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Palm Beach County Industrial Market Report Q2 2026
Palm Beach County Industrial Market Report Q2 2026
Berger Commercial Realty’s quarterly overview of Palm Beach County industrial market conditions, including vacancy, asking rents, absorption, availability, inventory, top sales, top leases and the key trends shaping the South Florida industrial sector.
Published July 20, 2026 | Analysis by Michael Feuerman, SIOR, CCIM, Managing Director, Palm Beach | Data provided by CoStar Group
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 significant deliveries 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, an availability rate of 7.1% and negative net absorption of 53,340 square feet. The quarter also included 45,000 square feet of new deliveries.
Q2 2026 at a Glance
- Vacancy rose 20 basis points to 8.0%, the fourth consecutive quarterly increase.
- Availability held flat at 7.1% quarter-over-quarter.
- Average asking rent fell to $15.32 PSF, down $0.55 or 3.5% from Q1.
- Net absorption totaled negative 53,340 square feet, a second straight quarter of occupancy losses.
- Developers delivered 45,000 square feet of new industrial space.
- Total inventory reached 56,616,200 square feet, with 51,751,178 square feet occupied.
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8.0%
Vacancy Rate
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7.1%
Availability Rate
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$15.32
Avg. Asking Rent PSF
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-53,340 SF
Net Absorption
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45,000 SF
New Deliveries
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56.6M SF
Industrial Inventory
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Download the Full Palm Beach County Industrial Market Report
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.
Palm Beach County Industrial Market Overview
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. Industrial properties in the county serve warehouse operators, contractors, distribution companies, light manufacturers and small-bay tenants.
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. Owners weighing their options can review our
landlord representation and
property management services, while occupiers can start with
tenant representation.
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 2026. The second consecutive quarter of negative absorption represents a shift from the positive 27,460 square feet recorded in Q4 2025 and 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% in Q1, a 20-basis-point rise, while availability remained unchanged at 7.1% quarter-over-quarter. That suggests the amount of space actively being marketed held relatively steady even as physical vacancy increased. Vacancy has now risen for four consecutive quarters after holding steady at 6.7% from Q2 2024 through Q2 2025, reflecting a slow contraction.
The quarter also included 45,000 square feet of new deliveries, adding incremental inventory amid softer absorption conditions and bringing total inventory to 56,616,200 square feet.
Asking rents declined to $15.32 per square foot from $15.87 in Q1, a $0.55 or 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.
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“Look past the headline vacancy number and this was a quarter with real strength underneath it. A 129,603 square foot lease at Corporate Logistics Center and nearly $200 million of portfolio capital committed in Boynton Beach tell you that major occupiers and institutional investors still want to be in Palm Beach County. That conviction is what carries a market through a soft patch, and we are seeing plenty of it.”
Michael Feuerman, SIOR, CCIM |
Palm Beach County Industrial Key Indicators
| Quarter | RBA | Vacancy Rate | Market Asking Rent | Availability Rate | Net Absorption SF | Deliverables SF | Total Occupied SF |
|---|---|---|---|---|---|---|---|
| Q2 2026 | 56,616,200 | 8.0% | $15.32 | 7.1% | (53,340) | 45,000 | 51,751,178 |
| Q1 2026 | 56,571,200 | 7.8% | $15.87 | 7.1% | (38,273) | 0 | 51,818,948 |
| Q4 2025 | 56,571,200 | 7.7% | $15.91 | 7.0% | 27,460 | 199,476 | 52,113,435 |
| Q3 2025 | 56,371,724 | 7.4% | $15.63 | 6.5% | 106,062 | 536,593 | 52,038,845 |
Data provided by CoStar Group. Figures for prior quarters reflect current CoStar revisions and may differ from previously published reports.
