West Palm Beach office market reports

Q3 2022

The West Palm Beach office market continues to perform well as new-to-market tenants continue to flock to the region. The market continues to boast tight vacancies, positive net absorption, and a growing construction pipeline. As companies continue to make their return-to-office plans, it is evident that employees are returning at a faster rate to higher-quality office assets located in more urbanized locations.

887,107 sf

Under construction

Office development continues to grow in West Palm Beach with 887,107 square feet (sf) under construction at the close of the third quarter. The office pipeline will soon grow larger as the Related Companies continues to bet on West Palm Beach and announced plans for yet another office tower, 515 Fern.

34.6%

Return to office

West Palm Beach’s return-to-office activity has lagged the other South Florida markets with visitor volumes recovering by only 34.6% since pre-pandemic levels. However, office assets in urban-suburban locations recovered more quickly with 69.7% of office visitors returning since pre-pandemic levels.

$43.74 psf

Direct asking rent

Asking rates were largely flat in the third quarter, dipping $0.25 from the second quarter to $43.74, as the over-10% vacancy rate and variety of sublease options put downward pressure on rates.

360,583 sf

Net absorption

West Palm Beach’s office net absorption ended the third quarter in positive territory with 360,583 sf of office space absorbed for the year-to-date. Downtown West Palm Beach has been outperforming all other submarkets in terms of net absorption, and accounts for over half of the net absorption in the market so far in 2022.

12.2%

Vacancy

Vacancy and availability have begun to level off across both class A and class B office space. Overall vacancy was at 12.2%, with 10.9% of direct space vacant and 1.3% of sublease space unoccupied.

$869M

Investment sales

Investment sales slowed in the third quarter as rising interest rates brought the average price per square foot (psf) down to $305 from $337 psf at the end of the second quarter. While the pace of sales has also slowed, overall volume in the third quarter remained robust at over $237 million and over $869 million year-to-date.

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Your source for the latest West Palm Beach office market reports

Get in-depth office market reports from commercial real estate experts in the Greater West Palm Beach area. Avison Young advisors look at West Palm Beach commercial real estate activities and the latest West Palm Beach statistics to provide you expert market research on West Palm Beach's office properties.

Explore different topics like the latest office market pricing trends and analysis of West Palm Beach's current office real estate market conditions. Gain a better understanding of West Palm Beach’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in West Palm Beach's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in West Palm Beach.

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