Real Estate Snapshot
Q3 2020 Palm Beach County Industrial MarketView
- During Q3 2020, Amazon announced that Palm Beach has been selected for their roughly 1.0 million sq. ft. distribution center, equipped with office space and an abundance of parking.
- Large tenants are taking an interest in the Port St. Lucie area, which is home to Legacy Park at Tradition, a 2.0 million-plus sq. ft. development featuring speculative and build-to-suit opportunities.
Q2 2020 Palm Beach County Industrial MarketView
- The vacancy rate closed out the first quarter at 2.6%, fairly steady from the close of Q1 2020. This marks the 10th consecutive quarter with vacancy below 3.0%.
- Sales activity was light this quarter, but the sale of 1177 Blue Heron Blvd toward the end of the quarter speaks to the market’s strength.
- Asking rents remain elevated, hovering around record high levels. While growth has slowed in recent quarters, this was the 11th consecutive quarter with rates above the $10.00 per sq. ft. mark.
Q2 2020 Palm Beach County Office MarketView
- Vacancy sits at 12.0%, a slight decline of 50 basis points year-over-year. Class A vacancy is slightly lower at 11.7%.
- Tenants took occupancy of over 42,000 sq. ft. of space this quarter, which is in-line with the markets 3-year average for quarterly absorption.
- Leasing activity has expectedly slowed this quarter, but bread-and-butter demand is still active, which indicates the market is operating at some semblance of normalcy.
- Golden Bear Plaza in Palm Beach Gardens was the most significant sales transaction of the quarter. The four building portfolio, totally 243,000 sq. ft., was purchased by Waterfall Asset Management for $49.75 million, or $205 per-square-foot.
What to Expect From the Impact of COVID-19 on the South Florida Office Market 05-2020
Q1 2020 Palm Beach County Industrial Marketview
- The vacancy rate closed out the first quarter at 2.6%, a slight increased compared to Q1 2019. This marks the 9th consecutive quarter with vacancy below 3.0%.
- Prologis acquired Liberty Airport Center from Liberty Property Trust as part of the $12.6 billion all-stock deal.
- Asking rents remain elevated, hovering around record high levels. While growth has slowed in recent quarters, this was the 10th consecutive quarter with rates above the $10.00 per sq. ft. mark at $10.75 per sf. ft.
Q1 2020 Palm Beach County Office Marketview
- Vacancy sits at 12.1%, a slight decline of 40 basis points year-over-year. Class A vacancy is even lower at 11.6%.
- Tenants took occupancy of over 40,200 sq. ft. of space this quarter, which is in-line with the markets 3-year average for quarterly absorption.
- Boca Raton continued to be active among smaller tenants. While activity is down from recent quarters, the 15 transactions recorded in Class A space below 5,000 sq. ft. is a good sign that bread-and-butter demand remains.
- Investment activity was limited in Q1 2020, with the most significant transaction being the portfolio sale of 440/450 Royal Palm Way for $38.5 million, or $505 per sq. ft. to Armata Holdings.
Q4 2019 Palm Beach County Industrial Marketview
Q4 2019 Palm Beach County Office Marketview
Q3 2019 Palm Beach County Industrial Marketview
- Total vacancy for the Palm Beach industrial market was 2.2% and has remained below 4% for 16 consecutive quarters.
- Private buyers represent 82.7% of total buyer composition as of Q3 2019.
- Palm Beach County’s unemployment rate decreased 10 bps year-over-year to 3.7% since August 2018.
- The Palm Beach industrial market currently has three buildings under construction and an industrial park composed of nine single user buildings. The total inventory under construction is 537,604 sq. ft
Q3 2019 Palm Beach County Office Marketview
- 2019 year-to-date investment sales have totaled $486 million across 25 transactions.
- Tricera Capital has plans of a re-development of the Palm Beach Post campus located in West Palm Beach which will consist of 140,000 sq. ft. office, and 125,000 sq. ft. retail space.
- Q3 2019 vacancy continues to drop sitting at 12.2%, a 100 basis point improvement year-over-year.
- The overall average asking rate for Q3 2019 was $23.92, a 10% increase year-over-year.
PALM BEACH COUNTY INDUSTRIAL MARKETFLASH
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