West Palm Beach office insight - Q2 2018
The first half of 2018 brought 243,000 square feet of negative absorption – that is the biggest shift seen in the market since 2008. Some of the negative absorption came from the lack of any major move-ins coupled with a very large share of buildings with small move-outs/downsizes. However, a large share came from two large moves – Shoes for Crews left 37,700 square feet in One Clearlake (moved to Boca Raton North) and NTT America left 56,000 square feet in Boca Raton Innovation Campus (Downsized to less than 2,000 square feet elsewhere in the market).
While some of that space has already been backfilled for lease, there is still a new chunk of space on the market. Currently, the average time on the market for blocks over 20,0000 square feet is 25.6 months. And, there are currently 29 large blocks on the market – the majority and the largest block(s) are in Boca Raton North.