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Retail Vacancy Remains Tight by Historical Standards Despite Tenant Turnover
Demographic tailwinds moderate. Strong job growth and an influx of high-income residents buoyed retail sales growth in West Palm Beach over the last few years. Recently, however, the metro has faced slowing retail space demand as this momentum has cooled. The shift is evident in the average time to lease, which after falling to a 15-year low of 3.9 months in mid-2024 climbed to 6.8 months in the second quarter of 2025. Combined with turnover concentrated in single-tenant spaces, as well as in neighborhood and community centers, the metro noted 230,000 square feet of negative net absorption in the first half. That figure may steepen by year-end, as first-half leasing trailed activity from the same period in 2024.