Office space costs range from $21 to $84 per square foot annually in 2026 depending on market and building class. National vacancy sits at 20.4% — yet Class A space is capturing 52% of all leasing activity. This guide breaks down verified benchmarks market by market, explains what drives total occupancy cost, and shows you exactly what to negotiate.1,6
US office space costs between $21 and $84/SF per year in 2026. A 10-person team typically needs 1,200–2,000 sq ft and can expect to pay $2,100–$8,300/month in base rent — before additional costs like CAM, taxes, and insurance. Add 15–30% to any NNN quote to estimate your true all-in cost.1,2,3
Submarket data is often more useful than metro averages — pricing within a single city can swing 50–80% depending on neighborhood, building class, and transit access.
| Market / Submarket | 2026 Avg Annual Rent ($/SF) | Source |
|---|---|---|
| East Coast | ||
| Manhattan, NY — Overall avg | $50.76 | 1 |
| Manhattan — Gramercy Park | $83.36 | 1 |
| Manhattan — Plaza District | $73.38 | 1 |
| Manhattan — City Hall area | $45.06 | 1 |
| Philadelphia, PA — Class B | $28.17 | 2 |
| Philadelphia, PA — Class C | $19.82 | 2 |
| West Coast | ||
| Los Angeles, CA — Overall avg | $43.08 | 15 |
| Los Angeles — West LA Class A | $70.56 | 16 |
| San Francisco, CA | Tightening — contact for current comps | 8 |
| Texas | ||
| Houston, TX | $30.18 | 2 |
| Dallas, TX | Mid-$30s to ~$50 | 2 |
| Midwest | ||
| Chicago, IL — Downtown CBD | $44.29 | 17 |
| Chicago, IL — Suburban avg | $26.26 | 18 |
| Cleveland, OH | $21.11 | 2 |
San Francisco leasing demand is projected to climb 15% in 2026 to 12.8M sq ft on AI-sector growth, beginning to firm rents in prime submarkets.8
Each spotlight translates $/SF data into real monthly costs for a 10-person team (1,500 sq ft — a reasonable midpoint for most teams).5 All monthly figures are base rent estimates — add 15–30% for all-in NNN costs.
Base rent is a starting point, not a complete picture. Several additional line items typically make up your total monthly cost — review each before signing.
A $3,000/month NNN base rent can reach $3,800–$4,200/month once taxes, insurance, and CAM are added. Budget from your estimated all-in cost, not the base rate alone.3
Cover shared lobbies, maintenance, and security. Allocated by pro-rata share — 10,000 SF in a 100,000 SF building means you pay 10% of total CAM.11
If actual costs exceed estimates, a year-end reconciliation payment may apply. Negotiating a cap upfront is worth pursuing.4
Annual rent increases tied to a fixed percentage or CPI. These compound over time and are worth modeling into your multi-year budget.4
Passed through separately in NNN structures. Parking in urban markets is typically billed on top and adds meaningfully to all-in monthly cost.3
The lease structure determines your total cost exposure. Full-service runs 10–15% higher in base rate than NNN — but eliminates year-end reconciliation risk. Know what you are walking into before you tour.3
| Lease Type | What You Pay | What's Included | Best For |
|---|---|---|---|
| Full-Service (Gross) | One all-in monthly rate | Rent, taxes, insurance, CAM, utilities | Cost certainty; fixed-budget teams |
| Triple Net (NNN) | Lower base + pass-throughs | Base rent only | Teams comfortable managing variable costs |
| Modified Gross | Base + increases above base year | Landlord covers base-year expenses; tenant pays growth | Middle-ground predictability |
| Coworking / Flex | Monthly per desk or suite | Space, furniture, utilities, amenities bundled | Startups, project teams, hybrid-first |
For a full breakdown of all 7 commercial lease structures, see the TenantBase Commercial Lease Types Guide.3
The US average has stabilized at approximately 117 sq ft per worker in 2026, down from ~225 sq ft in 2010.5 A 10-person team will generally fall somewhere between 1,200 and 2,000 sq ft depending on layout, density preference, and how many days per week the team is in the office. In hybrid environments, plan by peak occupancy — not total headcount.
(Total employees × peak occupancy %) × sq ft per person = space needed
Example: 50 employees × 60% peak × 117 sq ft = 3,510 sq ft5,7
Collect recent deals, current availabilities, and concession packages in your target submarket before any negotiation. Data anchors leverage.14
Longer commitments earn lower per-SF rates. Shorter terms carry a 20–30% monthly premium — know the trade-off before negotiating.10
Seek annual caps on controllable CAM (typically 3–5%) and explicitly defined escalation clauses. Most landlords will accept reasonable caps if asked.4
In markets with vacancy to fill, landlords are still offering meaningful TI packages. Push before execution — not after.12
A local partner broker brings submarket comps, expense benchmarks, and negotiation experience that can be difficult to replicate in-house. In most US markets, the landlord pays the commission.
TenantBase connects you with a marketplace of available commercial spaces and local partner brokers who can provide support on the cost structures behind every listing. Our local partner brokers can help benchmark your shortlist, surface total occupancy cost under each lease structure, and work through the mix of rate, TI, free rent, and options that fits your 2026 plan.
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