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Leasing Momentum Builds Countywide as Urban Core Lays Groundwork for Long-Term Expansion
Downtown positioned for future towers as core submarkets tighten. Palm Beach County enters 2026 with strong momentum after posting near-record leasing across its main office corridors in late 2025, while proposed New York City tax hikes may accelerate firm relocations southward. Downtown is poised to capture rising corporate interest after three offices totaling 1.5 million square feet broke ground for 2027-2028 delivery. Pre-leasing is already active, with ServiceNow taking 200,000 square feet for its innovation hub and AI institute. The CBD’s 10.6 percent vacancy rate — the second tightest among major U.S. downtowns — and the lack of any available blocks over 50,000 square feet underscores the need for new supply. Elsewhere, vacancy fell by more than 100 basis points in 2025 in Boca Raton and North Palm Beach, the latter dropping below 8 percent. Stronger Class B/C absorption further signals broadening demand. While move-outs in smaller hubs and soft hiring may weigh on activity, limited near-term deliveries and steady corporate in-migration are expected to support further tightening in 2026.