September 23, 2016
It may come as no surprise that the most expensive office asking rates are located on Sand Hill Road, in Facebook’s hometown of Menlo Park, CA. Also unsurprising are the deep pockets that can afford it, coming mostly from venture capitalists. For example, VC firm Felicis Ventures, founded by Aydin Senkut a decade ago, is moving into a complex owned by DivcoWest, with listings at $132 psf annually.
According to Cushman & Wakefield, the average cost per square foot annually is $129.91, which is an increase of $6 over last year, and also surpasses rates on New York’s Park Avenue. For regional comparability, San Francisco’s south Financial District’s average is $75.39.
Although the area doesn’t boast many hip restaurants or retailers, that’s apparently part of the appeal. The address is a status symbol, and another benefit is the supply of large office spaces. Despite the slowing down of startups, venture capital firms have not wavered.
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