CBRE

FIGURES|PALMBEACHINDUSTRIAL|Q42025

ACalmerSupplyEnvironmentPositions

theMarketforStabilityin2026

7.6%

TotalVacancy(Q)

189,318

SFNetAbsorption(Q)

764,989

SFConstruction(Q)

657,396

SFDelivered(Q)

$14.93

NNN/LeaseRate

Note:Arrowsindicatechangefrompreviousquarter.

Markethighlights

?Leasingactivityatyear-endremainedconcentratedinlogistics-orientedsubmarkets,withdemandfavoringnewer,institutional-qualityproductnearairportandturnpikecorridors.Mid-tolarge-bayrequirementsdrovemosttransactions,whileolderandlessfunctionalspaceexperiencedslowerabsorptionandlongermarketingperiods.

?Vacancycontinuedtoriseasnewinventoryenteredthemarket,thoughincreasesweredrivenbyrecentdeliveriesratherthanapullbackintenantdemand.Asavailability

expanded,tenantsbecamemoreselective,prioritizingbuildingefficiency,location,andeconomics,resultinginlongerlease-uptimelinesacrossselectsubmarkets.

?Rentgrowthdeceleratedbutremainedsupportedbylimitedlandavailabilityand

replacementcosts.Competitionamongnewdeliverieshasshiftednegotiationstowardmorebalancedterms,settingthestageforsteadierincomeperformancein2026.

Vacancyrate

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

FIGURE1::HistoricalAbsorption,DeliveriesandVacancy

Squarefeet(inmillions)

2.5

2.0

1.5

1.0

0.5

0.0

20182019202020212022202320242025YTD

NetAbsorption(sq.ft.)Deliveries(sq.ft.)VacancyRate(%)

Source:CBRE.com

1CBRERESEARCH?2025CBRE,INC.

FIGURES|PALMBEACHINDUSTRIAL|Q32025

2CBRERESEARCH?2025CBRE,INC.

Demand&Supply

PalmBeachCountyclosed2025withpositivebutmoderatingindustrialdemand,reflectingayear-endenvironmentmarkedbysteadyleasingactivityandslower

tenantdecision-making.Netabsorptiontotaled189,318squarefeetinQ4,bringingfull-yearabsorptionto385,301squarefeet.Leasingduringthequarterwasdrivenprimarilybynewleaseexecutions,withdemandconcentratedinmid-tolarge-bayrequirements,particularlywithinlogistics-orientedsubmarkets.

NotableQ4transactionsincludeda102,960-square-footleaseatJupiterLogisticsCenter,alongwithcontinuedabsorptionatinstitutionaldevelopmentsinWestPalmBeach,includingPrologisAirportCenterandRoyalPalmLogistics.Tenantdemandremainedstrongestamonglogistics,automotive,aerospace,andspecialty

distributionusers,supportingyear-endactivitydespitelongerdealtimelines.

Supplywasfront-loadedlateintheyear,with657,396squarefeetcompletedinQ4,bringingtotal2025deliveriesto777,381squarefeet.WhileQ4deliverieswere

elevated,annualconstructionvolumesdeclinedmeaningfullyfrom2023and2024levels,indicatingthatdevelopmentactivityhasalreadybeguntotrendlowerasthemarketmovestowardbalance.

Vacancy&Pricing

Vacancycontinuedtoriseasnewinventoryenteredthemarket,closingQ4at7.6%.Theincreasereflectsrecentdeliveriesoutpacingabsorptionratherthana

deteriorationintenantdemand.Vacancygrowthremainedunevenacrossthecounty,withavailabilityconcentratedoutsidethecorelogisticssubmarkets,whileWestPalmBeachmaintainedlowervacancylevelssupportedbysustainedleasingactivity.

Pricingremainedresilientatyear-end,withNNNaskingrentsaveraging$14.93persquarefoot.However,rentgrowthslowedmeaningfullyfrompriorpeaksas

competitionincreasedamongnewlydeliveredprojects.Landlordsareexperiencinglongerlease-uptimelinesandgreaterpricingsensitivity,particularlyforlargerblocksofspace,signalingamorebalancednegotiatingenvironmententering2026.

