Elements of the Most Expensive Streets

SAN DIEGO—What goes into creating an area with a big price tag? A little art and a little science, experts from JLL tell GlobeSt.com. The firm’s recently released report about the most expensive streets on which to rent office property in America revealed that Orange County, CA’s Newport Center Drive in Newport Beach came in at #10 on the list overall and also came in at #5 most-expensive suburban street in the US, displaying vacancy near 11% and rent growth of 3.3% since 2013, with 2015 average rent at $51.72 per square foot. In addition, San Diego’s El Camino Real ranked at #12 for all streets in the nation and #7 for most-expensive suburban streets, with an average full-service rent rate of $45.84. The rental rate represents a 5.8% increase from two years ago, when JLL last surveyed the most expensive streets in the US, but also a serious discount from San Francisco Peninsula’s Sand Hill Road at an eye-popping $141.60. We spoke exclusively with San Diego-based EVP Bess Wakeman and Orange County-based managing director Ronda Clark about what it takes to develop streets where the cost to rent is high.

GlobeSt.com: What goes into creating an area where real estate is in such high demand that it contains one of the most expensive streets in the country?