Palm Beach Real Estate Market Reports

Palm Beach Office Market

Annual full-service asking rental rates reached $49.09/SF, reflecting a 6.1% increase year over year at the end of the second quarter of 2025. The vacancy rate stands at 15.3%, unchanged quarter over quarter driven by move-ins in the West Palm Beach CBD submarket. The development pipeline increased for the second consecutive quarter to 1.6 MSF currently under construction—representing 5.7% of total market inventory. Leasing activity totaled 1.2 MSF in the first half of 2025, marking the weakest first half performance since 2020. Despite this, Class A properties continues to drive leasing activity, accounting for 50.4% of total leasing volume in the first half of the year.

Palm Beach Industrial Market

In the second quarter of 2025, the market reported 66,287 SF of positive net absorption, bringing year-to-date demand to negative 14,107 SF. Overall rental rates decreased by 0.3% year over year to $13.73/SF and are expected to remain elevated, although the pace of growth will flatten in the short term as demand catches up to supply. The construction pipeline increased to 2.2 MSF, up 54.0% quarter over quarter, despite the 110,022 SF completion coming out of the pipeline as Gardens Innovation Center and a built-to-suit distribution warehouse were delivered during the quarter. Although positive demand was observed this quarter, the addition of new supply has kept vacancy rates flat but elevated quarter over quarter at 7.9%. As demand slowly catches up to supply, vacancy is expected to remain elevated in the near term before steadily decreasing.