Manhattan, NY, was the market where renting an office was most expensive in the United States in 2025. The average annual quoted square footage rent of office space was close to ***** U.S. dollars in the second quarter of the year. In Dallas, the market with the second-largest inventory, the annual rent amounted to ***** 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. Data on the sales prices of office property also indicates a notable decrease in office real estate valuations.

In the second quarter of 2025, London (West End) was the market with the most expensive prime office space worldwide. The net effective cost for a prime office in London cost close to ****** U.S. dollars annually. In second and third markets in the ranking, Hong Kong and Midtown New York, prices also exceeded *** U.S. dollars per square foot, with Hong Kong at ****** U.S. dollars and New York Midtown at ****** U.S. dollars. The global office real estate sector was severely affected by the coronavirus pandemic and the political and economic uncertainty that followed. With many companies placing expansion plans on hold and transitioning to hybrid working models, vacancies across many markets spiked and leasing activity slowed down.

The average asking rent for Class A office space in Midtown Manhattan was ***** U.S. dollars per square foot in the second quarter of 2025. 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 2025. Meanwhile, Midtown South is home to Madison Square Garden, Pennsylvania Station, Hudson Yards, and Koreatown. In 2025, the most expensive submarket there was Hudson Yards, followed by Chelsea and Hudson Square.

Renting an office space in the UK was the most expensive in London West End in 2025. In the first quarter of the year, the square foot cost of a prime office space cost 170 British pounds. Conversely, Belfast was the most affordable of the 18 markets ranked, at 26 British pounds per square foot.

San Francisco's office rental market showcases significant variation across its submarkets, with Mission Bay commanding the highest rates at *** U.S. dollars per square foot in the third quarter of 2024. This premium location demanded nearly double the city's average rate, highlighting the stark differences in desirability and demand within the city's commercial real estate landscape. Economic powerhouse The San Francisco Bay Area's economic prowess is evident in its impressive economic growth over the past 20 years. The city's strength is fueled by the presence of major technology companies and a thriving startup ecosystem. The region's economic significance extends beyond local boundaries, contributing substantially to California's position as the state with the highest GDP in the country. This economic vitality helps explain the sustained demand for office space across various San Francisco submarkets. Offices: global context and market trends In a global context, San Francisco's office rental rates are relatively high but not the most expensive worldwide. In 2024, London, Hong Kong, and New York emerged as the top three most expensive office rental markets globally. Over the past five years, San Francisco has experienced a decline in office rents. This trend aligns with broader shifts in the office real estate sector, influenced by the COVID-19 pandemic and the rise of hybrid work. Despite these challenges, certain San Francisco submarkets like Mission Bay and The Presidio continue to command premium rates, reflecting their enduring appeal to commercial tenants.

This statistic shows the price per square foot of office space in California in the second quarter of 2018, by market. In that quarter, office space in the Bay Area cost ****** U.S. dollars per square foot.

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 ** U.S. dollars per square feet, compared to **** 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 Central Business District (CBD) was the most expensive submarket for office real estate rental in Austin, Texas in the second quarter of 2024. The Class A office space rental rate was approximately **** U.S. dollars per square feet, compared to **** U.S. dollars per square foot in the South market. Among the major office markets in Texas, Dallas had the most inventory, while Austin had the highest rental rates.

Downtown offices in the United States achieved on average higher rents than suburban offices. In the fourth quarter of 2023, the annual quoted rent of Class A offices in downtown areas was **** U.S. dollars per square foot, while for suburban offices it was ** U.S. dollars per square foot. Despite a slight dip in 2021, office rents have overall increased from the historical average. Until 2027, office rents are forecast to grow slightly.

In the first half of 2023, Mumbai remained to be the most expensive city for rental office space in India, at a monthly rate of *** Indian rupees per square feet. In the city of Hyderabad, the costs for office space rent remained stable at a much lower price than in Mumbai.

