Suburban office demand in West Palm Beach increases as urban rents continue to climb

• Amid continued economic headwinds and surges in top-quality office asking rates, tenant demands differ between West Palm Beach’s urban and suburban office submarkets.
• Driven by the flight-to-quality trend, urban office spaces averaged a full-service asking rate of $78 per square foot in the fourth quarter of 2023, a 46% increase since 2020. Suburban office spaces are attracting tenants with significantly discounted asking rates, that are averaging $43 per square foot full-service, resulting in a quicker average leasing time of 4.9 months on the market, compared to 14 months for urban office space.
• Due to the recent office price surges in downtown West Palm Beach, smaller and local businesses are being lured out of urban-core in search of cost-effective alternatives, while out-of-state companies and larger corporations migrating to the market take over more of the expensive downtown office space.

December 19, 2023

Additional resources

• West Palm Beach's office tenant demand shifts post pandemic
• Trophy office rents soar in West Palm beach as abundance of new inventory delivers

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