Four markets logged rate increases of more than 25% with only two (Chicago and Los Angeles) reporting decreases, according to the study, which is compiled by Julien J. Studley Inc., a real estate firm that represents tenants. For the fourth consecutive year, San Francisco, Boston and Midtown New York City proved the most expensive cities to lease office space.

San Francisco Total rents soared a staggering 35.8% in 2000, or $20.45 per sf, although this year they have declined dramatically as software and Internet companies started returning space to the market.BostonThe demand for space by financial services firms left Boston with virtually no vacancies at the close of 2000. Total rents rose 35.2%, or $16.19 per sf, more than compensating for the single-digit growth of 1999.Midtown New York CityTotal rents in this submarket more than doubled on a percentage basis, rising 22.8%, or $13.74 per sf in 2000, compared to 9% the year before. Unlike San Francisco, however, Midtown was one of the tightest markets on the East Coast and will probably stay that way.Other cities came in with less stellar performances. Atlanta total rents bumped up just 0.4%, or 13 cents per sf, on the heels of two years of 4% growth of total rents while total rents in Downtown Los Angeles rose 2.7%, or 73 cents per sf, the largest percentage increase since 1995.

In Chicago, total rents dipped 1.7%, or 67 cents per sf as ground was broken on new facilities in the face of lower leasing, and Los Angeles (a separate submarket from Downtown LA) recorded a 1.7% dip in total rents, or 65 cents per sf, due to givebacks by the dot-com and high-tech companies.