GITNUXREPORT 2025

Commercial Rent Statistics

US commercial rents average $24.71 per square foot in 2023.

Jannik Lindner

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Key Statistics

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The global commercial real estate leasing market was valued at approximately $1.2 trillion in 2022

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Commercial property investment sales in the US reached $300 billion in 2023, a 20% increase from the previous year

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The commercial property investment volume in South Korea reached approximately $15 billion in 2023

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The average lease term for retail commercial properties in the US is approximately 5 years

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The average lease for a retail store in Seoul is about KRW 50,000 per square meter annually

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The initial lease deposit for commercial spaces typically ranges from 3 to 6 months’ rent in major markets

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The average duration of lease agreements in the US is approximately 4.5 years

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The average commercial rent per square foot in the United States was $24.71 in 2023

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The retail sector has seen a 12% decrease in rent prices over the past five years

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Industrial property rents increased by an average of 7% nationwide in 2023

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The median rent for a small retail space in London is approximately £25 per square foot annually

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In Australia, average commercial office rents in Sydney are around AUD 850 per square meter annually

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The average annual rent for a warehouse in Los Angeles is approximately $0.85 per square foot

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The average leasing volume for retail spaces in the US decreased by 15% in 2023 compared to 2022

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The average size of a commercial lease in the US is approximately 2,500 square feet

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Approximately 68% of businesses in the US lease their commercial spaces rather than own

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The average initial rent for a retail space in the UK is around £50 per square foot annually

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There has been a 5% increase in industrial lease transactions globally in 2023

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The average rent for office spaces in Singapore exceeds SGD 10 per square foot per month

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Retail rents in Paris are averaging €1,200 per square meter annually

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The average cost to rent industrial space in Canada is approximately CAD 8 per square foot annually

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In the US, the average rent for medical office spaces is about $25 per square foot annually

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The retail lease renewal rate in the US has increased to 75% in 2023, indicating renewed activity in retail leasing

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The average cost of renting commercial land in India varies widely, averaging around ₹500 per square meter annually in major cities

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The average annual rent for a co-working space in San Francisco is approximately $700 per person

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Commercial rent growth in China’s tier-one cities averaged 3.2% in 2023, according to property reports

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The average annual rent for a small office in Dubai is approximately AED 80 per square foot

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The average lease rate for logistics warehouses in Germany has increased by 4% in 2023

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The average annual rent for an industrial property in Mumbai is approximately ₹1,200 per square meter

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The average annual rent for a business office in Chicago is roughly $25 per square foot

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In Berlin, the average commercial rent for office space is approximately €20 per square meter per month

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The average monthly rent for retail spaces in Sydney CBD is around AUD 1,200 per square meter

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The commercial real estate market in Brazil experienced a 6% increase in rental rates in 2023

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The average rent for office space in Paris’ central district is about €70 per square meter monthly

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The average rent for retail outlets in Mumbai city is around ₹2,000 per square foot annually

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The global market for coworking spaces is expected to grow at a CAGR of 15% through 2027, indicating increasing demand

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The average land lease rate in rural parts of Ontario, Canada, is approximately CAD 50 per acre annually

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Office rent in Beijing increased by 4.5% in 2023, reaching an average of ¥600 per square meter per month

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The average annual rent for retail spaces in Toronto is about CAD 65 per square foot

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The commercial property development pipeline increased by 10% in major US markets in 2023, indicating boosted construction activity

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Urban shopping mall rents in major US cities have declined by an average of 8% over the past year

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Office space rent in major cities like New York averages $73 per square foot annually

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In Tokyo, the average annual rent for retail prime locations is about ¥40,000 per square meter

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The average rental yield for commercial properties in Germany is approximately 4.5%

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The retail rental yield in Madrid is about 4%, reflecting stable investment returns

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The vacancy rate for commercial retail spaces in the US is approximately 10.2%

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The percentage of retail space in the US vacant in early 2023 reached 10.2%, indicating a tightening of retail leasing

