Palm Beach County is set to experience a significant expansion of its office market with the planned construction of new, modern office towers in both the northern and southern regions. These developments aim to meet the growing demand from businesses seeking suburban locations with high-quality facilities, potentially drawing tenants away from more congested urban centers.
Key Takeaways
- New Class A office towers are planned for Palm Beach Gardens and Boca Raton.
- Developments cater to businesses seeking modern amenities and suburban locations.
- Demand is driven by firms looking to relocate from expensive and crowded urban markets.
Northern Palm Beach County Development: The Modern
In Palm Beach Gardens, Gatsby Enterprises is developing "The Modern," an eight-story, 220,000-square-foot office building. Located across PGA Boulevard from the existing DiVosta Towers, this project is designed to attract executives and companies, particularly those from the Northeast, seeking high-end office space outside of West Palm Beach. Isaac Shalom, Vice President of Gatsby Florida, noted significant interest from tenants finding West Palm Beach increasingly expensive and crowded. The building is slated to begin construction in early 2026, with completion expected in late 2027. Approximately 25% of the space has already been pre-leased. The Modern will offer Class A finishes, including a rooftop patio and fitness center, at a competitive price point compared to West Palm Beach towers.
Southern Palm Beach County Development: The Aletto
Meanwhile, in Boca Raton, the "Aletto" office complex is already under construction. This two-tower, 140,000-square-foot development is approximately 60% pre-leased, according to Scott Brenner, executive vice president of Colliers in Boca Raton. The project is expected to take two years to complete. Tenants lined up for Aletto include wealth management firms, a national co-working space, and a financial institution, with potential interest from law, accounting, and architecture firms. The complex will feature a rooftop restaurant by INK Entertainment Group serving Lebanese cuisine and a ground-floor Italian restaurant named Sophia. Brenner highlighted that this is the first new office development in downtown Boca Raton in over 25 years.
Market Drivers
Both projects are capitalizing on a perceived demand for modern office spaces in suburban areas of Palm Beach County. Real estate officials suggest that businesses are increasingly looking for alternatives to crowded and costly urban cores, while also desiring the quality and amenities typically found in major city office buildings. The growth of the West Palm Beach office market has also created a ripple effect, increasing demand for comparable spaces in surrounding communities.
Sources
- Palm Beach Gardens, Boca Raton gaining new office towers, The Palm Beach Post.