BOCA RATON, FL (BocaNewsNow.com) — We can’t independently verify the information released by research firms, but Avison Young is considered to be both legitimate and credible, so when the company says the office leasing market is busy in Boca Raton, we have no reason to question the report.
There is also good news in Delray, where Avison Young says the construction of the area’s first Class A office is on schedule for a January, 2019 delivery. The space will house iPic’s global headquarters.
From the report:
Steady employment gains and population growth continue to bolster Palm Beach County’s office market. As of August 2018, the overall unemployment rate decreased by 50 basis points bps to 3.9% year-over-year. Additionally, the county’s nonfarm employment increased by 6,100 jobs over the trailing 12-month period, with the financial services sector displaying a gain of 5.7%. Population growth remains a steady driver behind Palm Beach County’s economy as a younger demographic continues to migrate to the area in search of new job opportunities.
Palm Beach County’s overall net absorption increased to 136,139 sf for the year-to-date. Leasing activity was strong during the third quarter with significant absorption gains occurring in the Boca Raton and North Palm Beach/Palm Beach Gardens submarkets. Within the CBD, net absorption dipped into negative territory due to downsizing and smaller tenant move-outs as companies continue to efficiently utilize their office space. Additionally, the overall asking rental rate increased to $33.95 per sf on a full-service basis, a 3.3% increase year-over-year since the third quarter of 2017. The average rental rate for class A space within the CBD has reached as high as $58.11 per sf, pushing some tenants to seek more affordable space in suburban submarkets. Demand for high quality class A space remains strong in Palm Beach County, as evidenced by the development of the Gardens Corporate Center office project currently under construction in the North Palm Beach/Palm Beach Gardens submarket. The first tower of the 223,943-sf office project is set for delivery in early 2019 and is expected to attract tenants searching for high-quality large blocks of office space.
Read the complete Avison Young report here.