{"id":23199,"date":"2019-07-10T12:49:26","date_gmt":"2019-07-10T10:49:26","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=23199"},"modified":"2022-11-26T14:42:33","modified_gmt":"2022-11-26T11:42:33","slug":"office-building-prices-top-cbds","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/office-building-prices-top-cbds\/","title":{"rendered":"Office Building Prices in the Top CBDs"},"content":{"rendered":"

There are many variables to consider when looking for commercial assets. You may be looking to lease space for your company or to purchase a building outright as an investment. Every market across the country has its own pros and cons, but historically the central business district is where the most desirable office assets lie.<\/p>\n

Using data provided by Yardi Matrix<\/a>, we analyzed 15 of the most popular central business districts in the country to compare prices for assets located within them. We\u2019ve broken down the price-per-square-foot (PPSF) of transactions in the last nine quarters and separated them by A and B improvement ratings. We then created a calculator by which you can compare the price of similar-sized assets across CBDs or the amount with which you have available to invest to determine which CBD is in the sweet spot. This analysis only looks at one of the numerous variables that should be taken into account when performing due diligence on potential investments, and that is the median sale price.<\/p>\n

Please take note of estimates for San Francisco office space<\/a>, where the price of B class assets is higher than those of A class. This is due to an abnormality in the distribution of when properties sold in our time period. As such, there were only two B class properties that traded, and both were in the summer of 2018. By comparison, half of all the assets that traded in the CBD of San Francisco were between February and May of 2017.<\/p>\n