Suburban office demand in West Palm Beach increases as urban rents continue to climb - United States
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.