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Thursday, Mar 28, 2024
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El Camino Real Is Ranked as 12th Most Expensive Street

El Camino Real, in San Diego’s Del Mar Heights submarket, ranks as the nation’s 12th most expensive street for office space, according to a new report by brokerage company JLL.

Sand Hill Road in Menlo Park and Hamilton Avenue in Palo Alto topped the biennial study of U.S. submarkets, based on rents, available supply and other variables in the most high-demand office neighborhoods.

The report said the El Camino Real corridor, generally the area near Del Mar Heights Road and Interstate 5, has an average full-service annual rent of $45.85 per square foot for 2015.

That price is 55.3 percent above the average rent for the overall San Diego market.

Sand Hill Road’s average annual rent is $141.60 per square foot, 164.7 percent above the average for the San Francisco peninsula; and Hamilton Avenue’s rent is $124.44 per square foot, a 198.6 percent premium above the average for Silicon Valley.

Also making the Top 5 most expensive streets were Fifth Avenue in New York City, Greenwich Avenue in Greenwich, Conn., and Mission Street in San Francisco.

The Top 10 also included Avenue of the Stars in Los Angeles at No. 8 and Newport Center Drive in Newport Beach at No. 10.

7th in the Burbs

The JLL report also placed El Camino Real at No. 7 nationally among the most expensive suburban streets — essentially those located outside of cities’ core downtown markets.

JLL officials said in a statement that San Diego’s El Camino Real, like most of the other U.S. locales on the most-expensive list, is bolstered by a “live, work, play” dynamic, as tenants pay “a little bit more in rent” to have restaurant, retail, entertainment and residential elements directly near the office.

The average rent at El Camino Real is up 5.8 percent from two years ago, when JLL conducted its last survey of the most expensive markets. The latest report ranked the 42 priciest U.S. locations.

The Tenants

The El Camino Real corridor houses the offices of companies in several industries, including financial services, law and technology. Current tenants include Realty Income Corp. and American Assets Trust Inc., both locally headquartered real estate investment trusts, as well as Imprimis Pharmaceuticals Inc. and a local office of the law firm Pillsbury Winthrop Shaw Pittman LLP.

An earlier report by JLL noted that asking rents for office space in Del Mar Heights have risen 20.8 percent in the last four years. The submarket had a total vacancy rate of 11 percent at the end of the third quarter, among the tightest for local office neighborhoods and below San Diego County’s overall rate of 14.5 percent.

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