Palm Beach County Industrial Asking Rent Per SF
Asking rental rates in the Palm Beach County industrial market declined in Q2 2026, with average rents falling to $15.32 per square foot from $15.87 per square foot in Q1. The $0.55 quarter-over-quarter decrease represents a 3.5% decline and marks the second consecutive quarter of rent softening following the $15.91 per square foot recorded in Q4 2025. The decrease is also the fifth rate decrease out of the last six quarters.
The decline in asking rents coincides with rising vacancy and consecutive quarters of negative net absorption, reflecting increased competition among landlords as tenants gain access to a broader range of available space. With vacancy reaching 8.0% during the quarter, owners are facing greater pressure to strategically position properties and respond to increasingly cost-conscious tenant requirements.
Rental performance continues to vary by asset quality, location and functionality. Modern industrial facilities offering efficient loading, higher clear heights, adequate power and access to major transportation corridors remain better positioned to preserve asking rates. Older or functionally constrained properties may face greater pricing pressure as tenants evaluate competing options and prioritize operational efficiency.
The market’s recent supply growth has also influenced rental conditions. Following significant deliveries in 2025, the existing inventory base continues to work through newly introduced space while net absorption remains measured. This dynamic has contributed to greater tenant choice and a more competitive pricing environment, particularly for properties competing directly with newer industrial product.
Overall, Q2 2026 rental trends reflect a Palm Beach County industrial market undergoing a period of pricing adjustment. While the decline in asking rents signals softer near-term conditions, rental performance will likely remain highly differentiated by asset quality and location as landlords compete to capture tenant demand and the market works to absorb available industrial space.
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$15.32
Q2 2026 Asking Rent PSF
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-3.5%
Quarter-Over-Quarter Change (-$0.55 PSF)
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-2.0%
Change Q3 2025 – Q2 2026 (-$0.31 PSF)
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Q4 2025
Peak Asking Rent ($15.91)
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Key Trends in the Palm Beach County Industrial Market
Tenant Demand Remains Measured
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Modern Facilities Remain Better Positioned
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Negative Absorption Continued
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Asking Rents Declined
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Vacancy Rose While Availability Held Steady
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New Deliveries Added Incremental Supply
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Top Palm Beach County Industrial Sales, Q2 2026
| Property | Address | Price | Price/SF | Size |
|---|---|---|---|---|
| Gateway Center Part of an 8-property portfolio sale |
1920–1974 High Ridge Rd, Boynton Beach, FL 33426 | $195,900,000 | $244.51 | 801,200 SF |
| Lewis Terminals Part of a 2-property sale |
2001 Australian Ave, Riviera Beach, FL 33404 | $20,790,000 | $167.63 | 124,000 SF |
| Boca Commerce Center | 1141 Rogers Circle, Boca Raton, FL 33487 | $15,000,000 | $211.49 | 70,927 SF |
| Jupiter Commerce Park | 3126 Jupiter Park Drive, Jupiter, FL 33458 | $10,660,000 | $308.91 | 34,508 SF |
Data provided by CoStar Group.
Top Palm Beach County Industrial Leases, Q2 2026
| Property | Address | Building Size | SF Leased |
|---|---|---|---|
| Corporate Logistics Center | 15791 Corporate Cir, Jupiter, FL 33478 | 252,848 SF | 129,603 SF |
| Prologis Airport Center, Building 5 | 6059 Southern Blvd, West Palm Beach, FL 33413 | 199,274 SF | 43,332 SF |
| Prologis Airport Center, Building 1 | 6017 Southern Blvd, West Palm Beach, FL 33413 | 140,400 SF | 43,200 SF |
Data provided by CoStar Group. Browse current availabilities on our
property search.
What This Means for Owners and Tenants
For Property Owners
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For Tenants
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Palm Beach County Industrial Market Outlook
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. While the pace of occupancy losses remains measured, the continued increase in vacancy underscores a more competitive leasing environment.
Performance through the balance of the year will likely depend on renewed tenant demand and the market’s ability to absorb existing and recently delivered industrial space. Rental performance should remain highly differentiated by asset quality, location and functionality, with modern facilities better positioned and older inventory competing more aggressively through pricing, improvements and flexible lease structures.
