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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