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The vacancy rate for office spaces in London's City district is around 7%, indicating a relatively healthy demand

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The global retail space vacancy rate is approximately 9.4% in 2023, indicating market saturation

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The occupancy rate for US industrial warehouses increased to 95% in Q2 2023, indicating high demand

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The vacancy rate for retail spaces in Germany remained steady at around 8% in 2023

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Key Highlights

  • The average commercial rent per square foot in the United States was $24.71 in 2023
  • The retail sector has seen a 12% decrease in rent prices over the past five years
  • Office space rent in major cities like New York averages $73 per square foot annually
  • Industrial property rents increased by an average of 7% nationwide in 2023
  • The vacancy rate for commercial retail spaces in the US is approximately 10.2%
  • The median rent for a small retail space in London is approximately £25 per square foot annually
  • In Australia, average commercial office rents in Sydney are around AUD 850 per square meter annually
  • The percentage of retail space in the US vacant in early 2023 reached 10.2%, indicating a tightening of retail leasing
  • The average annual rent for a warehouse in Los Angeles is approximately $0.85 per square foot
  • The global commercial real estate leasing market was valued at approximately $1.2 trillion in 2022
  • The average leasing volume for retail spaces in the US decreased by 15% in 2023 compared to 2022
  • In Tokyo, the average annual rent for retail prime locations is about ¥40,000 per square meter
  • Commercial property investment sales in the US reached $300 billion in 2023, a 20% increase from the previous year

Navigating the complex landscape of commercial rent in 2023 reveals a dynamic market marked by declining retail prices, soaring industrial leases, and resilient office space demand across the globe.

Investment Activity and Market Volume

  • The global commercial real estate leasing market was valued at approximately $1.2 trillion in 2022
  • Commercial property investment sales in the US reached $300 billion in 2023, a 20% increase from the previous year
  • The commercial property investment volume in South Korea reached approximately $15 billion in 2023

Investment Activity and Market Volume Interpretation

Amidst a $1.2 trillion global market and a booming $300 billion US sales increase, South Korea's modest $15 billion investment hints that even in the commercial real estate race, size isn't everything—sometimes it's the strategic move that counts.

Lease Terms, Durations, and Deposit Information

  • The average lease term for retail commercial properties in the US is approximately 5 years
  • The average lease for a retail store in Seoul is about KRW 50,000 per square meter annually
  • The initial lease deposit for commercial spaces typically ranges from 3 to 6 months’ rent in major markets
  • The average duration of lease agreements in the US is approximately 4.5 years

Lease Terms, Durations, and Deposit Information Interpretation

While US retail leases hover around 4.5 to 5 years and Seoul charges approximately KRW 50,000 per square meter annually, the short-term window and hefty deposits underscore both the fleeting nature of retail occupancy and the high financial stakes in today's commercial real estate game.

