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The industrial market in Palm Beach totals 40.8 million square feet and
is divided into seven submarkets which are all adjacent to Interstate
95. Palm Beach County is served by interstate 95, Florida’s Turnpike,
and numerous major state roads and highways which facilitates easy
distribution to a large market area. West Palm Beach is home to an
international airport and five smaller executive airports as well as Tri-
Rail commuter rail line which links Miami, Ft. Lauderdale and West Palm
Beach along a 71 mile long system with 18 stations. As shown in the
chart below, approximately 60% of inventory is considered warehouse/
distribution with the balance generally even split between flex and
manufacturing. A total of 932,000 ± SF was absorbed in 2016.
Palm Beach County is part of the Miami-Fort Lauderdale-Pompano
Beach Metropolitan Statistical Area and benefits from its location in
one of the more dynamic and evolving markets in the U.S. The region is
bolstered by a constant influx of new residents and further integration
through international tradewithCentral and SouthAmerican economies.
Companies are attracted to Palm Beach County due, in part, to a well-
educated employment base, strong infrastructure linkages, competitive
business climate, and high quality of life. PalmBeach County has become
an attractive and cost-effective location over the past several years as
the industrial markets in Miami-Dade and Broward County to the south
have become increasinglymore expensive. Similar to other South Florida
markets, the Palm Beach County industrial market is defined by the lack
of large blocks of vacant space for existing tenant expansions or new to
market entrants. To meet current demand and take advantage of future
growth, new construction picked up in 2016 but nearly enough to keep
pace with tenant demand. Almost 595,000 square feet came online in
2016, with 736,000 square feet under construction. These additions
to inventory will do little to shift the balance of power from landlords
to tenant and, as a result, sharp rental rate increases are expected to
continue for the foreseeable future.
Direct
Quarter
YTD
YTD
YTD
Overall
Direct
Wtd. Average
Overall Net
Overall Net
Leasing
Construction
Under
No. Bldgs.
Inventory
Vacancy Rate
Vacancy Rate
Rental Rates (psf)
Absorption
Absorption
Activity
Completions
Construction
Boca Raton
166
7,217,431
5.4%
5.3%
$12.26
-21,439
106,078
11,889
0
0
Jupiter
86
3,966,758
3.8%
3.8%
$10.06
-14,747
-18,797
6,485
0
0
Delray Beach
75
2,375,667
2.9%
2.9%
$11.40
157,229
192,353
114,163
0
0
Boynton Beach
48
2,323,877
9.5%
9.5%
$11.72
15,493
20,975
61,544
0
53,500
Lake Worth
65
1,826,442
4.7%
4.7%
$7.51
25,250
23,600
7,780
0
252,000
Riviera Beach
215
9,122,775
2.0%
2.0%
$8.33
-8,997
153,313
184,541
0
0
West Palm Beach
342
13,987,196
4.5%
4.4%
$10.63
29,026
454,319
290,830
594,672
431,431
997
40,820,146
4.2%
4.2%
$10.72
181,815
931,841
677,232
594,672
Boca Raton
74
3,464,524
3.8%
3.8%
$11.81
-4,262
32,454
5,560
0
0
Jupiter
55
2,912,296
3.9%
3.9%
$9.50
-7,804
-8,205
0
0
0
Delray Beach
52
1,636,752
2.1%
2.1%
$11.23
155,229
170,419
114,163
0
0
Boynton Beach
24
917,733
12.8%
12.8%
$11.67
-3,172
2,210
45,323
0
53,500
Lake Worth
41
1,197,634
5.8%
5.8%
$6.88
25,250
28,300
7,780
0
252,000
Riviera Beach
152
6,901,029
2.4%
2.4%
$8.20
-11,022
147,740
150,740
0
0
West Palm Beach
199
9,277,561
4.5%
4.5%
$10.17
3,204
326,883
265,783
594,672
431,431
TOTAL
597
26,307,529
4.0%
4.0%
$9.97
157,423
699,801
589,349
594,672
*Overall figures includesubleaseanddirect space.
OFFICE SERVICES/FLEX
Boca Raton
68
2,788,977
7.8%
7.6%
$13.20
-17,177
32,262
6,329
0
0
Jupiter
16
554,874
6.9%
6.9%
$11.72
-6,943
-10,592
6,485
0
0
Delray Beach
16
568,932
6.0%
6.0%
$11.57
2,000
-3,666
0
0
0
WAREHOUSE/DISTRIBUTION
Nowarrantyor representation,expressor implied, ismade to theaccuracyof the information containedherein,and thesame is submitted toerrors,emissions, changeof price, rentalor conditions,withdrawalwithoutnotice,and toany special listingconditions imposedbyourprincipals.
OVERALL MARKET
PALM BEACH INDUSTRIAL MARKET STATISTICS
Fourth Quarter 2016
SUBMARKETS
Market Overview - Industrial
PALM BEACH I NDUSTR I AL MARKET STAT I ST I CS FOURTH QUARTER 20 1 6