How Much Office Space Could You Rent for $10K/Month in the U.S.?

Very like hybrid work, flight to high quality appears to be greater than only a passing pattern as tenant demand for high-quality workplace house stays sturdy. For some, it will means top-tier workplace house with state-of-the-art constructing techniques, the highest-quality furnishings and a bespoke workspace environment. For others — maybe for many — it means the absolute best high quality workplace house that their price range will permit.

Because the workplace sector continues to bear a reconsideration of its objective and sustainable measurement, there are nonetheless loads of companies in search of both conventional or extra versatile workplace areas to accommodate their exercise. And, whereas there would possibly nonetheless be some challenges forward, the huge number of the U.S. workplace market presents extra alternatives than nationwide averages can encapsulate.

With this in thoughts, we checked out current CommercialEdge knowledge on common asking lease in 160 U.S. markets to check how a lot workplace house we might hypothetically get for a rental price range of $120,000 per 12 months (or $10,000 per thirty days). Based mostly on this similar knowledge (see the methodology part for particulars), we additionally included an interactive workplace house calculator for every property grade tier (one for sophistication A and one for sophistication B), which you should use to run your personal estimate.

How a lot workplace house are you able to lease for $10K/month within the 50 largest U.S. cities?

First, we thought-about common workplace rents within the 50 largest cities within the nation, no matter property class, and we discovered that essentially the most workplace house we might get for our price range could be almost 7,700 sq. toes in Tulsa, Okla. This metropolis of greater than 300,000 residents additionally gives a number of extremely walkable downtown districts and is dwelling to one of many largest collections of artwork deco structure within the nation.

Our second-most beneficiant possibility when it comes to workplace footprint could be Cincinnati. Right here, our price range would stretch for slightly greater than 6,230 sq. toes of house for our enterprise. Well-known for its distinctive culinary tradition, Cincinnati can be dwelling to a thriving mixture of know-how, enterprise companies, biohealth and superior manufacturing.

Memphis, Tenn., landed in third place and never too far behind when it comes to house. For $10,000 per thirty days (or $120,000 per 12 months), we might lease an workplace of about 6,200 sq. toes on the common market price in an iconic metropolis that has been ranked among the many greatest within the nation for small enterprise development.

Among the many 50 largest cities, we discovered 4 different markets the place our simulated price range would get us greater than 6,000 sq. toes: Louisville, Ky. (#4 at 6,131 sq. toes); New Orleans (#5 with 6,119 sq. toes); Albuquerque, N.M. (#6 at 6,054 sq. toes); and Kansas Metropolis, Mo. (#7 with 6,054 sq. toes).

Subsequent, Indianapolis positioned eighth amongst our prime decisions. Right here, we might lease simply shy of 6,000 sq. toes for our enterprise in a market that has seen notable revitalization of its workplace inventory, largely pushed by tenant flight to high quality and in response to the evolving calls for of at this time’s workforce.

Alternatively, we might look to the market in ninth place: The typical asking value in Cleveland would permit us to lease slightly greater than 5,800 sq. toes of workplace house. Though Cleveland is among the many prime markets for conversions of workplace house to different makes use of, builders have largely focused getting older workplace properties. In consequence, a considerable general enchancment of the native workplace market is anticipated sooner or later.

Tenth on this record was one other Ohio market: For our state of affairs’s yearly price range of $120,000, we might lease roughly 5,700 sq. toes in Columbus and draw upon the advantages of a various native financial system; proximity to one of many largest universities within the nation; and a sizeable, extremely educated expertise pool.

Beneath, we broke the information down additional and checked out what variations in prospects our price range would possibly maintain, relying on the property class we selected to lease.

If You’re Versatile on Location, Contemplate Prime-Tier Workplace House in Rising Markets

Class A and A+ workplace house comes inside premier business buildings, in extremely sought-after places, with the best tier of facilities or some mixture thereof. After all, wherever your priorities lie when it comes to location versus capability will probably dictate how a lot workplace house you possibly can lease on your price range. As the inner financial and demographic panorama of the nation adjustments, rising markets achieve new benefits and make for fascinating enterprise relocation choices.

