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Five Fast Industrial Facts Palm Beach

Connor Salzman • 8/8/2023
Read our Five Fast Facts for more insight into the key trends that impacted the Palm Beach industrial market during the second quarter.
  1. STRONG QUARTER OF OCCUPANCIES 
    The occupancy of notable tenants including K-1 Speed, GummyWorks and Aventi Health pushed YTD absorption to 128,312 SF. 

  2. RENEWALS LED DEALS 
    New leasing activity at midyear was 514,934 SF, down 61.3% YOY. Despite another down quarter of new deal activity, the 285,000 SF Serta lease highlighted a strong quarter for renewals. 

  3. COMPLETIONS PUSHED FORWARD 
    Construction completions totaled 654,066 SF at the end of the second quarter. The influx of new high-quality space offered much-needed supply to a market that has dealt with record low vacancy over the past year. 

  4. PROJECT COMPLETIONS INCREASED VACANCY 
    Overall vacancy was 3.9% at quarter end, up 90 BPS from the previous quarter. The completion of the four-building Silver Beach Industrial Park introduced 371,949 SF of much-needed product into the market. 

  5. AVERAGE RENTS STILL CLIMBING 
    Overall rental rate averages in Palm Beach were $15.23 PSF NNN at midyear, up 11.0% YOY. Rates have skyrocketed since Q2 2020, up $4.73 PSF NNN over the past three years. 

2Q23-FFF-Industrial---Palm-Beach

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