Palm Beach Office Market Poised for Continued Growth in 2025

The office market in Palm Beach and Palm Beach County will continue to soar in 2025, according to several recent real estate reports.

Growth in recent years has brought in new businesses and new developments, and the trend will continue in this new year, said Colliers, a major real estate company in the county.

The market is strong, too, for medical office buildings and housing, the company said.

Colliers said that rents for Class A buildings averaged $42.92 per square foot, up 9 percent since 2019. Miami was $54.79 per square foot, and Fort Lauderdale $37.34.

“People want to be in Florida because of our low taxes and great quality of life,” Scott Singer, mayor of Boca Raton, in a statement.

Regina Cucuniello, a real-estate broker in South Florida, said that about 90 percent of her new clients are eyeing space in Palm Beach. She moved to the area in 2020.

“I think it’s fantastic,” she said in a statement. “I’ve watched this area develop over the years.”

The Palm Beach office market ended 2024 on a strong note, and looks to continue that trend this year, according to Colliers.

The Colliers report said the office market in South Florida all remains strong, with vacancy rates at 9.3 percent, the lowest among five major markets in Florida.

Colliers noted transactions including a 17,747-square-foot renewal at Phillips Point in West Palm Beach.

The Colliers study also found that at this start of this year, 304,000-square-feet of office space was still under construction in Palm Beach County.

Banyan & Olive, a state-of-the-art workplace building, in West Palm Beach’s Central Business District, pre-leased at 83 percent; another building, One Flagler, a corporate office building also in West Palm Beach, pre-leased st 55 percent.

Colliers said that looking forward, 3.8 million-square-feet is proposed throughout Palm Beach County and “strong demand for Class A office space will position core submarkets for growth in 2025.”

The market for healthcare and sciences industry facilities in Palm Beach County has been growing for years.

The industry in Palm Beach in 2024 saw increased demand and low vacancy rates as a result of a growing aging population.

A new wrinkle, industry experts said: many healthcare providers are growing their practices to service the aging population. As a result, outpatient medical facilities have become popular among hospitals looking to “retail-ize” their services by brining patient care to local communities.

The Palm Beach County medical office market is made up of 11.4-square-feet of space and had an occupancy rate of 94.3 percent in the last quarter of 2003, according to the latest such data available.

Various real-estate reports say that asking rents are increasing and currently are at $26.23 per-square-foot, an increase of 3 percent over the previous year.

Construction levels for medical facilities, the reports say, are modest, with about 122,000-square-feet now under construction.

According to Zillow, the housing market remains robust. The average Palm Beach home value is $2,127,973, up 1.9 percent over 2024.

Zillow says it expects 326 homes will be up for sale in Palm Beach this year, with a median sale price of $2,078,332.

Looking to buy in the El Cid neighborhood? That’s going to cost you $3.4 million; Prospect-Southland Parks? Trying $1.9 million; maybe Pineapple Park will do, at $544,049.

Cucuniello, the real-estate broker, might be speaking for many when she said of Palm Beach and Palm Beach County, “I don’t want it to turn into a Miami. I don’t want it to be like, I don’t see the sky anymore. We still have a long way to go, I think, before we get to that level and hopefully we keep it great and not so crazy.”