Palm Beach Commercial Real Estate: Market Analysis 2026
Palm Beach County's commercial real estate market continues to attract significant investment capital, driven by population growth, corporate relocations, and Florida's business-friendly environment. This comprehensive analysis examines opportunities across all major commercial sectors.
Office Market Overview
The Palm Beach office market has experienced a renaissance as companies from the Northeast continue relocating to South Florida. Class A office vacancy rates in West Palm Beach's downtown corridor have dropped to historic lows, hovering around 8%.
Key Submarkets
- West Palm Beach CBD: Premium rents reaching $65-85/SF for trophy assets
- Boca Raton: Strong demand for Class A space along I-95 corridor
- Palm Beach Gardens: Emerging submarket with competitive rents
- Wellington: Limited supply driving development interest
Investment Insight
Financial services and wealth management firms represent over 40% of new office leasing activity, creating sustained demand for premium space.
Industrial & Logistics
Industrial real estate remains the strongest performing sector in Palm Beach County. E-commerce growth, reshoring of manufacturing, and supply chain optimization continue to drive demand.
- Vacancy rates below 4% countywide
- Average asking rents increased 18% year-over-year
- Last-mile delivery facilities command premium rents
- Cold storage and specialized facilities in high demand
Multifamily Investment
Apartment fundamentals remain strong despite significant new construction. Population growth of 2.5% annually creates absorption capacity for new units, while rent growth has moderated to sustainable levels.
Cap Rate Trends
| Property Class | 2024 Cap Rate | 2026 Cap Rate |
|---|---|---|
| Class A | 4.75% | 5.25% |
| Class B | 5.25% | 5.75% |
| Class C/Value-Add | 6.00% | 6.50% |
Retail Market Dynamics
Palm Beach County retail continues to outperform national averages, supported by high household incomes and tourist traffic. Experiential retail, luxury brands, and necessity-based tenants drive leasing activity.
- Mizner Park and Royal Palm Place maintain near-full occupancy
- Grocery-anchored centers remain investor favorites
- Restaurant and entertainment concepts expanding aggressively
- Limited new development supporting rent growth
1031 Exchange Considerations
Many investors are utilizing 1031 exchanges to enter or expand their Palm Beach County portfolios. Key considerations include:
- 45-day identification period requires pre-planning in competitive market
- Delaware Statutory Trusts (DSTs) offer backup identification options
- Triple-net retail and medical office popular for passive investors
- Qualified intermediary selection critical for complex transactions
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