Palm Beach Office Scores High in New C&W Report

MIAMI-Two South Florida cities, Palm Beach and Fort Lauderdale, earned above-average rankings in Cushman & Wakefield’s first Barometer, a projection of office market performance over the next two years.The Barometer is part of Office Forecast 2004, a new publication the company’s research department has developed. The Barometer is a composite score based on several weighted variables, including absorption, the construction pipeline, and growth in overall vacancy rates, overall asking rents and white-collar employment. The rankings are based on strengths of markets compared with other markets.The Palm Beach area ranked best of the South Florida markets–above average in and outside the central business district–while Fort Lauderdale ranked above average outside the central business district. In the central business district, Fort Lauderdale ranked average. Miami ranked average both in out outside the central business district.Leasing activity is expected to increase in Palm Beach County this year. The Scripps Institute expansion to Palm Beach brings a biotech presence to the market and “sets the stage for future industry growth that will positively impact the office market throughout Palm Beach County,” according to the report.The report adds Fort Lauderdale is expected to have continued signs of recovery, with increased leasing activity in the West and Southwest Broward submarkets. A recovery should be more gradual in the central business district and Cypress Creek submarkets. Also in that area, the office space demand in Miramar is expected to continue, and just 40,000 sf of class A space is available.”These Florida markets are expected to enjoy stronger employment growth than other markets over the next 24 months,” Maria T. Sicola, senior managing director of research for C&W, says in a statement.In Miami, conditions were not as favorable as its two South Florida neighbors, the report states. A significant change in the overall vacancy rate in the Miami area is not anticipated until next year, when the rate for the county should be near 14%.The report also notes the area’s potential. “The potential formation of the Free Trade Area of the Americas and Miami’s bid to host its secretariat could bolster not only the Florida economy but establish Miami as a true hub of international commerce,” the report states.