Palm Beach County Industrial Market Report Q2 2026

The Palm Beach County industrial market softened modestly during the second quarter of 2026 as negative net absorption continued, vacancy moved higher and asking rents declined. The market remains in a period of gradual adjustment following substantial supply growth in 2025 and a more measured leasing environment during the first half of 2026.

In Q2 2026, Palm Beach County recorded approximately 56.6 million square feet of industrial inventory. The market posted an 8.0% vacancy rate, average asking rents of $15.32 per square foot and negative net absorption of 53,340 square feet. The quarter also included 45,000 square feet of new deliveries.

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Click below to download the full Q2 2026 Palm Beach County Industrial Market Report, including detailed market data, vacancy and availability trends, asking rents, absorption, new deliveries, top sales, top leases and additional industrial market insights.

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Palm Beach County’s industrial market is supported by population growth, regional distribution demand, construction activity, service businesses and expanding logistics requirements throughout Boca Raton, Boynton Beach, West Palm Beach, Riviera Beach and Jupiter.

Tenant demand continues to favor modern, functional facilities offering efficient loading, higher clear heights, adequate power, convenient transportation access and space configurations that support operational efficiency.

Recent supply growth has increased tenant choice and created a more competitive leasing environment. Modern industrial properties remain better positioned to preserve asking rents, while older or functionally constrained assets may face greater pricing pressure.

What the Q2 2026 Data Shows

Palm Beach County recorded negative net absorption of 53,340 square feet in Q2 2026, compared with negative 38,273 square feet in Q1. The second consecutive quarter of negative absorption indicates that tenant move-outs and space givebacks continued to modestly outpace move-ins during the first half of the year.

Vacancy increased to 8.0% from 7.8%, while availability remained unchanged at 7.1%. The quarter also included 45,000 square feet of new deliveries, adding incremental supply as the market continued to work through previously delivered industrial space.

Asking rents declined to $15.32 per square foot from $15.87 in Q1, a 3.5% quarter-over-quarter decrease. The decline reflects increased landlord competition, greater tenant choice and a market that is undergoing a period of pricing adjustment.

The Palm Beach County industrial market enters the second half of 2026 in a period of gradual adjustment. Consecutive quarters of negative absorption, rising vacancy and softer asking rents indicate that tenants have gained additional leverage as the market works through existing and recently delivered space.

Rental performance will likely remain highly differentiated by asset quality, location and functionality. Modern facilities should remain better positioned, while older inventory may need to compete more aggressively through pricing, improvements and flexible lease structures.

The market is not collapsing; it is recalibrating. Owners who respond strategically and tenants who evaluate opportunities carefully will be better positioned as conditions evolve.

Need Palm Beach County Industrial Market Guidance?

Berger Commercial Realty provides commercial real estate brokerage, property management and receivership services throughout Palm Beach County and South Florida. Whether you are leasing industrial space, evaluating your property’s performance, preparing to sell, repositioning an asset or reviewing your property management strategy, our team can help you make informed real estate decisions.

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