COVER STORY, OCTOBER 2011

STREETS LINED WITH GOLD
A look at the top 10 most expensive streets for office space in the Southeast.
Savannah Duncan

In September, Jones Lang LaSalle released a list of the top 40 most expensive streets for office space in the United States. Southeast Real Estate Business took the top 10 in the Southeast and spoke with brokers about what makes these streets prime office space. For several of the streets, it’s all about the location, and tenants such as law firms and financial services flock to them.

1. Pennsylvania Avenue, Washington, D.C., $80.25 per square foot

“Pennsylvania Avenue is commonly referred to as ‘America’s Main Street,’” says Brad Flickinger, senior managing director of CB Richard Ellis’ Washington, D.C., office. “Name recognition is what gives Pennsylvania Avenue its cache. Not only is it an important street to D.C., but it has national recognition as well.”

Pennsylvania Avenue is bookended by the White House and the Capitol, so Flickinger says there are a lot of government relations and affairs offices located there, as well as major law firms and financial corporations.

2. Royal Palm Way, Palm Beach, Florida, $57.99 per square foot

Located on Palm Beach Island, Banker’s Row, the nickname for Royal Palm Way, runs east to west from the Intercoastal Waterway to the ocean. Only 26 office buildings are located on the street, which is approximately half a mile long.

“Palm Beach Island is home to some of the wealthiest individuals in the country,” says Kevin McCarthy, vice president of Jones Lang LaSalle’s West Palm Beach, Florida, office. “There’s a prestige to Royal Palm Way that lends itself to wealthy individuals living on the island. Tenants there, such as private banking and wealth management, typically serve a certain clientele.”

3. East Las Olas Boulevard, Fort Lauderdale, Florida $38.96 per square foot

East Las Olas Boulevard is located in the heart of Fort Lauderdale, close to Broward Boulevard, one of the city’s main east/west arteries. In January, Yum! Brands, which owns Pizza Hut, Taco Bell and KFC, moved its Latin American and Caribbean operations to East Las Olas from Deerfield Beach, Florida.

“There are a number Class A office buildings on Las Olas that have all the amenities,” says Sal Bonsignore, senior commercial associate of Colliers International’s Fort Lauderdale office. “It is the most desirable street in Broward County. East Las Olas commands the rate because of the quality of the buildings and proximity to clubhouses, restaurants and retail.” 

4. Brickell Avenue, Miami, $35.37 per square foot

“Brickell Avenue, which is adjacent to downtown Miami, is the premier location for office space in Miami,” says Alex Zylberglait, director of national office and industrial properties group and vice president investments of Marcus & Millichap’s Miami office. “Miami has the highest concentration of banks and financial institutions on the East Coast south of New York City.”

Zylberglait says tenants on Brickell tend to be banking and financial institutions, including multinational banks, as well as major law firms and a few Latin American consulates.

5. Boy Scout Boulevard, Tampa Bay, Florida, $29.22 per square foot

Boy Scout Boulevard, located in Tampa Bay’s West Shore District, is west of the downtown area and east of the bay. There is more than 12 million square feet of office space on Boy Scout Boulevard, and tenants include nationally recognized companies such as PriceWaterhouseCoopers, which recently occupied 250,000 square feet at Corporate Center Three at International Plaza.

“The draw to the major tenants that are currently located there is a combination of proximity to the interstate as well as the surrounding area it’s accessible to,” says Kenny Anderson, senior advisor of Sperry Van Ness’ Tampa office. “International Plaza, the mall, is a big draw. The area itself has more than 250 restaurants as well as 38 hotels. It’s also 5 minutes from the airport, which is important for national companies.”

6. Pratt Street, Baltimore, $26.73 per square foot

“Pratt Street is a major arterial going east bound in the downtown area along the waterfront,” says Stuart Rienhoff, managing director of Jones Lang LaSalle’s Baltimore office. “Because of Pratt Street’s proximity to the harbor and all the development there, it has become the main street of downtown Baltimore.”

Rienhoff says tenants such as financial service companies and law firms gravitate toward Pratt Street because of the quality of the office space that’s available there.

7. Tryon Street, Charlotte, North Carolina, $24.91 per square foot

Tryon Street in Charlotte’s downtown area is a piece of history. Where Trade Street and Tryon intersect was a part of the Great Trading Path, a Native American trail. Eventually, settlers took root there, and today it is still one of the most desirable streets for office space in Charlotte.

“Bank of America is on the northern end and Wells Fargo is on the southern end. Duke Energy is located there as well in a new 1.3 million-square-foot building,” says Peter Conway, co-managing partner of Trinity Partners’ Charlotte office. “There are tenants who are looking to relocate to Charlotte and say, ‘I don’t want to be on any other street than Tryon Street.’”

8. East Cary Street, Richmond, Virginia, $24.38 per square foot

East Cary Street in downtown Richmond is home to the 986,000-square-foot James Center, a three-building office property. Companies like Wells Fargo and Union First Market Bank have selected East Cary Street for national and regional headquarters.

“The James Center is synonymous with Class A office space in Richmond,” says Evan Magrill, executive vice president of Cushman & Wakefield — Thalhimer’s Richmond office. “Most of the major tenants located in downtown Richmond are located in the James Center or close to it. In addition to office space, the property also has an Omni Hotel, fitness center, parking garage, Starbucks and other amenities.”

9. Orange Avenue, Orlando, Florida, $23.18 per square foot

“Orange Avenue is a popular place to be for a couple of reasons,” says Greg Morrison, principal of Orlando-based Morrison Commercial Real Estate. “The downtown Orlando area really has a lot of momentum right now with the addition of the 875,000-square-foot Amway Center. We also have a new performing arts center under construction in the heart of downtown that’s going to be completed in 2013.”

Morrison says because Orange Avenue is within walking distance of these new properties, it has become a highly coveted street for office space. In April, Parkway Properties purchased the 421,069-square-foot Bank of America building, located on Orange Avenue, from Eola Capital.

10. Peachtree Street, Atlanta, $22.91 per square foot

“Peachtree Street is located in the heart of Atlanta and is the core of the city’s central business district,” says Ridr Knowlin, partner of Atlanta-based Dewberry Capital. “Peachtree Street provides some of the best pedestrian-friendly locations in Atlanta with access to the services and amenities that tenants are looking for.”

In the fall of 2010, Dewberry Capital purchased the Campinale building on Peachtree Street in Midtown for $36 million. SunTrust announced in April that it will relocate its Georgia headquarters there from 25 Park Place. Additionally, Dewberry is completing a multimillion-dollar renovation to the property.

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