Retailers are flocking to Florida, with retail vacancies in West Palm Beach virtually nonexistent this year. According to Ken Himmel, the president of Related Ross, this trend has been nearly a decade in the making, driven by the deliberate and sustained migration of high-net-worth individuals, financial executives, and tech leaders to South Florida since the early days of the coronavirus pandemic in 2020.
The state’s dynamic economy, growing population, and favorable tax environment make investing in commercial real estate in Florida highly profitable. Commercial and industrial real estate brokerage Steinbauer Associates, Inc. also highlighted the attractiveness of the Sunshine State for retail investment.
One prime example of this retail boom is the expansion of CityPlace, a neighborhood in West Palm Beach, by over 125,000 square feet. New retail brands like Equinox, Alo, Reformation, Bluemercury, and Crate & Barrel are setting up shop in this area. The influx of top investment firms and institutions opening offices nearby has brought a highly educated and well-compensated population seeking elevated lifestyle experiences. Integrated mixed-use developments like CityPlace have created a highly walkable district with built-in foot traffic, leading to vacancy rates below 3%.
Developers in West Palm Beach are working rapidly to meet the increasing demand for retail space as financial services and innovation hubs take root in the city. This growth in retail is fueling a self-sustaining cycle of demand and growth that continues to accelerate.
Kelly Lyles of KL International Realty has also noticed a surge in retailers relocating to Florida. Companies like Foot Locker are moving from NYC to St. Petersburg, while others with a significant presence in the state, like Publix, are looking to expand further. Publix, for instance, is planning to open a 50,000 square-foot supermarket in Panama City Beach.
Overall, Florida’s diverse population, growing economy, low taxes, and lower cost of living are attracting both consumers and retailers to the state. The trend of retailers flocking to Florida is expected to continue as the state’s retail sector experiences rapid growth and expansion.
