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Market Report

West Palm Beach Office Market Report

2022 Outlook

Southbound Corporate Arrivals Aid Office Growth;
Investors Taking Advantage of Stable Fundamentals

With pandemic losses recovered, Palm Beach County continues expansion. Due to high ongoing in-migration as well as lenient state health policy, the market observed a strong rebound in the office sector last year. Metro office-using employers regained all pandemic job losses by the second quarter of 2021, and are on track to end this year 8,000 positions above pre-health crisis counts. The city of West Palm Beach has become a choice destination for financial firms looking to expand their South Florida footprint. In 2021, New Day USA, Goldman Sachs, Point 72 and Colony Capital were among the metro's large number of new tenants, in addition to existing leaseholders in search of additional office space. After observing a relatively modest 80-basis-point rise in vacancy at the height of the pandemic, Palm Beach County recorded historic net absorption last year of 1.7 million square feet, compressing availability below the pre-pandemic average. Elevated leasing appetites will leave this year's net absorption at just under 700,000 square feet, ensuring a favorable market for the 550,000 square feet of new stock.

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