- LEASING ACTIVITY BOUNCED BACK
Leasing activity in the second quarter totaled 464,776 SF, up 47.7% from the previous quarter and above the three-year market average.
- CBD DOMINATES DEVELOPMENT
Under construction projects totaled 675,910 SF at the end of the quarter, with 85% of the total SF residing in the CBD. Projected completions over the next three years will supply much needed space to the market.
- MARKET MOSTLY IN BALANCE
Supply and demand remained in balance through most of the market. The new vacancy of almost 180,000 SF at the Office Depot building caused absorption to swing negative for the second quarter.
- VACANCY TICKED UPWARD
Palm Beach vacancy rose 70 bps to 11.4% at midyear, attributed to the influx of space from the Office Depot building sale. Despite the rise in vacancy, Palm Beach still boasts the lowest overall rate in the state.
- AVERAGE RATES ROSE TO RECORD LEVELS
Overall rental rates continued to climb, reaching $45.19 PSF FSG at midyear. Both CBD and suburban rents increased, amounting to new market highs at $60.06 PSF FSG and $42.15 PSF FSG respectively.