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Market Report

West Palm Beach Office Market Report

2Q 2023

Growth and Diversification of West Palm Beach’s
Economy Stimulates Demand for Office Space

Market conditions remain tight amid headwinds. As of April, total employment in traditionally office-using sectors was roughly 20,000 positions above the pre-pandemic peak. This boost to the labor market has significantly increased office space demand across the metro. Entering the second quarter, availability was at 11.8 percent, nearly 400 basis points below the long-term average. Although market conditions remain tight by historical standards, West Palm Beach has been dealing with headwinds similar to most office sectors across the nation. Local firms, such as Newell Brands, returned large blocks of space back to the market, contributing to negative net absorption and a slight uptick in vacancy over the past six months ending in March. However, the metro’s ability to attract new-to-market tenants and a manageable supply pipeline should help limit further increases to vacancy through the rest of this year.
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