It looks like some type of fungal infection. Give the spear a little tug just to make sure it's still firm. It looks okay in the 1st pic, but definitely in trouble in the second pic. I hope it pulls through for you, it's a beautiful palm and a great size too!
I would mark a line on the spear with a marker and see if the spear is growing at all (they are slow growers so even if it is alive and well it still would probably take a good week before any noticable growth is seen)
Good luck!
-Alex

Try not to water these from over head with tap water if you can avoid it... have killed my share of Coccothrinax by doing that, particularly in cooler months.

Alex, the spear is definitely growing, it just looks discolored.

Lzrddr, I will make sure and not get any hose water on the spear. Will start to use rain barrel water on this guy.

Thanks