West Palm Beach has become the first major U.S. market to see office foot traffic fully return to pre-pandemic levels, according to Avison Young’s Office Busyness Index. Demand remains steady, driven by the city’s strategic coastal location, proximity to major finance and legal hubs such as Miami, a growing cultural scene, upscale retail offerings, and favorable tax conditions. These factors continue to attract occupiers of all sizes.
Foot traffic in West Palm Beach reached 100.9% of pre-pandemic levels, according to Avison Young. By comparison, Las Vegas ranks second at 87.9%, New York City’s Outer Boroughs at 80.4%, and Miami at 78%. The national average stands at 64.7%.
“West Palm Beach has long led the return-to-office movement, as companies in office-heavy industries such as banking, finance, insurance, and real estate flocked to the Sunshine State during the pandemic due to business-friendly policies, warm climate, and access to strong talent,” said Declan Hood, senior analyst at Avison Young. “As a result, the city has seen an influx of interest from prominent real estate developers, leading to top-tier projects in the pipeline that will continue fueling West Palm Beach’s rising popularity.”
Leasing activity hit 984,000 square feet last quarter, the highest recorded in the past 19 quarters. Major deals included ServiceNow’s 200,000-square-foot lease at 15 CityPlace and the Cleveland Clinic’s 130,000-square-foot lease at 10 CityPlace. With more tenants looking to expand into the area, rental rates are expected to rise, reinforcing a landlord-friendly environment, the report said.
Quarter-over-quarter rents grew to $49.27 per square foot, reflecting strong demand across the region. Trophy assets continue to record the lowest vacancy rates, underscoring a persistent flight-to-quality trend among tenants. Trophy availability sits at 7.6%, the tightest in the market.
In contrast, Class A and B properties recorded higher vacancy rates at 16.5% and 14%, respectively, though these figures have remained relatively stable since early 2021, indicating consistent demand for these spaces. Trophy assets command significantly higher rates, well above $100 per square foot, while Class A and B buildings remain in the $40–$50 range.
Over 1.5 million square feet of office inventory is currently in the pipeline, making West Palm Beach one of the most active markets for new office product in the country. The majority, just north of 1 million square feet, comes from Related Companies’ CityPlace development, slated for delivery between 2027 and 2028. Strong preleasing activity is already underway, positioning these projects to drive vacancy rates lower as space is absorbed upon completion, Avison Young said.
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