However, in the North Palm Beach submarket, higher vacancy rates are contributing to tenants getting more incentives, including reductions in rent and higher tenant improvement allowances, in an effort to attract business. In the future, development is expected to "create tremendous demand for office space" in this area.
Also, according to the report, activity is up overall in the West Palm submarket since the beginning of the year. Activity in the Palm Beach Lakes corridor is "fairly slow," while fewer availabilities remain east of that area. The near future is expected to bring higher rents and lower vacancies in this submarket.
In the Palm Beach area, demand still outpaces supply. This has translated into limited vacancies and high average asking rates. This small submarket has experienced "good tenant activity," the report states.
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