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War, Economy Impact Palm Beach Office Market

MIAMI-Businesses have downsized or closed offices in a market hit by 60,188 sf of negative absorption, according to C&W's first quarter office report for Palm Beach County. And while some submarkets experienced steady leasing activity, others saw vacancies soar.

By Melissa Bogdany | Updated on April 07, 2003

MIAMI-Threats of war with Iraq, a declining stock market, increased unemployment rates, and terrorism threats/warnings had a negative effect on the Palm Beach County office market in the first quarter, according to the recently released Cushman & Wakefield first quarter office report.

These factors caused businesses to spend less or, if they were not able to reduce their budgets, to downsize or close offices. This is shown in the overall county absorption; that figure was negative 60,188 sf at the end of the first quarter–almost 100,000 sf less than the positive 29,990 sf of absorption at the end of the first quarter last year.

However, according to the report, there were some signs that the county was attempting to stabilize. One is leasing transactions were steady in the Boca Raton submarket for the period. Among the deals signed: Sunbeam Products Inc. signed a deal for 15,000 sf at Peninusla Executive Center; Adams, Coopers, & Marks inked a 12,500-sf lease at the North 40 Building; and Southtrust Bank moved into 7,699 sf at Via Mizner Financial Building, formerly the Citibank Building.

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