Lower vacancy, higher rents in West Palm Beach office market

With payroll additions likely on the way, West Palm Beach’s office market will likely see a decline in vacancy and slightly higher rental rates, according to a report from Marcus & Millichap. The firm projects the area’s vacancy rate to drop 130 points in 2012, thanks to net absorption of 300,000 square feet. That comes after vacancy increased in 2011 by 40 basis points. Rents are projected to rise 0.3 percent to $28.25 per square foot, with a similar 0.5 percent increase in effective rents to $22.42. That would be the first annual improvement in both numbers since 2008. Both measures fell in 2011. — Alexander Britell