West Palm Beach Office Market Report

Metro vacancy at an all-time low. West Palm Beach has been the beneficiary of corporate migration, particularly from firms in the financial services industry, including BlackRock and Goldman Sachs. These relocations will enable the metro to rank among the nation’s top-performing office markets for another year. At the onset of 2023, availability was at a record low of 11.2 percent, the second-tightest rate among major U.S. metros. Improved connectivity resulting from large-scale infrastructure improvements throughout South Florida, coupled with incentives from the Business Development Board of Palm Beach County, helped spur many of these expansions and relocations, and will likely continue to do so for the foreseeable future. In 2023, office fundamentals should remain healthy, despite recessionary fears as growth within the market may help lessen the impacts of a slowing national economy. Supply pressure will be minimal as well, with roughly 80 percent of the 350,000 square feet slated for delivery this year accounted for as of late 2022. Limited competition from new builds will keep vacancy near record lows, facilitating rent gains that are projected to outpace all other major markets in the nation.