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Palm Beach Office Figures - Q2 2023

July 11, 2023 5 Minute Read

With the Office Depot headquarter building coming back online, total absorption was negative at just over 179,500 sq. ft.; however, when removing that from the equation, tenants actually took occupancy of a net positive 59,000 sq. ft.
This positive absorption was also offset by sublease space coming online. Over 50,800 sq. ft. of sublease space came online, led by Specialized Healthcare Partners vacating 26,500 sq. ft. of sublet space.
Despite the large negative absorption, direct vacancy is still only 11.9%, which has led landlords to remain positive – as demonstrated by the increased asking rate to a record high $32.82/sq. ft.