Riding the industrial rent wave in West Palm Beach

West Palm Beach’s industrial real estate market has experienced substantial rent growth since the onset of the pandemic, reaching $14.46 per square foot (psf) NNN, achieving a remarkable 52% increase since the first quarter of 2019. This growth—however—has been unevenly distributed, with some submarkets outperforming others.
The wave of new construction projects throughout West Palm Beach has been a major driver in the increase of industrial rent growth. This influx has buoyed all submarkets, illustrating a rising tide effect on rental rates across the board, though some submarkets have benefited more than others.
The West Palm Beach submarket has seen over 2 million square feet of new deliveries since 2019 and experienced an 85% growth in asking rents. In contrast, the North Palm Beach submarket has accounted for over 5 million square feet of new construction during the same period, with a more moderate 6% growth in asking rates. Major construction projects across West Palm Beach include the Silver Beach industrial park and the Palm Beach Logistics Center.
West Palm Beach’s rental rates fuel its robust tenant demand as it offers an economic alternative to Miami and Fort Lauderdale, which average $17.21 psf NNN and $16.44 psf NNN respectively, compared to $14.46 psf NNN in the market.

February 29, 2024

US-FL-WPB West Palm Beach