Boca Raton Office Market Continues to Improve

BOCA RATON, FL-Conditions are continuing to improve in the city’s office submarket, as direct vacancy rates and sublease space are still on the decline, according to a June update on the Palm Beach County office market by CB Richard Ellis.The vacancy and sublease results are expected to translate into higher average asking rental rates in the months ahead, the report states. Nearby in West Palm, a larger proportion of tenants are renewing their leases at existing sites, although leasing activity overall is flat, with the submarket seeing marginal absorption, the report adds.Higher vacancy rates are contributing to more tenant incentives, including reductions in rent and higher improvement allowances, in North Palm Beach. Institutional property owners are keeping rates steady. A large demand for office space is expected, however, with the relocation of Scripps, according to CBRE.In Palm Beach, demand is outpacing supply, resulting in limited vacancies and high average asking rental rates. Although deal sizes have been relatively small, this small submarket has had “good tenant activity,” the report states.