Rental and office space in the USA are on average expensive. The cost will largely depend on the location where you want to rent a space. Here we are going to lay out the average rental price in various locations in the USA.
Office Space Rent
01. New York City
| Location | Class A | Class B |
| Columbus Circle | $78 per sqft | $65 per sqft |
| Grand Central | $73 per sqft | $60 per sqft |
| Garment District | $93 per sqft | $59 per sqft |
| East Side/United Nations | $75 per sqft | $70 per sqft |
| Plaza District | $97 per sqft | $61 per sqft |
| Times Square | $79 per sqft | $66 per sqft |
| Chelsea | $93 per sqft | $55 per sqft |
| Union Square | $88 per sqft | $68 per sqft |
| Greenwich Village | $111 per sqft | $69 per sqft |
| Hudson Square | $90 per sqft | $59 per sqft |
| Soho | $102 per sqft | $71 per sqft |
| Financial District | $58 per sqft | $51 per sqft |
| Tribeca | $85 per sqft | $50 per sqft |
| Water Street Corridor | $59 per sqft | $40 per sqft |
| World Trade Center | $75 per sqft | $65 per sqft |
| New York City Average | $83 per sqft | $58 per sqft |
02. Houston
| Location | Class A | Class B |
| Downtown | $45 per sqft | $30 per sqft |
| Midtown | $33 per sqft | $29 per sqft |
| Energy Corridor | $34 per sqft | $21 per sqft |
| Galleria | $38 per sqft | $28 per sqft |
| Medical Center | $33 per sqft | $28 per sqft |
| Northwest Houston | $26 per sqft | $20 per sqft |
| Sugar Land | $29 per sqft | $23 per sqft |
| The Woodlands | $32 per sqft | $28 per sqft |
03. Dallas
| Location | Class A | Class B |
| Uptown/Oak Lawn | $42 per sqft | $35 per sqft |
| Downtown Dallas | $32 per sqft | $25 per sqft |
| Las Colinas | $31 per sqft | $22 per sqft |
| Far North Dallas | $32 per sqft | $23 per sqft |
| Northwest Dallas | $25 per sqft | $18 per sqft |
| Suburban Dallas | $30 per sqft | $21 per sqft |
| Downtown Fort Worth | $31 per sqft | $23 per sqft |
| Suburban Fort Worth | $21 per sqft | $20 per sqft |
04. Washington DC
| Location | Class A | Class B |
| Downtown DC | $73 per sqft | $52 per sqft |
| Capitol Hill | $70 per sqft | $50 per sqft |
| Dupont-Logan-Shaw | $68 per sqft | $53 per sqft |
| East End | $68 per sqft | $51 per sqft |
| Georgetown | $54 per sqft | $46 per sqft |
| NoMa | $57 per sqft | $50 per sqft |
| Southwest DC | $54 per sqft | $45 per sqft |
| Tyson’s Corner | $42 per sqft | $30 per sqft |
| Reston | $40 per sqft | $29 per sqft |
| Bethesda | $55 per sqft | $40 per sqft |
| Silver Spring | $32 per sqft | $23 per sqft |
05. Chicago
| Location | Class A | Class B |
| West Loop | $51 per sqft | $38 per sqft |
| Central Loop | $44 per sqft | $37 per sqft |
| East Loop | $41 per sqft | $36 per sqft |
| River North | $50 per sqft | $35 per sqft |
| Fulton Market | $52 per sqft | $31 per sqft |
| North Michigan Avenue | $44 per sqft | $36 per sqft |
| Chicago Suburbs | $26 per sqft | $22 per sqft |
06. Charlotte NC
| Location | Class A | Class B |
| Uptown | $35 per sqft | $27 per sqft |
| South End | $34 per sqft | $26 per sqft |
| Charlotte CBD | $34 per sqft | $26 per sqft |
| Airport | $23 per sqft | $18 per sqft |
| Ballantyne | $33 per sqft | $24 per sqft |
| South Park | $32 per sqft | $27 per sqft |
| University | $21 per sqft | $22 per sqft |
| Charlotte Suburbs | $28 per sqft | $20 per sqft |
07. Atlanta
| Location | Class A | Class B | Vacancy |
| Buckhead | $36 per sqft | $27 per sqft | 15% |
| Downtown | $27 per sqft | $22 per sqft | 18% |
| Midtown | $37 per sqft | $30 per sqft | 12% |
| Galleria | $27 per sqft | $21 per sqft | 21% |
| Perimeter | $31 per sqft | $19 per sqft | 19% |
| North Fulton | $26 per sqft | $21 per sqft | 18% |
08. Baltimore
| Location | Class A | Class B | Vacancy | Inventory |
| Downtown Baltimore | $26 per sqft | $20 per sqft | 12 msf | 22% |
| Baltimore City Totals | $28 per sqft | $20 per sqft | 24 msf | 14% |
| BWI | $31 per sqft | $22 per sqft | 10 msf | 16% |
| Ellicott City | $30 per sqft | $24 per sqft | 12 msf | 12% |
| Suburban Baltimore Totals | $28 per sqft | $22 per sqft | 48 msf | 14% |
09. Phoenix
| Building Class | Rent | Inventory | Vacancy |