Class A highlights:

A 7,000-square-foot workplace on the mouth of the Chesapeake Bay was essentially the most spacious class A workplace location inside our price range in Hampton, Va.
Michigan stood out because the state with essentially the most markets among the many prime 50 decisions for largest class A workplace areas at $10,000 per thirty days.
It’s arduous to sprawl out on a price range in California: Of the highest 50 markets the place our price range would get the least class A workplace house, 23 are within the Golden State.

Status or Expanse? Western U.S. Markets Provide A few of the Least-Spacious Class A Choices

Granted, renting a category A workplace within the priciest markets will imply both a big price range or a smaller house. However, simply how small? For our price range of $120,000 per 12 months ($10,000 per thirty days), the smallest we might get was just below 1,270 sq. toes of workplace house in Mountain View, Calif.

Nonetheless, suppose we didn’t have to arrange our enterprise within the extremely aggressive Silicon Valley market, however we nonetheless needed to remain within the Golden State. In that case, the most important workplace house our price range might handle could be in Orange, Calif., the place our enterprise might function out of roughly 4,000 sq. toes for $10,000 per thirty days.

When wanting on the prime 50 workplace markets by asking lease, California accounted for almost half of that rating. In actual fact, aside from Manhattan, N.Y. — the third-priciest possibility on the record — and Boston (seventh), the highest 15 places the place our price range would get the least class A workplace house are all in California.

Conversely, essentially the most class A workplace house we might lease within the Western U.S. area could be in Sandy, Utah. South of Salt Lake Metropolis, our $10,000 per thirty days might stretch for about 5,770 sq. toes right here. Equally, in Albuquerque, N.M., our proposed price range might get almost 5,500 sq. toes of sophistication A workplace house, whereas it might be about 5,200 sq. toes in Reno, Nev. Likewise, in Spokane, Wash., or Boise, Idaho, we’d get about the identical — almost 5,000 sq. toes of sophistication A workplace house.

Virginia Market Tops Record of Choices for Most Class A Workplace House Inside Our Finances

Our most beneficiant possibility when it comes to class A workplace house was in Virginia, the place we might lease slightly greater than 7,000 sq. toes of workplace house in Hampton on the mouth of the Chesapeake Bay. Elsewhere within the neighborhood, our price range would possibly stretch for an almost 4,500-square-foot workplace in close by Virginia Seashore, whereas in Chesapeake, Va., we might arrange store in slightly greater than 5,000 sq. toes.

In contrast to California, Virginia landed on each side of this scale because it’s additionally dwelling to among the extra restrained choices of sophistication A workplace house for lease inside our month-to-month price range. As an illustration, we might get almost 2,800 sq. toes of workplace house in Alexandria, Va., which is on the doorstep of Washington, D.C. Elsewhere within the capital metro space and never too far upstream alongside the Potomac, we could possibly be taking a look at slightly extra class A room (shut to three,000 sq. toes) in both McLean or Vienna, Va.

Midwestern Markets Provide Nice Selection for Prime-Tier Workplace House

Additionally excessive on the record of prime 50 cities the place we might get essentially the most class A workplace house for our price range had been a number of Midwestern U.S. places. With globally related logistics and transportation infrastructures; a comparatively engaging price of dwelling; an sincere work tradition; and rising financial alternative, rising Midwestern workplace markets actually deserve consideration.

As an illustration, in Fort Wayne, Ind., we might lease about 6,500 sq. toes of sophistication A workplace house and place our enterprise in one of many greatest Rust Belt comeback tales — one of many few deindustrialized cities the place the inhabitants elevated since 1950.

Or, in Michigan, we might lease round 6,300 sq. toes of workplace house in Troy or about 5,200 in Southfield close to Detroit. Alternatively, we might go for an almost 5,490-square-foot house of a class A workplace in Detroit itself — the Twelfth-best market on the record of choices for many class A workplace house inside our price range.

