Palm Beach County’s commercial real estate market continues to bounce back from the Great Recession. First-quarter vacancy rates fell to 3.8 percent for industrial properties and 4.4 percent for retail space, both 10-year-lows, Colliers International said.
Rents have been rising. For warehouses, the average rent climbed to $8.66 per square foot in the first quarter, up from $7.38 two years ago. For retail space, average rents rose to $19.68, up from $17.76 two years ago.
The resilience of the retail sector is particularly striking. Despite store closings by Sports Authority, Macy’s and JCPenney, the overall retail market is doing well.
Palm Beach County’s office market also is seeing less vacancy and rising rents. The first-quarter vacancy rate was 12.2 percent, unchanged from the fourth quarter but down from 15.1 percent two years ago. The average rent was $28.16 per square foot, up from $26.24 two years ago.