Office Space Pricy On OC Street

NEWPORT BEACH, CA-Newport Center Dr. ranks 10^th on the list of most-expensive streets for renting office space in the country, according to Jones Lang LaSalle. The average monthly rental rate for office space on that street is $50.06, the firm reports.

Sitting on a bluff overlooking the Pacific Ocean, Newport Center Dr. is a 1.3-mile ring that encompasses the Fashion Island retail center. World-class dining and retail amenities, along with ocean-view suites and access to posh residential neighborhoods, make the street one of the most highly sought-after places to rent office space in Southern California.

Sand Hill Rd. in Menlo Park, CA, part of the San Francisco Peninsula market, remains number-one on the list with average rents reaching nearly $111 per square foot. New York City's Fifth Ave. once again holds the number-two spot and is the most-expensive central business district street in the US with average rents of roughly $102 per square foot. Northern California's University Ave. in Silicon Valley ranks number three, with average rents of about $95 per square foot.

Nationally, rental rates on the most expensive streets have increased on average 10.9% since 2011 as the recovery moves forward, according to JLL. Office rental-rate increases are also due to a lack of new construction leading to supply constraints as well as growth in the tech and energy industries, in particular.

As GlobeSt.com reported last week, high-tech tenants are seeking creative-office space in Orange County, but they are limited in their options because of short supply, reports CBRE. This demand is driving rental rates north in certain submarkets of the county, including Irvine, Anaheim Stadium Area and parts of South Orange County, where the majority of the region's tech firms are located.

Stay tuned to the Orange County page for a more in-depth look at Newport Center Dr. and what the high average rental rates mean for this market.