2020 Industrial Market Report PALM BEACH 2Q 2020

PALM BEACH COUNTY MARKET OVERVIEW

Port of PalmBeach The Port of Palm Beach is a full-service, diversified landlord port that provides services through its private-sector partners and is responsible for facilitating economic development within Palm Beach County, the region, and the state of Florida. The 162-acre port is located 80 miles north of the city of Miami and has a 300-foot wide inlet channel, with no aerial obstructions. The port has three slips, seventeen berths, and four roll on/roll off ramps for 6,500 linear feet of berthing space to accommodate vessels up to 700 feet long and 100 feet wide. The port’s berthing is 20 minutes from the first sea buoy to anchorage, with operating drafts of minus 33 feet mean low water (MLW). The non-union labor force and easy access to I-95 and Florida’s Turnpike allow for seamless, cost-effective cargo handling. The Port of Palm Beach is an important distribution center for commodities being shipped all over the world, and especially the Caribbean Basin. Operations include containerized, dry bulk, liquid bulk, break bulk, roll on/roll off and heavy-lift/ project cargoes. Palm Beach is the only port in South Florida with on-dock rail today. Florida East Coast Railway provides twice-daily service to the port’s rail interchange. The port owns and operates a locomotive and five miles of track. The industrial switching operation is capable of handling box, hopper and double-stack rail cars, with 24/7 operations. Rail operations accommodate 20-axle rail cars, with 450-ton capacity. EMPLOYMENT The Port of Palm Beach and its tenants combine to be one of the larger employers in Palm Beach County and is an economic engine for the county. Approximately 2,800 people are employed directly because of the port, which contributes $260 million in business revenue and $12 million in state and federal taxes. An additional 6,000 jobs are associated with the importers and exporters that use the port to ship cargo. Over $7 billion worth of commodities moves through the port each year. PORT OPERATIONS The Port of Palm Beach is the fourth busiest container port of Florida’s 14 deepwater ports and is the 18th busiest container port in the United States. In financial year 2018, the port moved over 292,304 20-foot container equivalent units. EXPORTS The port also handles diesel fuel, molasses, liquid asphalt, and other bulk commodities. There is also substantial tonnage involved in the movement of heavy lift and project cargos. All of this happens in a port that has only 156 acres of land. Unlike most ports in the United States, the Port of Palm Beach is an export port, with approximately 80% of its cargo being exported, with the subsequent improvement in the balance of trade. The majority of the exported cargo goes toward supporting the island nations of the Caribbean. The Port of Palm Beach supplies 60% of everything consumed in the Bahamas and is the essential lifeline to the rest of the Caribbean. 100% of the exported raw sugar that is produced in the Glades area, almost 900,000 tons, is shipped through the Port of Palm Beach.

6.5 MILES Rail

121 Cargo Vessels

2,567,393 Cargo Short Tons

20,048 Rail Cars

27,705 Recyclable Steel Short Tons

462,533 Cruise Ship Passangers

282,304 TEU’s

118,191 Liquid Asphalt Short Tons

Source: portofpalmbeach.com 2018 Fact Sheet

The majority of the market went sub 3% vacancy in the 1st quarter of 2020. Due to the pandemic hitting the 2nd quarter, market activity was soft in April and May. Activity has picked up in June with deal velocity to increase as we go into the fall to finish out the year strong.

- Christopher Thomson

Source: portofpalmbeach.com

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INDUSTRIAL MARKET REPORT | 9