By Brian French | WestPalmBeachBusinessNews.com | October 26, 2026
Quick Answer
Palm Beach County’s industrial market is small, land-constrained and shifting west. Vacancy has risen to about 8% as new warehouses delivered, but rents remain near record highs around $14 to $14.50 per square foot. Growth is moving to Jupiter’s Park of Commerce, the airport corridor, Westlake and the Agricultural Reserve, while data centers face a new county moratorium.
Key Takeaways
| Metric | Figure | Source |
|---|---|---|
| Industrial vacancy, Q2 2026 | 8.0% | CBRE |
| Vacancy low point (Q3 2022) | 2.1% | CBRE |
| Average asking rent, Q3 2026 | $14.45/sf (3-year high) | Cushman & Wakefield |
| Under construction, Q2 2026 | 799,000 sf (down from 2.6M peak) | CBRE |
| Port of Palm Beach cargo | 2.8M+ tons a year | Port of Palm Beach |
| Data center moratorium | 50+ megawatt projects, up to 1 year | Palm Beach County |
| Ag Reserve area | ~22,000 acres | Bisnow / Palm Beach County |
The Industrial Economy Behind the Coastline
Direct answer: Palm Beach County’s industrial economy is a smaller, service-oriented market rather than a national distribution hub. Most demand comes from local distributors, contractors, auto businesses and suppliers serving the county’s 1.5 million residents. A recent construction wave raised vacancy, but rents keep climbing because buildable industrial land is scarce.
Market Snapshot
| Measure | Figure | Source / Period |
|---|---|---|
| Overall vacancy | 8.0% | CBRE, Q2 2026 |
| Overall vacancy | 8.1% | Cushman & Wakefield, Q2 2026 |
| Availability | 9.0% | CBRE, Q2 2026 |
| Average asking rent | $13.98/sf (+7.0% y/y) | CBRE, Q2 2026 |
| Average asking rent | $14.45/sf (+4.3% y/y) | Cushman & Wakefield, Q3 2026 |
| Net absorption | +55,000 sf | CBRE, Q2 2026 |
| Leasing volume | 243,000 sf | CBRE, Q2 2026 |
| Under construction | 799,000 sf | CBRE, Q2 2026 |
Brokers measure different building sets and submarket boundaries, so their figures differ. The trend is consistent: vacancy has risen from historic lows, and rents have held.
From Shortage to Supply Wave
In the third quarter of 2022, Palm Beach County industrial vacancy was just 2.1%, according to CBRE, among the tightest readings in the country. Developers responded. Construction peaked at about 2.6 million square feet in mid-2023, and large deliveries followed, including 1.2 million square feet in the second quarter of 2024 and 657,000 square feet in late 2025.
That new space pushed vacancy back toward 8%. But the pipeline has since shrunk to under 800,000 square feet, and Cushman & Wakefield expects vacancy to trend downward over the next 12 to 18 months.
Rents: Small Bays Cost More
The county’s highest industrial rents are not in the newest big boxes. CBRE reported that Lake Worth posted the highest average asking rate in the second quarter of 2026 at $21.02 per square foot. In the first quarter, CBRE noted that West Palm Beach ($16.18) and Riviera Beach ($16.25), the county’s two largest submarkets, sat just below the tightest areas.
Meanwhile, large new warehouses in north county are being marketed at much lower rates. Cushman & Wakefield listings for Palm Beach Park of Commerce buildings due in 2027 show asking rents of $9.95 per square foot on a triple-net basis.
| Space Type | Typical Asking Rent | Why |
|---|---|---|
| Small-bay / service industrial | $16–$21/sf | Scarce, close to customers |
| Older infill warehouse | $14–$16/sf | Central locations |
| New big-box distribution (north county) | ~$10/sf NNN | Large blocks, farther west |
The lesson for tenants: location and size matter more than building age. A contractor needing 5,000 square feet near I-95 may pay twice per square foot what a distributor pays for 200,000 square feet off the Beeline Highway.
