The price of full-service office rental space on Nicollet Mall has risen in the past two years, increasing by more than 4 percent, according to a report released Monday.
The mall, the spine of Minneapolis’ central business district, had an average office rent rate of $30.60 per square foot in the second quarter of this year, according to a survey of 40 U.S. office markets by Jones Lang LaSalle, a Chicago-based professional services and investment management firm. That compares with $29.27 per square foot in 2011.
That pushes Nicollet Mall up the Jones Lang LaSalle national rankings, from 29th in 2011 to 25th in the latest survey.
Future surveys could well see Nicollet Mall rents climb even higher in years to come. On Sept. 19, James Corner Field Operations was selected from a group of 20 firms from around a world to re-imagine Minneapolis’ aging boulevard. The team designed the acclaimed High Line public park in Manhattan, among other high-profile projects across the country.
Even with this latest rise in office rent, the mall remains far behind the leader: Sandy Hill Road ($110.76) in the San Francisco suburb of Menlo Park. And even another 50 percent jump would fail to push the mall into the nation’s top 10. Newport Center Drive in Orange County, Calif., holds onto No. 10 with a rate of $50.06 per square foot.
Reflecting the tech industry’s growth, the San Francisco Bay Area holds three spots in the top 10 — more than any other office market.