Writer: Andrea Teran
3 min read December 2023 — South Florida’s office market has undergone a significant transformation in recent years, bookended by incoming businesses and a reevaluation of companies’ office space needs. However, within this evolving landscape, Palm Beach County has quietly emerged as a thriving hub.
“As I look back at it, the pandemic was beneficial to the city’s growth. We have had transformational growth through a number of new Class-A office buildings that have gone up, and we have had an influx of companies and people from the Northeast and California,” Mayor Keith James of West Palm Beach told Invest:.
Recent data highlights the overall strong performance of the office market in South Florida. Miami-Dade, known for its soaring office rents, averaged an impressive $46.52 per square foot in November 2023, well above the national average of $37.73 per square foot. In Palm Beach, the county saw a more modest increase of 1.05% in office rents year-over year.
While Miami-Dade’s office rents saw a 6.25% decline year-over-year, Palm Beach County managed to remain relatively stable. Palm Beach County’s economic diversity stands out as a key factor contributing to its stability. Unlike some neighboring counties, Palm Beach has successfully attracted a wide range of businesses, spanning finance, technology, healthcare, and other industries.
Furthermore, Palm Beach County offers an attractive lifestyle combined with a lower cost of living compared to its southern neighbors. The county’s beautiful beaches, upscale communities, and vibrant cultural scene have made it a compelling destination for both businesses and residents.
Despite fluctuations in South Florida’s office market, the region continues to draw individuals seeking a “workcation,” a harmonious blend of work and leisure. Fort Lauderdale in Broward County, for example, secured the top position as the best U.S. flexcation destination for two consecutive years. Additionally, several other Florida cities, including Orlando, Fort Myers, and Palm Beach, made it to the list of the nation’s top 20 “Flexcation” destinations, as revealed in a report by CoworkingCafe.
This recognition underlines Florida’s broad appeal to travelers seeking a balanced work-play lifestyle, emphasizing the state’s ability to maintain its attractiveness as a flexible and productive destination.
While Palm Beach County has achieved relative success, it is not immune to the challenges facing the broader South Florida office market. Recruiting talent has become more challenging due to higher housing costs and lengthy commutes. Additionally, the trend of companies reducing office space due to hybrid work models poses potential impacts.
However, professionals in construction maintain an optimistic outlook for Palm Beach County. In a recent interview with Invest:, Brett Atkinson, South Florida president at Moss & Associates, shared his perspective, stating, “Palm Beach has experienced remarkable growth in Class A office buildings due to the influx of relocating companies. When a state is pro-business and blessed with great weather, it naturally attracts people. Consequently, we’re witnessing the migration of many reputable companies to the area, which, in turn, fuels the development of new offices and the essential infrastructure to accommodate the growing number of families moving here. It’s indeed an exciting time for South Florida.”
Palm Beach County, overshadowed at times by its southern neighboring counties, has established itself as a stable and attractive destination for businesses seeking office space in South Florida.
Kelly Smallridge, president and CEO of the Business Development Board of Palm Beach County, emphasized to Invest:, “We understand the significance of having adequate office space to attract companies. Over the past 20 years, we have actively advocated for the construction of office space and have seen remarkable results. A million square feet of office space has already been built, with another 2.5 million square feet in the pipeline.”
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