Butters Group received zoning approval on Apr. 17 to construct two low-rise light-industrial buildings in the Park at Broken Sound area of Boca Raton, replacing plans for a previously approved office tower.
The project reflects changing demand in the region, with Butters Group president Malcolm Butters saying there is strong interest from tech and pharmaceutical companies for new flex industrial office spaces in Boca Raton. The planned development will consist of two 35,800-square-foot buildings at 1150 Northwest Broken Sound Parkway, with at least half of each building dedicated to office space. The company expects tenants such as building contractors, software engineers, and research and development firms.
The site was previously owned by Mutual of America Life Insurance Company, which had secured approval last year for a much larger office building and parking garage on the eastern side of the property. In November, Mutual of America sold the land in two transactions totaling nearly $24 million. Ram Realty Advisors purchased the western portion—4.75 acres with an existing office building—for $16.9 million; this structure is set to be demolished to make way for a seven-story apartment complex featuring market-rate, affordable, and workforce units along with retail space and parking.
A Butters affiliate acquired the eastern 6.8-acre portion for just under $6.9 million. City staff recommended restricting box trucks from accessing the property once construction is complete; however, Butters said tenants would need occasional use of such vehicles to move materials but emphasized that “this will not be an Amazon distribution facility. This is built for the small user.” He also said that bays would be too small for large-scale distribution operations.
According to Colliers data cited by Butters Group, average annual asking rents for office-service industrial properties in southern Palm Beach County reached $19.94 per square foot during the first quarter—higher than warehouse distribution rents—and vacancy rates were lower compared to warehouse spaces.
The site plan change passed unanimously by Boca Raton’s Planning and Zoning Board but still requires final city council approval before moving forward.