FIGURE2:AskingRates

AskingRate

$16.0

$14.0

$12.0

$10.0

$8.0

$6.0

$4.0

$2.0

$0.0

AskingRateRentGrowth

20182019202020212022202320242025

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

YOYGrowth

Source:CBRE.com

FIGURE2:UnderConstruction

Squarefeet(inmillions)

2.5

2.0

1.5

1.0

0.5

0.0

20182019202020212022202320242025YTD

Source:CBRE.com

FIGURES|PALMBEACHINDUSTRIAL|Q32025

3CBRERESEARCH?2025CBRE,INC.

FIGURE2:StatisticalSnapshotQ42025

Submarket

TotalInventory

(SF)

TotalVacancy

Rate

(%)

Q42025

Net

Absorption

(SF)

YTDNet

Absorption

(SF)

Under

Construction

(SF)

Q42025

Deliveries(SF)

YTDDeliveries

(SF)

AvgAsking

LeaseRate

($/NNN)

BocaRaton

7,360,416

3.55%

22,188

-83,917

0

0

0

$16.44

BoyntonBeach

4,982,739

11.7%

12,905

6,482

473,991

457,396

457,396

$16.63

DelrayBeach

3,177,711

9.89%

25,221

67,899

200,000

200,000

269,963

$16.60

Jupiter

1,659,179

1.43%

-3,000

2,808

0

0

0

$21.10

LakeWorth

3,875,625

1.05%

9,206

-3,046

0

0

0

$21.54

OutofSubmarket

5,154,632

29.18%

-106,414

99,771

0

0

0

$12.82

RivieraBeach

12,727,664

4.8%

13,787

48,625

0

0

50,022

$18.47

WestPalmBeach

14,733,873

4.94%

215,425

246,679

90,998

0

0

$16.03

Total

53,671,839

75%

189,318

385,301

764,989

657,396

777,381

$14.93

Note:Allfiguresreflectthemostcurrentdataandarerevisedeachquarter.Priorreportsmaynotreflectupdatedstatistics.Allstatedrentsareestimatessubjecttosize,credit,TI,andterm.

FIGURES|PALMBEACHINDUSTRIAL|Q32025

MarketAreaOverview

CBREEconomicHouseView

TheU.S.economyissendingsomemixedsignals.Financialmarketsarefocusedontheupside,particularlyAI’ssizablecontributiontogrowthinrecentquarters.Someindicatorsofbusinessactivity,suchascapitalgoodsorders,areimproving,andstrengtheningcreditmarketsarehelpingtousherrealestateintoanewcycle.

Thepicturegetsmoremelancholywhenlookingathouseholds.Consumerconfidenceremainsweak,withspendingreportedlydrivenbyasmallersegmentofaffluenthouseholds.ThismosaicofdatasuggeststhatannualaverageGDPgrowthwillbesteadyin2026,at2%,butatouchsofterthanin2025.Akeycatalystisasofterlabormarket,ascompaniesare‘slowtohire,slowtofire’—atrendthatislikelytolastafewquarters.Aconsequenceofthisoutlookissofterinflationandlong-termbondyieldstrendingjustbelow4%byH2

2026.

ErikRodriguez

ResearchManager/p>

erik.rodriguez@

MarcL.Miller

AssociateFieldResearchDirector/p>

ler1@

?Copyright2026.Allrightsreserved.Thisreporthasbeenpreparedingoodfaith,basedonCBRE’scurrentanecdotalandevidencebasedviewsofthecommercialrealestatemarket.AlthoughCBREbelievesitsviewsreflectmarketconditionsonthedateofthispresentation,theyaresubjecttosignificantuncertaintiesandcontingencies,manyofwhicharebeyondCBRE’scontrol.Inaddition,manyofCBRE’sviewsareopinionand/orprojectionsbasedonCBRE’ssubjectiveanalysesofcurrentmarketcircumstances.Otherfirmsmayhavedifferentopinions,projectionsandanalyses,andactualmarketconditionsinthefuturemaycauseCBRE’scurrentviewstolaterbeincorrect.CBREhasnoobligationtoupdateitsviewshereinifitsopinions,projections,analysesormarketcircumstanceslaterchange.

CBRE

Nothinginthisreportshouldbeconstruedasanindi