Where New Office Space Costs the Least – and the Most

Real estate giant JLL reports that it will cost an average of $196.49 per square foot to build out an office in 2017. After landlord-provided allowances, that leaves tenants on the hook for more than $150 per square foot. But not all markets are equally expensive.

A new guide uses JLL’s database to determine which markets cost tenants the most and which cost tenants the least, after allowances are figured in. The most expensive include Silicon Valley, Sacramento, Long Island, San Francisco and New York.

The most affordable market is Washington, D.C. “Slightly below average build out costs are offset substantially by large concession packages that are leading the national average,” JLL explains. Next comes Houston; West Palm Beach; Hampton Roads, Virginia; and Atlanta.

“Six of the 10 most affordable markets in the U.S. exist in the South – further proof that affordable labor and materials in the region can greatly affect the occupiers’ bottom line,” JLL notes.

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