One of downtown's most important office towers is running 18 months behind schedule. The city approved the extension, but it came with a penalty clause that makes sitting on an unfinished building expensive. Here's what the deal looks like.
- Cohen Brothers Realty's West Palm Point now targets a January 2029 completion instead of June 2027.
- Underground contamination on adjacent sites caused the delay; foundations are now complete.
- If the tower lacks a certificate of occupancy by January 2028, Cohen owes the city $5 million per year.
Not every major downtown project stays on schedule, even in one of the hottest office markets in the country. Charles Cohen is a New York billionaire whose firm, Cohen Brothers Realty, controls office buildings across Manhattan, Los Angeles, and now downtown West Palm Beach. His West Palm Point project, a 25-story, 400,000-plus-square-foot Class A office tower at 801 South Dixie Highway, broke ground in August 2024 on what locals call the "tent site." According to the South Florida Business Journal, crews hit underground contamination on neighboring land, triggering delays and prior notices of default. On September 28, the West Palm Beach CRA agreed to push the required completion date from June 2027 to January 2029, roughly 18 months behind schedule.
What does the delay cost Cohen?
The city is not giving extra time for free. Under the amended 49-year land lease, Cohen Brothers will start paying approximately $1.05 million per year in base rent beginning September 2027, even without a certificate of occupancy. Once the building opens, rent drops slightly to about $1.03 million.
The bigger number is the penalty clause. If West Palm Point still lacks a certificate of occupancy by January 1, 2028, Cohen owes the city $5 million per year in lieu of the property taxes the city would otherwise collect. That is a meaningful stick. It makes an unfinished tower expensive to sit on and keeps the developer focused on finishing rather than letting the project drift.
As Larry Mastropieri explained on the Discover South Florida Podcast: "The city found a pressure point that makes sense. The penalty is meaningful enough to matter, but not so extreme that it destroys the deal. It pushes the developer to stay focused while still allowing the project to move forward."
Tracking office development in downtown West Palm Beach? Talk to a West Palm Beach real estate agent who follows what is delivering and when. Reach out to The Mastropieri Group or call (561) 556-9853.
What caused the West Palm Point delay?
We covered West Palm Point earlier this year when the project finally broke ground after years of delays and a foreclosure. This is the update: it is under construction but running behind again.
Mayor Keith James did not hold back. He called Cohen's "false starts and litany of excuses" over the years "totally unacceptable" and said he is "frustrated." The construction manager, Antonio Robles of Coastal Construction, attributed the latest delays to underground contamination on adjacent parcels. He told the CRA that with foundations now complete, "this uncertainty is behind us," and the team will move to finish "in the most expeditious manner possible."
The contrast with other downtown developers is hard to ignore. Related Ross completed One Flagler on schedule and has its CityPlace towers on track for 2027, backed by a record $772 million construction loan. Cohen's competing tower is the one running behind.
How does West Palm Point fit the downtown office market?
Downtown West Palm Beach is in the middle of a historic office build-out. As of January, West Palm Beach and Boca Raton combined had nearly 1.6 million square feet of new office space in development, making it the nation's fifth-largest new-office construction market according to CommercialCafe.
Downtown West Palm Beach office comparison:
Related Ross's 10 and 15 CityPlace will deliver nearly one million square feet of Class AA office space by 2027. One Flagler, also by Related Ross, opened in 2025 with roughly 270,000 square feet and is already leased. West Palm Point, at 400,000-plus square feet, slots into that competitive set but is now two years behind CityPlace's timeline.
The market signal is mixed. On one hand, the pipeline shows deep institutional confidence in downtown West Palm Beach. On the other, West Palm Point's delays underscore that big projects can still hit snags, even with deep-pocketed developers and strong market demand.
What happens next?
Cohen Brothers has until January 2029 to deliver a finished tower. Foundations are complete. The contamination issues that triggered the default notices are reportedly resolved. If the project stays on track from here, West Palm Point opens about 18 months later than originally promised but still adds a major Class A office building to downtown.
If it does not, the $5 million annual penalty kicks in, and the city's frustration will only grow. West Palm Beach has staked part of its "Wall Street South" identity on projects like this. The city gave Cohen more time, but it made clear that patience has a price.
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Frequently Asked Questions about West Palm Point
What is West Palm Point in West Palm Beach?
West Palm Point is a 25-story, 400,000-plus-square-foot Class A office tower under construction at 801 South Dixie Highway in downtown West Palm Beach. The project includes ground-floor retail and an adjacent 10-story parking garage. Cohen Brothers Realty, led by New York billionaire Charles Cohen, is the developer. The site is known locally as the "tent site."
When will West Palm Point be completed?
The original completion date was June 2027. After underground contamination on adjacent sites caused delays, the West Palm Beach CRA approved an extension to January 2029. If the building lacks a certificate of occupancy by January 2028, Cohen Brothers owes the city $5 million per year in penalty payments.
Why is West Palm Point delayed?
According to the construction manager, Antonio Robles of Coastal Construction, crews encountered underground contamination on neighboring parcels. This triggered prior notices of default. With foundations now complete, the developer says the uncertainty is behind them and construction will proceed.
How does West Palm Point compare to other downtown office towers?
Related Ross completed One Flagler (270,000 square feet) on schedule in 2025 and has the 10 and 15 CityPlace towers (nearly one million square feet) on track for 2027. West Palm Point's 400,000-plus square feet would make it a major addition, but it is now running about 18 months behind the CityPlace timeline.
What is the $5 million penalty for West Palm Point?
If West Palm Point does not have a certificate of occupancy by January 1, 2028, Cohen Brothers must pay the city $5 million per year in lieu of the property taxes the city would otherwise collect. This penalty clause makes an unfinished building expensive to sit on and incentivizes the developer to complete the project.
Local help for buyers and investors in downtown West Palm Beach
If you are buying, selling, or investing in downtown West Palm Beach, understanding how major projects like West Palm Point and CityPlace shape the market matters. Reach out to The Mastropieri Group, Realtors®.
For practical, hands-on support across downtown West Palm Beach, call (561) 556-9853.
Posted by Larry Mastropieri
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