Downtown West Palm Beach’s office market has experienced significant growth, driven in part by billionaire Steve Ross’ investments and development projects. As these new towers have attracted tenants and boosted the area’s profile, rents across downtown have increased, impacting not only Ross-owned properties but other buildings as well.
This surge in rent prices has led some long-term tenants to seek more affordable options outside the downtown core. According to the Palm Beach Post, law firm Lytal, Reiter, Smith, Ivey & Fronrath moved most of its offices from Northbridge Centre in downtown West Palm Beach—where it had been for forty years—to Palm Beach Gardens. The Northbridge property is owned by Vanderbilt Office Properties and Trinity Capital Advisors.
“The proposed renewal rate was three to four times what we were paying,” said Kevin Ryan of Lytal Reiter. He described downtown rates as “out of control.” The firm now operates out of 4300 TBC Way in Palm Beach Gardens.
Other companies are also considering relocating due to high rents that can exceed $100 per square foot in downtown West Palm Beach, according to Neil Merin of NAI/Merin Hunter Codman.
In response to this shift, developers are launching new office projects in suburban areas. Gatsby Florida—a division of Gatsby Enterprises—is planning an eight-story, 220,000-square-foot building called The Modern at 11200 RCA Center Drive in Palm Beach Gardens. This project will include a six-story garage and is expected to be completed in 2027. Gatsby Florida acquired the site for $17.5 million in 2022 near its existing DiVosta Towers complex.
Babak Ebrahimzadeh of Gatsby Florida told The Real Deal that part of The Modern’s target market includes New Yorkers moving south after last year’s mayoral election result in New York City.
In Boca Raton, construction continues on The Aletto office complex—a two-building project totaling 140,000 square feet—which is already about sixty percent pre-leased.
Developers and brokers say these suburban developments are being driven by demand for high-quality office space outside traditional city centers.
Steve Ross stepped back from his role at Related Companies—based in New York—in 2024 after more than fifty years leading the firm. He launched Related Ross in West Palm Beach with a focus on local projects including offices, condos, apartments and hotels. He remains nonexecutive chairman and largest shareholder at Related Companies while maintaining a strong presence with about a dozen office buildings—either completed or planned—in downtown West Palm.
Ross initially filled his buildings using connections from New York financial firms but has recently sought to promote technology industry growth within Palm Beach County as well.
