West Palm Beach Office Market Report
Metro is One of Two Nationally with Lower Than Pre-Pandemic Vacancy;
Signs of Softness Emerge
Local office sector resilience stands in contrast to broader trend. West Palm Beach entered the second half of 2023 with sub-12 percent vacancy, one of only five markets with at least 50 million square feet of office supply in the country to achieve that. Metro vacancy in June 2023 was also 130 basis points below the year-end 2019 rate, the largest reduction among major U.S. markets during that span, and joining Las Vegas as the only spots to register a vacancy compression. This momentum represents a sharp divergence from the national sector trend in recent years, as overall U.S. vacancy rose by 450 basis points since the end of 2019. West Palm Beach’s comparative strength stems from its business-friendly environment and ability to attract corporate relocations. This is reflected in the market’s expansionary traditional office-using job segments. As of August 2023, professional and businesses services, in addition to financial activities, employers added a net of 19,500 positions since 2019.