As we enter the first quarter of 2026, the Palm Beach County (PBC) retail landscape has reached a historic turning point. While the broader national market is entering a "normalization" phase, South Florida remains an outlier of extreme demand and diminishing supply.

With a county-wide vacancy rate hovering at a remarkably tight 4.5%, the leverage has shifted decisively toward landlords, pushing average asking rents to a record $39.12/SF NNN.

Q1 2026 Market Snapshot

The 2026 "Price of Entry" by Submarket

The story of 2026 is the widening gap between premium coastal corridors and strategic inland value plays. Here is where the market stands today:

• The Gold Coast Peak (Delray Beach): Commanding $48.00/SF, Delray Beach remains the most expensive retail submarket in the county. High-income foot traffic and a 3.6% vacancy rate make this the "trophy" destination for national brands.

• The Urban & Corporate Hubs (West Palm Beach & Boca Raton): These markets have established a firm floor between $39.00 and $41.00/SF. The "Wall Street South" effect in West Palm has matured, with retail rents now mirroring the county average as the urban core densifies. In Boca, the limited supply of institutional-grade space keeps competition fierce.

• The Emerging North (Palm Beach Gardens & Jupiter): We are seeing significant upward pressure in the north. Palm Beach Gardens has surged to $45.00/SF along the PGA corridor, while Jupiter remains a high-demand coastal alternative at $32.00/SF.

• The Value Leader (Boynton Beach): At $35.00/SF, Boynton Beach offers the most attractive entry point for growing brands. However, with vacancy at a razor-thin 2.9%, this "value window" is closing faster than any other submarket in the county.

Why Rents Aren’t Cooling Down

Clients often ask us: “When will the plateau happen?” The data from Q1 2026 suggests that the upward pressure is being sustained by three specific factors:

1. The Supply Standstill: Elevated construction costs and financing hurdles in 2024–2025 led to a near standstill in new retail groundbreaking. We are now feeling that "inventory gap" in 2026.

2. High-Income Migration: The influx of high-net-worth residents from the Northeast and Midwest has permanently altered the consumer spending base in PBC, supporting higher tenant margins and, subsequently, higher rents.

3. The "Flight to Quality": Retailers are no longer just looking for "space"; they are looking for experiences. High-end lifestyle centers are seeing 100% occupancy, forcing secondary brands into smaller, more expensive footprints.

The Bottom Line for 2026

For Tenants, the "wait and see" approach of 2025 is no longer viable. Securing space today is about speed and local relationships.

For Landlords, 2026 is the year to optimize portfolios. With vacancy at all-time lows, the focus should be on tenant quality and long-term lease structures that hedge against future inflation.

Sources:

• CoStar Group & LoopNet Market Analytics (January 2026)

• CoStar 2026 National Retail Outlook