New Construction is Concentrated in Northern Palm Beach County While Existing Industrial Supply Throughout the County Holds Steady
Palm Beach County ended the year with the highest quarterly industrial rent of 2019 at $8.76 per square foot. The slight increase in rents (1.2 percent) and small decrease in vacancy rates (10-basis points) quarter-over-quarter are indicative of a stable market. The largest lease of the quarter was a renewal for 32,056 square feet in Palm Springs, followed by an 18,433 square foot Amazon lease in the Palm Beach Airport submarket. Amazon leased space in an industrial park, Turnpike Crossing, where they already occupy an entire building, focusing on last-mile delivery. Amazon leased the 18,433 square feet in Turnpike Crossing Building 5, where another 18,297 square feet of space was leased to SIW Solutions, who also already has a 161,000 square foot lease signed for another building still under construction in the park. With these deals, the entire park is now fully pre-leased.