Growth Trend Slows in Palm Beach County Office

PALM BEACH COUNTY, FL-After years of growth, the Palm Beach County office market is slowing due, in part, to the deteriorating housing market, according to market reports.

The vacancy rate rose to 15.3% in the fourth quarter of 2007, up from 8.8% a year ago, according to a CB Richard Ellis Q4 office market report for Palm Beach County. The rise was attributed to the delivery of speculative office space under construction in 2006, the softening residential market and the subprime lending crisis.

According to a report by NAI/Merin Hunter Codman, the office market showed no absorption, but rents continued to increase with gross rents reaching $50 at the top end for class A space in Downtown West Palm Beach, and approximately $35 to $40 per sf for prime space in the suburbs.