2019-07-10_DTZ戴德梁行_Office_Q2_2019_Palm_Beach_County_4页_729kb
报告摘要
Palm Beach County Office Market Summary - Q2 2019
Core Content Overview
This report provides an analysis of the Palm Beach County office market for the second quarter of 2019, focusing on economic indicators, market supply and demand, pricing trends, and key lease and sales transactions. It highlights the overall health of the market, with strong employment growth, tightening vacancy rates, and rising rents, while also noting the impact of new construction on future market dynamics.
Economic Indicators
- Palm Beach County Employment: Increased from 631,000 in Q2 18 to 645,000 in Q2 19, showing a 2.3% growth over the past 12 months.
- Palm Beach County Unemployment: Declined from 3.3% in Q2 18 to 3.1% in Q2 19, a 20 basis-point drop.
- U.S. Unemployment: Also decreased, from 3.9% to 3.6%, indicating a broader economic improvement.
The employment growth was driven by the Professional & Business Services, Education & Health Services, and Financial Activities sectors, which accounted for 8,700 new jobs or 59.0% of all jobs created in the past year.
Market Supply
- Office Square Feet Under Construction: Rose by 235% from the mid-point of 2018 to 839,038 sf in Q2 19.
- Major Projects: Two major CBD projects are expected to be delivered in 2021:
- One West Palm (Jeff Greene): 200,000 sf
- 360 Rosemary (Related Companies): 297,000 sf
- Impact of Infrastructure: These projects are strategically located near the Virgin/Brightline train station, which connects to Ft. Lauderdale and Miami. Future expansion to Orlando may further enhance West Palm Beach's appeal as a transit hub.
Market Pricing
- Overall Asking Rent: Increased by 2.2% YOY to $37.59 psf/year.
- Class A Rents: Rose 9.4% to $47.45 psf, reaching a new high of over $60.00 psf in the CBD.
- Class B Rents: Increased by 4.3% YOY to close to $40.00 psf.
- Submarkets:
- CBD: 6.0% YOY increase in rents.
- Glades Road and Northwest Boca Raton: Significant rent bumps of 8.3% and 6.0% respectively.
- Operating Expenses: Ranged from below $10.00 psf to over $24.00 psf for some Class A towers, with many buildings leasing on a triple net basis to pass costs to tenants.
Market Demand
- Vacancy Rate: Dropped 20 bps YOY to 13.4%, a historic low for the last 10 years.
- Net Absorption: Turned negative in Q2 2019 due to large tenant move-outs in Suburban West Palm Beach and Northwest Boca Raton.
- Leasing Activity: Slightly declined YTD compared to 2018, down 4.4%, primarily due to limited CBD leasing activity.
- Tenant Behavior: Tenants are shifting locations within the market, with limited new-to-market tenants.
Market Highlights
- Vacancy Rates: Continued to decline, driven by strong rent growth in quality assets.
- Leasing Drivers: Wealth management, technology, and business service firms were key in driving leasing activity, suggesting a strong pipeline for move-ins in the rest of 2019.
- Future Outlook: Cushman & Wakefield forecasts further improvement in office fundamentals as building owners raise rents and leverage the confidence of tenants.
