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Market Report

West Palm Beach Office Investment Forecast

2020 Outlook

Investors Turn to Palm Beach County as a Safe Haven for Long-Term Office Acquisitions

 

Steady improvement marks West Palm Beach office market. Vacancy resumes its descent following a pause last year. After developers largely bypassed Palm Beach County during this cycle, supply additions are beginning to inch higher. The pace of deliveries increases again this year after reaching the highest level in a decade in 2019. Nonetheless, a supply overhang is not anticipated due to well-spaced completions and sufficient leasing activity. Office space demand will climb 1.4 percent in 2020, outpacing construction by 50 basis points. Although pre-leasing falls short of 50 percent for underway properties, the two largest projects are not scheduled for delivery until 2021 and account for more than half of the uncommitted space. Several smaller leases signed by a wide variety of companies in the county are pulling occupancy higher. The diverse economic base and steady population growth are translating into improvement in office fundamentals, particularly for Class B/C owners.

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