Palm Beach Real Estate Market Reports

Palm Beach Office Market

Annual full-service asking rents eased slightly from record highs to $49.01/SF at the end of the fourth quarter of 2025, reflecting a 0.5% year-over-year increase. Vacancy increased 6 basis points quarter over quarter to 15.4%, despite a fourth straight quarter with no deliveries, as subdued demand produced a fifth consecutive quarter of negative net absorption. The development pipeline increased to 1.2 MSF in the fourth quarter of 2025, a more than eight-fold increase year over year, with projects under construction accounting for 6.5% of inventory, the highest level since the third quarter of 2007. Leasing activity totaled 965,770 SF in the fourth quarter of 2025, while reaching a new record high of 3.6 MSF for the year. Flight-to-quality demand persists, with Class A properties leading leasing activity and securing larger deals averaging 10,931 SF.

Palm Beach Industrial Market

In the fourth quarter of 2025, the Palm Beach industrial market reported 203,099 SF of positive net absorption, bringing year-to-date demand to positive 435,722 SF. Overall rental rates decreased by 1.2% both quarter over quarter and year over year to $13.12/SF and are expected to remain elevated, although the pace of growth will flatten in the near term as demand catches up to supply. The construction pipeline remained unchanged quarter over quarter, with 706,392 SF currently underway. With demand outpacing supply, vacancy rates declined by 50 basis points quarter over quarter to 8.1%. As demand slowly catches up to supply, vacancy is expected to remain elevated in the short term before decreasing.