West Palm Beach Industrial Investment Forecast
Investors Return to the Metro as Construction Moderately Rises, but Trails Long-Term Demand
Retail sales persevere industrial demand. Industrial operations in West Palm Beach were not strongly impacted by the health crisis as vacancy remained well below the 4 percent threshold. Local residents embraced the online purchasing trend during lockdowns with stimulus funds helping to drive more shopping. Retail sales jumped more than 27 percent last year and are on pace to improve by over 7 percent in 2022. Amid the improving demand environment development is accelerating modestly and pre-leasing is below 40 percent. The speculative space projected to come online this year is expected to lift vacancy though the elevation is not expected to prevent operators from lifting rents in the coming months. Availability that is still historically low warrants additional development to fulfill space needs and provide the necessary inventory. The near-future pipeline is thin however so no major supply influx is expected.