think there's a single other street in the entire world that has as much cache or prestige as Fifth Ave does, generally speaking.
For residential, it is definitely overshadowed by 57th street, and probably even by Park ave.
Fifth Ave. is the top street in terms of retail rents, but not in terms of office space. Definitely Park Ave.
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