PALM BEACH, FL— Properties scheduled to come online this year in Palm Beach County will test the market’s capacity to absorb new space at a time when declining employment is weakening demand, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.
Overall, supply growth in 2008 will be a significant factor behind an increase in vacancy of nearly 300 basis points.
“A slowdown in the rate of price appreciation may provide an attractive entry point for some out-of-state investors, who have been less active in the market recently,” says Gene A. Berman, (top right photo) regional manager of the Fort Lauderdale office of Marcus & Millichap.
Following are some of the most significant aspects of the Palm Beach Office Research Report:
· In 2008, developers will deliver 1.4 million square feet of for-lease office space, including the new headquarters building for Office Depot.
· Vacancy is forecast to end the year at 14.3 percent.
· Asking rents are projected to advance 2.7 percent to $29.67 per square foot.
· Effective rents will add 1.1 percent to $24.88 per square foot.
· The median price of office assets changing hands in the last year has gained 2 percent to $224 per square foot.
For a copy of the complete Palm Beach Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso,
Communications Department,
(925) 953-1716
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