West Palm Beach Office Report – Fall 2019

The metro’s booming development pipeline is underpinned by solid demand for modern office space.
Office-using employment in West Palm Beach, click to enlarge
Office-using employment in West Palm Beach, click to enlarge

West Palm Beach–Boca Raton’s office sector continues to expand gradually, as it draws on healthy market fundamentals such as a tax-friendly business environment, steady job growth and solid tenant demand. Palm Beach County has had the fastest job growth statewide in the financial activities sector, according to CareerSource Palm Beach County and the Florida Department of Economic Opportunity report. The sector also led gains in the metro’s office-using industries, adding some 3,400 positions, for a 3 percent expansion.

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The metro’s booming development pipeline is underpinned by solid demand for modern product. According to the Palm Beach County Business Development Board, 70 financial services firms have moved from New York City to the county in the last three years, and the board gained 15 more as of September. A combined 249,000 square feet of office space came online in the first nine months of the year, equal to 25 percent of the past decade’s total completions. As construction velocity shifted gears, developers broke ground on two new mixed-use projects year-to-date through September, aiming to match growing tenant demand.

Employment growth by sector in West Palm Beach, click to enlarge
Employment growth by sector in West Palm Beach, click to enlarge

Investor interest remains steady, with local and national buyers infusing capital into the metro. Acquisition yields for top-rated properties in the tri-county Miami area hovered in the 5 percent to 6.5 percent range. More than 1.6 million square feet traded for a combined $368 million year-to-date through September.

Read the full Yardi Matrix report.