At Scarlett Harper, we specialize in South Florida Commercial Properties, giving us unique insights into emerging market trends. When investors consider Palm Beach County’s retail sector, two neighboring markets often stand out: Delray Beach and Boynton/Lantana. Both markets offer compelling fundamentals, yet they present distinct opportunities and nuances that savvy investors must understand to maximize returns.
Delray Beach has long enjoyed a reputation as a premium retail destination, characterized by higher rents averaging approximately $44 per square foot and a relatively stable vacancy rate of around 4.3%. This market has seen recent investments in upscale developments like Atlantic Crossing, underscoring strong investor confidence and the area’s continued growth as a high-end consumer hub. However, Delray’s retail landscape can demand a higher entry cost, reflective of its prestige and significant investor demand.
In contrast, Boynton/Lantana provides a similarly attractive yet slightly more affordable investment proposition. With average rents around $36 per square foot and remarkably low vacancies near 2.7%, Boynton/Lantana offers investors stable income streams coupled with substantial upside potential through value-add opportunities. Recent transactions, such as the Boynton Beach Marketplace at approximately $49 million, demonstrate both robust demand and room for rent growth and asset repositioning. Investors targeting strategic enhancements to properties can expect meaningful upside here.
In assessing these markets, investors should weigh their risk appetite and investment strategies. Delray Beach provides immediate prestige, steady rental growth, and solid asset appreciation, ideal for those seeking lower-risk, core-plus investments. Meanwhile, Boynton/Lantana offers compelling opportunities for higher yields and strategic repositioning, attracting value-add investors seeking more substantial returns. By understanding the unique dynamics and positioning of each market, investors can better align their strategies for optimal performance.