SKN | West Palm Point Delay Raises Questions About Office Development Costs and Project Timing

The Public Assumption

A delayed office project can initially appear to be a straightforward construction problem: permitting takes longer, the completion date moves, and the developer receives additional time.

West Palm Point shows why the economics are more complicated. The 2.4-acre site is leased from the city’s Community Redevelopment Agency, and the latest agreement ties the extended timeline to additional financial obligations for Cohen Brothers Realty.

The project, located at 850 South Quadrille Boulevard and known locally as the “tent site,” was originally expected to be completed in June 2027. Following permitting delays, the developer requested an extension through 2029.

The city agreed to a new completion date of January 1, 2029.

The Economic Breakdown

Cohen Brothers Realty is developing the 25-story West Palm Point with approximately 400,000 square feet of planned office space. The developer leased the site from the city in 2020 under a 49-year agreement.

Under the revised terms, Cohen will pay slightly more than $1 million a year in rent beginning September 1, 2027. Approximately $5 million a year in property taxes will begin January 1, 2028.

Those payments remain in effect until the building receives its certificate of occupancy.

The numbers create a potentially significant carrying cost during the extended development period. Based strictly on the stated annual amounts, the combined rent and property-tax obligations would be roughly $6 million per year once both begin. The source does not provide enough information to calculate the project’s total additional cost through completion because the actual certificate-of-occupancy date remains uncertain.

The project was already under scrutiny before the latest extension. In November 2024, the city informed Cohen that it was in default on the lease, followed by another default letter in February 2026.

The Hidden Picture

The central issue is whether the delay represents a temporary permitting problem or a broader development and financing challenge.

Cohen has argued that the delays were outside the company’s control, citing road and de-watering permit issues. Brian Seymour, an attorney representing the developer, said construction has continued during negotiations over the defaults.

At the same time, Mayor Keith James has publicly expressed frustration with the project’s lack of progress and opposed the revised deadline, voting against the extension.

The competing positions matter because the project is not simply waiting for a new construction date. The developer must continue carrying the site while meeting additional rent and tax obligations, while the city has an interest in seeing the property ultimately produce the office development contemplated by the lease.

The source does not provide updated construction costs, financing terms, preleasing levels, or an expected certificate-of-occupancy date within the new deadline. Without those figures, the financial effect of the delay on the project’s overall feasibility cannot be determined.

Closing

With West Palm Point now given until January 1, 2029, the question is whether the additional time will allow the project to overcome its permitting delays—or simply extend the period during which the developer carries millions of dollars in annual site and tax costs before the building begins operating.