Market Report: Palm Beach Reliant On Local Area Business Owners
By Eric Messer, Research Services Manager, Newmark Grubb Knight Frank
Palm Beach’s office sector continued to feel the pains of a slow-growing economy as overall vacant space still hovered near 22.0 percent.
This was still 280 basis points below the peak of 24.8 percent recorded in the third quarter of 2010.
The industrial market experienced healthier conditions as vacancy rates fell to the eight percent mark at the close of fourth quarter of 2012. This was a 440 basis point decrease from the 12.4% peak posted three years earlier at the close of 2009.
Both property segments are more dependent on small businesses run by local area owners. This coupled with the strong ties to the residential sector has stifled stronger momentum that other markets have seen.
The majority of deals being seen continued to come from tenants in the market as companies take advantage of space opportunities. This trend will continue throughout 2013 as landlords hold asking rates steady.
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