Office rents in downtown West Palm Beach reached record levels in this year. The average rent at 10 office buildings is $40.11, up 7.8 percent from early 2015, according to a new market report by JLL.
But here’s a stat that helps explain why billionaire Jeff Greene and other developers have yet to break ground on new towers: There’s some 272,000 square feet of empty space spread among 10 downtown addresses, JLL says.
There’s no empty space at several towers, including CityPlace Tower, Esperante Corporate Center, Phillips Point East, and Flagler Center II. But Northbridge Tower and One Clearlake Centre have several empty floors, JLL reports.
Overall, the vacancy rate in the 1.9 million-square-foot market is just under 14 percent.
But rents are especially high at what JLL calls “trophy towers.” They cost tenants $53.74 a square foot, up nearly 10 percent from early 2015.