“Deliveries came in at 45,000 square feet this quarter, down from more than half a million square feet in Q3 2025. Supply is normalizing at exactly the moment tenants finally have room to negotiate, and that combination is usually what sets up the next healthy stretch. With 92% of the county’s industrial space occupied and availability holding steady, the fundamentals here remain strong.”
Michael Feuerman, SIOR, CCIM — Managing Director, Palm Beach
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.
View all Q2 2026 Broward and Palm Beach County market reports →
Palm Beach County Industrial Market FAQ
What was the Palm Beach County industrial vacancy rate in Q2 2026?
The Palm Beach County industrial vacancy rate was 8.0% in Q2 2026, a 20-basis-point increase from 7.8% in Q1 2026. Vacancy has risen for four consecutive quarters after holding steady at 6.7% from Q2 2024 through Q2 2025.
What was the average asking rent for Palm Beach County industrial space in Q2 2026?
The average asking rent for Palm Beach County industrial space was $15.32 per square foot in Q2 2026, down $0.55 or 3.5% from $15.87 per square foot in Q1 2026. That marked the second consecutive quarterly decline and the fifth decrease in the past six quarters.
What was Palm Beach County industrial net absorption in Q2 2026?
Palm Beach County recorded negative net absorption of 53,340 square feet in Q2 2026, following negative 38,273 square feet in Q1 2026. It was the second consecutive quarter of occupancy losses after positive 27,460 square feet in Q4 2025.
How much industrial inventory does Palm Beach County have?
Palm Beach County recorded 56,616,200 square feet of industrial inventory in Q2 2026, or approximately 56.6 million square feet, of which 51,751,178 square feet was occupied.
What was the Palm Beach County industrial availability rate in Q2 2026?
The availability rate was 7.1% in Q2 2026, unchanged from Q1 2026. Availability holding flat while vacancy rose suggests the volume of space actively being marketed stayed relatively steady even as physical vacancy increased.
How much new industrial space was delivered in Palm Beach County in Q2 2026?
Developers delivered 45,000 square feet of new industrial space in Q2 2026, compared with no deliveries in Q1 2026, 199,476 square feet in Q4 2025 and 536,593 square feet in Q3 2025.
What was the largest Palm Beach County industrial sale in Q2 2026?
Gateway Center at 1920–1974 High Ridge Rd in Boynton Beach traded as part of an eight-property portfolio sale totaling $195,900,000, or $244.51 per square foot across 801,200 square feet.
Is now a good time to lease industrial space in Palm Beach County?
Rising vacancy and declining asking rents have shifted leverage toward tenants, creating more options and more room to negotiate on rate, term and concessions than in recent years. Conditions vary significantly by submarket and building quality, so tenants should compare total occupancy cost and functionality rather than headline rent alone.
What types of industrial properties are better positioned in Palm Beach County?
Properties with efficient loading, higher clear heights, adequate power, strong transportation access, modern functionality and professional management are better positioned. Older or functionally constrained buildings account for a disproportionate share of current vacancy and may need to compete on pricing and improvements.
Where can I download the full Palm Beach County Industrial Market Report Q2 2026?
The full report is available as a free PDF download from Berger Commercial Realty. Download the Q2 2026 Palm Beach County Industrial Market Report.
Related Market Reports and Resources
- Palm Beach County Industrial Market Report Q1 2026 — the prior quarter’s vacancy, rent and absorption data.
- All Q2 2026 Broward and Palm Beach County market reports — office, industrial and retail across South Florida.
- Commercial real estate brokerage in South Florida
- Commercial property management services
- Search available industrial properties
- Receivership and special asset services
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.
Palm Beach office: 2240 Woolbright Road, Suite 300, Boynton Beach, FL 33426 |
561.613.0900
Data provided by CoStar Group. Prior-quarter figures reflect current CoStar revisions.