Commercial real estate making strides despite office vacancies
March 18, 2014

Tom Capocefalo

Office vacancies remain elevated across Palm Beach County, though space in some of the most desirable buildings is becoming scarce.

Palm Beach County's vacancy rate dipped to 19.8 percent in 2013 from 21.6 percent the year before, according to a recent report from Commercial Florida Realty Services in Boca Raton.

Typically, a healthy, thriving market has a vacancy rate of 10 percent or below, real estate observers say...

One of the best indicators of the improved market in 2013 was the volume of investment sales throughout the area, brokers say.

The Esperante building in downtown West Palm Beach traded hands for $71 million. In Broward County, Pinnacle Corporate Park in Fort Lauderdale fetched $38.1 million.

"Landlords are comfortable selling based on their current rent rolls, and sellers are confident in the continued strengthening of the market," Kingsley said.

Demand for office space has declined in recent years amid company downsizings, and the recession stifled any new office construction.

But Tom Capocefalo, corporate managing director for the Studley firm in South Florida, said the office climate is improving to the point where a developer or two may be inclined to put a shovel in the ground."I don't say it's an absolute go, but it would not surprise me," Capocefalo said.

Commercial real estate making strides despite office vacancies

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