Part 1: Both the residential & commercial markets are booming.
“Every city has a decade, or a time frame, when there’s some sort of renaissance or revitalization, or growth. The time for West Palm Beach is now.” David Martin, Developer, Terra Group
West Palm Beach, Florida was always considered the “wrong side of the tracks” (actually, wrong side of the intracoastal bridge) for the true-blue bluebloods of Palm Beach which is affectionately called “The Island,” similarly to how New York City was called “The City”. However today, post pandemic everything has changed. Even a bit before in late 2019, a new ultra-luxury residential tower was completed in West Palm Beach called The Bristol which started the revolution there. The snobby Palm Beach Islanders started to trickle across the bridge from their beloved estates on Ocean Boulevard just up the road from Trump’s Mar-A-Lago estate and inhabit this new tower on the mainland and call it home.
Wall Street South
Fast forward, five years later and there are about 24 residential developments in the works totaling almost 7000 units in West Palm Beach. The pandemic allowed people to work remotely, even Wall Streeters, many of whom set up shop in Palm Beach and never left. The allure of an income tax-free state like Florida was too tempting. So, “Wall Street South” was christened here and along with it, many wealthy new inhabitants came, all needing luxury housing options. Many moved their companies too. So entire offices of hedge funders and numerous other financial firms created demand for new office space. Thus, both the residential and commercial booms blossomed in West Palm Beach post pandemic.
Developers took notice and prepared plans for both residential and commercial developments in West Palm Beach. The Business Development Board of West Palm Beach said that a wave of migration is reshaping the economy of West Palm Beach, shifting the city from a vacation and retirement destination into a nexus of business.
This has led to a burst of development catering to the new arrivals. More than 13,000 new residents arrived in Palm Beach County from other states in 2022. These new arrivals brought $7.2 billion of income inflow to the county. This is the second highest level of wealth migration in Florida behind Miami-Dade County. “Wall Street South” includes a roster of 19,757 financial companies with 269,451 employees contributing to a total gross regional revenue of $39.9 billion. The area also now boasts a residents’ count of 57 billionaires and 70,000 millionaires. Impressive financial firms like BlackRock, Citadel, Goldman Sachs and Elliott Management have opened offices in West Palm Beach. Today’s commercial pipeline here includes plans for two-million-square-feet of Class A office space.
These shifts in both population and income create a rational for building new inventory. And these new arrivals want new homes and new office space. Related Companies Chairman, Stephen Ross is the developer making the biggest bet on growth in West Palm Beach. His company is executing its plan to remake the city’s urban core. Simultaneously, they are attracting new healthcare and new education to the area.
Mt. Sinai has an outpost here now. The University of Florida is bringing a 1 million square foot satellite campus on 35-acres for graduate students to downtown West Palm Beach. Developers are also staying conscious of their civic responsibility and are adding public green spaces and art.
Miami-fication of West Palm Beach
Get ready Palm Beach, Miami is coming for you. Some fear the “Miami-fication” of West Palm Beach, but many embrace it. It’s time for the tropical winter headquarters of society’s old-money stuck in a cultural bubble living in what they call “quiet luxury” to get a wake-up call. Get ready for sleeker, sexier, new glass towers to hit the landscape of West Palm Beach. And along with it, the branding of West Palm Beach.
Yes, developers are bringing brands to their northern portfolio to satisfy the new world that has arrived in Palm Beach County. Hotel brands for starters, but surely designer brands, car brands and even restaurant brands will be adorning the new residential towers in West Palm Beach in the future. And it’s not just the developers invading, but also Miamians wanting to escape escalading prices and traffic in the Magic City. They are hopping on the Brightline train bringing their Miami vibe. First NYC restaurants opened doors in Miami and South Beach, and now some of those same popular spots like Milos and Carbone are headed north to satisfy appetites in West Palm Beach. Also, the successful gym brand, Equinox is opening up north.
Developers are still sensitive to the old-world style and creating a lifestyle that will blend the old with the new in Palm Beach. For starters, Terra Group which is blazing trails of residential development all over Miami and Miami Beach, is bringing its Mr. C brand from Miami to West Palm Beach. “Mr. C really felt very close to the DNA of the Palm Beach that I see today, and the Palm Beach I see of the future,” said Terra Group Principal, David Martin. Created by the Cipriani brothers, Ignacio and Maggio, fourth generation, Mr. C Residences will bring their familial history with a 21st century twist. It will be the first branded project coming to fruition in West Palm Beach. Similarly, Related Group from Miami is developing Ritz Carlton Residences in West Palm Beach which they feel perfectly matches the understated elegance that defines the area.
Artsy Nora District
A bit of the flavor of Miami’s Wynwood Arts District is also coming to West Palm Beach. It is named the Nora District (North of Railroad Avenue), a 40-acre neighborhood with a cobblestone Main Street and 15 acres of new development. It will include shops, galleries, restaurants, hotels and residential condos painting a more artsy fartsy feeling to the area.
Hope Gainer
