Palm Beach Real Estate Market Reports

Palm Beach Office Market

Annual full-service asking rental rates fell in the third quarter of 2024 closing at $47.76/SF, reflecting a 0.7% decrease year over year. Occupancy remained negative in the third quarter, pushing vacancy to increase by 50 basis points year over year to 14.3%. The under-construction pipeline continued to remain active, with 568,223 SF scheduled to deliver within the fourth quarter of 2024. 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 year. Total leasing activity closed the quarter at 529,375 SF, averaging 2,224 SF per deal and reflecting an average of 935 SF less than a year ago. In terms of the number of deals done, leasing activity fell 4.4% year over year.

Palm Beach Industrial Market

The market realized 322,676 SF of positive absorption in the third quarter of 2024, a 132.8% year over year increase. Overall rental rates decreased by 0.2% quarter over quarter and increased by 3.0% year over year to $13.56/SF. There were no new construction deliveries in the third quarter of 2024, while 200,000 SF of new construction broke ground. Demand exceeded supply this quarter due to the 1.7 MSF drop in the construction pipeline following the second quarter, which pushed vacancy down by 70 basis points quarter over quarter to 8.0%. However, vacancy only increased by 200 basis points year over year, indicating that vacancy had normalized prior to the influx of 1.9 MSF year-to-date new supply delivering.