Market Trends and Price Changes

  • The average commercial rent per square foot in the United States was $24.71 in 2023
  • The retail sector has seen a 12% decrease in rent prices over the past five years
  • Industrial property rents increased by an average of 7% nationwide in 2023
  • The median rent for a small retail space in London is approximately £25 per square foot annually
  • In Australia, average commercial office rents in Sydney are around AUD 850 per square meter annually
  • The average annual rent for a warehouse in Los Angeles is approximately $0.85 per square foot
  • The average leasing volume for retail spaces in the US decreased by 15% in 2023 compared to 2022
  • The average size of a commercial lease in the US is approximately 2,500 square feet
  • Approximately 68% of businesses in the US lease their commercial spaces rather than own
  • The average initial rent for a retail space in the UK is around £50 per square foot annually
  • There has been a 5% increase in industrial lease transactions globally in 2023
  • The average rent for office spaces in Singapore exceeds SGD 10 per square foot per month
  • Retail rents in Paris are averaging €1,200 per square meter annually
  • The average cost to rent industrial space in Canada is approximately CAD 8 per square foot annually
  • In the US, the average rent for medical office spaces is about $25 per square foot annually
  • The retail lease renewal rate in the US has increased to 75% in 2023, indicating renewed activity in retail leasing
  • The average cost of renting commercial land in India varies widely, averaging around ₹500 per square meter annually in major cities
  • The average annual rent for a co-working space in San Francisco is approximately $700 per person
  • Commercial rent growth in China’s tier-one cities averaged 3.2% in 2023, according to property reports
  • The average annual rent for a small office in Dubai is approximately AED 80 per square foot
  • The average lease rate for logistics warehouses in Germany has increased by 4% in 2023
  • The average annual rent for an industrial property in Mumbai is approximately ₹1,200 per square meter
  • The average annual rent for a business office in Chicago is roughly $25 per square foot
  • In Berlin, the average commercial rent for office space is approximately €20 per square meter per month
  • The average monthly rent for retail spaces in Sydney CBD is around AUD 1,200 per square meter
  • The commercial real estate market in Brazil experienced a 6% increase in rental rates in 2023
  • The average rent for office space in Paris’ central district is about €70 per square meter monthly
  • The average rent for retail outlets in Mumbai city is around ₹2,000 per square foot annually
  • The global market for coworking spaces is expected to grow at a CAGR of 15% through 2027, indicating increasing demand
  • The average land lease rate in rural parts of Ontario, Canada, is approximately CAD 50 per acre annually
  • Office rent in Beijing increased by 4.5% in 2023, reaching an average of ¥600 per square meter per month
  • The average annual rent for retail spaces in Toronto is about CAD 65 per square foot
  • The commercial property development pipeline increased by 10% in major US markets in 2023, indicating boosted construction activity

Market Trends and Price Changes Interpretation

In 2023, as retail rents slipped by 12% across the US while industrial leases surged 7%, the commercial real estate market remains a high-stakes ballet of declining storefronts and expanding warehouses, with leasing activity reflecting a cautious optimism amid global variability—from London's small retail spaces to China's tier-one city trends.

Price Changes

  • Urban shopping mall rents in major US cities have declined by an average of 8% over the past year

Price Changes Interpretation

The retail renaissance seems to be taking a slight detour, with urban shopping mall rents slipping by an average of 8%, signaling a shake-up that even the biggest city centers can't ignore.

Regional and International Market Comparisons

  • Office space rent in major cities like New York averages $73 per square foot annually
  • In Tokyo, the average annual rent for retail prime locations is about ¥40,000 per square meter
  • The average rental yield for commercial properties in Germany is approximately 4.5%
  • The retail rental yield in Madrid is about 4%, reflecting stable investment returns

Regional and International Market Comparisons Interpretation

While office and retail rents in global metropolises like New York, Tokyo, Madrid, and Germany reflect hefty price tags and modest yields—reminding investors that even in prime locations, stability demands patience and a keen eye for the subtle balance between cost and return.

Vacancy Rates and Occupancy Levels

  • The vacancy rate for commercial retail spaces in the US is approximately 10.2%
  • The percentage of retail space in the US vacant in early 2023 reached 10.2%, indicating a tightening of retail leasing
  • The vacancy rate for office spaces in London's City district is around 7%, indicating a relatively healthy demand
  • The global retail space vacancy rate is approximately 9.4% in 2023, indicating market saturation
  • The occupancy rate for US industrial warehouses increased to 95% in Q2 2023, indicating high demand
  • The vacancy rate for retail spaces in Germany remained steady at around 8% in 2023

Vacancy Rates and Occupancy Levels Interpretation

Despite global uncertainties, the retail and office real estate markets reveal a complex portrait: while US retail vacancies tighten at 10.2% signaling cautious leasing, London's City remains robust at 7%, and industrial warehouses soar to 95% occupancy, all underscoring that in real estate as in life, demand and saturation dance a delicate tango.

Sources & References