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Market Report

West Palm Beach Office Market Report

2Q 2022

High-Power Entrants Rapidly Lease Class A Space as
Class B and C Availability Hits Multiyear Low

New arrivals pursue quality space. Entering April, five of the metro's nine submarkets posted year-over-year vacancy declines exceeding 470 basis points. Demand was strongest in the city of West Palm Beach, where a net of 800,000 square feet was absorbed during the yearlong span ending in March. Class A offices here draw finance-sector tenants following clients to South Florida from northeastern markets. Enthusiastic leasing should continue in the submarket, as firms including NewDay USA and Millennium Management supplement earlier move-ins by DigitalBridge and Goldman Sachs. Furthermore, the first quarter vacancy rate for Palm Beach County's amenity-rich stock was 15.8 percent, the lowest in this tier in the southeast. With over 80 percent of the active pipeline of traditional office assets pre-leased, marketed rents should maintain high upward momentum for the forseeable future.
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