Palm Beach Office Market
Annual full-service asking rental rates increased to a historical high of $47.14/SF, a 6.9% increase year over year. Occupancy remained negative, pushing overall vacancy rates to increase by 60 basis points year over year, to 13.2%. The under-construction pipeline continued to remain active, with 642,000 SF in progress. Total leasing activity closed the quarter at 494,084 SF, averaging 2,628 SF per deal and reflecting a decrease in deal size by 35.7% quarter over quarter and a decrease of 24.5% year over year.
Download Palm Beach Office Report 3Q23Palm Beach Industrial Market
The market realized 69,582 SF of positive absorption in the second quarter of 2023, bringing the year-to-date total to 381,540 SF. Overall rental rates grew 7.4% year-over-year to $12.80/SF, remaining near the historical high. Construction deliveries are up compared to 2022 and finished the third quarter of 2023 with 925,498 SF delivered year-to-date in 2023. Another 2.5 MSF is still currently under construction. Supply continues outpacing demand this quarter, pushing the vacancy rate up by 190 basis points year-over-year to 6.2%, as the market continues to work through supply.
Download Palm Beach Industrial Report 3Q23