Figures
Palm Beach Industrial Figures - Q3 2024
October 10, 2024 5 Minute Read
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- The Palm Beach industrial market is sending mixed signals in the second half of 2024. Leasing activity is down, but net absorption is up. Annual rent growth has cooled, but long-term tenants face unprecedented sticker shock at lease renewal. New construction won't pencil, but deliveries remains at record levels.
- Currently, large vacant spaces remains the market's biggest challenge, and the combination of slower leasing and record levels of big-box construction has lifted the availability rate to 9.0%, 500 basis higher than two years ago. Developers have delivered more than 3.0 million sq. ft. since 2023, and an additional 269,00 sq. ft. remains underway. The bulk of new space has been in speculative distribution centers larger than 200,000 sq. ft., which has heightened supply pressure in the exurban submarkets where most construction is concentrated.