In District of Columbia, the average rent per square foot was 2.95 U.S. dollars in 2018, whereas renters in Oregon were expected to pay half as much in rent per square foot. DC was the most expensive state for renters, followed by New York, Hawaii, Massachusetts and California.

Why is DC so expensive?

District of Columbia is the center of the U.S. political system with all three branches of federal government sitting there: Congress (legislative), President (executive) and the Supreme Court (judicial). The above average household incomes of its residents mean that high rents are still sustainable for the rental market.

Limited space in DC

DC has the largest share of apartment dwellers in the country. This is most likely due to limited space, as the federal district has a much higher population density than the states. The political importance of DC and the high population density suggest that the federal district is likely to retain its spot as the most expensive rental market in the future.

Rents for industrial real estate in the U.S. have increased since 2017, with flexible/service space reaching the highest price per square foot in 2024. In just a year, the cost of, flex/service space rose by nearly *****U.S. dollars per square foot. Manufacturing facilities, warehouses, and distribution centers had lower rents and experienced milder growth. Los Angeles, Orange County, and Inland Empire, California, are some of the most expensive markets in the country. Office real estate is pricier Industrial real estate is far from being the most expensive commercial property type. For instance, average rental rates in major U.S. metros for office space are much higher than those for industrial space. This is most likely because office units are generally located in urban areas where there is limited space and thus higher demand, whereas industrial units are more suited to the outskirts of such urban areas. Industrial units, such as warehouses or factories, require much more space because they need to house large, heavy equipment or serve as a storage unit for future shipments. Big-box distribution space is gaining in importance Warehouses and distribution may currently command the lowest average rent per square foot among industrial space types, but the growing popularity of the asset class has earned it considerable gains over the past years. In 2021 and 2022, high occupier demand and insufficient supply led to soaring taking rent of big-box buildings. During that time, the vacancy rate of distribution centers fell below ****percent. The development of industrial and logistics facilities has accelerated since then, with the new supply coming to market, causing the vacancy rate to increase and the pressures on rent to ease.

The average monthly asking rent per square foot of shopping center real estate in the United States increased between 2020 and 2025. This trend was observed in all regions, with the West seeing the highest rents at ***** U.S. dollars per square foot as of the first quarter of 2025. On average, asking rent for all classes across the country stood at ***** U.S. dollars.

Malls had the most expensive rental space among the different types of retail real estate in the United States in 2023. As of the fourth quarter of the year, the average rent in malls was ***** U.S. dollars per square foot, compared to ***** U.S. dollars for all retail. General retail space, defined as single-tenant freestanding commercial buildings with parking, such as drugstores, grocery stores, and street front urban retail stores, had some of the lowest vacancy rates.

The average rent for warehouse space in Detroit, Michigan, experienced an overall rise between 2017 and 2024, despite some fluctuations. In the first quarter of 2024, rents peaked, reaching **** U.S. dollars per square foot. Detroit is among the markets with the most industrial and logistic real estate inventory in the United States.

The average asking rent for Class A office space in Midtown Manhattan was ***** U.S. dollars per square foot in the first quarter of 2024. It was above the Manhattan average of ***** U.S. dollars, but below that of Midtown South, which was the most expensive district at ****** U.S. dollars per square foot. What is Class A real estate?Class A real estate refers to the best properties in terms of appearance, age, quality of infrastructure and location. These properties usually command the highest rental rates, due to their high quality. In the U.S., Manhattan has the most expensive rents for Class A offices.Midtown vs Midtown SouthMidtown Manhattan contains the Empire State Building, MoMA, Grand Central Station, and the United Nations Headquarters. The most expensive submarket there was Plaza District in 2024. Meanwhile, Midtown South is home to Madison Square Garden, Pennsylvania Station, Hudson Yards, and Koreatown. In 2024, the most expensive submarket there was Hudson Yards, followed by Chelsea and Hudson Square.

The average annual rent for manufacturing space in New York City Metro has soared since 2017. In the first quarter of 2024, the rental cost amounted to nearly 14.91 U.S. dollars per square foot. That was higher than the average rent for manufacturing space in the United States.

