One Flagler in downtown West Palm Beach continues to attract and secure major financial firms, leading the way for the quickly growing Wall Street South

A 25-story office tower under construction in downtown West Palm Beach, developed by The Related Cos., has recently attracted six new tenants, including five prominent financial firms. This development, One Flagler at 154 Lakeview Ave., is set to be completed later this year, with 75% of its 270,000 square feet of office space already pre-leased.

Previously announced tenants for One Flagler include Chicago private equity firm GTCR, Diameter Capital Partners, Siris Capital, First Republic Bank, and Greek restaurant Estiatorio Milos, which will occupy 10,000 square feet on the ground floor.

The newly announced tenants are:

• Bessemer Trust: A 117-year-old investment management firm with $200 billion in assets, relocating from its Palm Beach office by 2025.

• Baron Funds: A New York asset management firm with $43 billion in assets, opening its first South Florida office.

• Paulson Capital: A financial services holding company founded by billionaire hedge fund manager John Paulson, establishing its first South Florida office.

• Lancer Capital LLC: The financial investment office for the Glazer family, owners of the Tampa Bay Buccaneers.

• Highpost Capital: A private equity investment firm headquartered in West Palm Beach, moving from the Related Cos.' Esperanté Corporate Center.

• The Johnson Family Foundation LLC: A non-profit that will share space with 108 Management Inc. and the Betty Wold Johnson Foundation.

Jon Blunk, president and founder of TCRE, represented Related Cos. in the lease negotiations. The company did not disclose the exact space allocations for each tenant but stated that office buildouts have commenced, with most tenants expected to move in by the third quarter of 2024.

In addition to the new tenants at One Flagler, Related Cos. announced other lease agreements in their downtown West Palm Beach properties:

• JPMorgan Chase: Securing space in 360 Rosemary, a Class A office building completed in 2021, which is now 105% occupied. To meet demand, the top floor of 360 Rosemary's parking garage is being converted into office space.

• Northwell Health: Opening an office in the Esperanté Corporate Center at 222 Lakeview Ave.

• Clear Sky: A venture capital and equity fund manager, opening its headquarters in CityPlace Tower at 525 Okeechobee Blvd.

Downtown West Palm Beach, situated across the Intracoastal Waterway from Palm Beach, has been attracting financial services firms for nearly a decade. In response to this demand, Related Cos., led by billionaire Stephen Ross, has acquired 710,000 square feet of office space, built the 300,000-square-foot 360 Rosemary, and initiated construction on One Flagler.

As of the first quarter of 2024, the average listed rent for Class A office space in West Palm Beach's Central Business District was $78.03 per square foot, a 4.4% increase year-over-year. In the rest of Palm Beach County, the average listed rental rate for Class A office space was $48.40 per square foot, marking a 2% year-over-year increase.

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