Downtown West Palm Beach has seen a surge in office market activity, largely fueled by significant investments from billionaire Steve Ross. His developments have attracted many tenants and contributed to rising rents throughout the area, even in buildings he does not own.
The increase in rental rates has made it difficult for some longstanding tenants to remain downtown. As a result, several businesses are relocating to suburban areas of Palm Beach County, where new development is also underway.
Kevin Ryan of Lytal, Reiter, Smith, Ivey & Fronrath said, “The proposed renewal rate was three to four times what we were paying,” describing downtown rates as “out of control.” The law firm recently moved most of its operations from Northbridge Centre in downtown West Palm Beach—where it had been for forty years—to an office at 4300 TBC Way in Palm Beach Gardens.
Northbridge Centre is owned by Vanderbilt Office Properties and Trinity Capital Advisors.
Neil Merin of NAI/Merin Hunter Codman noted that other companies are considering similar moves after encountering downtown rents exceeding $100 per square foot.
In response to this shift in demand, at least two new office projects are being developed in suburban Palm Beach County. Gatsby Florida, part of Gatsby Enterprises, plans to build an eight-story office building called The Modern and a six-story parking garage at 11200 RCA Center Drive in Palm Beach Gardens. Construction is expected to finish in 2027. Babak Ebrahimzadeh of Gatsby Florida told The Real Deal that the project will partly target New Yorkers moving south following recent political changes in New York City.
Gatsby Florida acquired the site for $17.5 million in 2022; it is located near their DiVosta Towers complex.
Another project under construction is The Aletto office complex in Boca Raton. This two-building development totals 140,000 square feet and is about 60 percent pre-leased.
Developers and brokers say these projects reflect growing demand for high-quality offices outside the city center.
Steve Ross stepped back from his leadership role at Related Companies—a firm he founded over fifty years ago—in 2024 to start West Palm-based Related Ross. That company now focuses on developing properties primarily within downtown West Palm Beach. Ross remains nonexecutive chairman and largest shareholder of Related Companies while also leading efforts to attract financial services firms and promote tech sector growth locally. He owns about a dozen office buildings across the submarket through purchases and ongoing developments.
Ross also owns the Formula One Race and the Miami Dolphins and has completed or planned several residential and hospitality projects in West Palm Beach.
