Florida & Arizona Trail California in Number of Expensive Submarkets

PropertyShark just released a new report, which ranks the top 100 U.S. office submarkets by average sale prices listed in 2021.

Nine Florida submarkets ranked among the nation’s 100 most expensive last year. Of these, the best positioned was Miami’s central business district, which landed in 28th with an average office sale price of $504 per square foot. Next, downtown West Palm Beach ranked 32nd ($488 per square foot), and the Weston submarket in Fort Lauderdale took 47th place ($382). Boca Raton and Tampa also recorded expensive submarkets among the 100 most expensive. At $213 per square foot, Florida had a significantly lower statewide price than California.

Arizona was up next with seven submarkets out of 100, the most expensive of which was North Gateway in Phoenix. It ranked 60th on our list, with an average price of $329 per square foot. The remaining six entries from the state were all located in the Valley of the Sun, including Peoria, Deer Valley, Gilbert, Chandler and Scottsdale’s South and Airpark submarkets.

Office assets in Arizona traded for an average price of $209 per square foot, which was slightly cheaper than Texas, where office sales averaged $212 per square foot last year. The Lone Star was home to four of the country’s most expensive office submarkets: Office space in downtown Austin sold for an average of $612 per square foot; Northwest Austin sales averaged $364 per square foot; sales in Far West San Antonio closed for $294 per square foot, on average; and office property in East Dallas traded for an average of $270 per square foot.

Key takeaways from the report:

• Seven Arizona submarkets ranked among the nation’s 100 most expensive last year;
• Landing in the 60^th place, the highest-ranked Phoenix submarket was Phoenix – North Gateway, with an average sale price of $329 per square foot;
• The remaining six entries from the state were all located in the Phoenix metro area, of which the Peoria submarket ranked 64^th with the average price resting at $321 per square foot;
• On a national level, the average price per square foot of office space was $237 in 2021, up from $233 in 2019.

Check out the complete top 100 list here.

To determine the most expensive submarkets in the U.S., we looked at office transactions closed between January 1, 2021, and December 31, 2021, according to data provided by CommercialEdge. For the purposes of this study, we also used CommercialEdge’s delimitations of submarkets as component areas of a larger office market.