Submarket Performance
| Submarket | Inventory (SF) | Direct Vacant (SF) | Vacancy Rate | YTD Net Absorption (SF) | YTD Leasing Activity (SF) | Under Construction (SF) | Avg. Asking Rent (All Classes) | Avg. Asking Rent (Class A) |
|---|---|---|---|---|---|---|---|---|
| West Palm Beach CBD | 3,163,077 | 387,306 | 13.6% | -1,618 | 56,071 | 497,095 | $48.69 | $60.08 |
| Suburban Palm Beach County | 20,378,746 | 2,584,328 | 13.4% | -34,195 | 779,370 | 341,943 | $35.56 | $44.37 |
| Suburban WPB | 3,554,500 | 549,276 | 15.6% | -22,261 | 83,283 | 0 | $36.10 | $46.41 |
| West Palm Beach | 3,043,377 | 436,153 | 14.5% | -21,628 | 68,114 | 0 | $28.81 | $31.68 |
| Palm Beach | 511,123 | 113,123 | 22.1% | -633 | 15,169 | 0 | $64.63 | $66.72 |
| North Palm Beach | 3,392,868 | 331,357 | 10.1% | -609 | 76,064 | 223,943 | $34.92 | $41.53 |
| Palm Beach Gardens/N. Palm Beach | 2,630,225 | 285,504 | 11.3% | 386 | 72,288 | 223,943 | $35.34 | $41.33 |
| Jupiter/Tequesta/Juno | 762,643 | 45,853 | 6.0% | -995 | 3,776 | 0 | $32.14 | $44.75 |
| South Palm Beach | 1,851,188 | 256,496 | 14.7% | 33,478 | 144,810 | 118,000 | $30.64 | $51.06 |
| Lake Worth | 503,017 | 127,945 | 10.0% | 9,893 | 68,153 | 35,000 | $26.36 | $36.07 |
| Boynton Beach | 462,712 | 87,404 | 18.9% | 6,081 | 33,767 | 0 | $26.42 | $37.50 |
| Delray Beach | 885,459 | 123,082 | 15.3% | 17,353 | 75,109 | 83,000 | $35.00 | $52.98 |
| Boca Raton | 11,580,190 | 1,447,199 | 13.3% | -113,301 | 234,450 | 0 | $36.68 | $44.21 |
| Glades Road | 2,940,002 | 345,643 | 13.6% | 32,279 | 124,129 | 0 | $46.22 | $48.78 |
| Federal Highway Corridor | 1,129,928 | 151,833 | 12.9% | 29,548 | 38,698 | 0 | $41.37 | $43.03 |
| Southwest Boca Raton | 532,226 | 26,549 | 5.1% | -3,222 | 9,783 | 0 | $29.71 | $33.10 |
| Downtown Boca Raton | 1,199,548 | 151,833 | 12.9% | 29,548 | 38,698 | 0 | $41.37 | $43.03 |
| Palm Beach Total | 23,541,823 | 2,971,634 | 13.4% | -35,813 | 835,441 | 839,038 | $37.59 | $47.45 |
Asset Class Performance
| Asset Class | Inventory (SF) | Direct Vacant (SF) | Vacancy Rate | YTD Net Absorption (SF) | YTD Leasing Activity (SF) | Under Construction (SF) | Avg. Asking Rent (All Classes) | Avg. Asking Rent (Class A) |
|---|---|---|---|---|---|---|---|---|
| Class A | 9,500,019 | 1,048,126 | 11.9% | 74,428 | 283,236 | 839,038 | $47.39 | $47.39 |
| Class B | 13,164,732 | 1,865,672 | 14.9% | -117,837 | 524,042 | 0 | $32.36 | $32.36 |
| Class C | 877,072 | 57,836 | 6.9% | 7,596 | 28,163 | 0 | $27.95 | $27.95 |
Key Lease Transactions Q2 2019
- 1615 S Congress Ave (26,482 sf): New lease with Specialized Health Care Partners in South Palm Beach.
- 1 Town Center Rd (19,292 sf): New lease with Raymond James & Associates in Boca Raton.
- 5200 Town Center Circle (16,899 sf): New lease with Ameriprise Financial in Boca Raton.
- 1515 S Federal Hwy (14,058 sf): Renewal with The Striano Financial Group in Boca Raton.
Key Sales Transactions Q2 2019
- Emerald View at Vista Center (140,262 sf): Sold for $285 psf, with a price of $40,000,000, to Sergio Fernandez in Boca Raton.
- Congress Corporate Plaza (106,499 sf): Sold for $199 psf, with a price of $21,200,000, to Barron Collier Commercial in Suburban West Palm Beach.
- 1800 S Australian Ave (43,336 sf): Sold for $196 psf, with a price of $8,500,000, to John Zirinsky in Suburban West Palm Beach.
- 1551 Forum Place (40,000 sf): Sold for $125 psf, with a price of $5,000,000, to The Ecclestone Organization in Suburban West Palm Beach.
Conclusion
The Palm Beach County office market in Q2 2019 showed resilience with a decline in unemployment and a tightening vacancy rate. Strong rent growth, especially in Class A and key submarkets, indicated a robust demand environment. However, the market is also facing challenges from new construction, which may influence future leasing dynamics and tenant behavior. Cushman & Wakefield forecasts continued improvement in market fundamentals as building owners capitalize on the current tenant confidence.
展开完整摘要
试读结束，高清完整版pdf/doc/ppt,请点下载
