Development Continues in Downtown West Palm Beach
Downtown West Palm Beach is about to gain a new tenant, and this one could mean big things for the area. The same developer behind CityPlace and the CityPlace Tower office building is now making plans for construction of an additional high-end office tower.
Related Companies plans to build its latest tower very close to the existing entertainment and shopping destination. With an expected 250,000-300,000 square feet, the tower is poised to help bring more Class A office space downtown, something that is in short supply right now.
The developers do not have an exact location just yet to announce, but hope to secure space around the beginning of the year. If this happens, the new tower could then be finished by 2018.
The announcement comes on the heels of a new ranking that puts West Palm Beach at the top of the list when it comes to expensive top office space. Partially, that’s due to the limited supply of Class A office space currently available. Already, CityPlace Tower, Phillips Point and Esperante are at between 90-95% vacancy.
The lack of Class A office space has hindered efforts in the past by government leaders and business recruiters trying to entice businesses downtown, while at the same time hurting commercial brokers trying to find luxury office space for companies that want to move downtown, but cannot find the space.
The problem of finding suitable office space is made even more difficult by banks that are reluctant to finance new office buildings for developers who don’t already have committed leases in place. Many companies have a hard time committing until construction actually begins. This new building could remedy the problem, and possibly lead to more explosive growth in the future.
To help attract new tenants, the City of West Palm Beach is poised to launch a new campaign, aimed at attracting new prospects from certain regions of the country to West Palm. The $250,000 campaign is expected to specifically target companies in the field of health care, as well as in the financial and marine sector. Right now, the target is on Chicago, New Jersey and New York.
Meanwhile, other office buildings are also in the planning stages right now. One possible plan could be to transform the Lakeview Centre site to offices. Another proposal could bring in twin towers just to the north of the Palm Beach County Courthouse. This proposal includes office space, and either condos or a hotel. Neither of these projects are a done deal yet. In the meantime, though, the new tower by Related Companies could be just the tip of the iceberg.
