Figures
Palm Beach Industrial Figures - Q1 2025
April 10, 2025 5 Minute Read
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- The year began with over 50,000 sq. ft. of negative net absorption, largely due to move-outs by smaller tenants, primarily those occupying spaces under 10,000 sq. ft. Looking ahead, absorption levels are expected to normalize, reflecting steady demand rather than the sharp spikes observed in 2021.
- The vacancy rate has reached a multi-year high of 6.2%, mainly due to large buildings (above 200,000 sq. ft.) developed outside of the core market. Demand for large swaths of industrial space will be the key deciding factor for how quickly vacancy rates will recover in 2025 and beyond.
- Rental growth, which peaked in 2021, has significantly slowed. Currently, the annual growth rate is 3.0% across the Palm Beach market. For now, landlords are lowering rents as fundamentals soften. However, ongoing economic uncertainty and tariff negotiations may introduce short-term volatility.