2019-07-10_DTZ戴德梁行_Office_Q1_2019_Palm_Beach_County_4页_788kb
报告摘要
Palm Beach County Office Market Summary - Q1 2019
Core Content Overview
This report provides a detailed analysis of the Palm Beach County office market during the first quarter of 2019, highlighting key economic and market indicators, as well as notable lease and sales transactions. The data reflects a strong and resilient market with continued demand for office space, especially in suburban areas, and a steady increase in rents.
Economic Indicators
-
Employment:
- Q1 2018: 704,000
- Q1 2019: 713,000
- 12-Month Forecast: ↑
- Palm Beach County added 11,300 jobs over the past year, reducing the unemployment rate by 30 basis points to 3.4%.
-
Unemployment Rate:
- Q1 2018: 3.7%
- Q1 2019: 3.4%
- 12-Month Forecast: ↓
- The U.S. unemployment rate also declined, from 4.1% to 3.8%.
Market Indicators (Overall, All Classes)
-
Vacancy Rate:
- Q1 2018: 14.5%
- Q1 2019: 13.3%
- 12-Month Forecast: ↓
- Overall vacancy rate remained near historic lows at 13.3%, down 81 bps YOY.
-
YTD Net Absorption (sf):
- Q1 2018: 18,000
- Q1 2019: 78,000
- 12-Month Forecast: ↑
- Overall absorption exceeded 78,000 sf, the highest Q1 absorption in nearly 5 years.
-
Under Construction (sf):
- Q1 2018: 132,000
- Q1 2019: 507,000
- 12-Month Forecast: ↑
- A significant amount of new construction is underway, particularly in suburban areas.
-
Average Asking Rent:
- Q1 2018: $36.87
- Q1 2019: $37.51
- 12-Month Forecast: ↑
- Full service asking rents increased by 3.9% YOY to $37.51 psf, driven by rising demand and build-out costs.
Market Highlights
-
Suburban Class B Assets:
- Suburban areas saw the strongest absorption, contributing over two-thirds of the total absorption in the market.
- Tenants prioritized economical pricing over CBD locations, leading to increased demand for Class B spaces.
-
CBD Rent Growth:
- Full service asking rents in the CBD increased by 3.9% YOY to $48.88 psf.
- Class A CBD rents rose more than 5.0% YOY to $59.66 psf in West Palm Beach.
- Select Class A buildings in the CBD, such as Phillips Point, reached asking rents of over $70.00 psf.
-
Class B Rent Growth:
- Class B assets, which make up over half the market inventory, saw a modest decrease of less than 1.0% to $31.81 psf.
- Class B rent growth was strongest in the CBD, rising 5.2% YOY to $40.55 psf.
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Construction Activity:
- Over 500,000 sf of new office space is expected to be delivered within the next 24 months.
- A resurgence in Class A CBD construction is noted, with projects like One West Palm (30-story, 200,000 sf) planned for 2021.
-
Leasing Activity:
- Total leasing activity across the county was over 316,711 sf.
- Boca Raton, which holds nearly half of the county's office inventory, led in leasing activity with 140,310 sf in deals.
Key Lease Transactions Q1 2019
| Property | SF | Tenant | Transaction Type | Submarket |
|---|---|---|---|---|
| 901 Yamato Road | 21,622 | FlexShopper | New | Northwest Boca Raton |
| 3301 Quantum Blvd | 21,258 | NYU School of Medicine | New | Boynton Beach |
| 348 Hiatt Drive | 17,181 | Merchant Lynx | New | Palm Beach Gardens / North Palm Beach |
| 7777 Glades Road | 12,798 | Saxena White | New | Glades Road |
Key Sales Transactions Q1 2019
| Property | SF | Seller/Buyer | Price / $PSF | Submarket |
|---|---|---|---|---|
| Wells Fargo Plaza | 102,309 | IP Capital Partners/GEM Realty | $34,600,000/$338 | Downtown Boca Raton |
| 205 Datura Street | 71,285 | PNC Bank Nat'l Assoc/Morning Calm Management | $14,215,000/$199 | Palm Beach CBD |
| 1005 Lake Avenue | 33,000 | MeeCorp/Yasmin Real Estate | $5,350,000/$162 | Lake Worth |
Submarket Analysis
| Submarket | Inventory (SF) | Sublet Vacant (SF) | Direct Vacant (SF) | Overall Vacancy Rate | Current Qtr Net Absorption (SF) | YTD Net Absorption (SF) | YTD Leasing Activity (SF) | Under Construction (SF) | YTD Construction Completions (SF) | Direct Average Asking Rent |
