Downtown West Palm Beach has seen a surge in office market activity, driven in part by significant investments from billionaire Steve Ross. Ross’ development efforts have contributed to higher rents across the downtown area, making it difficult for some longstanding tenants to remain.
According to the Palm Beach Post, rising costs are prompting several businesses to relocate to suburban areas of Palm Beach County. Law firm Lytal, Reiter, Smith, Ivey & Fronrath moved most of its operations from Northbridge Centre in downtown West Palm Beach—where it had been based for forty years—to 4300 TBC Way in Palm Beach Gardens. Northbridge 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 the current downtown rates as “out of control.”
Other companies are also considering leaving downtown after encountering rental rates exceeding $100 per square foot, according to Neil Merin of NAI/Merin Hunter Codman.
Developers are responding to this trend with new projects in suburban markets. Gatsby Florida, a division of Gatsby Enterprises, is planning an eight-story office building called The Modern and an adjacent six-story garage at 11200 RCA Center Drive in Palm Beach Gardens. Construction on The Modern is expected to finish in 2027. Gatsby acquired the site for $17.5 million in 2022.
Babak Ebrahimzadeh of Gatsby Florida told The Real Deal that part of the project’s focus will be on attracting New Yorkers relocating after Democratic Socialist Zohran Mamdani won New York’s mayoral election last year.
In Boca Raton, construction continues on The Aletto office complex—a two-building project totaling 140,000 square feet—which is currently about 60 percent pre-leased.
Developers and brokers say these new suburban offices reflect increased demand for high-quality workspace outside city centers.
Steve Ross stepped back from his leadership role at Related Companies in New York City in 2024 and now leads Related Ross from West Palm Beach, focusing primarily on developments there. He remains nonexecutive chairman and largest shareholder at Related Companies while expanding his real estate portfolio—including condos, apartments, hotels, and roughly a dozen office buildings—in West Palm’s downtown area. His efforts have brought financial firms from out-of-state into local offices and more recently include initiatives aimed at developing a tech hub within Palm Beach County.
Ross also owns the Formula One Race and the Miami Dolphins.
