At Scarlett Harper, we specialize in South Florida Commercial Properties, giving us unique insights into emerging market trends. Recently, we’ve identified the Delray Beach retail submarket as a prime opportunity for discerning investors seeking premium returns. The secret behind Delray’s appeal lies in its powerful combination of consistent rental demand, limited supply additions, and strategically located new developments.
Delray Beach’s retail market currently maintains a robust average asking rent of approximately $44 per square foot, with annual growth rates outpacing Palm Beach County overall. Neighborhood centers, strip centers, and general retail spaces have all seen healthy rental increases, bolstered by an affluent local population and consistent tourist traffic. Although recent construction has slightly increased vacancy rates to 4.3%, smart investors view this as a strategic window to reposition and upgrade existing assets to attract higher-caliber tenants.
Significantly, one major new development, Atlantic Crossing, is under construction and expected to add approximately 159,000 square feet of high-quality retail space in a prime location on East Atlantic Avenue. This project symbolizes Delray Beach’s ongoing evolution into a premier retail destination, promising to attract premium tenants and drive further demand for adjacent retail spaces.
Additionally, recent investment activity shows investors’ strong confidence in Delray Beach retail. Over the past year alone, 16 properties totaling roughly 70,000 square feet exchanged hands, commanding impressive valuations. With Delray’s estimated market retail pricing, on the whole, is around $417 per square foot, this market clearly offers attractive returns for investors who strategically target repositioning opportunities, premium locations, and properties with untapped potential.
Delray Beach represents a compelling opportunity where investors can confidently pursue value-add strategies, secure steady income streams, and capitalize on a retail market uniquely positioned for continued growth.