Palm Beach Real Estate Market Reports

Palm Beach Office Market

Annual full-service asking rental rates reached an all-time high in the first quarter of 2025 closing at $50.66/SF, reflecting a 0.6% increase quarter over quarter. Occupancy remained positive in the first quarter; however, the delivery of Banyan & Olive, One Flagler, and Sundy Village last year has kept the vacancy rate elevated at 15.2%, reflecting a 190 basis points increase year over year. The under-construction pipeline increased with the 210,000-SF project, One West Palm, scheduled for delivery late in the first half of 2025. One West Palm is currently 90.1% preleased. Sister projects, 10 City Place and 15 City Place are also under construction, collectively totaling over 1.0 MSF of office space. Total leasing activity closed the quarter at 519,750 SF, averaging 2,463 SF per deal and reflecting a 706-SF decrease in average deal size year over year. Meanwhile, the number of leases signed fell by 17.3% 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