New York and Boston came in at No. 6 and No. 7. Class A office space is costing San Franciscan's approximately $70 per sf, while in Midtown Manhattan and Boston, occupancy costs run about $80 per sf, according to the study.
The survey also found that occupancy costs in all three cities increased between 30% and 49% during 2000. "The general strength of the US economy in 2000 and extraordinarily tight office market conditions drove this rise in office occupancy costs, particularly in technology-heavy cities such as San Francisco and Boston," said Doug Poutasse, AEW's chief investment strategist in a prepared statement. "In fact, with a 49% growth, Boston had the greatest occupancy cost increase in the world during 2000."
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