T
ech moguls and billionaires are flocking to Palm Beach County, drawn by the state's tax-free lifestyle. They're bringing their firms with them, driving up demand for office space in West Palm Beach. The city's Central Business District is seeing big-city rents, despite being 100 times smaller than Midtown Manhattan.
According to Cushman & Wakefield, 267,535 square feet of Class A office space was leased in 2024 without renewals, with average asking rents at $105.31 per foot. Vacancy rates have dropped from 19.1% to just a few percentage points as new towers are absorbed by deal activity increasing 90% year over year.
Palm Beach County has an occupancy rate of 90%, pushing up office asking rents 63% over the last five years. Miami Dolphins owner Stephen Ross is behind much of this boom, with his company Related Ross developing several high-profile projects in West Palm Beach.
One Flagler, a 285,000-square-foot complex on the former site of a church parking lot, is already 95% leased to companies like ViperTec at rents exceeding $120 per foot. The project features a 25-story tower with a lush greenery-covered garage and an amenity terrace.
Ross's Related Ross company also owns 95% of the Class A market in West Palm Beach and has plans for further development, including a new graduate campus for Vanderbilt University and a Cleveland Clinic hospital. The company is breaking ground on two towers at CityPlace, with 1 million square feet of offices and retail space.
Local real estate insiders are calling the town "Relatedville," citing Ross's unprecedented investment in the area, which totals $8 to $10 billion. William Reichel of Reichel Realty & Investment notes that major companies and money managers are flocking to West Palm Beach, with calls coming from all over the country looking for real estate opportunities.
A 72,000-square-foot boutique office at 205 Datura St. is being marketed by JLL, with expected pricing of $48 million or around $680 per foot. The building has a 257-car garage and is 80% leased to tenants including AltaRock Partners and Sound Point Capital Management.
