The real story behind high-watermark office rents across the U.S.

High-watermark rents remain concentrated in the most sought-after U.S. office markets, but the spread is striking. Manhattan leads at $375 per square foot (psf), followed by Miami at $190, San Francisco at $175, and Boston at $166, demonstrating that occupiers are still willing to pay a premium for top-tier space even as broader office fundamentals fluctuate across markets.

The amount landlords are investing to achieve those rents varies just as dramatically. San Francisco pairs a $175 psf rent with roughly $500 psf in tenant improvement allowance (TIA) and Boston a $166 rent with $310 TIA. By comparison, Manhattan’s pairs a $325 rent with $160 TIA and Miami a $190 rent and $125 TI, highlighting how headline rent alone can mask differences in underlying deal economics.

For occupiers and investors, the full economic package matters more than the headline number...