Stephen M. Ross Invests in New Development in West Palm Beach
Stephen M. Ross, the former leader of Related Companies, known for his role in developing the Time Warner Center and Hudson Yards, is spearheading a new venture called Boomtown USA in West Palm Beach. This location is just a quick walk across a bridge from the more affluent Palm Beach Island, offering a fresh alternative to Manhattan’s West Side.
For a long time, West Palm Beach was overshadowed by its nearby, glitzier neighborhoods. However, it’s now emerging as what Ross considers a “new Silicon Valley,” promoting a lifestyle that encourages living, working, and playing in one area. Factors like a favorable political environment, pleasant weather, and changes in demographics due to the pandemic have fueled the growth of vibrant neighborhoods along the waterfront.
His new venture, Related Ross—distinct from New York’s Related Company—has become a key player in the area’s development surge. Ross’s personal investment of $10 billion marks the largest commitment he has made so far.
What feels like a bustling downtown and waterfront area now contrasts sharply with the sleepy character it once had. The sounds of construction mix with the busy sidewalks filled with residents, office workers, and shoppers.
Commercial real estate is on the rise, with ServiceNow, a California-based company, making a significant move by establishing a second headquarters occupying 200,000 square feet at 10 City Place.
Moreover, Wells Fargo has secured a deal for 50,000 square feet at One Flagler, a 27-story tower located along Lakeview Avenue. While it isn’t leaving Manhattan completely, the bank is expanding its footprint to nearly 1 million square feet at Hudson Yards. Ross pointed out that the significance of the One Flagler move lies in relocating their wealth management offices from New York and St. Louis.
In terms of housing, Ross noted that condos worth around $1 billion have been sold in the past six months. The South Flagler House Tower, designed by Robert A. Stern, is set to open in 2027, with some apartments priced as high as $72.5 million. Reflecting the priorities of both his company and the city, there’s a plan for a 125,000-square-foot Cleveland Clinic Outpatient Center to be built in 2028, along with a campus for Vanderbilt University graduates.
Meanwhile, CityPlace, the first project in the West Palm area, which opened 20 years ago on 72 acres, is thriving. Featuring inviting public spaces, 60 stores and dining options, it has recently welcomed tenants like Eataly and Equinox.
Ross mentioned that CityPlace launched “ahead of its time,” before West Palm Beach was recognized as a commercial and residential hub. Although he gradually acquired more properties nearby, the growth really accelerated during the COVID-19 pandemic, as people and businesses looked to South Florida’s favorable taxes and climate.
“I saw how the world was changing,” Ross remarked, recognizing the unique potential of Palm Beach County as a prime development location. He believes that the area has the potential to evolve into the next Silicon Valley.
“Companies from Boston are definitely starting to look at this,” he noted, acknowledging that while transformation won’t happen instantly, there’s a growing interest in expanding space here compared to the past.
The local government, with Mayor Keith James and city commissioners in support, has facilitated this development through investments in infrastructure, rezoning, and various incentives that have also benefited other builders in the region.
Ross is currently overseeing over 3.2 million square feet of office space either under construction or in development, with aspirations for a total of 8 million square feet across 11 buildings. There are already four condominiums and one rental apartment building completed, along with plans for an “affordable” rental tower.
Reflecting on the potential of the area, Ross implied that the old perception of Miami merely as the “gateway to Latin America” is outdated. “We now view it as the most attractive place for business in America,” he emphasized.
His next base, situated beyond West Palm Beach, will be in Wellington—a region focused on equestrian activities, which still has ample land available for development. The Village Landing project aims to create a mixed-use space, complete with a hotel, school, townhomes, retail shops, and restaurants.
