West Palm Beach Retail Market Report

Growth of local consumer base underpins retail demand. Tax incentives and relocation assistance programs introduced by the local government have encouraged numerous business relocations and expansions, which has spearheaded net in-migration to the region since the onset of the pandemic. During the 2020-2022 span, the metro gained more than 50,000 new residents, growth that is supporting robust leasing activity in the retail sector. Last year, net absorption surpassed 1 million square feet for the first time since 2016, contracting vacancy to 3.5 percent — the lowest rate among all major Florida metros. Although headwinds like rising interest rates and widespread inflation pose a threat to the national economy, West Palm Beach is well-positioned to weather the storm. The metro will continue to draw new residents and visitors in 2023, promoting disposable and discretionary spending in growing submarkets and tourist corridors. Furthermore, the market faces minimal supply pressure, as roughly 75 percent of the construction pipeline was accounted for entering this year.