Worst is over for Palm Beach commercial real estate, firms say

Quarterly market reports on Palm Beach County’s retail, commercial
and
office sectors show struggles in all markets, but firms believe the
worst is over. Broker Marcus & Millichap said the second quarter
was the worst period of the current recession, though the firm expects
additional weakening in vacancy rates and rents during the remainder of
the
year. The countywide office market vacancy rate declined 0.5
percent from second-quarter 2009 to the current rate of 24.7 percent,
according to commercial real estate giant CB Richard Ellis. From
third-quarter 2008 to third-quarter 2009, the average asking lease
price
decreased to $18.85 from $19.71 per square foot, or 4.4 percent. The
Palm Beach industrial market’s total vacancy rate increased 2.5
percent points to the current rate of 11.3 percent and asking rates
have
decreased by 9.2 percent from third-quarter 2008 to $7.33 per
square foot. TRD