2020 Industrial Market Report PALM BEACH 2Q 2020

2019 KEY INDUSTRIAL DRIVERS

ECONOMICS Palm Beach County continued to see solid job growth numbers, expansion by existing tenants and attract new tenants to the market throughout 2019.

eCOMMERCE Expectations are high that additional sites will be taken down by eCommerce companies looking for “Last Touch” facilities close to end customers.

QUALITY Demand by tenants for larger bay options and efficient options provides incentives for new construction.

LAND Large parcels of land were available in Palm Beach County throughout 2019, but location was key to buyers and tenants for site selection.

INVESTOR SALE activity for industrial product in Palm Beach County reached a 10-year high in 2019 with over 1.8 msf sold. Warehouse/Distribution product accounted for most sales with approximately 1.5 msf sold, or 81% of all sales. The West Palm Beach submarket had the most activity with over 1.0 msf sold in 2019.

DEMAND Overall net absoption trended upward with over 288,000 SF absorbed in 2019, a 121.2% increase YOY.

CAP RATES Cap rates have increased slightly in 2019 from historic lows recorded in 2018 on significant increases in new construction.

4 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 5