PALM BEACH, FL—In a deal that industry watchers say is significant for Palm Beach County, Document Storage Systems (DSS) snapped up a 50,000-square-foot office building from for $5.2 million. The asset is located at 701 US Highway One in North Palm Beach.
Tom Burst, director of sales and leasing at KRES Commercial, represented the buyer. Burst tells GlobeSt.com that DSS was interested in the building first and foremost because it had 30,000 square feet available to occupy.
“The seller will remain on the top floor with a short term lease, allowing for income and room for future growth,” Burst says. “The building was extremely well maintained, has good curb appeal and is close to the headquarter building in Juno Beach.”
This transaction has made a significant impact on the North Palm Beach submarket, representing roughly 8% of the vacant space available. The overall vacancy rate in North Palm Beach will decrease from 30% to 22%, making it a real game-changer for this market.
A transaction this size helps Palm Beach County’s figures, but even without it the business climate and leasing activity throughout has been steadily increasing. Burst expects this trend will continue through the first quarter and as vacancy rates drop, rental rates will start to recover.