Himmel attributes the growing demand for retail space to the “deliberate and sustained migration of high-net-worth individuals, financial executives, and tech leaders” since the onset of the COVID-19 pandemic in 2020.
Nowhere is the impact more visible than in West Palm Beach, where retail vacancies are virtually nonexistent in 2024 and occupancy rates are nearing all-time highs. At CityPlace, a flagship mixed-use neighborhood in the city, over 125,000 square feet of retail space is being added to accommodate brands such as Equinox, Alo, Reformation, Bluemercury, and Crate & Barrel.
Himmel said the integrated development model is playing a crucial role in sustaining the demand.
“As top investment firms and institutions open offices nearby, they bring with them a highly educated and well-compensated population seeking elevated lifestyle experiences,” he told Fox Business. “That demand is being met by integrated, mixed-use developments like CityPlace, which combines office, residential, and commercial in a highly walkable district.”
This built-in foot traffic is helping maintain retail vacancy rates below 3%, even as additional square footage comes online.