Where Industrial Growth Is Going
Direct answer: New industrial development in Palm Beach County is concentrated in a few corridors: the Palm Beach Park of Commerce in Jupiter, the Palm Beach International Airport corridor, Riviera Beach near the port, the city of Westlake, and the Agricultural Reserve west of Boynton and Delray. Each has different zoning rules and limits.
The Major Corridors
| Corridor | Location | Character |
|---|---|---|
| Palm Beach Park of Commerce | Jupiter, near Beeline Hwy (SR 710) | 1,300-acre park, rail, foreign trade zone, big-box |
| Airport / Southern Boulevard | West Palm Beach, around PBIA | Infill, airport overlay conversions |
| Riviera Beach / Port | Near Port of Palm Beach | Port-related, older stock |
| Westlake | Seminole Pratt Whitney Road | New city, light industrial and flex |
| Agricultural Reserve | West of Boynton and Delray, SR 7 | New “commerce” warehouse designation |
| Lake Worth / Boca / Delray | South county infill | Small-bay, highest rents |
Palm Beach Park of Commerce
The largest concentration of new big-box space is the 1,300-acre Palm Beach Park of Commerce in Jupiter, which offers rail service, foreign trade zones, heavy industrial options and access to I-95, the Beeline Highway and the Port of Palm Beach.
Woodmont Industrial Partners and Butters Group completed the 252,848-square-foot Corporate Logistics Center there in 2023, with 36-foot clear heights and 48 dock doors. In May 2026, Alaris Aerospace Systems, an engine-component distributor relocating from Pompano Beach, signed a 129,000-square-foot, seven-year lease, bringing the building to about half leased, according to Commercial Observer.
Current Cushman & Wakefield listings show a large wave of additional park buildings marketed for 2027:
| Building | Size | Asking Rent |
|---|---|---|
| Bldg D | 368,125 sf | $9.95 NNN |
| Bldg E | 368,125 sf | $9.95 NNN |
| Bldg F | 302,242 sf | $9.95 NNN |
| Bldg B | 233,340 sf | $9.95 NNN |
| Bldg C | 53,914 sf | $9.95 NNN |
| Bldg G | 52,234 sf | $9.95 NNN |
Together those listings total about 1.38 million square feet. Not all may be under construction yet, but the scale shows north county is where large tenants will find room. It also helps explain why Cushman & Wakefield reported Jupiter-area vacancy above 20% in the third quarter, even as smaller, older Jupiter properties remain tight.
The Airport Corridor
Around Palm Beach International Airport, the county has been converting land to industrial use where residential and retail are less compatible with aircraft noise. The county’s PBIA Approach Path Conversion Area overlay supports these changes. One example: the Windsor Industrial project was rezoned from commercial to light industrial to allow a warehouse, according to county planning records.
The airport corridor also hosts Airport Logistics Park, including a 91,000-square-foot building delivered in 2026, according to CBRE. American Tire Distributors renewed 125,000 square feet at 601 North 103rd Avenue in West Palm Beach in early 2026, one of the largest deals of the year.
Westlake
Westlake, a young city built by Minto Communities on about 3,800 acres in central Palm Beach County, has added light industrial space as its population grows. Projects have included the 227,000-square-foot Westlake Commerce Center and the 145,643-square-foot James Business Park, and a 129,270-square-foot facility on Seminole Pratt Whitney Road offers more than 42,000 square feet of cold storage.
Westlake’s appeal is land and access to fast-growing western communities. Its challenge is distance from I-95 and the port.
The Agricultural Reserve
The 22,000-acre Agricultural Reserve, created in the 1980s to protect farmland west of Boynton Beach and Delray Beach, now allows limited warehouse development. Palm Beach County created a “commerce” land use designation that bans heavy industrial uses but permits warehouses. Under it, BBX Logistics Properties and PCCP won approval for BBX Park at Delray, with up to 673,000 square feet on about 40 acres, according to Bisnow.
This is one of the county’s most contested land-use debates. Developers see an outlet for demand. Preservation advocates see a slow erosion of a long-protected area.
