Tech Tenants Face Rent Premiums in Major Markets
ByNetwork with the nation’s top CRE dealmakers at RealShare APARTMENTS in Los Angeles on Oct 21-22,RealShare INDUSTRIAL in Atlanta on Nov 3-4, RealShare NEW LEASE WEST in Los Angeles on Nov 11-12 andRealShare HEALTHCARE REAL ESTATE in Scottsdale, AZ on Dec 2-3.
Investors in tech markets must have “realistic expectations,” Yasukochi says.
LOS ANGELES—Call it a tech premium. Office tenants looking for space in one of the top 30 tech cities across the US andCANADA
can expect to pay an aggregate rent premium of 11%, and considerably more than that in the hottest tech markets, CBRE Group said Tuesday.
Although San Francisco has ranked as the leader by a number of measures in CBRE’s Tech-Thirty 2015 report, it doesn’t command the steepest rent premiums. That distinction goes to the East Cambridge submarket of Boston, with a rent premium of 87%, followed by Los Angeles’ Santa Monica submarket with 85% and Silicon Valley’s Mountain View submarket with 73%. The latter, of course, is home to Google’s corporate headquarters…
