Related Ross Unveils $100M Facelift for West Palm's Iconic Phillips Point​

Key Points:

• $100 Million Renovation: Stephen Ross's Related Ross is investing over $100 million to modernize the Phillips Point office complex in West Palm Beach. ​

• Modern Design Upgrade: The 1980s-era twin towers will shed their pink facade for a contemporary limestone exterior, enhancing energy efficiency and aesthetic appeal. ​

• Completion by 2026: The phased renovation aims to minimize tenant disruption, with a projected completion date in 2026. ​

Billionaire developer Stephen Ross is set to transform West Palm Beach's skyline with a substantial investment in the Phillips Point office complex. This $100 million renovation not only signifies a commitment to modernizing the city's architectural landscape but also underscores West Palm Beach's emergence as a burgeoning hub for business and finance. In this article, we'll delve into the specifics of the renovation, its impact on the local real estate market, and what this means for current and prospective tenants.​

A Modern Makeover for Phillips Point 

• Facade Transformation: The twin-tower complex, standing since 1985, will undergo a significant exterior overhaul. The existing pink facade will be replaced with a sleek limestone aesthetic, bringing a contemporary look to the waterfront property. ​

• Energy Efficiency Enhancements: Beyond visual improvements, the renovation includes the installation of custom window replacements designed to boost energy efficiency, aligning the building with current environmental standards. ​

• Interior and Infrastructure Upgrades: Renowned interior designer Tony Ingrao will revitalize the lobbies of both towers. Additional enhancements encompass new electrical systems, generators, a shoreline gallery, and updated retail and restaurant spaces. ​

Strategic Timing Amid Market Dynamics 

• Vacancy Rates and Demand: As of Q4 2024, West Palm Beach's office vacancy rates have risen by 150 basis points year over year, primarily due to the delivery of over 370,000 square feet of new office space. Despite this, the flight-to-quality trend continues, with tenant demand still focused on top-tier trophy buildings. ​

• Rental Trends: Office asking rates have softened for the first time in years, dropping 5% year over year to $48.70 per square foot full service. However, Class A rents averaged $42.92, reflecting a 9.0% rise since 2019 but a moderate 1.9% decline year-over-year. ​

Stephen Ross's Vision for West Palm Beach 

• Expanding Footprint: Stephen Ross's Related Ross has been instrumental in reshaping West Palm Beach's commercial landscape. Beyond Phillips Point, the company has developed the 25-story One Flagler office tower and owns substantial retail spaces in CityPlace. ​

• Attracting Major Tenants: The strategic location and planned upgrades of Phillips Point are expected to attract high-profile tenants, further solidifying West Palm Beach's reputation as a business hub. ​

Stephen Ross's substantial investment in Phillips Point reflects a broader trend of revitalizing urban office spaces to meet modern standards and tenant expectations. As West Palm Beach continues to evolve into a significant business center, such developments are poised to enhance the city's appeal to corporations and investors alike. This renovation not only modernizes a key landmark but also signals confidence in the city's economic trajectory. Investors and stakeholders should monitor these developments closely, as they may present new opportunities in the burgeoning West Palm Beach market.