When setting up an independent advisory practice, office rent is one of the first things a financial advisor should take into account. And rents are going up across the country.
“Coming out of the recession where you had vacancy and occupancy rates at very, very low levels and you had concessions being offered by landlords, now you’re looking at very high occupancy ratios for prime real estate properties,” said Patrick Jinks, director of practice planning and acquisitions at Raymond James Financial Services. "This is all geographically driven.”
For an advisor, the rent on office space is one of the costs that is not necessarily fixed, Jinks said. But it is controllable because you can estimate it early on.
“You can control it by signing a lease that is of a period of time where your rate is fixed, and then can also have a right to renew,” Jinks said.
Jones Lang LaSalle has recently put together a list of the most expensive streets for office rents, and the list skews heavily toward gateway cities on both coasts.
But don’t assume you know which streets are the most expensive—the study does provide some surprising insights into current conditions of office rents.
For an in-depth look at the most desirable office locations, click through our slideshow.