West Palm Beach Retail Investment Forecast
Sunbelt Demographic Trends Boost Local Economy;
Investors Enjoy Elevated South Florida Yields
Palm Beach County retail completes health crisis recovery. The market is building on momentum that began in the middle of last year, and all major indicators should finish 2022 in a stronger position than prior to the pandemic. A combination of stimulus funds and an affluent local population propelled retail sales up nearly 28 percent last year, significantly higher than the national increase. The county has also benefited from a surge in population through the pandemic. Last year, the rate of household formation doubled the national pace and should approach 3.0 percent this year, fueling demand for retailers and jobs. The retail trade sector has already recouped approximately 75 percent of the positions lost during the initial stages of the shutdown, and the final few thousand spots will be recovered this year. On the supply side, less than 1 percent of existing stock is under construction, limiting pressure on existing assets.