Palm Beach Office Market
Annual full-service asking rental rates increased to a historical high of $51.38/SF, a 19.9% increase year over year. Net absorption in the first quarter of 2024 was positive at 41,042 SF, however vacancy has increased by 150 basis points year over year to 13.6%. The under-construction pipeline continued to remain active, with 602,000 SF in progress. Total leasing activity closed the quarter at 759,998 SF, averaging 3,470 SF per deal and reflecting an increase in deal size by 16.5% quarter over quarter and an increase of 25.0% year over year.
Download Palm Beach Office Report 1Q24Palm Beach Industrial Market
The market realized 213,780 SF of positive absorption in the first quarter of 2024, a 38.3% year over year increase and nearly equivalent to the prior three quarters combined. Overall rental rates slipped by 0.9% year-over-year to $12.91/SF, a decline from the previous quarter’s all-time high. Construction deliveries in the first quarter of 2024 totaled 211,529 SF while another 2.1 MSF remains under construction. Supply and demand were in line this quarter, keeping the vacancy rate unchanged quarter over quarter at 6.3%. However, vacancy has increased by 90 bps year over year as the market continues to work through new through supply.
Download Palm Beach Industrial Report 1Q24