Palm Beach Investment: Office Rents Up 90% in a Decade

Key points:

• • A Palm Beach Gardens office complex was refinanced for $100.4 million, fully leased.
• • Anchor tenants include J.P. Morgan Chase and Virtu Financial.
• • Office rents in the submarket have risen more than 90% over the past decade.

July 2026 — Palm Beach investment activity continues to defy the national office-market slump. A $100.4 million refinancing of a fully-leased Palm Beach Gardens complex is the latest proof that finance-sector demand has turned this submarket into one of the few places in the country where lenders are still eager to write new office debt.

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Miami-based developer Gatsby Florida secured the $100.4 million loan to refinance DiVosta Towers, according to Commercial Observer’s reporting on the deal, published June 25, 2026. The loan, provided by Cirrus Real Estate Partners as a three-year, floating-rate, interest-only facility, comes four years after a $90 million recapitalization of the same property in 2022. DiVosta Towers consists of two 11-story buildings totaling 217,208 square feet at 3825 and 3835 PGA Boulevard — the first new office development delivered in the Palm Beach Gardens submarket in more than a decade.

Why lenders still want in

The property is fully leased, with anchor tenants including J.P. Morgan Chase, wealth manager Wealthspire Advisors, and trading firm Virtu Financial — exactly the kind of institutional-caliber, finance-sector tenant roster that has become a prerequisite for new office lending nationally. Brokerage firm Berkadia, which arranged the financing, described Palm Beach Gardens as one of the strongest office submarkets in the country, noting that rents there have climbed more than 90% over the past decade. Office remains the most heavily scrutinized asset class for lenders nationwide, but deals like this one continue to close specifically because full occupancy, institutional tenants, and a constrained pipeline of new supply reduce the risk lenders are otherwise unwilling to take on elsewhere.

That combination — scarcity of new supply plus concentrated finance-sector demand — is the throughline connecting this transaction to the broader Wall Street South narrative that has defined Palm Beach County’s economy since the pandemic-era migration of hedge funds, private equity firms, and wealth managers out of the Northeast. Firms that relocated staff or opened satellite offices in Palm Beach County years ago are now mature enough as local employers to anchor entire buildings, which is precisely what has happened at DiVosta Towers. The presence of J.P. Morgan Chase and Virtu Financial as anchor tenants signals that this is not simply back-office relocation but front-office capital-markets activity taking root in Palm Beach Gardens specifically, not just Palm Beach proper.

For the broader Palm Beach investment landscape, the deal is a useful data point precisely because it runs counter to conditions in most other U.S. office markets. Vacancy rates in downtown cores from Chicago to San Francisco remain elevated years after the shift to hybrid work, and lenders have pulled back sharply from office originations across most of the country. Palm Beach Gardens’ ability to attract fresh debt on a newly built asset, at a moment when office lending elsewhere has nearly stalled, underscores how concentrated finance-sector migration can insulate a submarket from trends dragging down the broader asset class.

Palm Beach investment activity of this kind rarely occurs in isolation. Brokers active in the submarket report a growing list of wealth management and trading firms scouting Palm Beach Gardens specifically because of its proximity to established finance-sector neighbors, a dynamic that tends to compound once a handful of anchor tenants prove out the market. Each additional relocation strengthens the case for the next, turning a single office refinancing into evidence of a self-reinforcing cluster rather than a one-off transaction.

What it means for the pipeline

The scarcity element matters as much as the tenant roster. With no new office development delivered in Palm Beach Gardens in over a decade before DiVosta Towers, existing finance-sector tenants have had few options beyond bidding up space in the buildings that already exist — which explains both the rent growth Berkadia cited and the willingness of a lender to underwrite a three-year loan on a single asset rather than demand additional collateral or shorter terms. Developers watching the submarket will read this deal as confirmation that new office construction catering specifically to finance and wealth-management tenants can still pencil out in Palm Beach County, even in a year when most developers nationally have shelved office projects altogether.

Investors and executives tracking Palm Beach County’s commercial real estate market should watch whether this financing prompts new office announcements in Palm Beach Gardens or nearby submarkets over the next several quarters. If additional finance-sector tenants continue relocating or expanding in the area, the scarcity dynamic that made this deal attractive to lenders could ease — but if the current supply constraint holds, expect rent growth and lender appetite for Palm Beach Gardens office product to keep outperforming the national office market for the foreseeable future.

Want more? Read the Invest: Palm Beach report.