Offices on the highest floors of skyscrapers in San Francisco and New York soared in value since March, boosted by growing technology and energy businesses, Knight Frank LLP said.
The upper floors of office towers, which command the highest rent, are valued at $2,260 a square foot in San Francisco, a gain of more than 60 percent from March, according to an index compiled by the London-based property broker. In Manhattan, values have climbed 25 percent to $2,980. At the same time, slowing Chinese growth caused prices to fall in Singapore and Hong Kong, though the latter remains the most expensive at $6,330, Knight Frank said in a report today.
“The U.S. is proving to be the comeback kid, boosted by new technology firms and shale gas,” James Roberts, the firm’s head of commercial research, said by e-mail. “Growth has been fastest in the city with the most tech exposure, namely San Francisco.”
San Francisco moved to fifth in the skyscraper value rankings from ninth in March, the biggest increase among buildings of more than 20 stories in the 15 cities included in the survey, the broker said. Almost three-quarters of the tenant deals in the year through June were signed by technology firms such as social media and mobile-applications startups, CBRE Group Inc. said in August.
Read more: Bloomberg San Francisco Skyscraper Values Soar as Tech Lifts Rents