Manhattan, NY, was the market where renting an office was most expensive in the United States in 2023. The average annual quoted square footage rent of office space was close to ** U.S. dollars in the fourth quarter of the year. Only one other market - East Bay - came close to this rental rate. In Washington D.C., the market with the second-largest inventory of class A downtown offices, the annual rent amounted to approximately ** U.S. dollars per square foot. Since the onset of the coronavirus pandemic, the office real estate sector has been suffering an increase in office vacancies, affecting both downtown and suburban properties.

After peaking in 2023, the average rent for industrial real estate for warehouse distribution use in New York City Metro declined. In the first quarter of 2024, the average rent was ***** U.S. dollars per square foot. Despite the decrease, this was notably higher than 2017, when it amounted to **** U.S. dollars. New York City Metro is one of the leading markets in the U.S. in terms of industrial and logistic state inventory.

The average rent for warehouses and distribution centers in South Florida declined slightly in 2024, after peaking in 2023. In the first quarter of 2024, the average rent amounted to ***** U.S. dollars per square foot. That was higher than the average warehouse rent in the United States.

The average rent for warehouse distribution use in the Chicago area experienced a significant increase between 2017 and the first quarter of 2024. It increased from 5.13 U.S. dollars in 2017 per square foot to 7.27 U.S. dollars in the first quarter of 2024. That was slightly lower than the average warehouse rent in the United States.

The average rent for warehouse space in Atlanta, Georgia, experienced a significant rise between 2017 and 2024. By the first quarter of 2024, rents had more than doubled, reaching **** U.S. dollars per square foot. In 2017, this figure was **** U.S. dollars per square foot. In the U.S., Atlanta is one of the markets with the most industrial and logistics real estate inventory.

The average annual rent for manufacturing space in Cleveland, Ohio, soared in 2023. In the first quarter of 2024, the rental cost rose even higher, hitting amounted to nearly 4.44 U.S. dollars per square foot. Despite the increase, below the average rent for manufacturing space in the United States.

The average rent for warehouses and distribution centers in the San Francisco Bay Area, California, has increased year-on-years since 2017. In the first quarter of 2024, the average rent amounted to 16.52 U.S. dollars per square foot. That was significantly higher than the average warehouse rent in the United States.

The average rent for warehouses and distribution centers in Cleveland, Ohio, soared in 2023. In the first quarter of 2024, the average rent amounted to **** U.S. dollars per square foot. Despite the increase, that was significantly lower than the average warehouse rent in the United States.

The average annual rent for warehouses and distribution centers in the Greater Los Angeles area declined in 2023, after peaking in 2022. In the first quarter of 2024, the average rent amounted to ***** U.S. dollars per square foot. In the U.S., Greater Los Angeles is the market with the largest warehouse inventory.

Among the ** markets with the largest industrial and logistics real estate inventory in the U.S., Orange County, CA, had the highest rental rate in the first quarter of 2025. The square footage rent of warehouse and distribution centers was ***** U.S. dollars, while for manufacturing sites it was ***** U.S. dollars. In the largest market, Chicago, IL, rents were significantly lower, at ****U.S. dollars.

The Central Business District (CBD) was the most expensive market for office real estate rental in Houston, Texas in the second quarter of 2024. The average direct asking rental rate of office space was approximately 43 U.S. dollars per square feet, compared to 17.5 U.S. dollars per square feet in FM 1960. Among the major office markets in Texas, Dallas had the most inventory, while Austin had the highest rental rates.

The average annual rent for manufacturing space in Indianapolis, Indiana, has increased year-on-year since 2018. In the first quarter of 2024, the rental cost amounted to **** U.S. dollars per square foot. Despite the increase, that was below the average rent for manufacturing space in the United States.

The average annual rent for manufacturing space in Houston, Texas, declined in 2024, after rising for two consecutive years. In the first quarter of 2024, the rental cost amounted to **** U.S. dollars per square foot. That was below the average rent for manufacturing space in the United States.