| Class A | $31 per sqft | 42 msf | 13% |
| Class B | $23 per sqft | 53 msf | 18% |
| Class C | $19 per sqft | 7 msf | 6% |
10. Boston
| Location | Class A | Class B |
| Financial District | $60 per sqft | $52 per sqft |
| Back Bay | $68 per sqft | $55 per sqft |
| Seaport | $69 per sqft | $54 per sqft |
| Fenway | $62 per sqft | $56 per sqft |
| South Boston | $65 per sqft | $55 per sqft |
| Cambridge | $85 per sqft | $60 per sqft |
| Boston Suburbs | $29 per sqft | $21 per sqft |
11. Denver
| Location | Class A | Class B | Vacancy |
| Lodo | $48 per sqft | $38 per sqft | 9% |
| Midtown | $39 per sqft | $32 per sqft | 17% |
| Central Business District | $42 per sqft | $32 per sqft | 16% |
| Denver Suburbs | $31 per sqft | $24 per sqft | 14% |
What You Need To Know Before Renting An Office Space
For your business, renting an office space is going to be the biggest investment. Rent cost will also largely depend on the city and the size of the space you rent. However, before going further, here are a few things you should know about renting an office space.
In general, terms if you find a space with a quote “$52 per sqft” it refers to the cost per year; so, per month you will pay $4.33 per sqft. The cost of per square foot of the office will have let you determine the annual and monthly expense. For estimation, you should consider 100 to 150 square feet on average for each employee. So, if you have 10 employees, a 1500 square feet space should be enough. This calculation will also help you in budgeting your expense on office space. However, you should know that many office spaces come with additional expenses in the lease and then there are building a class to choose from which will have significantly different price points. Plus, there are other amenities such as doorman and lobby.
Different Types of Lease
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Gross Lease
Here, you pay only the rent and the landlord covers everything else. However, he may recoup the price called the ‘Load Factor.’
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Triple Net Lease
Here, you pay the rent as well as the taxes, insurance and maintenance fees.
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Double Net Lease
Here, you pay the rent, taxes, and insurance.
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Net Lease
This includes your rent, some taxes, insurance and maintenance fees.
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Percentage Lease
This includes your rent and a percentage of your monthly sales.
Moreover, the landlord will increase the rent by a definite percentage every year which is called ‘rent steps.’Many prefer a fixed amount but to find such space, you should consult your broker who can negotiate on the rent price.
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USF
It means the Usable Square Footage you get from the rented space. For the most part, the usage square footage is not advertised, which is why you should check up space by yourself to determine if it would accommodate your needs.
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RSF
Rentable Square Footage includes other areas along with your exclusive office space such as common areas, elevators, lobbies, stairways etc. In this case, you pay for these areas as well.
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Loss Factor
This is the difference between the Usable Square footage and Rentable Square Footage. This will tell you how much markup there is on the rent.
After you have decided on the space, you will have to renovate the area into an office. Here, the landlords may contribute to the renovation work which in the industry is called as ‘Tenant Improvement Allowance.’ You should talk to your broker who can help you negotiate with the landlord. Throughout the office leasing process, you should consult your broker before deciding on a place. They can help you manage cost and make a saving. The best thing is that it is free to work with a tenant broker as they collect commissions from the landlords.