Zoning Constraints and the Data Center Fight
Direct answer: Industrial growth in Palm Beach County is limited less by demand than by land and politics. Most remaining land is farther west, close to neighborhoods, farms or equestrian areas. In 2026, opposition to the Project Tango AI data center led the county to reject a major expansion and impose a moratorium on large data centers.
Project Tango
Project Tango, formally the Central Park of Commerce Center at 20125 Southern Boulevard near Loxahatchee, became the county’s defining industrial land-use fight of 2026. Developers sought to expand an earlier approval into a roughly 200-acre hyperscale AI campus with four large data center buildings and five warehouses. A project representative estimated about 1,700 construction jobs, 600 permanent jobs and $561 million a year in economic impact at buildout, according to CBS12.
Residents of the nearby Arden community and Wellington, including Wellington’s mayor, objected to power demand, water use, noise and proximity to an elementary school. The county Zoning Commission voted 6-0 to recommend denial, and on July 15, 2026, county commissioners voted 5-1 to reject the expansion after nearly 12 hours of debate.
An earlier approval for two 100,000-square-foot data center buildings remains in place.
The Moratorium
Commissioners then voted 6-0 to pause new applications for large data centers in unincorporated Palm Beach County for up to one year. The moratorium applies to projects with an anticipated peak electrical load of 50 megawatts or more.
| Issue | Status |
|---|---|
| Project Tango expansion | Denied 5-1 (July 15, 2026) |
| Earlier Project Tango approval | Two 100,000 sf buildings remain approved |
| Large data center moratorium | Up to 1 year, 50+ MW projects |
| Ag Reserve warehouses | Allowed under “commerce” designation |
What This Means for Industrial Developers
- Western sites face more scrutiny. Neighborhoods, equestrian communities and schools sit close to remaining land.
- Use matters. Conventional warehouses and service industrial are easier to approve than power-hungry data centers.
- Infill conversions take time. Airport-area rezonings require land use and zoning changes.
- Utilities are a constraint. Large electrical loads now trigger specific county review.
The Port of Palm Beach
Direct answer: The Port of Palm Beach in Riviera Beach is a small but important port that handles more than 2.8 million tons of cargo a year, much of it exports to the Caribbean. It recently finished a $30 million infrastructure upgrade that cut truck wait times in half and is now pursuing a $43 million cruise terminal project.
Port Profile
| Measure | Figure |
|---|---|
| Size | 165 acres |
| Annual cargo | 2.8M+ tons |
| Onsite tenants and users | 30+ |
| Employment (port and tenants) | 3,800+ |
| Historic cargo mix | ~80% outbound |
| Rail | Florida East Coast Railway, interchanging with CSX and Norfolk Southern |
Sources: Port of Palm Beach; Progressive Railroading.
The port is an independent special taxing district covering roughly half of Palm Beach County, but it relies on operating revenue rather than property taxes, according to Hoodline. Tropical Shipping, which serves Caribbean markets, has been its largest tenant.
Recent Investments
- $30 million Port Infrastructure Development Program, completed in March 2026, six months ahead of schedule. It rehabilitated 6.5 miles of on-port rail track, redesigned and automated the main truck gate, added radiation portal monitors and cut truck wait times by 50%, according to Executive Director Michael Meekins.
- New import business, including a 2025 lease with Thalle Construction and SAB Solutions to import Canadian granite aggregate, shifting the port’s historically export-heavy mix.
- $43 million cruise terminal and berth project, approved for competitive bidding in September 2026, adding mooring dolphins for longer ships, a passenger boarding bridge, expanded screening and baggage areas, and a parking garage.
The Expansion Debate
The port’s longer-range master plan has explored acquiring nearby land and potentially deepening the channel, with the goal of significantly increasing container storage and on-dock rail capacity. The Town of Palm Beach has raised concerns about traffic, noise and possible changes to the Lake Worth Inlet. The current $43 million project focuses on the cruise terminal, but the broader expansion question remains politically sensitive.
