At Scarlett Harper, we specialize in South Florida Commercial Properties, giving us unique insights into emerging market trends. One area frequently overlooked but ripe with opportunity is the Boynton and Lantana retail submarket. With a notably low vacancy rate of just 2.7%, significantly lower than the overall Palm Beach County average, Boynton/Lantana exemplifies resilience and consistent tenant demand. Despite a recent moderation in leasing activity due primarily to limited available space, this submarket maintains strong fundamentals, highlighted by annual net absorption of around 111,000 square feet.
Investors should closely observe the dynamics of the area’s diverse retail inventory, spanning neighborhood centers, power centers, strip malls, and general retail spaces. Neighborhood centers represent nearly half of the total retail inventory, and power centers have particularly strong demand, boasting vacancy rates as low as 2.5%. Furthermore, new construction in Boynton and Lantana remains strategically limited, ensuring existing retail assets continue to command robust demand and stable occupancy rates.
Boynton/Lantana’s rental market demonstrates attractive and steady rental growth, with current average asking rents reaching about $36 per square foot, supported by a consistent influx of affluent residents and tourism-driven consumer spending. This steady upward trajectory indicates ongoing opportunities for rent escalation, especially in assets with high-quality tenant mixes or repositioning potential. Investors who proactively acquire and reposition properties in key locations can anticipate exceptional income stability and attractive long-term asset appreciation.
Recent sales activity underscores investor confidence, with transactions over the past year totaling $256 million, significantly above the submarket’s five-year annual average. Strategic acquisitions such as the recent $49 million sale of Boynton Beach Marketplace demonstrate strong investor appetite for well-positioned, necessity-based retail centers. This robust market activity combined with still-attractive cap rates averaging around 6.2% creates an appealing investment climate for those looking to capture upside in a tight and competitive retail landscape.