For Palm Beach County offices, value gains are tiny

The office building at 2601 10th Ave. N in Palm Springs. (Photo courtesy Marcus & Millichap)

The office building at 2601 10th Ave. N in Palm Springs. (Photo courtesy Marcus & Millichap)

For sellers of office buildings, Palm Beach County is home to lackluster returns. While U.S. office properties have jumped 33.5 percent over the past five years, Palm Beach County returns are up only 7.5 percent, according to CoStar.

costar

In one illustration of lackluster returns, the Health Care District of Palm Beach County bought an office building in the depths of the Great Recession and sold it during today’s commercial real estate boom — and lost money anyway.

The public agency last week sold its 95,000-square-foot building at 2601 10th Ave. N for $6.9 million.

The district in 2009 paid $5.79 million for the building, then spent $3 million on improvements, including air conditioning upgrades and parking lot lights. That means the sale fetched nearly $2 million less than the district’s investment in the property.

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