In 2024, Venice was the most expensive city to buy office space in Italy: the average price was 3,791 euros per square meter. According to the ranking, the second most expensive city was Milan, followed by Rome, and Naples. Overall, cities in southern Italy offered lower prices: office space in Catania, for example, cost on average 1,345 euros per square meter. Retail space more expensive than office space According to the same report, published by the Italian Revenue Agency (Agenzia delle Entrate), retail spaces are more expensive than office spaces. For example, one square meter for retail use in Venice cost as much as 4,779 euros in 2024, approximately 1000 euros more than office spaces. In Milan the gap was also similar to the one in Venice. Retailers there could expect to pay on average approximately 4,258 euros per square meter, around 600 euros more than the price asked for office spaces. Milan and Rome are prime locations Due to their population size and their role as the leading economic centers, Milan and Rome are the most well-off cities in the country. Thus, it should not come as a surprise that both cities boast the highest prices in all segments of the real estate market. In 2022, a new dwelling in Milan cost on average 4,214 euros per square meter; one in Rome approximately 3,359 euros per square meter.

The Back Bay district was the most expensive real estate market for office space in Boston in the third quarter of 2024. On average, the average asking rent was about ** U.S. dollars per square foot of office space. Downtown Boston, the market with the largest inventory of office space among Boston districts, had the second highest rent, at about ** U.S. dollars. The gross rental rate usually includes costs for utilities and other general maintenance expenses.

The square foot cost of an office fit-out rose across all ** U.S. cities under observation in 2023. Fitting out an office space was most expensive in San Jose, CA, where it cost about *** U.S. dollars per square foot. In other markets, such as St. Louis, MS, Houston, TX, and Indianapolis, IN, the cost was notably lower. A complete office fit out includes the transformation of an empty space into a suitable office environment, including the necessary structures, electrical furnishings, mechanical equipment, and furniture.

The cost of rent for office space in London is the highest in Europe. In the fourth quarter of 2023, the West End had average rents per square foot of *** British pounds. The average annual rent in London for prime office space was substantially higher than in any other European market. Prime yields For commercial real estate investors, prime yields in London averaged **** percent in 2023. As compared to the rest of the United Kingdom, yields for prime office space in London were notably lower. Commercial investments Office real estate, which comes under the broader term of commercial real estate, traditionally accounts for the lion's share of commercial real estate investments. In recent years, however, this share has been gradually declining. Despite this trend, the UK is one of the leading office real estate investment markets in Europe.

In the first quarter of 2025, the annual prime office rental rate in Hong Kong was approximately *** U.S. dollars per square foot. In comparison, the annual occupancy cost of prime office real estate in Kuala Lumpur was about **** U.S. dollars per square foot during the same period.

The Downtown Core submarket had the highest net asking rent per square foot of office space in Vancouver in the third quarter of 2024 at ** Canadian dollars. Meanwhile, a square foot of office space in Richmond cost on average ** Canadian dollars.

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.

Uptown Dallas was the most expensive market for office real estate rental in Dallas-Fort Worth, Texas in the second quarter of 2024. The direct asking rate for office space was approximately ** U.S. dollars per square feet, compared to ** U.S. dollars per square foot in East NE Fort Worth. Among the major office markets in Texas, Dallas had the most inventory, while Austin had the highest rental rates.

In 2024, the net asking rent for office space in Downtown Toronto amounted to **** Canadian dollars per square foot. The most expensive submarket in the city was the Financial Core - a location concentrating a major share of the office inventory, with a rapidly developing new stock.Toronto’s office market Toronto is the capital of Ontario and a global financial center. Ontario generates a large portion of Canada’s GDP, which means that office real estate is vital for the region. Downtown Toronto had significantly more office space inventory than Midtown Toronto, and also a lower vacancy rate. Comparison with other leading cities Offices in Toronto have a higher vacancy rate than the national average. Overall, vacancy rates were the lowest in Vancouver and Montreal.

During the second quarter of 2024, Bogotá had the highest average monthly rent for offices among the major cities in Colombia. The average monthly rent in Bogotá was approximately ****** Colombian pesos per square meter. In Cali, the average rent of offices reached ****** Colombian pesos per square meter, a rise of over three percent from the second quarter of 2023. On the other hand, Barranquilla offered the most affordable offices, at slightly above ****** Colombian pesos per square meter.