A parking lot at the busiest end of Atlantic Avenue is becoming a 3-story Class A building with ground-floor retail. Construction is underway in downtown Delray Beach, and here is everything you need to know.
Key Takeaways
- A building permit was issued in July 2025, with completion targeted for 2027.
- Pierre Delray II is an expanded version of the first plan, adding a second lot next door so a larger building could go up.
- New Class A commercial space rarely opens directly on Atlantic Avenue.
One of the last surface lots on the prime stretch of Delray Beach's main commercial strip, at 298 East Atlantic Avenue, is being replaced by a three-story mixed-use building. The ground level will hold shops, and the floors above will hold something the corridor almost never sees in new construction: Class A space. That is the top grade in commercial real estate, meaning the newest, best-located, highest-quality buildings.
For anyone with a stake in downtown property, whether you own, rent, or plan to buy, this matters because every leasable foot added here tightens an already thin commercial market and lifts the value of nearby real estate.
What is being built at 298 East Atlantic Avenue?
The project sits at the southwest corner of East Atlantic Avenue and Southeast 3rd Avenue, two parcels combined under a single footprint. Plans call for retail at street level and professional offices on the upper floors.
Net usable area lands around 30,000 to 33,000 square feet, once you set aside the parking structure. The city issued the building permit on July 26, 2025, and the team is aiming to finish in 2027.
Pierre Delray Two LLC, led by Carey S. Fischer, owns the development, with West Palm Beach firm GarciaStromberg handling the architecture. What you get is a piece of land that used to hold parked cars turned into an active street-front address on the most-walked blocks in town.
As Larry Mastropieri explained on the Discover South Florida Podcast:
"Parking in Delray is the most important thing, and it's a pain. But we're getting a parking garage right here on Atlantic Avenue, or right behind it."
Thinking about buying or leasing near downtown Delray while the corridor reshapes itself? Talk to a real estate agent near Delray Beach who tracks every new project on and around Atlantic Avenue. Reach out to The Mastropieri Group or call (561) 287-7000.
Why does new Class A space on Atlantic Avenue matter?
Walk the avenue, and you mostly see stores at sidewalk level with homes stacked over them. Brand new Class A floors built for professional tenants almost never come online along this stretch, which is exactly why the address draws attention.
The supply of top-tier offices in walkable downtowns across the region has stayed tight, and leased space nearby tells the same story. (We covered that demand when two Boca Raton office buildings crossed 90% leased.)
Turning a flat lot full of cars into a rentable façade is the highest-value move available on this strip. You remove dead space and add three levels of leasable square footage on Delray's signature road. More downtown tenants mean more daytime foot traffic, which benefits every shop and restaurant around the block.
As Larry Mastropieri put it on the podcast:
"Converting a surface parking lot into a three-story street-front building is the highest-value infill possible here. It's an upgrade to Atlantic Avenue, in a spot that can use it."
Pierre Delray I vs. Pierre Delray II: what changed?
The two names point to one project at two stages:
- Pierre Delray I: the first plan for the site, approved around 2020, covering a single lot.
- Pierre Delray II: the same project, reworked to add a second lot next door to the south, so both pieces of land now sit under one building.
The developer filed that change with the city (it shows up in the records as Application 2022-080), and Delray Beach's site plan review board approved it in January 2023. So the "II" simply means the bigger, two-lot version, not a brand new building somewhere else.
Why the building got bigger
Adding that second lot let the developer build more. In planning terms, the floor area ratio rose to 2.63, which is a way of saying the building holds more square footage relative to the size of the land than the code normally allows. The city agreed to that in exchange for a couple of public-friendly touches:
- A covered walkway (an arcade) at street level.
- Getting rid of the open lot that used to sit there.
What does Pierre Delray II mean for downtown property values?
One building rarely moves a whole market, but a string of them can. Downtown is filling in on several fronts at once.
A few blocks east, Atlantic Crossing broke ground on its next phase in July 2024, layering condos, offices, and shops into the same walkable grid. Fifth Avenue Townhomes are rising now, with delivery aimed at spring 2027, and a luxury condo at 109 Southeast 5th Avenue already won approval. Add Onix Delray Beach under construction, and you have a corridor reshaping itself year over year.
For buyers and owners, the pattern is the signal. When several projects deliver around the same window, walkability improves, daytime population climbs, and the land underneath gets more valuable.
We saw a similar lift around Sundy Village, where fresh mixed-use square footage raised the profile of everything close by. A small, well-placed commercial building like this one rides that same wave, and it tends to support both rents and resale prices on the blocks nearest to it.
Watch the full conversation on the Discover South Florida Podcast.
Frequently Asked Questions
Where is Pierre Delray II located in Delray Beach?
Pierre Delray II sits at 298 East Atlantic Avenue, on the southwest corner where East Atlantic Avenue meets Southeast 3rd Avenue. The site covers two combined parcels in the heart of downtown Delray Beach, along one of the most-walked stretches of the city's main commercial road.
When will Pierre Delray II be finished?
A building permit was issued on July 26, 2025, and the developer is targeting completion in 2027. Construction timelines on downtown infill can shift with permitting and supply factors, so treat 2027 as the current goal rather than a guaranteed move-in date.
What is the difference between Pierre Delray I and Pierre Delray II?
Pierre Delray I was the first single-lot plan, approved around 2020. Pierre Delray II is the expanded version, submitted to the city as a plan update (Application 2022-080) and approved by Delray Beach's site plan review board in January 2023. It added a second lot to the south and joined both under one building, so the "II" refers to a larger project rather than a second building.
Will Pierre Delray II have office space for lease?
Yes. The upper floors are planned as Class A commercial space, the type of professional product that rarely opens directly on Atlantic Avenue, with retail below at street level. Exact leasing terms and availability are set by the developer and its brokers, so reach out if you want to track openings as 2027 approaches.
Is Pierre Delray II a condo or apartment building?
No. Pierre Delray II is a commercial project, with shops on the ground floor and Class A office space on the upper levels. The plans do not include condos or apartments. If you are after new downtown Delray homes instead, neighboring projects like Onix Delray Beach are the ones to watch.
Local help for buyers and investors in Delray Beach
If you are buying, selling, or investing in Delray Beach, Boynton Beach, or Lake Worth Beach, understanding how new downtown projects affect inventory and pricing matters. Reach out to The Mastropieri Group, Realtors®.
For practical, hands-on support across Delray Beach, call (561) 287-7000.
Posted by Larry Mastropieri
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