Workforce Development for Industrial Jobs
Direct answer: Palm Beach County’s industrial workforce depends on trades, drivers and technicians more than engineers. Palm Beach State College, CareerSource Palm Beach County and the School District offer apprenticeships, CDL training, forklift certification and logistics credentials, many at low or no cost.
The Training Network
| Provider | Program | Details |
|---|---|---|
| Palm Beach State College | Registered apprenticeships | Construction, electrical, HVAC, plumbing |
| Palm Beach State College | Skilled trades expansion | $1.75M U.S. Labor Department grant, $1M Lowe’s Foundation award |
| Palm Beach State College / CareerSource | Logistics and Transportation Specialist | 18-credit certificate |
| School District of Palm Beach County | CDL Class A | 320 hours |
| School District of Palm Beach County | CDL Class B | 150 hours |
| West Technical Education Center (Belle Glade) | CDL and forklift training | Adult education |
| CareerSource Palm Beach County | Tuition support and job placement | For eligible participants |
In May 2026, Palm Beach County commissioners proclaimed National Apprenticeship Week and recognized Palm Beach State College’s apprenticeship programs. County Mayor Sara Baxter called the programs vital to the county.
Why Trades Matter Here
CareerSource Palm Beach County CEO Julia Dattolo has noted that construction and trades rank among the county’s top industries. The same workers who build warehouses also maintain them, wire them and run the equipment inside. Florida’s median wage for heavy and tractor-trailer drivers was about $50,640 in May 2025, according to Bureau of Labor Statistics data compiled by a trade education site, offering a path to middle-income work without a four-year degree.
The Housing Connection
Industrial and logistics jobs pay more than many service jobs but still struggle with Palm Beach County housing costs. That pushes workers to the western communities, the Glades and neighboring counties, which in turn makes western industrial sites more practical for employers: they sit closer to where the workforce actually lives.
Economic Diversification: Why Industrial Matters
Direct answer: Palm Beach County’s economy leans heavily on tourism, real estate, finance and services. Industrial and logistics businesses add stability, middle-income jobs and a tax base less tied to seasonal visitors and luxury markets. The county’s challenge is preserving enough land for those uses as residential and luxury development compete for every acre.
Balancing the Economy
| Sector | Strength | Vulnerability |
|---|---|---|
| Tourism and hospitality | Large employment base | Seasonal, lower wages |
| Finance and office | High wages | Concentrated, sensitive to markets |
| Real estate and construction | Strong growth | Cyclical |
| Industrial and logistics | Steady, middle-income jobs | Land-constrained |
| Aerospace and engineering | High wages | Tied to defense spending |
Industrial space also supports every other sector. Restaurants need food distributors, hotels need laundry and maintenance contractors, construction needs material yards, and luxury homeowners rely on the service businesses that operate out of small-bay warehouses.
The Land Competition
Every acre rezoned for residential or retail is an acre that cannot become a warehouse. As downtown West Palm Beach fills with towers and western communities fill with homes, industrial users are pushed farther from customers. That raises delivery costs and, eventually, prices for consumers.
Brian’s Take
Investors tend to overlook Palm Beach County industrial because it lacks the scale of Miami-Dade or Central Florida. That is exactly what makes it interesting. This is a market where supply is controlled more by politics and geography than by developers’ appetite. When land is that hard to entitle, rents have a natural floor.
The current vacancy bump is a supply story, not a demand collapse. Most of the empty space is in large new buildings in north county, while small-bay space near population centers remains scarce and expensive. If I were allocating capital here, I would favor well-located, small- to mid-sized buildings over speculative big boxes.
The Project Tango vote is the bigger signal. Residents and commissioners showed they will weigh quality of life over large economic impact promises, and the data center moratorium formalizes that stance. Developers who want approvals in western Palm Beach County will need to bring lower-impact uses, community benefits and patience. For the county, the real long-term question is whether it protects enough industrial land to keep the service economy that luxury Palm Beach depends on.
Frequently Asked Questions
What is the industrial vacancy rate in Palm Beach County?
About 8% in mid-2026. CBRE reported 8.0% and Cushman & Wakefield reported 8.1% in the second quarter, up from a historic low of 2.1% in 2022 after a wave of new construction.
