The Boyd Company study found that it costs more than $43 million per year in San Francisco to operate a research or product development center employing 500 workers in a 125,000-sf building located in class A office space. A similar facility in Santa Clara County costs more than $41.5 million to operate. Office space alone averages more than $7 million per year, according to the study.

Researchers studied the costs of hiring a skilled labor force and paying necessary items such as rent and utilities before coming to their conclusion. Based on those variables, they said California is home to four of the top eight most expensive locations, with Los Angeles and Orange counties coming in at seventh and eighth.

A San Francisco company with 500 employees, including executives, workers with advanced degrees in engineering and a support staff, should expect to pay about $33 million for payroll and benefits.