|---|---|---|---|---|---|---|---|---|---|---|
| West Palm Beach CBD | 3,161,737 | 28,105 | 434,855 | 14.6% | 1,927 | 1,927 | 10,945 | 200,000 | 0 | $48.88 |
| Suburban Palm Beach County | 20,387,966 | 121,690 | 2,545,170 | 13.1% | 76,207 | 76,207 | 305,766 | 306,943 | 0 | $35.36 |
| Suburban WPB | 3,552,148 | 1,242 | 561,399 | 15.8% | -4,101 | -4,101 | 51,106 | 0 | 0 | $35.63 |
| West Palm Beach | 3,043,377 | 1,242 | 456,666 | 15.0% | -6,649 | -6,649 | 41,686 | 0 | 0 | $29.02 |
| Palm Beach | 508,771 | 0 | 104,733 | 20.6% | 2,548 | 2,548 | 9,420 | 0 | 0 | $64.51 |
| North Palm Beach | 3,392,868 | 20,728 | 313,580 | 9.9% | 11,903 | 11,903 | 49,699 | 223,943 | 0 | $34.55 |
| Palm Beach Gardens/N. Palm Beach | 2,630,225 | 20,728 | 270,372 | 11.1% | 9,422 | 9,422 | 47,218 | 223,943 | 0 | $35.02 |
| Jupiter/Tequesta/Juno | 762,643 | 0 | 43,208 | 5.7% | 2,481 | 2,481 | 2,481 | 0 | 0 | $31.34 |
| South Palm Beach | 1,847,688 | 14,438 | 269,903 | 15.4% | 30,083 | 30,083 | 64,651 | 83,000 | 0 | $30.69 |
| Lake Worth | 503,017 | 0 | 49,564 | 9.9% | 10,149 | 10,149 | 24,167 | 0 | 0 | $27.00 |
| Boynton Beach | 462,712 | 0 | 99,009 | 21.4% | -2,495 | -2,495 | 24,258 | 0 | 0 | $27.85 |
| Delray Beach | 881,959 | 14,438 | 121,330 | 15.4% | 22,429 | 22,429 | 16,226 | 83,000 | 0 | $34.10 |
| Boca Raton | 11,595,262 | 110,916 | 1,399,688 | 12.8% | 38,322 | 38,322 | 140,310 | 0 | 0 | $36.61 |
| Glades Road | 2,940,002 | 51,419 | 366,418 | 14.2% | 10,912 | 10,912 | 37,952 | 0 | 0 | $46.10 |
| Federal Highway Corridor | 1,640,447 | 10,434 | 224,734 | 14.3% | 12,229 | 12,229 | 37,288 | 0 | 0 | $37.94 |
| Northwest Boca Raton | 5,755,883 | 23,429 | 709,218 | 12.7% | 18,011 | 18,011 | 57,062 | 0 | 0 | $30.89 |
| Southwest Boca Raton | 532,226 | 0 | 26,958 | 5.1% | -6,593 | -6,593 | 0 | 0 | 0 | $30.41 |
| Downtown Boca Raton | 726,704 | 0 | 72,360 | 10.0% | 3,763 | 3,763 | 8,008 | 0 | 0 | $37.67 |
Asset Class Overview
| Asset Class | Inventory (SF) | Sublet Vacant (SF) | Direct Vacant (SF) | Overall Vacancy Rate | Current Qtr Net Absorption (SF) | YTD Net Absorption (SF) | YTD Leasing Activity (SF) | Under Construction (SF) | YTD Construction Completions (SF) | Direct Average Asking Rent |
|---|---|---|---|---|---|---|---|---|---|---|
| Class A | 9,455,674 | 75,356 | 1,115,673 | 12.6% | 19,558 | 19,558 | 108,375 | 506,943 | 46,233 | $46.96 |
| Class B | 13,149,380 | 74,439 | 1,781,222 | 14.1% | 52,919 | 52,919 | 187,354 | 0 | 0 | $32.00 |
| Class C | 944,649 | 0 | 83,130 | 8.8% | 7,885 | 7,885 | 20,982 | 0 | 0 | $34.73 |
Key Trends and Outlook
- Investor Sentiment: Strong interest in suburban Class B assets, with no new construction expected in the near term.
- Rental Growth: Full service asking rents increased across all classes, with Class A CBD leading the growth.
- Vacancy Concerns: While overall vacancy is low, the Divosta Towers in Palm Beach Gardens is expected to increase vacancy in the second half of 2019 due to speculative construction.
- Sector Demand: Professional, Scientific, and Technical Services sector saw significant job growth, contributing to increased office space demand.
- Market Resilience: Despite some submarkets with higher vacancy rates, the overall market remains robust with strong absorption and rent growth.
Conclusion
Palm Beach County's office market in Q1 2019 demonstrated resilience and growth, driven by employment gains, strong tenant demand, and strategic development. While vacancy rates remain historically low, certain submarkets, such as Palm Beach Gardens, face potential challenges due to speculative construction. Overall, the market is expected to continue its upward trajectory in absorption and rent growth throughout 2019, with a renewed focus on suburban and CBD spaces.
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