Pennsylvania Residence to Most Accessible Class A Choice in Northeastern U.S.

Among the many Northeastern markets included in our evaluation, essentially the most class An area we might get could be almost 5,600 sq. toes of workplace house in Harrisburg, Pa. Then, our second-best possibility for most leeway within the area was Hartford, Conn., the place our price range might get roughly 5,300 sq. toes of house.

As anticipated, a number of Northeastern U.S. markets had been amongst these the place our price range would stretch for the least class A workplace house: Manhattan (slightly greater than 1,300 sq. toes of sophistication A workplace house for a yearly price range of $120,000); Boston (roughly 1,600 sq. toes); and Brooklyn, N.Y. (about 2,100 sq. toes).

Utilizing the workplace house calculator included immediately under, enter your estimated yearly rental price range and see how a lot class A workplace house your price range might get you in any of the markets included in our evaluation. 

Classic Vibes: Class B Areas Provide a Enterprise Tackle With Distinctive Character

Class B workplace house — additionally known as commodity house — is commonly underrated because it tends to lack the top-tier assortment of bells and whistles that adorn class A and trophy developments. Nonetheless, whilst you’re most probably to search out commodity house in considerably older buildings, it may well nonetheless be a viable, sensible and even pleasantly shocking possibility. Plus, Class B property nonetheless accounts for the most important share of workplace house in most markets and, consequently, it’s comparatively simpler to discover a dwelling for your online business on this class.

Furthermore, workplace properties on this tier are sometimes the results of adaptive reuse redevelopments of turn-of-the-century buildings. And, relying on the native architectural historical past of the market, a category B workplace would possibly include a grand foyer, beneficiant loft areas, excessive ceilings, massive home windows and a whole lot of distinctive character.

Class B highlights:

A enterprise base in Oklahoma: Tulsa was essentially the most beneficiant selection for sophistication B workplace house inside our price range.
The South and Midwest areas accounted for almost all of choices among the many prime 50 markets for many class B workplace house at $10,000 per thirty days.
Demand outdoes property class: The priciest markets proved difficult even when renting commodity house.

Albuquerque, Spokane & Colorado Springs Are Prime Decisions in Western U.S. for a Sprawling Class B Workplace

Within the tightest markets, there can generally be comparatively little distinction between class A and sophistication B choices. As an illustration, in Mountain View, Calif., we’d get about 600 extra sq. toes of sophistication B house than class A for our similar price range — a complete of roughly 1,880 sq. toes of workplace house. Moreover, essentially the most class B house we might get in California (primarily based on the common market asking price knowledge that we in contrast) could be slightly greater than 5,150 sq. toes of workplace house in Sacramento.

Among the many Western U.S. markets we analyzed, essentially the most class B house our price range might get within the area could be roughly 6,670 sq. toes of workplace house in Albuquerque, N.M. Alternatively, we might go for about 6,000 sq. toes in an workplace in Spokane, Wash. — a mid-sized metropolis packing appreciable quality-of-life potential — or in Colorado Springs, Colo., which lately ranked among the many greatest cities to dwell in inside the U.S.

Tulsa Claims Roomiest Choice for Class B Workplace House

Notably, the Southern U.S. is dwelling to the most important choice of prime 50 markets the place our price range would stretch for essentially the most class B workplace house. In actual fact, we discovered one Southern market on the very prime of that record — Tulsa, Okla., a beautiful metropolitan area with a wealthy cultural scene and an award-winning financial improvement group. With our hypothetical $10,000 per thirty days right here, we might safe almost 8,300 sq. toes of sophistication B Tulsa workplace house for our enterprise. This may be greater than 1,700 extra sq. toes in comparison with how a lot class A workplace house we might lease in the identical market for a similar price range.

Our second-best possibility on the record for many class B workplace house was Winston-Salem, N.C. A gem amongst rising Southern U.S. markets, this Piedmont Triad metropolis has been nurturing a promising startup scene by leveraging the excessive native company density and assets with sturdy collaborative neighborhood spirit. On this state of affairs, our rental price range might place our enterprise in an workplace of about 7,500 sq. toes of sophistication B workplace house in Winston-Salem on the coronary heart of a regional financial system that’s seeing new development industries rising quickly.