How much does warehouse space cost in Palm Beach County?
Average asking rents were about $14 to $14.50 per square foot in 2026. Small-bay space in areas like Lake Worth can exceed $21, while large new warehouses in Jupiter’s Park of Commerce are marketed near $10 triple net.
Where is new industrial development happening in Palm Beach County?
Mainly in the Palm Beach Park of Commerce in Jupiter, around Palm Beach International Airport, in Westlake, near the Port of Palm Beach, and in the Agricultural Reserve under a newer commerce land use designation.
What happened to Project Tango?
Palm Beach County commissioners voted 5-1 in July 2026 to deny a major expansion of the Project Tango AI data center near Loxahatchee. An earlier approval for two 100,000-square-foot data center buildings remains in place.
Is there a data center moratorium in Palm Beach County?
Yes. Commissioners voted 6-0 to pause new applications for large data centers with peak electrical loads of 50 megawatts or more in unincorporated Palm Beach County for up to one year.
What does the Port of Palm Beach handle?
The port handles more than 2.8 million tons of cargo a year, historically about 80% outbound, much of it to the Caribbean. It also homeports a cruise ship and is planning a $43 million cruise terminal upgrade.
Where can workers train for industrial and logistics jobs in Palm Beach County?
Options include Palm Beach State College apprenticeships and logistics certificates, CDL Class A and B programs through the School District of Palm Beach County, forklift training at West Technical Education Center, and tuition support through CareerSource Palm Beach County.
Sources and Further Reading
- CBRE, Palm Beach Industrial Figures, Q2 2026 (July 9, 2026)
- CBRE, Palm Beach Industrial Figures, Q1 2026
- Cushman & Wakefield, Palm Beach Industrial MarketBeat, Q2 and Q3 2026
- Commercial Observer, “Alaris Aerospace Inks Big Industrial Lease in Palm Beach County” (May 28, 2026)
- Connect CRE, “Duo to Bring 250K-SF Industrial Development to Commerce Park in Jupiter”
- Cushman & Wakefield property listings, Palm Beach Park of Commerce Buildings B through G (2026)
- Palm Beach County Planning, Zoning and Building, Windsor Industrial staff reports
- Town-Crier, Westlake light industrial development and James Business Park
- Crexi listing, Westlake warehouse and cold storage facility, 4003 Seminole Pratt Whitney Road
- Bisnow, “Developers Plan 600K SF Warehouse Project In Palm Beach Ag Reserve”
- WLRN, “AI data center in western Palm Beach County heads to zoning hearing” (July 1, 2026)
- WLRN, “‘Not compatible’: Palm Beach County rejects controversial Project Tango AI data center” (July 16, 2026)
- CBS12, “Palm Beach Co. commissioners to decide fate of controversial Project Tango AI data center” (July 2026)
- CBS12, “Palm Beach County pauses large data centers; smaller Project Tango plan remains approved” (2026)
- Progressive Railroading, “Palm Beach port completes $30M infrastructure program” (March 25, 2026)
- Port of Palm Beach, news release on Thalle Construction and SAB Solutions lease (August 1, 2025)
- Hoodline, “Port of Palm Beach Seeks Bids for $43M Cruise Terminal Upgrade” (September 26, 2026)
- Cruise Industry News, “Palm Beach Approves Cruise Facility Expansion Plans” (September 25, 2026)
- Dredge Wire, “Palm Beach officials keeping an eye on port’s $43M expansion project” (October 7, 2026)
- WPTV, Port of Palm Beach 20-year master plan coverage
- Palm Beach State College, apprenticeship programs recognized during county proclamation (May 5, 2026)
- Palm Beach State College, “Labor Department awards PBSC a $1.75 million grant to expand skilled trades training” (2024)
- Palm Beach State College, Boynton Beach Workforce Readiness Initiative (2023)
- School District of Palm Beach County, Adult and Community Education transportation training programs
- TradeCareerPath, CDL wage data citing BLS OEWS (May 2025)
About the Author
