PALM BEACH, FL—Palm Beach County's office market is seeing some action in the fourth quarter. A 40,316-square-foot class A office building and adjacent 6.2-acres located at the Research Park at Florida Atlantic University in Deerfield Beach, FL, has traded hands. The office property is located at 1501 SW FAU Research Park Boulevard.
Avison Young brokered the deal, marking the ninth South Florida sales transaction the firm has completed in the past two months. Avison principal Keith O'Donnell and associate Jonathan Senn, both with Avison's Capital Markets Group, represented the seller.
“The building's contemporary design combined with its convenient access to I-95 and adjoining fully entitled development parcel provides for future expansion space and makes it an ideal fit for a rapidly expanding company like People's Trust,” says O'Donnell. People's Trust Insurance Company, a Florida-based company that provides affordable homeowner's insurance to Florida residents, plans to use the Research Park at FAU Deerfield Beach building as its corporate headquarters with the land as future expansion space.
According to recent market trend reports, office properties in Deerfield Beach are being listed for sale at a much slower pace, allowing for increased competition for buyers in the market. What's more, rental asking prices are on the rise at an increase of 6.4% year-over-year, making the area more appealing for investors as well as companies seeking to own. The Research Park at FAU campus in Deerfield Beach offers tenants exposure to the major thoroughfares at one of the city's primary entrances as well as the opportunity to benefit from the resources of the University.
“We are seeing a surge of interest from companies in the marketplace looking to own their own buildings,” says Senn. “If the appropriate user can be identified, it creates a unique opportunity for the owner to sell their property at a price far exceeding what a typical return-driven investor will pay.”
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