Different notable Southern U.S. entries among the many markets the place we might lease essentially the most commodity house included: Hampton, Va. (the place we might get about 7,400 sq. toes); Memphis, Tenn. (6,750 sq. toes); Oklahoma Metropolis; and New Orleans, every of which might permit us roughly 6,600 sq. toes of sophistication B workplace house.

Indiana & Michigan Contribute Highest-Rating Midwestern Markets for Most Commodity House

For sophistication B workplace house, Midwestern markets accounted for the second-largest regional group among the many prime 50 places for many house inside our price range. Highest amongst them was Fort Wayne, Ind., which was the third-best possibility for many class B workplace house, behind Tulsa and Winston-Salem.

Additional north, Auburn Hills, Mich., was the second-best-ranking Midwestern market in our search. Right here, our price range would lease almost 7,000 sq. toes of sophistication B workplace house. It might additionally place us in a northern suburb of Detroit that has lately seen vital funding in streetscape and infrastructure enhancements, together with an outside wi-fi community that’s free to customers and accessible throughout the town’s revitalized downtown space.

Albany, N.Y., Locations Greatest Amongst Northeastern U.S. Markets for Class B Workplace House in Our Finances

When wanting on the prime 50 markets for many class B workplace house inside our price range, we discovered a complete of 4 Northeastern U.S. places, and the New York state capital ranked greatest amongst them in fifth place: Our imaginary price range might lease almost 7,300 sq. toes of commodity workplace house in Albany, N.Y., which might place our enterprise within the oldest steady settlement from the unique English colonies that’s now the tutorial, cultural and financial heart of the capital area of New York state.

Subsequent on the record had been two different Northeastern U.S. state capitals — Harrisburg, Pa., and Hartford, Conn. Particularly, we might lease slightly greater than 6,400 sq. toes of sophistication B workplace house in Harrisburg, which is a metropolitan space that’s dwelling to a comparatively younger inhabitants, a wealth of outside recreation choices and a extremely walkable downtown. To not be outdone, Hartford, Conn., adopted comparatively carefully behind as our price range would get us about 6,200 sq. toes of sophistication B workplace house right here.

Lastly, our hypothetical rental price range might get us almost 5,700 sq. toes of sophistication B workplace house in Pittsburgh, which is dwelling to some of the eco-friendly workplace markets within the nation. It’s additionally an financial system that has been efficiently transitioning from its steel-centered previous to a various innovation ecosystem.

Utilizing the workplace house calculator under, enter your estimated yearly rental price range and see how a lot class B workplace house your price range might get you in any of the markets included in our evaluation.  

Actually, information of enormous and really massive company workplace house customers rightsizing their footprints can solid a shadow on the state of the nationwide workplace market. That stated, it’s necessary to do not forget that most workplace properties within the U.S. are smaller; extra simply adaptable to the altering present of tenant wants; and maybe higher members within the creation of the live-work-play communities and viable 15-minute cities — to which the youthful, extra sustainability-minded generations of employees aspire.

Methodology

For this report, we regarded on the common market asking price for workplace house in 160 U.S. markets utilizing knowledge supplied by CommercialEdge. We solely thought-about places the place the asking price was out there for at the very least three properties and greater than 10 areas listed for lease. Knowledge included herein was as of October 2023.

Disclaimer

Whereas each effort was made to make sure the accuracy of the market asking price data introduced herein, the data is supplied “as is” and neither CommercialCafe nor CommercialEdge can assure that the data supplied is full. This report is for basic informational functions solely and presents hypothetical estimates. It doesn’t represent and shouldn’t be relied upon as a foundation for any funding choice. The data introduced can be topic to alter with out discover and should or might not apply relying on the circumstances. All the time contact a professional funding guide when you want recommendation concerning shopping for, promoting or in any other case transacting in any funding.