Palm Beach Real Estate Market Reports

Palm Beach Office Market

Annual full-service asking rental rates remained near the all-time high in the fourth quarter of 2024 closing at $49.99/SF, reflecting a 1.1% increase year over year. Occupancy turned positive in the fourth quarter, but the delivery of Banyan & Olive and Sundy Village pushed pushed vacancy to increase by 180 basis points year over year to 15.2%. The under-construction pipeline fell, with the 210,000 SF project called One West Palm scheduled to deliver late within the first half of 2025. One West Palm is currently 90.1% preleased. However, there are at least three new office projects that have been proposed totaling approximately 1.5 MSF, with West Palm Point slated to break ground by the end of the first quarter of 2025. Total leasing activity closed the quarter at 571,524 SF, averaging 2,634 SF per deal and reflecting an average of 451 SF less than a year ago. In terms of the number of deals done, leasing activity fell 11.8% year over year.

Palm Beach Industrial Market

The market realized 125,840 SF of positive absorption in the fourth quarter of 2024, finishing the year with four consecutive positive quarters totaling 914,992 SF. Overall rental rates remained flat quarter over quarter at $13.56/SF. There were no new construction deliveries in the third quarter of 2024, while 693,633 SF of new construction broke ground. Positive demand coupled with no new supply pushed vacancy down by 20 basis points quarter over quarter to 8.0%. However, vacancy increased by 180 basis points year over year, indicating that the rising vacancy is primarily attributed to the 2.1 MSF of new deliveries that took place in the previous four quarters