West Palm Beach Retail Market Report
West Palm Beach Among National Leaders in Rent
Growth as Net In-Migration Fuels Space Demand
Metro vacancy falls to a record low. Initiatives from the Business Development Board of Palm Beach County helped spearhead corporate relocations and expansions in the metro, which has led to standout population gains in recent quarters. The growing populace supported a rise in retail sales that is outpacing inflation over the past year ending in June, indicating consumer demand is still strong for goods and services. Leasing activity surged as a result, with net absorption surpassing 1.1 million square feet during this span. Minimal completions in the trailing 12-month period helped availability fall 120 basis points to 3.9 percent — the lowest rate in more than 15 years. With only 350,000 square feet underway entering July, further vacancy compression is expected throughout the second half. Looking ahead, this momentum will likely be sustained in the near- to long-term, as the metro is projected to add an additional 25,000-plus new residents in each of the next 10 years.