West Palm Beach industrial real estate market reports

Q1 2022

West Palm Beach’s industrial market continues to perform well amid strong leasing activity and tightening vacancies. A wave of new development is on the horizon as availability of high-quality logistics space becomes scarcer to find.

467k sf

Under construction

At the end of the first quarter of 2022, 466,872 square feet (sf) remained under construction in Palm Beach County, most of which is in the West Palm Beach submarket. Buildings 300 and 400 at Airport Logistics Park are expected to deliver during the second quarter of the year.

120k sf

Net absorption

Net absorption ended the quarter in positive territory at 119,649 sf absorbed. The West Palm Beach submarket, where vacancy has fallen to 2.7%, accounted for most of the positive net absorption.

$10.85 NNN

Direct asking rent

The overall industrial rate, excluding flex space, rose to $10.85 NNN per square foot (psf)—up 25.7% from one year prior. West Palm Beach’s industrial rates have continued an upward climb amid robust demand, dwindling supply of land, and rising costs of construction.

1.5 msf

Availabilities

Overall available space has reached a new low of 1.5 million square feet (msf). As a result, development interest has picked up to meet demand. A wave of new industrial developments is on the horizon with Woodmont Industrial Partners planning to build eight class A warehouses in the Palm Beach Park of Commerce and Portman Industrial submitting plans to build 2.1 msf of industrial space.

3.7%

Vacancy

The overall vacancy rate continued to decline during the first quarter of 2022 to 3.7%—down by 130 basis points from the same time last year. With a lack of high-quality logistics space available, industrial users continue to scoop up new industrial product as it delivers to the market.

$155 psf

Investment sales

Industrial investment activity remains strong in Palm Beach County. The largest sale of the quarter was Equuis Capital Partner’s $41 million purchase of a three-building portfolio in West Palm Beach from Prologis.

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