US streets that cost the most per square foot

The most expensive street to rent on in the U.S. might surprise.

Location, location, location.

Business owners looking to make a splash with a new commercial retail space know the mantra.

No matter how clean-cut and concise a business plan might be, a poor location can doom even the most promising companies.

But the most prime locations cost big bucks. According to research recently revealed by Jones Lang LaSalle, the most expensive street for residential and office space might surprise.

It's not in New York, it's not in Los Angeles and it's not in Chicago.

The study, which examined 40 office markets across the nation, found that office space on one Silicon Valley road is the most expensive.

Sand Hill Road in Menlo Park, Calif., asks tenants to pay an average of $111 per square foot of space. Jones Lang LaSalle mentioned Sand Hill Road as one of Silicon Valley's consistently pricey streets. Sand Hill is home to many of the top venture capitol firms in San Francisco.

"This year's results are particularly interesting because, not only do they demonstrate the standard real estate rule that location is everything, but they also reflect the overall office space demand trend in the U.S.," said John Sikaitis, managing director of office research at Jones Lang LaSalle. "We are seeing a slight uptick in occupancy rates as a result of the rate of business growth in the economy combined with a lack of new development."

Other expensive streets for office space
Not surprisingly, New York City's Fifth Avenue, which is located in Midtown Manhattan, ranks second on the list. Tenants pay an average of $102 per square foot, and it regularly ranks among the most expensive shopping hubs in the world. The report form Jones Lang LaSalle said companies that are willing to pay more for "top-quality space in Midtown" choose Fifth Avenue for its exceptional facilities and amenities.

"It sounds cocky, but it's New York and then it's the rest of the world, and that's why everybody wants to be here," Faith Hope Consolo, a broker and chairman of the retail group at Douglas Elliman, told The New York Times.

Rounding out the top five include Silicon Valley's University Avenue; Greenwhich Avenue in Greenwich, Conn.; and Pennsylvania Avenue in Washington, D.C.

University Avenue charges $95 per square foot, Greenwich Avenue costs tenants $93 per square foot and Pennsylvania Avenue is $76 per square foot.

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