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Delray Central // Page 54
Direct
Quarter
YTD
YTD
YTD
Direct
Overall
Wtd. Average Overall Net
Overall Net
Leasing Construction
No. Bldgs.
Inventory Vacancy Rate Vacancy Rate Rental Rates (psf)
Absorption Absorption
Activity Completions
West Palm Beach CBD
27
3,128,022
13.4%
13.4%
$39.85
7,648
7,648
31,290
0
Palm Beach Non-CBD
326
19,907,002
12.9%
13.3%
$33.55
(3,388)
(3,388)
192,882
0
SUBURBAN WEST PALM BEACH
82
3,897,874
17.2%
17.3%
$34.12
13,471
13,471
32,056
0
Suburban West Palm Beach
65
3,372,293
16.8%
16.9%
$28.33
21,066
21,066
32,056
0
Palm Beach
17
525,581
19.5%
20.2%
$66.45
(7,595)
(7,595)
0
0
NORTH PALM BEACH
70
3,665,078
8.5%
8.7%
$34.82
16,459
16,459
18,942
0
Palm Beach Gardens/N. Palm Beach
54
3,082,681
8.5%
8.6%
$35.11
15,582
15,582
15,880
0
Jupiter/Tequesta/Juno
16
582,397
8.4%
9.3%
$33.94
877
877
3,062
0
SOUTH PALM BEACH
42
1,978,881
11.2%
11.5%
$29.95
9,345
9,345
25,485
0
Lake Worth
12
493,541
5.0%
5.0%
$27.93
4,770
4,770
6,242
0
Boynton Beach
13
528,089
22.7%
23.2%
$30.68
7,150
7,150
15,902
0
Delray Beach
17
957,251
8.0%
8.5%
$30.38
(2,575)
(2,575)
3,341
0
BOCA RATON
132
10,365,169
13.2%
13.7%
$35.34
(42,663)
(42,663)
116,399
0
Glades Road
39
3,006,583
15.3%
15.7%
$36.90
154
154
35,900
0
Federal Highway Corridor
25
1,638,899
13.5%
14.2%
$33.65
(34,866)
(34,866)
20,700
0
Northwest Boca Raton
43
4,217,150
11.4%
12.0%
$31.80
21,470
21,470
45,856
0
Southwest Boca Raton
12
657,631
11.0%
11.0%
$33.36
(9,531)
(9,531)
8,280
0
Downtown Boca Raton
13
844,906
15.9%
16.4%
$37.24
(19,890)
(19,890)
5,663
0
PALM BEACH TOTAL MARKET
353
23,035,024
13.0%
13.3%
$35.63
4,260
4,260
224,172
0
OVERALL
PALM BEACH OFFICE MARKET
First Quarter 2017
SUBMARKETS
DELRAY CENTRAL | PALM BEACH OFFICE MARKET OVERVIEW
The Property is located within the Palm Beach County office market, which
comprises approximately 24 million SF per Cushman & Wakefield research. The
County, located at the northern end of the sprawling South Florida area, is the
largest county in the state of Florida and has historically been at the forefront
of Florida’s rising population and growing economy.
ECONOMY
Palm Beach County exhibited healthy economic activity as the market added
9,900 new jobs throughout the year, ending 2016 with an unemployment rate of
only 4.7%, down 20 bps from the previous month. Job diversification continued
to impact the county’s economy with significant improvement in IT and health-
related industries. Development of public transit is paving the way for future
growth in Palm Beach County. The anticipation of opening the 60,000 SF All
Aboard Florida passenger rail station in West Palm Beach was a factor in the
area’s office market improvement.
MARKET OVERVIEW
Demand for office space remained positive as the market absorbed 575,276 SF
of space in 2016. Quality Class A space continued to be desirable, marked by a
decrease in overall vacancy of 190 bps in 12 months to 13%. However, the actual
vacancy should be much lower, as most of the available space has already been
leased with tenants not expected to move in until later in 2017.
Developers had 88,069 SF of office under construction at year-end 2016. The
imbalance between new supply and demand continue to drive rental rates
higher in major submarkets. Overall suburban rents increased to $32.98 PSF,
gross, while in Class “A” space the year ended with an average ask of $40.14
PSF, gross. Leasing activity was robust in 2016, with the most active submarket
being Northwest Boca Raton.
PALM BEACH COUNTY OFF I CE STAT I ST I CS - F I RST QUARTER 20 1 7