Retail Growth in Florida
Florida is witnessing a surge in retail activity. West Palm Beach, in particular, is experiencing a remarkable decline in retail vacancies this year, as noted by Ken Himmel, president of Associated Ross.
Himmel attributes this growth to the influx of affluent financial executives and tech leaders relocating since the onset of the 2020 pandemic. “The transition of many areas from seasonal resorts to bustling year-round communities has been rapid and strategic, with nearly 90,000 new residents added to Palm Beach County in just a few years,” he explained.
According to Steinbauer Associates, a commercial and industrial real estate brokerage, Florida’s robust economy, population boom, and favorable tax conditions make investing in commercial real estate quite lucrative.
CityPlace, a neighborhood in West Palm Beach, has expanded by over 125,000 square feet. This area now features new retail options, ranging from Equinox and clothing brands like ALO and Reformation to high-end cosmetic stores like BlueMercury and home goods retailers such as Crate & Barrel.
“With major investment firms setting up offices nearby, there’s a highly educated workforce seeking a premium lifestyle,” Himmel noted. “This growing demand is being met by mixed-use developments like CityPlace, which combine office, residential, and retail spaces, creating walkable neighborhoods. This approach helps mitigate traffic congestion and keeps vacancy rates below 3% even as new space comes onto the market.”
Himmel emphasized that developers are racing to keep up with this demand. “As hubs of financial services and innovation solidify their presence in urban areas, retail is following suit, creating a self-sustaining cycle of growth and heightened demand,” he remarked.
Kelly Lyles from KL International Realty has also observed an uptick in retailers moving to Florida. “Companies like Footlocker are shifting from New York to St. Petersburg, and many retailers are considering broadening their reach across the state,” Lyles stated. She highlighted that some already established brands in Florida are also planning expansions, such as Publix, which is set to open a 50,000-square-foot supermarket in Panama City Beach.
“Florida’s diverse and growing population has always made it an attractive destination. However, the current low taxes and affordable living costs are increasingly drawing both consumers and retailers here,” Lyles concluded.
