Developer Stephen Ross reflects on his firm’s early arrival in West Palm Beach, Florida, nearly three decades ago, describing it as “twenty-eight years too early.” Today, Ross is instrumental in transforming the city with new office towers, luxury condos, and an upcoming university.
Two decades ago, leasing retail space downtown was a challenge due to high turnover. Kenneth Himmel, president of Related Ross, recalls that “you couldn’t keep tenants because there wasn’t enough year-round business.”
The landscape has changed significantly. While Miami garners attention for its condo towers and island enclaves, West Palm Beach is undergoing a substantial transformation post-COVID. Rick Rose notes that the city “almost overnight became an extension of the old Palm Beach.”
According to Henley & Partners, the number of millionaires in Palm Beach and West Palm Beach grew 93% from 2013 to 2023. This influx has propelled Palm Beach County to the top of national affluence rankings. New residents brought $7.03 billion in taxable income between 2020 and 2021.
Newcomers are not just buying property; they are relocating businesses and employees. Luxury condos along the waterfront are booming, inspired by this influx. Vanderbilt University plans a $520 million graduate school campus focused on business and artificial intelligence in West Palm Beach.
West Palm Beach Mayor Keith James remarked that “COVID had been good to the city,” highlighting how major financial firms like Goldman Sachs and BlackRock have opened offices there.
JPMorgan Chase announced plans for a new office space in Related’s 360 Rosemary tower. Richard Born is investing in his first non-New York hotel property in West Palm Beach within a redevelopment district called Nora.
Nora aims to create a pedestrian-friendly neighborhood with restaurants and retail spaces. Ned Grace of NDT Development notes that tenant quality improved significantly post-pandemic.
Downtown West Palm Beach’s population has doubled since 2008. Professor Ken H. Johnson from Florida Atlantic University emphasizes that the city is no longer just seen as a retirement community.
Real estate investment surged during the pandemic migration, with investors pouring billions into West Palm Beach properties over recent years.
Office rents continue to climb amid high demand for Class A workspace. Related plans two new office towers at CityPlace with significant pre-leasing commitments already secured.
Stephen Ross recently spun off Related’s Florida division into Related Ross after stepping away from his New York-based firm. The new venture has long-term plans including more office towers and possibly attracting institutions like Cleveland Clinic and Vanderbilt University’s business school.
The residential market has also transformed dramatically; luxury home prices have soared since 2019. Developers are now building exclusive condos at premium prices.
Ross reflected on their long-term vision for West Palm: “We saw this 28 years ago… But unfortunately we had to wait a long time.”
