Publix. Citrix. Office Depot. These are but a few of the largest and most recognizable companies that have called South Florida home for decades. Recently however, the corporate neighborhood has gotten a lot more crowded—and the momentum has only picked up.
Over the past half-decade, the Palm Beach County Business Development Board has helped roll out the welcome mat to approximately 140 companies who have relocated or expanded their operations into the county. This has resulted in more than $1.12 billion in capital investment and over 13,000 direct jobs for locals.
It has also contributed to a still-booming residential and commercial market. Just over the past year, these companies have swallowed up more than 1.6 million square feet of commercial and industrial space, reinvesting $362 million back into the county.
Corporate Real Estate Trends in Palm Beach County
A majority—51%—of the activity has generated from companies who moved in from out of state. Industries represented include cutting-edge businesses based in health and life sciences, financial services, and even aerospace engineering. A large concentration landed smack-dab in the center of Palm Beach County, though others migrated both north and south.
Companies like KruseCom, a global IT asset management company which relocated from New Jersey, and Electriq Power, manufacturers of smart home batteries, are but two of the technologically-focused companies that have made a new home in South Florida.
We’re even welcoming newcomers from across the globe as Percepto, a drone manufacturing business, has migrated all the way from Israel.
In addition, companies that already had a South Florida presence have expanded, including Ideal Nutrition—which added 170 positions to their healthy meal-based business—and HotelPlanner. Even Publix has grown its distribution centers!
The Future of Palm Beach County Corporate Real Estate Investment
There’s no sign of this kind of real estate activity slowing down. 100 million sq ft of commercial or industrial space, along with 1.5 million sq ft of Class A office space is or will become available soon. In fact, the county’s Business Development Board is already expecting to work with an additional 100 companies who have expressed interest in moving.
Looking through the demographics and numbers back up the Board’s optimism:
- According to Census Data Report 1.6 million Florida residents are New York transplants
- More than 61,000 New York natives switched their driver licenses to Florida last year, per the Florida Department of Highway Safety and Motor Vehicles
- Palm Beach County stands as the top county in Florida in year-over-year gains in weekly wages (SIA)
- EMSI shows more than 16,000 people were added to PBC’s labor force in just one year
- A study by Unacast found the county atop the results for growth by income and popularity
- Inc. Magazine identifies 48 of the fastest-growing companies are located in Palm Beach County
Considering all of this, its little wonder that our backyard has been referred to nationwide as “Wall Street South.” Miami has been heralded as an up-and-coming tech hub, but Palm Beach County has been coined as an innovative paradise which has been attracting the attention of international businesses. Huge brands in the financial sector such as Goldman Sachs, Point72 Assent Management, Citadel, and BlackRock are all flocking toward the sunrise of a new era currently growing along our beautiful sandy coastline.
What does this mean for residents and professionals already here, or planning on making the move south?
It all goes back to supply and demand. The fact that there are so many companies moving to West Palm Beach, Boca Raton, Delray Beach, and throughout Palm Beach County, means there will be a continued demand for housing, thereby supporting home prices. "We believe there will be a continued demand for housing in Palm Beach County as long as these large companies keep moving to the area," said Brian Pearl, Principal Agent for The Pearl Antonacci Group at Compass Florida. Even as inventory rises, it will be purchased by these home buyers moving to South Florida. Everyone needs somewhere to live, so you're either going to rent or buy, and the long-term benefits of buying outweigh the short-term risks with higher interest rates.
Contact your local real estate experts at The Pearl Antonacci Group to learn more!